It's Almost Halloween
October 21, 2010
It is almost Halloween when the goblins come out and the ghosts yell "boo". A few decades back, we had a very popular song entitled "The Monster Mash". It was a catch tune and it was fun to sing. This season we have the "Mortgage Mess" and perhaps "The Foreclosure Follies".
I do not mean to make light of the media headlines about the mess that housing financing has become. It is truly scary to learn of the "spider web" of securitized loans. The neat system of recording and knowing who actually held the promissory note has seemingly been replaced by servicers and investors who are finding it difficult to unscramble ownership and to take seriously the government regulations such as HAMP and HAFA.
As I stated in an earlier post, California typically does not use judicial foreclosures, so the mortgage mess that is being reported in the news media, is not the issue here. What is the issue everywhere is that folks have ceased to make their loan payments and lenders are trying to unwind the web of parceled out ownership of loans.
My hope is that a solution to the seeming lack of a paper trail can be found and that investors will work with servicers and with defaulting homeowners to complete loan modifications, short sales and, as necessary, foreclosures. That would be the best "treat" this Halloween season.
It is almost Halloween when the goblins come out and the ghosts yell "boo". A few decades back, we had a very popular song entitled "The Monster Mash". It was a catch tune and it was fun to sing. This season we have the "Mortgage Mess" and perhaps "The Foreclosure Follies".
I do not mean to make light of the media headlines about the mess that housing financing has become. It is truly scary to learn of the "spider web" of securitized loans. The neat system of recording and knowing who actually held the promissory note has seemingly been replaced by servicers and investors who are finding it difficult to unscramble ownership and to take seriously the government regulations such as HAMP and HAFA.
As I stated in an earlier post, California typically does not use judicial foreclosures, so the mortgage mess that is being reported in the news media, is not the issue here. What is the issue everywhere is that folks have ceased to make their loan payments and lenders are trying to unwind the web of parceled out ownership of loans.
My hope is that a solution to the seeming lack of a paper trail can be found and that investors will work with servicers and with defaulting homeowners to complete loan modifications, short sales and, as necessary, foreclosures. That would be the best "treat" this Halloween season.
posted by shirley harry at 8:29 AM
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