Why can't banks foreclose without paperwork?
Sunday's column was about Hosea and Bernice Anderson of Columbia, who figured in an important court case a few weeks ago. When Deutsche Bank tried to foreclose on the Andersons' house, they challenged it on the basis of inadequate paperwork, that it couldn't prove it owned their mortgage and had the right to foreclose.
As noted in the column, there was also an interesting recent case in Massachusetts, in which a court drew the opposite conclusion. For further reading and extra credit, Megan McArdle had a series of good posts on this last week.
Why shouldn't banks be able to foreclose without adequate paperwork?
The Democratic solution to the foreclosure mess: Give everybody their house for free?
The libertarian solution to the foreclosure mess.
The moral and policy case against walking away from your mortgage.
Comments
Uh Duh, it's called due process. Applies to both Civil & Criminal proceedings. This isn't China.....YET!!!
Posted by: Bob K | January 18, 2011 10:35 AM
I see two real issues that everyone is dancing around: (1) Why can't a bankruptcy court modify or discharge a residential mortgage, as they are permitted to do with all other debts and contracts? (2) Why are so many banks that are technically insolvent allowed to carry defaulted or underwater mortgages on their books at full face which is a lie?
The answer to (1) is pressure from the banking industry; and as for (2) pressure from the banking industry.
Congress and the president have shamelessly permissive on these issues due to campaign contributions from banking pimps. Haven't we had enough?
Posted by: Fresh-mann | January 19, 2011 9:06 AM
Megan is still unhappy about the government trying to feed people during the depression - interferes with free markets ya know.
The idea that rich white people do not have to obey the law is an old one, but not a good one.
Posted by: save_the_rustbelt | January 19, 2011 10:17 AM