Who owns your home loan?

Check closely before someone tries to take the collateral.

Some loan pools are beginning to see trouble when it comes to foreclosure:

Judge Christopher A. Boyko of Federal District Court in Cleveland dismissed 14 foreclosure cases brought on behalf of mortgage investors, ruling that they had failed to prove that they owned the properties they were trying to seize.

Good news for borrowers (I guess), but it seems it might be very scary for mortgage bond holders:

“This is the miracle of not having securities mapped to the underlying loans,” said Josh Rosner, a specialist in mortgage securities at Graham-Fisher, an independent research firm in New York. “There is no industry repository for mortgage loans. I have heard of instances where the same loan is in two or three pools.”

If the legal precedence sticks, I’ll bet the mortgage market crisis gets a whole lot worse. Fortunately, in that case it won’t be the little guy doing the fighting.

UPDATE: It’s sticking.