No one knows who owns trillions of dollars of mortgages

If I’m reading this correctly, smart, informed people believe:

1) Trillions of dollars of U.S. mortgages are not owned by the parties who believe they own them because the necessary paperwork to transfer ownership was never completed.

2) In many cases, the parties that actually own the mortgages are now defunct!

3) The massive mortgage industry fraud that has recently come to public attention is likely an attempt by parties — who believed they owned mortgage debt but recently realized the paperwork was never completed — to fake the documentation to make it appear it was completed.

This could become the mother of all legal morasses, unless the U.S. government steps in and overrules contract law history by declaring that ownership was transferred even though necessary paperwork was never completed.

Posted by James on Wednesday, October 13, 2010