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What happens to the sale of a previously foreclosed property after a repurchase of the security that contains the mortgage that was foreclosed upon? My heads spinning just trying to phrase the question.
It's ON now... No more silly lawsuits from strategic defaulters!
In case anyone was wondering - the FDIC is flat BROKE... completely insolvent.
Quote:
NEW YORK, Oct 20 (Reuters) - Bank of America Corp (BAC.N), the largest U.S. bank, has sued the Federal Deposit Insurance Corp over $1.75 billion of investor losses mainly from the 2009 collapses of a large regional bank and large mortgage lender. The lawsuit concerns the FDIC's role as receiver for the main banking unit of Alabama's Colonial BancGroup Inc (CBCGQ.PK), and the implosion of Taylor, Bean & Whitaker Mortgage Corp, where federal prosecutors say a multi-billion dollar mortgage fraud took place. Bank of America is trustee for notes issued by Taylor Bean's Ocala Funding LLC unit.
In a complaint filed this month in Washington, D.C. federal court, Bank of America said the FDIC has wrongly denied claims by Ocala noteholders to recover from Colonial Bank and an Illinois lender also in receivership, Platinum Community Bank.
Bank of America accused executives at Taylor Bean, Colonial and Platinum of having fraudulently schemed to "double- and triple-pledge mortgages and steal assets" to hide their faltering conditions as the housing market declined.
What happens to the sale of a previously foreclosed property after a repurchase of the security that contains the mortgage that was foreclosed upon? My heads spinning just trying to phrase the question.
Not sure if this helps with the head spin or makes it worse.
As it relates to FNMA/FHLMC and GNMA pass trhrough securities, a foreclosure eventually becomes a prepayment of principal, no different ( from an investor's standpoint) than a mortgage that was refinanced.
Not sure if this helps with the head spin or makes it worse.
As it relates to FNMA/FHLMC and GNMA pass trhrough securities, a foreclosure eventually becomes a prepayment of principal, no different ( from an investor's standpoint) than a mortgage that was refinanced.
Yes, I understand, but what if the mortgage is repurchased by the bank that originated the security? I believe the term used is "put back". No problem if the foreclosed property isn't resold but what happens from the new buyer's perspective if a "put back" takes place? How can everything be unraveled or everyone made whole again? My guess is that the new owners of the foreclosed property move forward with clear title and the investors recover whatever losses they are able to prove from the originator of the security.
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