Diana Olick might want to run home to make sure her bank has not changed the locks, which I am sure she has no problem with: Foreclosure Crisis 'A Legal Impossibility', Ritholtz Says (WATCH) The current foreclosure crisis is unprecedented in American history, Barry Ritholtz said on Monday. The Fusion IQ CEO told CNBC's Larry Kudlow and Diana Olick that the flaws in the foreclosure system are not... [more]
Diana Olick might want to run home to make sure her bank has not changed the locks, which I am sure she has no problem with:
Foreclosure Crisis 'A Legal Impossibility', Ritholtz Says (WATCH)
The current foreclosure crisis is unprecedented in American history, Barry Ritholtz said on Monday.
The Fusion IQ CEO told CNBC's Larry Kudlow and Diana Olick that the flaws in the foreclosure system are not simply "a matter of paperwork." At stake are U.S. property rights, which are "being dramatically undercut due to rampant fraud throughout the whole system." The New York Times last week reported the story of a Florida woman who thought she had bought a home until the bank told her the property's foreclosure might not be valid and Olick on CNBC played a clip of another homeowner who experienced something similar. These flaws and others -- such as incidents of banks improperly changing locks on homes that aren't in foreclosure or foreclosing on homes that don't even have mortgages -- constitute a crisis of historic proportions, Ritholtz said.
Olick wasn't so sure. "You're always going to see those stories," she said in response to the phenomenon of banks foreclosing on properties that don't have mortgages. "That's a very small minority of the cases we're talking about here."
But to Ritholtz, even a small minority is too large. "This has never happened before! That is historically an impossibility. That is a legal impossibility. And yet it happened. That's how bad this is," he said. "It should never happen! This should be a hundred percent -- never, ever, ever happen."
Still, Olick insisted that these flaws weren't unusual. "It should be zero, but you know what? The cops often knock on the wrong door in other cases as well," she said.
http://www.huffingtonpost.com/2010/10/12/foreclosure-crisi_n_759372.html[less]
Response by The_President
over 15 years ago
Posts: 2412
Member since: Jun 2009
I've always had a sneaking position that Olick has been pro bank and anti brrower, but now this confirms my suspcion.
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Response by Riversider
over 15 years ago
Posts: 13573
Member since: Apr 2009
Wow, I agree with the President *FIRST TIME I THINK*!!!!!
Barry Ritholtz is 100% correct
At the closing, buyers sign and initial numerous documents. The goal is to accomplish the following:
1) Papers are signed that will be filed with the County Clerk (or appropriate officer) along with recording fees, for the official transfer of title from the prior owner to the new owner. The enabling purchase loan (i.e., mortgage note) is also filed with the Clerk.
2) The buyer receives title (ownership) of the land;
3) The mortgage lender establishes a new interest in that property contingent upon their mortgage note;
4) All other claims, liens, tax obligations and prior mortgages, home equity lines or second notes are satisfied and extinguished before title passes to the new owner.
5) Third party claims of any interest in that property superior to the buyer are eliminated;
6) Title Insurance is purchased and issued so the buyer has a recourse in case of defects in ownership occurs.
Every step of the process is designed to protect the property rights of all parties. The result is more than a mere transaction selling property from one party to another; rather, this has created a system where ownership interests are clearly defined; where title history can be reviewed going back decades and centuries. There is a certainty to the purchasers of this property against all future claims.
Everything about this process has been created to make sure the transfer goes off perfectly. In a nation of laws, contract and property rights, there is no room for errors. Indeed, even small technical flaws can be repaired via a process called “perfecting title.”
Interstingly our politicians are totally clue-less at what is at stake. They think this is about keeping dead-beats in their home. It's about making sure people get proper title.
Ignored comment.
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Response by Riversider
over 15 years ago
Posts: 13573
Member since: Apr 2009
Interestingly enough CNBC(KUDLOW) has done a huge about face on the issue.
I've always had a sneaking position that Olick has been pro bank and anti brrower, but now this confirms my suspcion.
Wow, I agree with the President *FIRST TIME I THINK*!!!!!
Barry Ritholtz is 100% correct
At the closing, buyers sign and initial numerous documents. The goal is to accomplish the following:
1) Papers are signed that will be filed with the County Clerk (or appropriate officer) along with recording fees, for the official transfer of title from the prior owner to the new owner. The enabling purchase loan (i.e., mortgage note) is also filed with the Clerk.
2) The buyer receives title (ownership) of the land;
3) The mortgage lender establishes a new interest in that property contingent upon their mortgage note;
4) All other claims, liens, tax obligations and prior mortgages, home equity lines or second notes are satisfied and extinguished before title passes to the new owner.
5) Third party claims of any interest in that property superior to the buyer are eliminated;
6) Title Insurance is purchased and issued so the buyer has a recourse in case of defects in ownership occurs.
Every step of the process is designed to protect the property rights of all parties. The result is more than a mere transaction selling property from one party to another; rather, this has created a system where ownership interests are clearly defined; where title history can be reviewed going back decades and centuries. There is a certainty to the purchasers of this property against all future claims.
Everything about this process has been created to make sure the transfer goes off perfectly. In a nation of laws, contract and property rights, there is no room for errors. Indeed, even small technical flaws can be repaired via a process called “perfecting title.”
http://www.ritholtz.com/blog/2010/10/why-foreclosure-fraud-is-so-dangerous-to-property-rights/
Interstingly our politicians are totally clue-less at what is at stake. They think this is about keeping dead-beats in their home. It's about making sure people get proper title.
Interestingly enough CNBC(KUDLOW) has done a huge about face on the issue.