Who Owns Your Mortgage?

When midnight comes the ledgers must balance.  Banks create money out of thin when you take out a “loan”.  And that dear Reader, describes the banking system.

When you get your loan or perhaps mortgage, initially it rests with your bank until it leaves to find a new home as you spend it or, when a house conveyance takes place.  And this is problem for the bank, the bank you took the loan/mortgage from might have to borrow money to balance their ledgers.  Ironically, the bank might need to borrow money, say overnight, on the money markets to balance its ledgers – this could be expensive and the bank would want to keep the amount they borrow to the minimum.

One solution for the bank is to “sell” (or securitise) the loan/mortgage onto a third party and the proceeds will then help to balance their ledgers.  This way the process of money creation can continue for the banks unabated.  When the bank securitises the debt off to another party, technically speaking your debt has been settled between you and the bank, unless they have put the correct paperwork in place.

You could be paying your mortgage-payments to a bank who no longer has your mortgage but still has a charge on your home with the Land Registry and would pursue the debt if you fall into arrears.  The Bank in this situation is merely a collection agent for whoever runs the investment vehicle.

Those of you following this blog might know, my quest in life is to be as autonomous as possible or to be as far removed from the ‘system’ as possible.  I am embarking on a journey to challenge my bank over the alleged mortgage debt.  I hope you will wish me well.

Here is more about it.

 

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