Every ask yourself, who is the holder of my mortgage note? Ever wonder what the life of your mortgage looks like? Just because you make your checks payable to Wells Fargo or Bank of America doesn’t mean they own your loan. In fact they probably don’t even know who owns the paper. Dan Edison with DTC-Systems performs securitization audits. He wanted to know the history of his own mortgage. He spent a year putting the diagram below together tracking the history of his own mortgage. Dan does this for a living and wanted to know the history of his loan and where it had been and the path taken to get their. He discovered that it had not taken the correct path.
What does all this mean for the average borrower? Unfortunately, not a whole lot as of now. Banks insist that nobody is losing a home to foreclosure without cause. What will it take to get banks to work with homeowners? Once investors start to wake up to what is going on they will start to contact homeowners. This will likely only happen after a few investors get burned and realize that the securitization that they thought was so secure isn’t very secure.
Dan found numerous errors and keep in mind that Dan Edison was never behind in any of his payments.. With the recent nationwide news about robo-signers it has brought up a lot of concerns about the path of the note and deed of trust in securitization. Read through the diagrams below and keep in mind that this should not be considered a path to a free mortgage for people that have not made their payments. It does continue to create questions about who owns your loan and the legal path it has taken to get to that investor.
Very good post I never realized all the complexities that go into a mortgage. I am hearing that right now is also a good time to refinance your mortgage if you have good credit and made all your mortgage payments on time.
Whoa, I had no idea the history of a loan would be so complicated. I wouldn’t even know where to begin. I have been fortunate to not have any problems with my mortgage but you really question the robo-signing issue and if the banks were acting fairly.
What’s really crazy is people actually invest their cash in these securities…
Wow! This is mind blowing. The complexities are insane. I have to agree with Greg, and add that it almost makes sense that there are so many robo-signing issues at the moment. Anything that changes hands that many times is bound to get lost or processed incorrectly.
I can’t begin to fathom this diagram. I’m grateful for those who can!
Robo signing is definitely a subject that is checking a lot of the news headlines right now. It will be interesting to see how this story develops down the road as more and more attention is brought to the issue.
This shows many people that the note and deed are not with the banks & lenders. theres more to the equation! What makes this market so unstable besides the number of foreclosures are investors that don’t have such a great idea on the real estate market!
Wow! Those charts make me a little seasick. No wonder it is such a mess!
Unbelievable, I forwarded this to a buddy of mine in the mortgage business and he pretty much confirmed just how disturbingly accurate this is. Crazy graph.
Oh this chart is complicated to comprehend completely. Only a good mortgage agent can come up with such useful information i bet.
Private organisations who obtain your debt and then try to gather the monies owed for the authentic debtor (you).