Prove It!

Now here is a happy turn of events.

A homeowner in the USA has stopped the foreclosure of her home by asking her lender to prove that they are the actual creditor to whom she owes the money.

When challenged, the claimant was unable to produce the relevant doc’s and the judge sent them away until they had them. It seems that between the unseemly rush to issue mortgages to everybody under the sun and the indecent haste to repackage and ‘securitise’ the loans the paperwork has been so messed up and muddied that the actual lien-holder is hard to establish.

The articile indicates that this has happened in more than one case and that it is proliferating as a defence. What a fabulous turn of events. The banks have indulged in sufficient prestidigtation as to make their assets (already overvalued) actually dissappear from plain sight.

Imagine the paperwork involved in trying to untangle all that securitisation. This is going to blow huge holes in some balance sheets and add massively to repossession costs.

Fair dues to the lady concerned – see here for the original story