Reply #8: But the investors never had collateral. [View All]

[ms.smiler]

The loans were not properly or legally pledged to the Trusts. Since Wall Street crashed our economy, why would the investors want to foreclosure on properties that may have lost 60% or so of their value? Why would they want to wind up responsible for the fraud at loan origination?

The investors are much better off suing the banks for fraud because the security they purchased was not as represented to them. Here on Main Street, homeowners with securitized mortgages are better off suing to obtain a valid Deed and clear their Title.

For decades, we were quite capable of funding mortgage loans without securitizing mortgages and with very few Title problems. The old system worked just fine. The Wall Street banks though thought it a much better idea to put other people's money at risk to fund mortgage loans. With no skin in the game, how did that approach work out?

Now we have millions of homeowners being wrongfully foreclosed. Millions more are dutifully making their mortgage payments completely unaware of any problems, despite the fact they'll never receive a valid Deed upon completion of their payments. I'm in the small but growing number of homeowners filing suit and heading for court. The banks and the servicing companies they own, as well as MERS, should be held accountable for their fraud.