BoingBoing: Derivative Shell Game Leaves Mortgages “Orphaned” — stop paying your mortgage, keep your house.

Photo Credit: jimw

While this is a very “out there” occurrence - it was too crazy of a story about PF to pass up. Apparently in the orgy of speculation/selling of mortgages during the “good old days” of the real estate bubble, some mortgages got lost in the shuffle. These homeowners (and banks) now realize that the mortgage company no longer has proof that they hold a mortgage, putting the house in a “Twilight Zone” of sorts - where you don’t pay your mortgage and the bank can’t seize it.

Personally, I think the whole thing is pretty screwy/unethical. I predict that those notes will be found pretty quickly and the lenders are going to crack some skulls. Goes to show you that Gordon Gekko from “Wall Street” is not someone to idolize - greed is definitely not good.

I won’t lie, I don’t feel as guilty about renting at this moment in time with all the insanity that’s going on.

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