The Mortgage Foreclosure Maze: Securitization with a Twist OR why mortgage servicers/banks will not modify, but WILL foreclose on, you.

[mEDITate-OR:

not read the REAL reason for all the foreclosures...

for securitized RE loan packages.

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This series of events explains why servicers are REALLY anxious to foreclose—even if the decision appears from the outside to make no sense. It explains why servicers have paid large sums for the “servicing rights”.
The true incentive for the servicer is control over the ever-growing pool of foreclosure proceeds—similar to a life estate.
The balance of the entire trust’s loan amounts outstanding was and is shrinking. Simultaneously the servicer’s related “collection account” is burgeoning with foreclosure proceeds.
Under.... aggressive securitizations and escrow arrangements a common benefit to servicers and banks alike was the ability to retain the income from investment of the collection account balance
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Bluntly put, while they do not get to keep any of the foreclosure proceeds, they DO get to hold them as long as they want to, then invest them wherever they want to, AND then to KEEP for themselves ALL of the income.
A sweet deal..., if you can write it.
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The Mortgage Foreclosure Maze:
Securitization with a Twist

http://stopforeclosurefraud.com/2010/07/08/the-mortgage-foreclosure-maze-securitization-with-a-twist/
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