[snicker] It's too late for those who were foreclosed and had to leave — they merely trashed the houses.

Nobody sane demands that everyone be given “their” homes. (Or huge checks, as also would be “merited.”)

No, lefties. There are no grounds for a Jubilee (especially prior to the next elections).

That it was Drain that did it negates any suspicion that it was some activistic, impetuous no-name judge.

However, the costs of the lost of billions of loan dollars will hurt more than the banks. As pointed out above, this is like the Death of Common Sense. People are suing banks without realizing that their investment or retirement are tied up in the same type of investments.

I wonder how many of the lucky new homeowners will end up treating it like a lottery ticket or remortage everything hoping to get lucky a second time.

This post was mentioned on Twitter by FereJohn: RT @TMV: Most Mortgages Are Probably Invalid And Courts Are Starting To Notice: a very interesting post … http://bit.ly/2wFne7...

Problem with 'giving people their homes' is that it begs the question of why not give everyone a free home ?

Or a free check for $ 200,000.

Just make them all invalid. Gives these people their homes. Give the money back to the people by giving them their homes. They can then afford to pay their homeowner's tax, so money will flow more readily back to government. Consolidate the banks into fewer and stronger banks. The considerable disposable income people will have without mortgage payments will certainly spur the economy and/or increase savings for bank reinvestment.

All within the power and preview of the Government.

An unintended consequence of either mergers or management of financial companies cutting costs by relocating good stable departments to lower cost areas to save money is that many times the “new” management doesn't have the full experience to understand all issues.

In this case it seems that the number of bankers (and support staff) involved in these products increased so rapidly that they didn't have the proper training or insight to properly understand and manage the transfer process.

However I am not sure how big of an impact this will have as the banks will continue to fight the issue, so only those with the money to keep going through the courts will be able to keep up the battle.

Indeed PHH is appealing this ruling, so it may be years before things are resolved

In the comments of the Naked Capitalism post there are people that say that in the beginning of securitization this wasn't a problem because they followed the law, but during the last decade they cut corners for more profit and more flexibility.

Who is the legal owner, then, in cases like this? This could easily surpass the problems the West Germans had recovering property in the east after reunification (or what Cubans could face someday).

Result: The homeowner can sometimes walk away with the house, free and clear, because the mortgage holders failed to properly document their ownership of the loan. Even when they DO have all the paperwork or can track it down eventually, just demanding it be produced can provide some extra time for the homeowner to get on top of the situation before their home is taken away from them.