It’s the promissory note, stupid!

Bernanke may need to find another gear in his printing press bailout machine. At the very least, he’ll need a much bigger helicopter. The mortgage mess was all supposed to be behind us now as we move forward with our “slow” recovery. Maybe not. The $6 trillion dollar¬†industry may have just been warming up. Lost in the Wikileak headlines was the ruling in New Jersey involving a foreclosure case against Bank of America. The bank lost because it was shown that they didn’t have physical possession of the original promissory note. Which means, no note, then you don’t own the house. Period. Talk about setting precedent and opening up a huge can of worms. If this holds up under appeal, it may literally open the floodgates to the biggest financial scandal the world has ever witnessed. The main stream media tried to paint this as sloppy paperwork errors, but the suspicion has always been that it would come down to possession of the note. Get yourself lawyered up if you are facing foreclosure or have already lost your house to foreclosure. The legal profession certainly seems to have job security for a long time to come. Read the story here.

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2 comments

  1. Alessandro Machi · December 5, 2010

    It’s not just the promissory note. It’s the possible CHANGE IN TERMS to the promissory note that I think is an even bigger issue. In my opinion, securitizing a mortgage note does not give anybody the right to change terms without the expressed written consent of the homeowner.

    http://www.swarmthebanks.com

    http://www.parallelforeclosure.com

  2. 5etester · December 5, 2010

    Agreed. They must possess the original, unaltered note in order to have a valid claim to ownership.

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