magooollo Award for exceptional contribution OM Media Mailman member is online
Joined: May 2007 Posts: 4,577 Karma: 40
Re: Mortgage Meltdown « Reply #1 on Dec 15, 2007, 10:19am »
actually murnut you have a point, however several things could fix fairly easily ( ive got a deep economic background myself) china solving the trade imbalances + the middle east countries reinvesting their funds into countries with high debt levels.
China has made good moves ie encouraging external investment, raising banking cash to loan ratios to reduce amount of cash in circulation. The EU could free up its trade policies and invest in africa and latin america more. Russia could encourage more high tech industry and lessen its dependance on oil
This and other steps could reduce the risk plus the recent move by various federal reserve banks US, canada, Europe and switzaland plus moves by asian banks to increase capital should stablise things in the short term
Not quite time for ufo related disclosure in relation to a global meltdown
Civilized men are more discourteous than savages because they know they can be impolite without having their skulls split, as a general thing. - Conan in The Tower of The Elephant (1933)
Joined: May 2007 Gender: Male Posts: 7,544 Location: CheeseSteakville Karma: 103
Re: Mortgage Meltdown « Reply #3 on Dec 15, 2007, 8:56pm »
Quote:
A candidate calling for government fiscal responsibility? Shades of Ross Perot.
Congrats bro! I am sure the Mod cap fits just fine
All I am saying is that he has correctly identified the problem, and the problem that created the mortgage mess is the Federal Reserve, just like they caused the stock market crash in 1929.
There really is enough blame to go around, but it started with the Federal Reserve.
CaliKid Global Moderator Award for Long Standing Devotion To Service member is offline
OOPArts
Joined: Sept 2006 Gender: Male Posts: 1,266 Location: Sunny California Karma: 25
Re: Mortgage Meltdown « Reply #4 on Dec 15, 2007, 10:44pm »
Quote:
Quote:
A candidate calling for government fiscal responsibility? Shades of Ross Perot.
Congrats bro! I am sure the Mod cap fits just fine
Thanks, just trying to help out around here.
Quote:
All I am saying is that he has correctly identified the problem, and the problem that created the mortgage mess is the Federal Reserve, just like they caused the stock market crash in 1929.
There really is enough blame to go around, but it started with the Federal Reserve.
Not a negative comment. I liked Ross Perot. I think Perot's message forced Clinton to maintain fiscal responsibility throughout his presidency (moves toward a balanced budget, etc). IMO, a positive economic move.
Also IMO, the Fed might be part of the problem, but the issues are bigger than a single agency. Although I have to agree it's not a bad place to start!
Civilized men are more discourteous than savages because they know they can be impolite without having their skulls split, as a general thing. - Conan in The Tower of The Elephant (1933)
Joined: Aug 2007 Gender: Male Posts: 1,759 Karma: 47
Re: Mortgage Meltdown « Reply #5 on Dec 15, 2007, 11:54pm »
Yo Mur~ what's the facts behind all of this? I watched the video and the host is quite excitable. Getting past that, what's becoming of all these folks loosing their homes? I've actually heard people say they deserve it....? I have not purchased a home in some time so don't really pay attention to the current loans...
Ross Perot for pres! Indeed. Or in the current moment the rightful Pres Mr. Al Gore!
Joined: May 2007 Gender: Male Posts: 7,544 Location: CheeseSteakville Karma: 103
Re: Mortgage Meltdown « Reply #6 on Dec 16, 2007, 5:00am »
Quote:
Also IMO, the Fed might be part of the problem, but the issues are bigger than a single agency. Although I have to agree it's not a bad place to start!
For the record, The Federal Reserve is not part of the govt.
They have no, I repeat, no oversight what so ever.
They made the money super cheap, wall street pushed it, banks lent it at crazy terms(For instance no income verified down to credit scores of 500)...fed raises rates, wall street forces lenders to buy back loans bankrupting the lenders, icing housing market which is in total collapse. Now people who need to refi out of the ARM mortgages cant because they owe more on the house than the house is worth. These people will walk from these houses happily, further driving down the value of Real Estate.
