ANONYMOUS said on HELOC LOANS WORTHLESS
August 12, 2010 at 3:08 pm
In response to Neil Garfield on August 12, 2010 at 9:41 am:
12debt.html?_r=1&ref=business EDITOR’S NOTE: It is ironic how reality eventually catches up with illusion. While we have been pounding on the issue of principal reduction as the only realistic way out of the recession, and while the financial industry has been busy convincing people that principal reduction is somehow immoral, the contraction of home prices back [...]
Daniela – Congrats from me too!!
No one knows where anyone’s loan are. Heard Bloomberg’s Pimm Fox – ask a guest – “So, the bad loans (foreclosures) are sitting on banks books, and no one knows what to do?.” Guest says “The banks have been selling off these loans to distressed debt buyers.” Pimm did not know what to say.
And, that was the goal of the Federal Government when it bailed out the banks. To sell the “distressed Loans” to distress debt buyers at a discount. Forget the securities – they do not even exist anymore. They are done- finished. All the securities were – was an accounting conversion from whole loans to off-balance sheet securities. The loans belong to the Wall Street Bank (security underwriter) until they rid themselves of the loans by sale to distressed debt buyers for pennies on the dollar.
Do not care whether it is credit card debt, HELOCs, subprime adjustable, or second mortgages. Some Wall Street firm owned your loan – until you default – then – it is anyone’s guess as to where that loan went. And, to cover for the secret relationships (whether debt buyer or hedge fund) – numerous documents are fabricated.
Mario Kenny makes a good point about taxes. Every foreclosure action in court – should request complete remittance ledgers by the servicer to the stated Trustee for the (ha- dissolved) Trust. PSA demands the ledger. Everything MUST be paid by the servicer to the Trustee. And, the Trustee must pass-on those payments to the certificate holders of the Trust – which is the Security Underwriters. Of course, if the Trust has been dissolved – there are no more remittance ledgers.