The Question Of 2010
December 28, 2010
As the year 2010 unfolded, the question that really needed to be answered was:
Who really controls the ownership of this property? Perhaps this seems a silly question since one can pull up the property address and the Assessor's records will show the name of the owner - the person on the records listed as title holder. What we discovered was that neither the name listed on title, nor the lender listed as the mortgagor really controlled the ownership of the property. The controlling party was probably some investor/s who bought the Mortgage Backed Securities (MBS).
The issue of ownership came to the fore when the borrower stopped making payments on the loan. Payments generally are paid to a loan servicing company that collected the monies and kept the accounting, but did not actually own the mortgage. These servicers can file the Notice of Default and begin the foreclosure process, but somewhere in the process, the holder of the note must also act. This created a great deal of confusion about who had the authority - particularly in the case of short sales. The holder of the note could actually be in Europe or Asia or perhaps a group of folks jointly.
Hence, we hope that the question of authority and ownership gets answered in 2011 and that this will make short sales happen in a timely matter. Until a chain of title can be restored, we may still have to suffer through inordinate delays in the sale of real property. Think about it - Securities - have you ever seen a chain of title for the stocks that you have bought and sold?
As the year 2010 unfolded, the question that really needed to be answered was:
Who really controls the ownership of this property? Perhaps this seems a silly question since one can pull up the property address and the Assessor's records will show the name of the owner - the person on the records listed as title holder. What we discovered was that neither the name listed on title, nor the lender listed as the mortgagor really controlled the ownership of the property. The controlling party was probably some investor/s who bought the Mortgage Backed Securities (MBS).
The issue of ownership came to the fore when the borrower stopped making payments on the loan. Payments generally are paid to a loan servicing company that collected the monies and kept the accounting, but did not actually own the mortgage. These servicers can file the Notice of Default and begin the foreclosure process, but somewhere in the process, the holder of the note must also act. This created a great deal of confusion about who had the authority - particularly in the case of short sales. The holder of the note could actually be in Europe or Asia or perhaps a group of folks jointly.
Hence, we hope that the question of authority and ownership gets answered in 2011 and that this will make short sales happen in a timely matter. Until a chain of title can be restored, we may still have to suffer through inordinate delays in the sale of real property. Think about it - Securities - have you ever seen a chain of title for the stocks that you have bought and sold?
posted by shirley harry at 7:57 AM
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