Homeowners take on an incredible responsibility when they make the decision to accept a mortgage and make regular payments every month, often for decades. It stands to reason that the average mortgage holder would like to know where that money is going and who is receiving it, but for most people this is an unlikely reality. This becomes a real problem for the homeowner in the event a bank or holder tries to foreclose on the home, making it almost impossible for any regulatory body (e.g. the courts) or the borrower to prove chain of title. This results in a “clouded” title that becomes difficult and expensive to defend or transfer, which often has to be sorted out at the borrower’s expense. For more on this continue reading the following article from JDSupra.
So who holds the title to your house? Every month you have to pay your mortgage to some anonymous bank or lender. This is the payment that you promised to make each month in exchange for the privilege of being able to buy your house or condominium. What most home owners don’t know is that they don’t really owe anything to that specific lender that they send thousands of dollars to each month. In reality, that company never actually loaned you any money for your home. In truth, that big bank is actually just servicing the “true” investor of your mortgage. The ironic thing is in most cases, you don’t even know who is in point of fact getting your hard earned money.
This article was republished with permission from JDSupra.