I have been missing from the blog for some time but it's time to come back since there is so much new info to share.
WHY BANKS DONT HAVE YOUR NOTE
This is a common question and there is I am sure many people with many opinions. Being an investor in short sales for many years, we are adding a new dimension to our business.
Our attorneys and research team have what we know to be the answer.
In case you don't know, when you buy your home you sign the mortgage /deed of trust and then you also sign the 'NOTE'
With purposes these should always be kept together.. However they are not... almost Never.
Homeowners get a letter through the mail stating that 'Your mortgage servicer has changed' and you need to start paying us.
It is being proven that more than 95% of these transactions are improperly assigned.
It usually because of one or more of the following:
1) The original note /mortgage is faulty
2) Assignment is incorrect
3) The assigning servicer did not have the authority to assign
4) The note and mortgage were not together at the time of assignment
5) Most notes and mortgages are digitally recorded and the original paper one has been destroyed.
Now even given time to locate the originals could they do it? The answer is probably not... and here is why.
Once your lender allows you to close and you have signed your life away for the next 30 years, the lender will not leave themselves wide open... so they take your loan and bundle it with a couple of thousand others and change its name to a "POOL"
So here is where the fun starts. The lender then takes the pool and sells it so they get their "loan money back" right away.
However what we have found out is not all the mortgages are A++ ratings as they were sold.... Hence the real estate market falling off a cliff.
Banks took loans split them up and sold it in their bundles "pools" good mixed with bad. Banks thought if an investor took let's say 10,00 loans but 1,500 of the loans were not very good rating.. i.e destined to go into default, they wouldn't mind or wouldn't notice because of the GOOD loans they had in the "pool"
However we all know how that turned out.
So back to the point of why cant the bank find your original note?
Simple way to explain it. Imagine a big bag of carrots... huge bag.. and every carrot was a mortgage note... now take all those carrots and put them into a juicer!! Put the juice put into a cup and sell the cup of carrot juice..... that's what banks do with your loan.
So unless you are David Copperfield tell me how you can turn the carrot juice back into your (carrot) loan???
Well think about it, once it is juiced is your carrot in this cup, that cup or the other cup.... chances are it is in all the cups... meaning no more carrot. Meaning no more NOTE.
I will be back giving you more insight to where the lies are.