Linda Green strikes again.
Linda Green is the infamous nomme de guerre of the army of $10 per hour clerks that were robo-signing mortgage documents in order to cover up the lack of adequate documentation of mortgage papers.
Banks cannot foreclose without proof of a contract. These documents are part of the many forms signed during a closing. In their haste to
dice and chop mortgages into securities and collateralize debt obligations (any non-pass through MBS), lenders lost the basic paperwork. Now the court systems are stuck .
The Register of Deeds of Guilford County, North Carolina wants justice. He says that his county now has hundreds of homes in a legal limbo.
Jeff Thigpen, Register of Deeds in Guildford County, says that he noticed many different signatures coming in with the same name from 2006 to 2010. One company, DocX, sent 6,100 documents. Wells Fargo was involved with 54 percent of those forms. Bank of America was behind another 14 percent.
Another problem should concern people that have either sold their homes or that have sought a refinance. Without a form releasing a grantee from a mortgage, people will find it much more difficult to get a new mortgage loan. An underwriter would see that a mortgage was still on the books for a prospective borrower. This would drastically increase the debt-to-income ratio.