Tuesday, December 07, 2010

THIS is what I'm worried about

Home owner refinances with a different lender, paying off their old loan, but their old mortgage is tied up in a security after it's paid off and now the servicer for the now non-existent loan (Bank of America) is foreclosing.

There's noise out there about getting a 'free' house not just a free house over the course of say, a year and a half to two years, but one stuck in legal limbo forever because the paper work concerning it is gone.

My fear is the flip side. I have a hope of one day paying off my house (to, ugh, Bank of America), but what if I sign over the last check and never hear from them because, as well, the paperwork is gone. BAC gets a crap load of money from me and I get...nothing. How do I call them out now? I'm sure if I call them they'll assure me that everything is on the up and up, but since 90% of their mortgages were 'securitized' I seriously doubt it. In fact I fear that I'm making a suckers bet. Renters are on the high side of this experiment while owners face a future of dubious legal ownership and possible liens on their property from the creditors to the bankrupt municipalities in which they live.

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