Re: Hey Rod Ciferri
In Reply to: Re: Hey Rod Ciferri posted by 427 on August 03, 2011 at 0:02 AM
CRASH COURSE-REAL LIFE EXAMPLE
1. Borrower executes a $100,000.00 note in favor of Long Beach Mortgage Company.
2. Borrower executes a $100,000.00 deed of trust in favor of Long Beach Mortgage Company.
3. Long Beach Mortgage Company sells (on credit) the $100.000.00 note secured by the $100,000.00 deed of trust to Washington Mutual Bank as part of a mortgage pool.
4. Washington Mutual Bank sells the mortgage pool( on credit) containing the $100,000.00 note secured by the $100,000.00 deed of trust to Wamu Asset Acceptance Corporation.
5. Wamu Asset Acceptance Corporation sells the mortgage pool (on credit) containing the $100,000.00 note secured by the $100,000.00 deed of trust to the Wamu Mortgage Trust.
6. The Wamu Mortgage Trust sells all beneficial interest in its self (the mortgage pool containing the $100,000.00 note secured by the $100,000.00 deed of trust) by issuing (selling) “mortgage backed securities” to Chinese investors.
And without the obligation to pay (note) the deed of trust is merely a cloud on title.
Economically speaking, the Trust sold the borrower’s asset (note) in order to get the money to give back to the borrower and called it a loan.
Hence the property was “free and clear” from the beginning.
I hope this helps.
: I would love a crash course but if its not appropriate here that is fine...still struggling with the mechanics of the grant deed, trust deed,reconveyance deed, trustee,seller,seller's bank, buyer, buyers bank, escrow & title. I tried to just sketch out the movements and order of the movements of deeds during a typical property transfer and got nowhere pretty quickly.
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