Comments on: Banks Paying Cash to Homeowners to Avoid Foreclosures http://www.creditwritedowns.com/2012/02/banks-paying-cash-to-homeowners-to-avoid-foreclosures.html Finance, Economics and Markets Wed, 23 May 2012 01:55:46 +0000 hourly 1 By: John Wilson http://www.creditwritedowns.com/2012/02/banks-paying-cash-to-homeowners-to-avoid-foreclosures.html#comment-80824 John Wilson Tue, 07 Feb 2012 20:02:00 +0000 http://www.creditwritedowns.com/?p=41852#comment-80824 It would appear that banks, in many cases ,cannot prove ownership of the mortgage, and thus offering  cash incentives to delinquent homeowners, ensures a proven mortgage to a new buyer.    It means banks get off relatively scot free, for highly suspect previous behavior.  If all delinquent homeowners asked them to prove ownership, in court, the banks  probably could not do so, and would have to pay a well deserved total loss on these outstanding mortgages. It would appear that banks, in many cases ,cannot prove ownership of the mortgage, and thus offering  cash incentives to delinquent homeowners, ensures a proven mortgage to a new buyer.

   It means banks get off relatively scot free, for highly suspect previous behavior.  If all delinquent homeowners asked them to prove ownership, in court, the banks  probably could not do so, and would have to pay a well deserved total loss on these outstanding mortgages.

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