Major banks in the USA are failing, except what you don't see is these banks are being bought out by foreign investors. The dollar is so cheap, and these banks are in real trouble.
Unfortunately, this is just starting.....the worst is yet to come.
If you don't learn from the past ... If the mortgage crisis and housing bubble have taught us one thing, it should be to watch out for the unintended consequences of greed. Unfortunately, our nation's legislators and political appointees haven't learned that lesson. Recent plans for housing and mortgage bailouts generally run from dumb to dumber. Today, The Wall Street Journal reported on yet another scheme, reportedly being spearheaded by Treasury Secretary Hank Paulson. It's an idea so naively populist and antimarket that you would think it came from Hugo Chavez, Evo Morales, or Mahmoud Ahmadinejad, if not for its cringe-inducing, Beltway-wonk moniker: the Hope Now Alliance.
In short, bankers and loan-servicing outfits are going to lower interest rates on strapped borrowers so they don't lose their houses. How much, how long, and who qualifies are all still up in the air. No doubt, this will sound good to those folks who signed on for mortgages they can't actually afford. It will also look good to politicians angling to score points before the next election, and to bleeding hearts everywhere. It will also look good to select mortgage-industry players -- like Countrywide Financial (NYSE: CFC) and Citigroup (NYSE: C), which could really use a government-led bailout.
Unfortunately, this ill-conceived salve will ultimately punish the silent majority of Americans, people who didn't go out and make boneheaded financial decisions over the past half-decade. Let's take a look at why.
A history of the housing Ponzi scheme Since 2001, too-cheap financing pumped up housing prices to ridiculous levels. This was enabled by speculative lending from Wall Street to Main Street: Big banks like Goldman Sachs (NYSE: GS), Bear Stearns (NYSE: BSC) and others were providing the lending capital to outfits like death-watch candidate Countrywide, mostly dead NovaStar Financial and Impac Mortgage Holdings, along with dozens of completely dead lenders. They did this by purchasing mortgage loans from these lenders so that they could chop them into mortgage-backed securities of dizzying complexity and dubious credit quality, which were, in turn, sold to suckers ... er, "investors" all over the world.
This provided a musical-chairs-like situation in which lenders produced as much volume as they could, no matter how bad the loans or credit risk, because they got paid to pass that risk along, through Wall Street's Wise bankers, to whatever "investor" ended up with the loans, in the form of stuff called MBS, CDOs, CDO-squared, R2D2, and so on. There was a flood of money to the lenders, which stimulated excessive demand, in turn stimulating excessive price appreciation. (You will note that there was no Paulson-led "Hope Now Alliance" coming together at that point to try and rein in this dangerous orgy of greed, though the consequences were plain to anyone who bothered to examine it.)
Greedy flippers and naive homebuyers resorted to gimmicky loans, like interest-only and "option" adjustable-rate mortgages, because it was the only way they could pay inflated prices for the properties they wanted. They got a few years of artificially low payments, thanks to artificially low teaser rates. The catch was that when the loans reset after a few years, they'd jump up several points, to 9%, 10%, 11%.
This may not sound like a big deal, until you run the math on the payments to see that many people would be facing twice the mortgage bill they were used to. Now that those mortgages are resetting and home prices are dropping like rocks, they can't make their payments, and they can't flip the houses for a profit, so loans are defaulting. The fancy securities -- what I call Wall Street dog food -- have become nearly worthless, and the music has stopped, without any chairs for anyone. Ironically, stupid, leveraged bets on these lousy securities have crippled the banks themselves, and CEOs and other execs have been getting the boot at places like Citigroup, Merrill Lynch (NYSE: MER), and Morgan Stanley (NYSE: MS).
Hank to the rescue! Hank Paulson's latest plan to protect homebuyers from their own mistakes is simple: Lenders extend those teaser rates for a few years. It's a win-win, right? What's the harm, especially when there's no bill to pay? You just reset those interest rates to low levels, and everything will be fine, right? Who could be against a policy that would keep Americans in their homes? One negotiated with the private sector itself?
This Fool, for one.
