Mortgage Servicers Gratuitously Screw Up Foreclosures By Using Obsolete Scans

By | August 10, 2011

By now I imagine that everyone recognizes a pandemic of legally flawed foreclosures has infected America’s land records. But not everyone realizes how deep the greed and “corner cutting” goes. For example, a significant percentage of the flawed proceedings tainting our hundreds-year-healthy system of tracking land ownership may reflect nothing more than mortgage servicers’ unwillingness to get the original promissory note, mortgage and assignments from the vault. That is, using the real, accurate documents (and complying with the rules and law) is too expensive.

(Sorry officer, I recognize I was going 80 in a 35 mile an hour zone. It was costing me too much money to drive the speed limit. Time is money.)

Using the real documents is a hassle because the vault often isn’t at the mortgage servicer’s, but at a “document custodian” such as Deutsche Bank. So instead of getting the originals, the evidence I discuss below indicates that mortgage servicers print out the scanned images of notes that are already in their databases, the images the servicers received to start servicing the loans. These scans were typically made before the notes were endorsed, which means that the servicer is giving the court a printout that is not the “true and certified” copy of the note that the mortgage servicer is claiming it is and the rules require it to be.

Be sure to check out the rest of Abigail’s in-depth report here…

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