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 Frank Schnittger - Apr 29 2 comments
by Bernard - Apr 23 24 comments
by Frank Schnittger - Apr 22 47 comments
by Frank Schnittger - Apr 18 12 comments
by Bernard - Apr 10 27 comments
by Frank Schnittger - Apr 11 29 comments
by Frank Schnittger - Apr 10 15 comments
by Frank Schnittger - Apr 292 comments
by Bernard - Apr 2324 comments
by Frank Schnittger - Apr 2247 comments
by gmoke - Apr 22
by Frank Schnittger - Apr 1812 comments
by Frank Schnittger - Apr 1129 comments
by Bernard - Apr 1027 comments
by Frank Schnittger - Apr 1015 comments
by Migeru - Apr 217 comments
by THE Twank - Apr 2