Making the credit crunch crunchier Remember, the only reason those teaser-rate loans were made in the first place was because lenders (and thus the investors buying the mortgages from the lenders) could count on a much larger, contractually guaranteed payoff in the future, when those interest rates were due to reset. Take away that payoff, and you take away any incentive to loan to borrowers of marginal credit quality. Usher in an era when government and banks reset loan rates at their whim, and you can be sure that investors will never again buy securities based on adjustable-rate mortgages.
If you think credit is tight now, just wait until you yank away potential returns from the people putting up the capital for all those loans.
And let's not forget that Paulson's plan introduces an incredible moral hazard. By rescuing greedy and naive borrowers from their mistakes, our government encourages others to take big, stupid, bankruptcy-inducing risks, secure in the knowledge that the government will bail them out when times get rough. That means trillions of dollars in capital will be ill-invested yet again, something that's much less likely to happen when speculators are made to suffer the consequences of their behavior.
No free lunches Here's another problem. Someone is going to have to foot the bill for this. Banks and associated entities that will, over the short term, finance this homeowner bailout are not going to do it out of the goodness of their hearts. Reported Hope Now Alliance honchos such as Countrywide and Citigroup (NYSE: C) are, I'm certain, only doing this because they hope it will be cheaper than having to pay up for their lending sins all at once. Moreover, it gives them a chance to look like good guys who care about the commoners -- never mind that they were quite happy to fleece borrowers with gawd-awful mortgage "affordability products" for years.
Still, this will sting some of these banks and mortgage servicers, so you can bet they're going to pass along the costs. They're going to do it by firing employees. (Countrywide and Citigroup are already doing that.) They're going to do it by moving offices to offshore tax havens, outsourcing, closing branches, lowering deposit rates, hiking fees, and whatever else it takes. (Golden parachutes for Wall Street failures are pricey.)
Worst of all, they're going to do it by soaking future borrowers -- people like the majority of us, who didn't do something stupid -- with higher rates than we would have otherwise paid for mortgage loans, credit cards, and commercial loans. They'll have to. They've got their own lenders to pay, and those lenders aren't going to simply hand over-stretched Americans a pile of money.
Foolish final thought There's another reason that Paulson's latest plan will punish the public. It will have the effect of artificially supporting a home-price bubble that desperately needs a correction. Historical rent-to-purchase data show just how far home prices need to come down in order to return to mean. That requires a painful drop, and it will happen sooner or later.
Paulson's plan means fewer homes dumped back on the market at lower prices, where they belong. Now that he's a politician and not the CEO of Goldman Sachs, Paulson apparently believes that the market shouldn't be allowed to correct on its own. He's wrong about that, and he's wrong to support any plan that will only delay the inevitable. Better the quick, painful correction than the decades-long, slow bleed that he's nurturing now. For evidence of how ugly things get when policymakers try to coddle the financial industry rather than let the market apply its harsher, faster, medicines, just take a look at how long the banking mess continued in Japan.
Of course, a decade from now, if the economy is still suffering because of an ill-conceived housing bailout plan designed to win favor with the public and cover the economic hind-end of his boss, George Bush, Paulson won't have to issue any gomen nasai. He'll already be long gone, retired to his millions.
Joined: May 2007 Gender: Male Posts: 7,544 Location: CheeseSteakville Karma: 103
Re: Mortgage Meltdown « Reply #9 on Dec 16, 2007, 5:08am »
December 12, 2007 Market Place Bankers Face Grim Truth: Worst Is Yet to Come By MICHAEL J. de la MERCED AS the credit crisis sweeps wildly through Wall Street, major investment banks face a grim truth about their already-slumping profits: the worst is yet to come.
Beginning with Lehman Brothers on Thursday, major investment banks and securities firms will begin reporting what are likely to be their weakest quarterly earnings in years.
The results will show how hard the recent turmoil in the financial markets continues to hit the even the mightiest Wall Street banks, and could cast doubt over the future of several chief executives. Multibillion-dollar write-offs have already prompted Merrill Lynch and Citigroup to replace their chief executives.
