Lost Paperwork sends Preforeclosure Short Sale Business in a Tizzy?!
Is it possible that banks can lose your mortgage documents and you can't get foreclosured...there would be no reason for a preforeclosure short sale.
Apparently in the hayday's of subprime lending, lenders were selling the notes so quickly after the ink was dry, that the necessary documents didn't get recorded, assigned when re-sold and if you don't own it (and prove that you own it) you can't foreclosure.
This is good for some homeowners. If you remember, back in December, a Cleveland judge threw out 14 foreclosure cases (and we reported it here) because the assignments to the new bank owner were never recorded. The bank could not foreclosure and still haven't found the paperwork. The debt moved forward, but the paperwork stayed behind in filing cabinets, in computer files or just collecting dust on a desk. Sad but true. They got their money and dropped the ball for the follow up work.
The work of re-establishing the chain of ownership could slow down the housing correction even longer. Some borrowers have simply stopped paying on these loans, in hopes they can play the system and live in the house for free for a lot longer.
What does this mean to us as preforeclosure short sale investors? The high foreclosure rate goes on and on. What a great business to get into! And you can learn all the tips, techniques, negotiating a short sale strategies at
All the Short Sale Queen Tips and Tricks
Deb McMillan
Believe in Your Success!
Apparently in the hayday's of subprime lending, lenders were selling the notes so quickly after the ink was dry, that the necessary documents didn't get recorded, assigned when re-sold and if you don't own it (and prove that you own it) you can't foreclosure.
This is good for some homeowners. If you remember, back in December, a Cleveland judge threw out 14 foreclosure cases (and we reported it here) because the assignments to the new bank owner were never recorded. The bank could not foreclosure and still haven't found the paperwork. The debt moved forward, but the paperwork stayed behind in filing cabinets, in computer files or just collecting dust on a desk. Sad but true. They got their money and dropped the ball for the follow up work.
The work of re-establishing the chain of ownership could slow down the housing correction even longer. Some borrowers have simply stopped paying on these loans, in hopes they can play the system and live in the house for free for a lot longer.
What does this mean to us as preforeclosure short sale investors? The high foreclosure rate goes on and on. What a great business to get into! And you can learn all the tips, techniques, negotiating a short sale strategies at
All the Short Sale Queen Tips and Tricks
Deb McMillan
Believe in Your Success!
posted by Deb at 2:24 AM
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