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Comment Re:Just Making Themselves Look Worse (Score 1) 249

They don't have the money. Former hi-ups in the company have stated under oath that 60 to 80 percent of the mortgages they issued were not documented properly, and thus would not be able to be collected on. If one of these emails reveals that the bank had a plan to make money by passing these mortgages on to investors without revealing that they were bad. The entire bank's balance sheet will suddenly drop into the red.

Comment Re:Clean slate... (Score 1) 249

There could be a lot of that going on soon. Foreclosure requires that the chain of title be unbroken. That is to say that there is a document, signed and notarized, for every time that the title changed hands. However county governments charge a fee for every time you transfer the title. The banks got around this by founding a "company" (MERS) which would buy the title, and hold on to it, and transfer the ownership of the title internally to whoever the latest owner of the loan was. (I put company in quotes because it is really just a front with only 50 employees yet it allows people to name themselves vice-presidents, and sign in its name for like $25.) However doing this did not really satisfy the actual law, and so every loan registered with MERS is potentially invalid. The loans still exist, and the borrower may still have to pay them back, but they are now unsecured, not attached to the home.

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