The fact is, that the financial geniuses digitized and then destroyed most of the original mortgage documents, which means in a nutshell, that they have no standing in court to enforce their ownership of any of those mortgages... estimated to be about 60% of those in this country.
Produce the note is for real. And now, at long last, it's being recognized. Most of these millions of foreclosures have been illegal. And now, it's recognized by the federal regulators. All of the major banks have been doing this same thing, it's common industry practice.
The "investors" don't own anything, is the upshot of it. (That's what makes the mortgages "toxic", truth be told.)
I think the meltdown over this will be even bigger than the popping of the mortgage bubble already was.
A major title insurer has already stopped providing title insurance for properties that were foreclosed, because of this - because those foreclosures were not kosher and may be undone. Game over, those bank-held properties won't be salable now. So, if the banks foreclose more of them, then what? What can they do with them?
It's really kind of interesting, to see what the predators will try to do next to get out of this. I predict a whole lot of bluffing, and stonewalling, and then gun-to-the-head extortion for another bailout, just to delay the "meltdown.2" that is inevitable.
The smartest thing the banks could've done, would've been to modify as many of these mortgages as possible. Instead they have stonewalled the applications, boldfaced stonewalled them, for two years.
Just two of many interesting articles coming out on this: (the comments following them are interesting too)
http://www.zerohedge.com/article/massive-mortgage-mess-update-title-companies-stop-insuring-foreclosed-propertieshttp://4closurefraud.org/2010/10/01/promiscuous-beth-cottrell-looks-like-she-had-multiple-partners-banks/