41 people in 4 states charged in mortgage fraud

if i have the original deed in hand with the original stamp ,can a company get a dupli cate deed and fore close on property by saying the deed was lost but yet that deed was never in there hands ,even though this company claim they came into the property by a loan was made after the property was paid of ,this company was not the lender on the property?

If you are in or near foreclosure, you should possibly consult a real estate attorney using the following information.

BACKGROUND

Mortgage-backed securities (MBSs) are simply shares of a home loan sold to investors. They work like this: A bank lends a borrower the money to buy a house and collects monthly payments on the loan. This loan and a number of others are sold to a larger bank that packages the loans together into a mortgage-backed security. The larger bank then issues shares of this security, called tranches ( slices), to investors who buy them and ultimately collect the dividends in the form of the monthly mortgage payments. These tranches can be further repackaged and sold again as other securities, called collateralized debt obligations (CDOs). Home loans were so divided and spread across the financial spectrum, it was possible a given homeowner could unwittingly own shares in their own mortgage.

Eventually, the most desirable, qualified customers dried up; they all had homes. So banks turned to less desirable customers that they had traditionally shunned -- subprime borrowers. These are borrowers with low credit ratings who pose a higher risk of defaulting on their loan. But all types of lenders bent over backwards in the early 2000s to get this type of borrower into homes. The no-document loan was created, a type of loan for which the lender did not ask for any documentation and the borrower did not offer any information. People who may have been unemployed may have received loans for hundreds of thousands of dollars.

One answer is that, with the introduction of MBSs, lenders no longer assumed the risk of a loan default. They simply issued the loan and promptly sold it to others who ultimately took the risk if payments stopped. And since early MBSs performed well based on mortgages granted to the more dependable prime borrowers, investors clamored for more. In response, lenders loosened their restrictions for mortgage applicants and borrowed heavily to create cash flow for loans in order to create more mortgages. After all, without mortgages, there are no mortgage-backed securities.

http://www.pbs.org/wgbh/pages/frontline/warning/view/

MERS FORECLOSURES http://www.mersinc.org/Foreclosures/index.aspx

Mortgage Electronic Registration Systems, Inc. (“MERS”) is a proper party that can lawfully foreclose as the mortgagee and note-holder of a mortgage loan. MERS Membership Rule 8 provides required guidelines that must be followed when MERS is the foreclosing entity. Please click here to access the Rules of Membership, and reference the Rule 8 requirements.

In mortgage foreclosure cases, the plaintiff has standing as the holder of the note and the mortgage. When MERS forecloses, MERS is the mortgagee and it is the holder of the note because a MERS officer will be in possession of the original note endorsed in blank, which makes MERS a holder of the bearer paper. MERS will not foreclose unless the note is endorsed in blank and held by MERS.

The MERS Legal Primer provides a sampling of cases that address the standing of MERS to foreclose its mortgages. These cases are not meant to be an exhaustive list involving MERS but are merely to serve as a primer for the legal arguments. These statements are from the MERS website.

THE QUESTIONS

As mortgages were packaged/bundled into mortgage back securities (MBS) and sold to investors and since these MBSs were bought by investors, with some mortgages being split and owned by several institutions or people (tranches), how can the homeowner/borrower know who actually owns their mortgage? If the homeowner /borrower does not know who actually owns their mortgage, then how does the foreclosure court know who actually owns the mortgage and CAN actually proceed with the foreclosure? I would say if it is not the company listed at the county and they were paid off when they sold the mortgage, and then a release of lien should be requested for the homeowner. The real estate attorneys representing these possible foreclosed homeowners should request that the foreclosing institution show that they ACTUALLY own the mortgage and can bring foreclosure action to court and are not just the mortgage servicer.

*** Also, since these mortgages were sold without registering the mortgage in the county, the county has lost doc stamps (tax monies) and who /whom really owns the mortgage.