third – they will not and probably have not hit the “jackpot” a servicer usually is in touch with a homeowner as things in the foreclosure process progress
OCbuyer, good info.
The third point is kind of the crux of my question. If the loans that wall street want bought back are basically non-pays that the servicer hasn’t been able to collect.
If the Wall Street Firm with the MBS is trying to force OwnIt to take loan “A123” back, is the servicing firm still serving or is OwnIt expected to serve? Are they still collecting or have notices gone out to homesquatter that payments now go to OwnIT Mortgage? Does the servicer still have rights to conduct forclosure? How many of this issues will create easy techinicality blocks to eviction and foreclosure?
Somebody somewhere is going to be coming for the money, that I’m confident, but how long will it take to legally sort out who has rights to the money?. My question is basically three fold:
1. How quickly will the defaulting homeowner of A123 get the boot? IOW, will they get evicted on a pretty regular NOD default timeline or not? Highly dependent on the exact status of your loan. However, if you’ve already received a notice statement your loan was transferred from A to B and B is BKed…
2. With the attempted return of the loan to the originator for servicing and ownership, how long will it take for the legal owner of the property to complete foreclosure, REO the property and return it to marketplace?
3. If say, Morgan Stanley attempted to return “A123” from an MBS to OwnIt, but OwnIt hasn’t repaid the debt and went BK, who actually owns the loan A123? OwnIT? or Morgan Stanley?
My concern is a surge in properties going NOD and returned to the sub-prime originators that sprung up like poppies in the spring during 2003-2005, will those properties essentially fall out of the housing pool for two, three or five years as bankruptcy and ownership of the loan rights sorts out? Will confusion with loan ownership as MBS’s return loans and originators BK essentially drop homes into a legal blackhole were they can’t be bought for a few years?
More importantly, will a crafty home squatter be able to use California’s laws to delay eviction on technicalities or due process even though they are not paying because of uncertainty in whom should be paid?
