Securitization is the process by which residential and commercial real property mortgage loans are bundled and sold to investors. Securitization can occur months after origination, or it could occur immediately after origination. However, not all loans are securitized.
Investors such as Goldman Sachs, DeutscheBank, Countrywide, Wells Fargo, etc. routinely sell or purchase large blocks of loans and place them into trusts or REMICs (Real Estate Mortgage Investment Conduits). Shares of those are then sold to other investors.
Knowing what happened to a particular loan, where it went and which investment vehicle it ended up in, can be important in foreclosure defense and litigation against lenders, especially for properties located in judicial-foreclosure states.
Through a Securitization Audit it can be determined if the Foreclosing party has proper jurisdiction to foreclosure on a property. In addition to Jurisdiction of the Foreclosing party, a Securitization Audit report can determine if the Foreclosure documents were executed properly. To be more specific, identify any irregularities in the documents that were used in the foreclosure process. The documents we analyze are the Deed, Notice of Default, Declarations of Compliance, Affidavits, Substitution of Trustee, Assignments of the Deed of Trust, Notice of Sale etc. Basically, any document that was used in the effort to foreclose on your property.
It's been discovered that many of these documents have been executed of behalf of the beneficiary without the beneficiaryâ€™s knowledge. Many times we see that employees of one company are signing documents as if they work for another company just to push the foreclosure process along. In California, It's a Trust Deed state along with several other states and this is a disadvantage to the homeowner facing foreclosure. Trust Deed Foreclosure can be executed in a certain time-line. There is no court involved. In a Mortgage Foreclosure, which are also Judicial Foreclosures requires a Judge to award the Foreclosing Party the Home. In those Judicial Foreclosures, The homeowner has the opportunity to get his day in court and if that homeowner is prepared and has the proper documentation, that sale can either be put aside and in some cases completely dismissed. There has been instances where a homeowner has even been foreclosed on and after the foreclosure, through a Securitization Audit, it was determined the lender had wrongfully foreclosed on the property and did not have Proper Standing to do so. Please read U.S. Bank National Association vs. Ibanez