Some Wall Street stock analysts — many of whom rarely say sell — in recent weeks have turned bearish on their own industry. One analyst after another has cut earnings estimates for Wall Street banks, citing continued concern about the widening mortgage crisis. Some have placed sell recommendations on the shares of Bear Stearns, Citigroup and Morgan Stanley.
Lehman on Thursday is likely to report that net income fell 16 percent in its fiscal fourth quarter from the year-earlier period. In a research report last week, Michael Hecht, an analyst at Bank of America, lowered his estimate of earnings to $1.32 a share from $1.52.
“While we don’t expect any of the mega markdowns we have been seeing from a number of Lehman’s peers, we don’t expect them to slide by unharmed either,” Mr. Hecht wrote in a note to investors.
Bear Stearns and Morgan Stanley, both of which report results next week, are likely to sink into the red, however. Morgan Stanley is expected to report a quarterly loss of 38 cents a share, according to analysts surveyed by Bloomberg. Bear Stearns is expected to report a loss of $1.75 a share. Some analysts and money managers have called into question the tenures of James E. Cayne at Bear Stearns and John J. Mack at Morgan Stanley after both firms announced billions of dollars in write-downs.
Even Goldman Sachs, which has avoided the large write-downs on subprime-related investments that have harmed many of its rivals, is likely to disclose a drop in profit. Goldman reported a 79 percent surge in third-quarter earnings because of an aggressive bet against subprime mortgages. Its chief executive, Lloyd C. Blankfein, said at the time that he did not expect to announce a write-down in those assets’ values.
Even so, Goldman is unlikely to be immune to continued weakness in the mortgage trading environment. Guy Moszkowski, an analyst at Merrill, cut his 2008 earnings estimate for the firm last week and downgraded his rating on Goldman stock to neutral. Mr. Mozkowski also cut his earnings estimates for Bear, Lehman and Citigroup.
Michael Mayo of Deutsche Bank similarly lowered his fourth-quarter profit estimates for Goldman and Lehman on Dec. 3. “The main issue is a very difficult fixed-income market in November, possibly one of the worst in years,” Mr. Mayo wrote in a research note.
His sentiments were echoed by Prashant Bhatia of Citigroup and Roger A. Freeman of Lehman. Mr. Bhatia predicted that Merrill would write down an additional $4.5 billion and lowered his fourth-quarter forecasts for Merrill, Goldman, Morgan Stanley and Lehman. Mr. Freeman cut his estimates of investment banks’ 2008 earnings, citing November’s market turmoil.
Merrill Lynch and the nation’s three biggest banks, Bank of America, Citigroup and JPMorgan Chase, will report their final results for 2007 in January.
Home World U.S. N.Y. / Region Business Technology Science Health Sports Opinion Arts Style Travel Jobs Real Estate Automobiles Back to Top Copyright 2007 The New York Times Company Privacy Policy Search Corrections RSS First Look Help Contact Us Work for Us Site Map
Joined: May 2007 Gender: Male Posts: 7,544 Location: CheeseSteakville Karma: 103
Re: Mortgage Meltdown « Reply #11 on Dec 16, 2007, 5:15am »
Mortgage Insider Newsletter
What We're Hearing
By Paul Muolo
If Fannie Mae and Freddie Mac keep raising their ‘g-fees’ they might just tick lenders off, sending them into the warm and loving arms of Wall Street firms that are sitting around like Maytag repairmen, waiting for non-prime loans to come wafting through to their trading desks. That's the opinion of Office of Federal Housing Enterprise Oversight director James Lockhart. Okay, that's not exactly what he said this past week at the American Enterprise Institute but it was in the ballpark. Mr. Lockhart noted that if agency g-fees “get out of line” loans instead might find their way to the Wall Street conduits. Of course, if these ‘loans’ are non-prime in nature and Merrill Lynch, for example, wants to securitize them, they will need to create ‘BBB’ pieces for credit enhancement, which I'm sure they will have no trouble selling to foreign investors or shoving into CDOs...
Bear Stearns, we're told, has a new mortgage-related project cooking. We're not sure what it is but one mortgage manager recently got a call about it. Then again, Bear just recently trimmed 650-plus jobs, 100 or so at its mortgage unit, including positions at its Irvine office...
