What is a Securitization Audit?
A
Securitization Audit is an in-depth investigation of the securitization
process of a mortgage.
Securitization,
in its simplest concept, means to turn something into a security. A
security is either a stock or a bond which can be traded on the stock
market.
There are laws that detail
the legal and correct method for turning a home loan into a security.
If these laws are correctly followed, then all is well. If they are
not, then we end up with fraudulent securities, fraudulent
foreclosures, or wrongful foreclosures, or illegal foreclosures. A Securitization
Audit is
the resource for a homeowner to find out a) if his loan has been
securitized, and b) if it was securitized, was it done correctly.
In most
cases, today’s loans are securitized and when a homeowner
requests a Securitization Audit to be done, it is consistently found
that the securitization process was not correctly done.
One of
the more common examples of a loan that has not been correctly
securitized when we conduct the Securitization
Audit is
the fact that the note and the deed have been separated and have taken
distinctly separate paths.
Typically,
this means a couple of very important things: First – any
foreclosure action being taken against the homeowner is a wrongful
foreclosure, illegal foreclosure, or fraudulent foreclosure –
whichever term you prefer. Second – There is something the
homeowner can do to prevent losing his home to this wrongful
foreclosure –IF he will just take action.
There are
specific documents that must remain in place and together for a
mortgage (which is often called “note”) to be
“collateralized”.
Collateral
is the item that a person puts forth as a guarantee of payment when he
takes out a loan. If you want to borrow 5,000 dollars from your bank,
they may ask you for collateral. This collateral will typically be
something worth more than the $5,000.00. If for any reason you do not
pay back the loan, then the bank will keep the collateral as payment
for the money they loaned.
With home
loans, the collateral is of course the home – which is
represented by the deed. When a bank securitizes a loan, they must not
separate the collateral in the process. Otherwise they end up with a
loan that has no collateral – useless paper.
Interestingly,
the banks got so sloppy, that this is exactly what they did. They took
millions of loans, turned them into stocks and bonds to be traded on
the stock market, but did not include the deeds. Now they cannot
foreclose because they no longer have the note, and the deed is no
longer with the note, wherever it may be (usually in the hands of
thousands of people – each owning a small piece of it).
This
massive “oversight” by the banks is actually fraud.
In fact it is fraud in many forms. These are the most easily seen:
Securities Fraud: The
banks securitized “collateralized loans”, and then
offered these to thousands of investors on the stock market.
Interestingly, many banks are being investigated today by the
Securities and Exchange Commission (SEC).
Mortgage Fraud: The
banks represented these loans as sound and solid investments, yet in
addition to the fact that these loans had no collateral, they were also
subprime loans given to lenders who would never be able to repay them,
and the banks knew it when they gave the loan.
Fraud upon the Courts:
The banks are now conducting wrongful foreclosures, presenting to the
courts that they have the legal right to foreclose on these borrowers.
In fact, they don’t because as any good securitization audit
will show, the bank doesn’t have the required documents to
foreclose in their possession.
This
would also be fraud upon the borrower who is now at risk of losing
everything that is dear to him and that he has striven so hard to
achieve.
Any homeowner who has
obtained a loan in the last decade, and who has had foreclosure begin
would be wise to immediately request a securitization audit –
no matter what stage of foreclosure he is in!
FreeMortgageAudit.net
is one of the most thorough audit companies in the industry today. They
conduct forensic
loan audits, securitization audits,
offer loan modification software, and provide a number of negotiations
services to
help homeowners save their homes.
Homeowners who
have lost their homes already to foreclosure, can, in many cases still
be helped. You can use the Securitization Audit to
show that the bank never had the right to foreclose.
FreeMortgageAudit.net
can help homeowners obtain successful loan modifications as well.
If you
are in foreclosure, the single most important thing that you can do is
get a Mortgage Audit and use the results of that audit to negotiate
with your bank. To find out more about the Securitization Audit contact
a FreeMortgageAudit.net at (800) 704-4228.
You can
also visit their website for more information on a Securitization
Audit. |