Jack, in some ways your right - except for the really big issue - the title is not clear. The originator of the note is recorded on the deed but not subsequent owners. Even if the note is paid in full - as mine is, TD Service company recorded my mortgage as paid, but my deed does not show my originator as paid. As a result of not following laws as old as the Magna Carta, there isn't a Title Insurance company that will insure the title - something everyone has to have to get a mortgage. It will mean that current owners can't sell. I would predict more homes seeing the wrecking ball.When maryAM started posting this topic several months ago I had me a lil think.
The FF I came up with seemed too kooky and paranoid to post at the time but now
Ill give it a go.
If securitized mortgages cant be enforced,ownership is hard to prove, and values keep
falling there will be large tracts of housing where no taxes are being paid. Property taxes will
have to rise.
Municipal, even state governments will become open and vulnerable to the following pitch.
Municipalities CAN take a house for unpaid taxes. Large new entities will encourage them to do so.
These new entities will take a huge chunk of American Housing. The municipalities will GIVE it to them
for the promised taxes which will be at a much lower rate than other resident tax payers.
The new entities will have new "inventive " public private structures, big lobby budgets, and the
desire and means to keep property values very low.
This is a residential version of a game that large industry has played on smaller towns in northern
canada for at least 60 years. There are probably more examples.
IF this were to play out, home ownership by individuals would become a rarer privilege than it is now.
Can they not really foreclose?
#21
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- Traders-Talk User
- 1,200 posts
Member
Posted 23 September 2009 - 07:49 PM
#22
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- Traders-Talk User
- 104 posts
Member
Posted 23 September 2009 - 09:35 PM
Jack, in some ways your right - except for the really big issue - the title is not clear. The originator of the note is recorded on the deed but not subsequent owners. Even if the note is paid in full - as mine is, TD Service company recorded my mortgage as paid, but my deed does not show my originator as paid. As a result of not following laws as old as the Magna Carta, there isn't a Title Insurance company that will insure the title - something everyone has to have to get a mortgage. It will mean that current owners can't sell. I would predict more homes seeing the wrecking ball.When maryAM started posting this topic several months ago I had me a lil think.
The FF I came up with seemed too kooky and paranoid to post at the time but now
Ill give it a go.
If securitized mortgages cant be enforced,ownership is hard to prove, and values keep
falling there will be large tracts of housing where no taxes are being paid. Property taxes will
have to rise.
Municipal, even state governments will become open and vulnerable to the following pitch.
Municipalities CAN take a house for unpaid taxes. Large new entities will encourage them to do so.
These new entities will take a huge chunk of American Housing. The municipalities will GIVE it to them
for the promised taxes which will be at a much lower rate than other resident tax payers.
The new entities will have new "inventive " public private structures, big lobby budgets, and the
desire and means to keep property values very low.
This is a residential version of a game that large industry has played on smaller towns in northern
canada for at least 60 years. There are probably more examples.
IF this were to play out, home ownership by individuals would become a rarer privilege than it is now.
This is purely speculation on my part, if there are any lawyers on here maybe they could chime in, it would seem that a properly prepared Motion to Cancel the Mortgage could clear the title in court.
#23
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- Traders-Talk User
- 907 posts
Member
Posted 24 September 2009 - 02:13 AM
Jack, in some ways your right - except for the really big issue - the title is not clear. The originator of the note is recorded on the deed but not subsequent owners. Even if the note is paid in full - as mine is, TD Service company recorded my mortgage as paid, but my deed does not show my originator as paid. As a result of not following laws as old as the Magna Carta, there isn't a Title Insurance company that will insure the title - something everyone has to have to get a mortgage. It will mean that current owners can't sell. I would predict more homes seeing the wrecking ball.
I think we are on the same page regarding unclear title. I am assuming a municipality can seize property
on proof that taxes are unpaid however vague the title.
My cheerful little scenario is just that.... the truth will probably be stranger.