Has anyone noticed that Goldman Sachs is quietly bulking up its presence in the non-prime space? Not only did it recently buy subprime ‘specialty’ servicer Litton Loan Servicing from C-BASS, but it owns Senderra Funding and a small prime servicing shop called Avelo. During the ‘go-go’ subprime years of 2004 – 2006 Goldman was a buyer of loans but unlike some Wall Street firms, did not go hog wild. It carefully looked at buying a subprime lender but either didn't like the asking price or had the foresight to see the train wreck that began in earnest this summer. Smart move on Goldman's part. Does its investment in Litton mean the non-prime market has hit a bottom?
As we all know, subprime volumes plunged by 75% or so in the third quarter, according to National Mortgage News and the Quarterly Data Report. According to the newly published Alternative Products QDR, alt-A production fell by 50% in the quarter. To see the rankings see the Monday edition of NMN or order the AP-QDR by emailing Deartra.Todd @ SourceMedia.com. (To subscribe to NMN call: 800 221-1809)...
CDOs, CDOs, CDOs. That's all we hear about these days in regard to the subprime crisis. The media can't write about failing subprime lenders anymore because most of them have failed or merged out of existence. That leaves CDOs or collateralized debt obligations. What's a CDO? Well, it's a bond that includes other bonds or as one former managing director put it: "It's a securitization of a securitization." The MD also told us that C-BASS was an early innovator of mortgage CDOs. One basic question being asked is this: did the end investors in these CDOs have any clue to what they were buying in regard to subprime-related CDOs? I've heard it both ways. You tell me. Send an email to: Paul.Muolo @ SourceMedia.com
Bank of America said recently that its CDO/subprime writedowns will exceed the $3 billion figure that it estimated on November 13. BoA, of course, was not a subprime lender. (It tossed its subprime unit overboard seven, eight years ago.) But it was a CDO issuer and investor... murnut comment: Lost 3b and they were not in subprime? Does not bode well for Countrywide
A few important anniversaries: It was a year ago that Bill Dallas closed Ownit Mortgage after it could not come to terms with Merrill Lynch over loan buybacks. Ownit was a subprime wholesaler. Bill still owns a mortgage brokerage firm in California. And it was over a year ago that Amy Brandt left WMC Mortgage, General Electric's subprime shop. GE recently closed WMC. Even though GE got its head handed to it in subprime, it continues to fund such loans overseas...
Here's a question that nobody has asked the government (and Housing Secretary Alphonso Jackson) lately: whatever happened to efforts to reform the Real Estate Settlement and Procedures Act (RESPA)? I would guess, HUD's role in trying to help the White House understand the mortgage subprime ARM 'reset crisis' has swamped all the attorneys, wonks and bean counters down on 7th Street S.W....
Alan Greenspan, the former Federal Reserve chairman, has found the roots of the current ‘liquidity’ crisis (which is really the subprime crisis but with a different name). In an recent op-ed piece Mr. Greenspan – once a big fan of ARMs – wrote: “The root of the current crisis, as I see it, lies back in the aftermath of the Cold War, when the economic ruin of the Soviet Bloc was exposed with the fall of the Berlin Wall.” Huh? murnut comment: Huh?
Friedman Billings Ramsey, in a new research report, questions whether Washington Mutual will need to tap even more equity than the $2.5 billion it plans to raise through a preferred offering. FBR writes: "Given WM's exposure to $58B of pay-option ARMs, $62B of HELOCs, $20B of subprime mortgages and $40B of managed credit card receivables, we believe the current capital raise will be insufficient to get through the next few quarters, and we expect further capital raises in coming months." (B = billions.) WaMu is forecasting just $1.5 trillion in residential production next year. In 2007 the industry likely will wind up funding about $2.5 trillion, according to the Quarterly Data Report... murnut comment: Wamu, dead man walking
QUESTION: If Ameriquest were still alive and thriving (which it's not, obviously), would it have been the sole sponsor of Led Zeppelin's reunion concert in London this past week? In years past Roland Arnall's Ameriquest sponsored concerts by the Rolling Stones and (Sir) Paul McCartney. I never could figure out why they didn't back a Monkees reunion... murnut comment:Black Sabbath would have been my choice
WASHINGTON NEWS: The Senate on Thursday passed legislation to reform and modernize the Federal Housing Administration. The House passed its version of the bill in September. The Senate bill allows downpayments of 1.5% and for FHA to insure loans up to $417,000, which is the Fannie/Freddie limit. Stay tuned for news about a House/Senate conference on the bill.
