What Does Securitization Have to do With The Florida Foreclosure Process?
The foreclosure process in Florida is affected by securitization: the process by which lenders and banks pooled loans together as part of a trust for investors. The basic idea for those investors during the rise of the housing bubble was that spreading their investment over many loans (rather than simply becoming a lender to, say, an individual family) diversified risk. Furthermore, like many people during the ascendancy of the housing bubble, investors believed such investments in home loans were good risks.
The Foreclosure process in Florida is affected by securitization, because many of the parties filing foreclosure are the actual securitized trusts. In other words, when a Florida homeowner receives or is served with a foreclosure complaint, the party suing him or her may be representative of a securitized trust.
What Do Florida Foreclosure Laws Say Regarding Securitization?
A number of arguments regarding securitization can be made on behalf of homeowners to contest foreclosure and there are a number of documents that a homeowner can ask for that show that their particular loan was or was not incorporated into the securitized trust. First, certifications were supposed to produced that would show the trustee or custodian received the loan file as part of the securitization process. Second, the mortgage loan schedule lists the actual loans supposedly brought into the trust. Finally, other documents such as requests for releases describe how and when the original loan documents were taken from the custodial file for use in foreclosure proceedings.
Each of these documents can be used to prove that a Florida homeowner’s loan was not actually brought into the pool of loans in a trust. If, for example, your loan is not listed in the mortgage loan schedule, your attorney may argue that there is proof that this particular trust does not own your particular loan. Similarly, the lack of these documents can be used to argue that there is a lack of evidence that the trust owns your loan.
How Can the Attorneys at King, Nieves & Zacks Help Me With Securitization and the Florida Foreclosure Process?
The Florida foreclosure attorneys at KNZ law can help you strategize about the best ways to raise these securitization issues in your case. Our foreclosure attorneys have handled hundreds of foreclosure cases and have been invited to lecture attorneys nationwide regarding the foreclosure process in Florida. Be sure that any firm you are considering never pawns work off to inexperienced associates and never gives unlicensed, uncertified paralegals any say in strategy.