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Author Topic: Interesting account of mortgage shenanigans during the housing bust.  (Read 682 times)

just Warren

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Interesting account of mortgage shenanigans during the housing bust.
« on: August 16, 2018, 04:41:06 PM »
One could say this sort of thing caused the bust.

And I don't think I'd ever heard of MERS before. Maybe that's something that needs to go away.
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Scout26

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The Million Dollar Brownstone
« Reply #1 on: August 17, 2018, 02:56:05 AM »
Interesting story.  Especially the part about MERS and the document "fixers" regarding the housing market bubble and collapse in 2008-2009.  (This popped up as one of the three stories suggested "for" me by Firefox when I opened a new tab.)

https://theoutline.com/post/5807/the-million-dollar-brownstone-that-no-one-owned?zd=2&zi=zq6wnf3t
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Northwoods

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Re: The Million Dollar Brownstone
« Reply #2 on: August 17, 2018, 02:36:53 PM »
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Ron

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Re: Interesting account of mortgage shenanigans during the housing bust.
« Reply #3 on: August 17, 2018, 02:42:14 PM »
Good read
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Re: Interesting account of mortgage shenanigans during the housing bust.
« Reply #4 on: August 17, 2018, 03:23:09 PM »
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grampster

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Re: Interesting account of mortgage shenanigans during the housing bust.
« Reply #5 on: August 17, 2018, 04:28:40 PM »
I read the following somewhere a few years ago:  Person buys house, finance company/bank/ holds a mortgage.  Fannie or Freddie insure the mortgage for the bank/finance co.  Person defaults on the mortgage.  Bank takes over the house.  Fannie or Freddie pays the bank the full value of the outstanding mortgage.  Bank sells the house for whatever they can get for it. 

I don't know if what I read was accurate or true.  If it is, then the bank/finance company got the full value of what was owed plus it pocketed whatever they were able to get for the property when they sold it.  Seems to me that the bank made out like a bandit.   
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Northwoods

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Re: Interesting account of mortgage shenanigans during the housing bust.
« Reply #6 on: August 17, 2018, 04:46:50 PM »
PMI, or the equivalent, is supposed to only pay the bank the difference between what the house sells for and the balance owed (plus accumulated late fees, back interest, foreclosure fees, etc.). 

In the event the bank actually collects more than it's legally entitled to keep the excess is supposed to be given to the foreclosed person.
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