Search Foreclosure Warfare - “It is troubling that the plaintiff has filed this case before it had any interest in it”
13 Dec
Posted by Moe as Foreclosure Fighters, Law, Mortgage Law, News
By Moe Bedard & Aaron Krowne
“It is troubling that the plaintiff has filed this case before it had any interest in it,” Hamilton County Common Pleas Judge Steven E. Martin said in a letter to Wells Fargo’s lawyer.
The judge said the foreclosure lawsuit was filed before Wells Fargo owned the mortgage - thus, the suit was premature.
Martin then ordered the Wells Fargo law firm, The Law Offices of John D. Clunk, that the law firm must file proof that its clients actually own the mortgages before filing any new foreclosure actions in Hamilton County. That firm is based in Hudson, Ohio and is the third largest filers of foreclosure actions in Hamilton County, with 48 properties scheduled for the foreclosure auction block in the next six weeks.
The foreclosure warfare has begun and this ruling is the first of its kind by a state court judge in Ohio since the foreclosure debacle started. Ohio has one of the highest foreclosure rates in the country and just recently Ohio Governor Ted Strickland created the “Ohio Foreclosure Prevention Task Force” to combat the foreclosure crisis.
In Ohio, the worst state in the nation by foreclosures, 3.7% of all loans were in foreclosure by the end of the third quarter, up from 3.6% in the second quarter, according to a Mortgage Bankers Association survey. The number of new foreclosures in Ohio rose by about 20% in the same period.
Judge Matin’s ruling could have severe implications on how foreclosures are handled in Ohio and in particular how servicers file future cases. This comes after several recent local rulings from three federal court judges that we had reported on last month. The judges in the earlier rulings came from Cleveland, Dayton and Columbus. All had issued similar opinions in foreclosure cases in the last month that caused a media feeding frenzy.
* Deutsche Bank Foreclosures Tossed Out of Ohio Federal Court - “They Own Nothing!” - Judge Christopher A. Boyko of the Eastern Ohio United States District Court, on October 31, 2007 dismissed 14 Deutsche Bank-filed foreclosures in a ruling based on lack of standing for not owning/holding the mortgage loan at the time the lawsuits were filed. * The Judicial Integrity of the United States Court is “Priceless” – 27 More Foreclosures Dismissed - In a decision piggy-backing on Judge Boyko’s recent Deutsche Bank ruling (announced on this site Tuesday), Judge Rose has thrown out another batch of foreclosures, making the following summary remarks:
“This court is well aware that entities who hold valid notes are entitled to receive timely payments in accordance with the notes. And, if they do not receive timely payments, the entities have the right to seek foreclosure on the accompanying mortgages.
However, with regard the enforcement of standing and other jurisdictional requirements pertaining to foreclosure actions, this court is in full agreement with Judge Christopher A Boyko for the Northern District of Ohio who recently stressed, ‘That the judicial integrity of the United States District Court is ‘Priceless.’”
* In one opinion, a federal judge in Cleveland sought to reverse what he called “a quasi-monopolistic system where financial institutions have traditionally controlled, and still control, the foreclosure process.”
Attorney General Marc Dann has seized the opportunity to flex is law muscles and is using that decision in an effort to slow foreclosure filings throughout the state by filing motions last week in seven Hamilton County cases and several more in Butler, Montgomery, Franklin and Delaware counties.
Dann is insisting that judges scrutinize each foreclosure case.
