Why the mortgage rescue plans don't work

The article is well written, and goes to the heart of the mortgage problems. It's really too bad, because, although the intentions are right, the complexities of the "repair" are just too overwhelming. It comes down to solving an immediate problem by vote of a committee of a hundred people with different interests..
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In the opposite case, where the bank "owns" a note serviced by someone else, the question becomes, just what does the bank own? In the mortgage securitization craze, mortgage debt got so mixed, combined and re-combined that the original mortgage on one house may be at least part-owned by 100 separate bondholders. It's nice if the servicing entity gets word that one of these 100 wants to act like a human being instead of a bondholder, but unless the servicer hears from the other 99, the servicer's lawyers are going to tell the company to continue with the foreclosures, so as to preclude the possibility of one of the mortgage holders getting so ticked off at not receiving their pound of pain through foreclosing on the mortgage borrower that they sue.



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