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Your Take: Should People Get Homes for Free?

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ForeclosureIf you’ve been following the latest round in the foreclosure mess, you’ve probably read about how some banks have lost the loan documents for some mortgages. The gist, as I understand it, is that after mortgages were signed, some of the larger banks would enter the data into the MERS registry (which is owned by large banks). The registry helps facilitate the process because banks won’t have to go to the local records office to record the loans, which saves them time. After registering the loans, oftentimes banks shred the paper documents to avoid duplication. (all this I learned from reading Business Week, but I can’t find the nice chart they used)

Well it turns out that last year, March 2009 specifically, a bankruptcy judge in Las Vegas decided MERS could be a beneficiary under a trust deed. Since then, supreme courts in other states found MERS had no standing in foreclosure proceedings under local state laws. Whoops.

Throw in the robo-signatures debacle and you create an environment that invites a little extraordinary situations… like people getting their homes for free because of clerical error (a broad term, I agree). A judge on Long Island erased a $292,500 debt and awarded a home to a family after he “concluded that a mortgage company’s paperwork in a foreclosure case was so flawed and its behavior in negotiations with the borrower so ‘repugnant’.”

I believe that you should do what’s right and giving someone a home for free because a company acted badly is a little too far. That said, if a company is willing to act in that manner, maybe an example should be made. One of the downsides of the internet is a reduction in personal relationships. People used to know their mortgage lender, their insurance agent, and the folks they banked with. Now it’s all about business only, transactions, and getting the cheapest possible… so this is a natural result.

What do you think?

(Photo: andrewbain)

{ 53 comments, please add your thoughts now! }

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53 Responses to “Your Take: Should People Get Homes for Free?”

  1. Simone says:

    Everyone the bank never lend the so call borrower any money let me repeat if you’re a homeowner the bank never lend you any money they use your Promissory Note to pay the seller and reap profit after profit. Do your research check your copy of the Promissory Note which only you sign which is not binding as both parties should sign Note. Now if bank never lend you any money you don’t owe them no money wheter you’re in default or not IT IS FRAUD!!! You may say why bank didn’t sign because they use it as cashier’s check to make PROFIT!! again is fraud why not ask your lender for you to physically see your Original Promissory NOTE by law you have a right to see it truth is they don’t have it. The Note and the Mortgage or inseparable. Again do your research the Bank is the criminal not borrowers.

  2. smurf says:

    Home should be awarded to the home owners free and clear.They broke the law now they should pay.

  3. reply says:

    Banks should let people pay what they can on a monthly payment instead of foreclosing on them .it would be better than letting them sit and rot to the ground .who ever buy one of these houses are not getting their moneys worth after the snakes, rats and skunks invade them . i would never buy a house that was foreclosed on . these are rough times and if you have never had a hard time making a payment you better thank God for it , because it might just come your way.bragging on your never been behind and never failed to pay just might backfire . BBBBBEEEEE careful what you say. Banks you need to start looking out for people. i have been in business for 30 years id rather have a little of the money owed than not having any of it.

  4. Anonymous says:

    lyk dude the only reason why i think that people are in death becouse of there is that they made a dum chocie by moving in a home that they had all ready had knew that they could not aford.

  5. carlie says:

    To all the homeowner bashers…shame on you…your perceptions are limited and self centered.

    On a more expanded thought…All humans globally should have a right to land and home without indebtedness to a corporation or government. The greedy global behavior has ruined humankind. Every one should be given land and home as a birthright. Every one that has a home built for them shall in turn help build another persons home and down the line. Everyone should be given an equal start in life. Very few people are given a fair start in life. Most have to rent and pay landowners to live. Most have no safe haven that is their own. When will our society evolve. Greed and Jealousy have over run the human sub-conscience. Love for one another comes from only a few. Our needs to have more and horde have made our hearts cold and hateful. I am sad for this human but have hope for the humans in the next 1000 years who will bring true global peace and fairness to the world. Using love and fairness and wisdom as the rationale. Not fear hate and greed.
    You are more then you think you are. Your limited perceptions are a disease that will stunt you until you open your mind to the whole.

  6. Ken says:

    I’ve been in my house for seven years. This will let you home owner bashers know that I didn’t plan to not make the payments when I bought it and I could afford the payment when I bought it.
    The greed on wall street (bankers) trashed our economy and my business revenues cut in half. I had to make a choice to keep the business running and let the personal finances go or shut down the business put 5 people out of work and look for a job after 25 years in the business.
    I sacrificed the personals and kept the business going and employees paid.
    I have tried to contact the bank to refinance the mortgage they aren’t intrested. I’ve attempted the loan modifications they won’t talk about it.
    I think instead of forclosure the banks should be ordered to work with the homeowners who want to stay in their homes I don’t care if they strech the loans out longer to make it affordable now and refinance again in five years when they get it together on wall street and the economy comes back.
    We have brand new homes here in Florida that have been sitting for two or more years (never lived in) that now are full of mold and insects because the builders won’t sell for a decent price. That is sad!!

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