The Wall Street Journal reported today;
In Ohio, 31 motions have been filed in cases in five Ohio counties since last month, and more will be filed soon, a spokeswoman for Attorney General Marc Dann said. The motions argue that the plaintiffs, often banks that act as trustees for investors of securities backed by mortgages in the cases, don’t actually hold the promissory note and mortgage, and so don’t have a right to foreclose. The situation occurs in part because mortgage documents and the contracts between borrowers and lenders may change hands multiple times and may not be assigned to the plaintiffs at the time the suits are filed.[/color]
Lately, some Ohio state judges have ruled against banks for filing suits without showing proof that they hold the mortgage. Mr. Dann’s motions urge judges to review foreclosure filings in their courts and, as warranted, dismiss actions on the same grounds. Short of that, he encourages judges to order mediation so that “parties can negotiate a workout agreement, thereby resolving their dispute without resort to foreclosure.”
The issue is known as the “real party in interest“ rule, which says that a plaintiff must prove that it has a stake in a lawsuit in order to file it;
“Every action shall be prosecuted in the name of the real party in interest. A personal representative, guardian, bailee, trustee of an express trust, a party with whom or in whose name a contract has been made for the benefit of another, or a party authorized by statute may sue in that person’s own name without joining the party for whose benefit the action is brought; and when a statute of the state of Ohio so provides, an action for the use or benefit of another shall be brought in the name of the state of Ohio. No action shall be dismissed on the ground that it is not prosecuted in the name of the real party in interest until a reasonable time has been allowed after objection for ratification of commencement of the action by, or joinder or substitution of, the real party in interest; and such ratification, joinder, or substitution shall have the same effect as if the action had been commenced in the name of the real party in interest.”
From Cincinnati The Enquirer;
Many lawyers and experts are unclear how far-reaching the effect of the recent landmark orders will be. But a recent analysis by University of Iowa law professor Katherine M. Porter found that 40 percent of the 1,733 foreclosures she studied did not contain proof that the plaintiff owned the mortgage.
Kevin R. Flynn, a lawyer who teaches real estate law at the University of Cincinnati College of Law, said, “If I were a defendant in a foreclosure action, that’s the first thing I’d raise.”
Though the banks might be guilty of taking shortcuts, in most cases, it’s not hard to prove that they own the mortgage, he said.
The Ohio Attorney General has now put this same issue before a number of other judges.
“We’re hoping that judges will stop and take a closer look at these pleadings,” said Nadine Ballard, the chief of the attorney general’s Consumer Protection Section.
The issue is more than just a technicality, she said. Some of the same financial institutions rushing to the courthouse to seize mortgaged property are also claiming that they don’t own those abandoned buildings when served with a tax bill or building-code violations.
“They can’t have it both ways here,” Ballard said.
Joined: May 2007 Gender: Male Posts: 7,544 Location: CheeseSteakville Karma: 103
Re: Mortgage Meltdown « Reply #14 on Dec 16, 2007, 5:24am »
Quote:
Yo Mur~ what's the facts behind all of this? I watched the video and the host is quite excitable. Getting past that, what's becoming of all these folks loosing their homes? I've actually heard people say they deserve it....? I have not purchased a home in some time so don't really pay attention to the current loans...
Ross Perot for pres! Indeed. Or in the current moment the rightful Pres Mr. Al Gore!
OMF Books and DVD's - CLICK HERE
![[Home]](http://s1.images.proboards.com/menu/home.gif)
![[Help]](http://s1.images.proboards.com/menu/help.gif)
![[Search]](http://s1.images.proboards.com/menu/search.gif)
![[Login]](http://s1.images.proboards.com/menu/login.gif)
![[Register]](http://s1.images.proboards.com/menu/register.gif)
![[Search This Thread]](http://s1.images.proboards.com/search2.gif)
![[Send Topic To Friend]](http://s1.images.proboards.com/buttons/sendtopic.gif)
![[Print]](http://s1.images.proboards.com/buttons/print.gif)
Author![[avatar]](http://i265.photobucket.com/albums/ii218/murnut/surfround.jpg)
Logged
![[avatar]](http://i61.photobucket.com/albums/h56/zllz_most_wanted_zllz/ancient_aircraft1.jpg)
![[avatar]](http://www.mariasphoto.com/wp-content/uploads/2008/02/aurora-borealis-6.jpg)
