Most of us already know the gory details on Foreclosure Gate. The robo-signing of documents fraudulently produced by mortgage servicers, the unnecessary foreclosures and the Rube Goldberg of securitized and resold mortgage backed derivatives, where no one can determine who owns the loan.
60 Minutes put together a segment overviewing this derivative debacle.
Do you know who really owns your mortgage? As Scott Pelley reports on "60 Minutes" this week, that question has become a nightmare for many homeowners since the invention of mortgage-backed securities. Yes, those were the exotic investments that sparked the financial collapse in this country. And the're still causing problems.
As it turns out, Wall Street cut corners when it bundled homeowners' mortgages into securities that were traded from investor to investor. Now that banks are foreclosing on people, they're finding that the legal documents behind many mortgages are missing. So, what do the banks do? As Pelley explains in this video, some companies appear to be resorting to forgery and phony paperwork in what looks like a nationwide epidemic.
Even if you're not at risk of foreclosure, there could be legal ramifications for a homeowner if the chain of title has been lost.
Welcome to the American Dream and Home Ownership. Did you know your mortgage is considered a baseball trading card by Wall Street to be lost in the shuffle?