Who Can Foreclose On theSubprime Loans?

Question

Since a judge has ruled that investors such as DeutschBank cannot foreclose because they do not hold the mortgage paper on the assets and since mortgage lenders such as Citibank do not hold the debt (although they may have the paper) then is it possible that the borrowers will be able to stay in their homes without paying another cent in mortgage payments? In other words if no one knows who is the holder of the direct debt on those homes then there is no one who can foreclose.

Answer 1

That entire story has been blown out of proportion. What Deutsche encountered was a paperwork snafu. All Deutsche needs to do is correct the snafu and then file the foreclosure action at a later date.

Sorry, but this ain't gonna turn into a free ride for all those subprime loan borrowers. It's going to give them a month or two before the hammer falls, but it's still going to fall.