Monday, October 26, 2009
Who OWNS Foreclosed U.S. Properties?, Part I: Scam in the making
A thanks to Edward Harrison who publishes the blog “Creditwritedowns.com” for his superb explanation of foreclosure and title issues dealing with “foreclosed” properties – in his commentary “What are the legal rights of lenders and homeowners in foreclosure?” It was that article which inspired me to write about some of the legal ramifications, based upon his research and analysis.
There is a lot of material in Mr. Harrison's commentary, so for those interested in this issue, I recommend going to the source to read it in full. I intend to focus on two of the extremely important issues in that piece: the question of who holds title to a securitized mortgage, and (just as important) who has “standing” to initiate and prosecute a foreclosure.
For people with no familiarity with legal jargon, who has “standing” in a legal proceeding is a question of “proximity” to the case before the court. The test for this issue generally being some direct proprietary interest. FULL STORY