The European Tribune is a forum for thoughtful dialogue of European and international issues. You are invited to post comments and your own articles.
Please REGISTER to post.
If the debt part of the title has been 'extracted' and resold to multiple investors, and further bets on that debt have been resold, it then becomes impossible to decide who owns that title.
If the land or property market is expanding, and the mortgage debtor continues to pay the agreed amortization (paying off the loan they took to eventually buy the property outright), then these 'lay-offs' (a bookmakers' term for reducing their exposure to potential large pay-offs) remain hidden i.e. they depend on a rising market to conceal 'match-fixing'.
And of course this is all built on the illusion of a perpetually rising market. When - who could have predicted - the market falls, and simultaneously mortgage debtors can no longer keep up the agreed amortization payments, a process called foreclosure is instituted whereby the physical asset (land or property) is reclaimed by the current owner of title. This is done in order to sell off the asset to recover as much of the debt as possible. So far so good.
But in order to foreclose, ownership of title must be legally established. If the mortgage debt has been subdivided and that bets on that debt have been resold - it becomes very difficult to establish who actually has title.
The fraud emerges in companies trying bypass title. The law is relatively simple = who has the bearer deeds has the title, and thus owns the debt. The scramble now is to establish title - by other means.
You can't be me, I'm taken
by marco - Mar 26 21 comments
by gmoke - Mar 26
by DoDo - Mar 19 18 comments
by DoDo - Mar 7 21 comments
by DoDo - Mar 12 33 comments
by DoDo - Mar 14 7 comments
by Upstate NY - Mar 15 294 comments
by Frank Schnittger - Mar 14 22 comments
by gmoke - Mar 26
by marco - Mar 2621 comments
by DoDo - Mar 1918 comments
by Upstate NY - Mar 15294 comments
by Frank Schnittger - Mar 1422 comments
by DoDo - Mar 147 comments
by alexc - Mar 126 comments
by DoDo - Mar 1233 comments
by paul spencer - Mar 112 comments
by gmoke - Mar 7
by DoDo - Mar 721 comments
by fjallstrom - Feb 28115 comments
by Frank Schnittger - Feb 26125 comments
by talos - Feb 23171 comments
by DoDo - Feb 229 comments