The mortgage is still owed, but there's going to be a problem figuring out who actually holds the mortgage, and they would be the ones bringing the foreclosure. You have a trust that has been getting payments from borrowers for years that it has no right to receive. So you might see borrowers suing the trusts saying give me my money back, you're stealing my money. You're going to then have trusts that don't have any assets that have been issuing securities that say they're backed by a whole bunch of assets, and you're going to have investors suing the trustees for failing to inspect the collateral files, which the trustees say they're going to do, and you're going to have trustees suing the securitization sponsors for violating their representations and warrantees about what they were transferring.
Read more: http://www.businessinsider.com/foreclosure-fraud-worse-than-you-think-2010-10#ixzz12KFDkPHM
Read more: http://www.businessinsider.com/foreclosure-fraud-worse-than-you-think-2010-10#ixzz12KFDkPHM
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