DOOOHHH! Bankers forget the "C" in CMO's

Wondering why the banks are just not getting around to foreclosing on their loans?  It was reported today on Bloomberg that in their haste to package up these deals, they cut costs everywhere... INCLUDING perfecting their lien on the properties.  So, we see a massive (up to 5 million homes) that are basically unsecured loans to the homeowners.

Seems you can't foreclose on a property you don't have a deed to!  Pretty basic lending... except if you're a bank... then you just do what you want and the taxpayer's pick up the tab.

"When's my next golf tee time?  I've got another big deal to close and the client loves to play golf.  Did my bonus get posted yet; my 5th house is due to close this week."

Tough to be a banker and keep it all together..

__________________________________________________________

THIS IS HUGE... AND, SO FAR, IT'S GETTING LITTLE PRESS....SECONDARY SOURCES:  

http://www.reuters.com/article/idUSN0521683520101005

http://www.housingwire.com/2010/10/05/the-greatest-heist-in-our-countrys-history