Feb 22 2008
The free loaders
A man hasn’t paid a dime to his $1.5m mortgage in Florida since 2002, and the bank can’t foreclose on his perporty. Because the bank can’t prove it owns it after they pool mortgages into securities. Subsequent efforts to foreclose have stalled because no one has produced the paperwork. More than $2.1 trillion, or 19% of outstanding mortgages have been bundled into securities by private banks. Pretty amazing. I’m not sure the man knows the inside working of mortgage or he’s lucky to default on his mortgage and found out the lope holes.
Years ago, NYT real section reported on a free loader who’s former professional athlete turned international financier. He picked the expensive brown stone or Park Av apartment, and default on rents almost as soon as the lease’s signed. Moving out only when the Marshall’s came. From signed to eviction, he had few years of rent-free living in luxury. The expose was centered on his last brownstone rental, the landlord was a widow. Funny as the piece was being read, he just signed another lease in an apartment. The new landlord read the story, wanted to cancel the lease. But by law, he cant. Have to live out the nightmare he just read about.