Even as simplified as this great 10 minute video is, it still gets complicated. And as you can imagine, when you’ve got so many transactions handling a piece of mortgage paper, even the bankers have a hard time keeping track, which just complicates this process further — sending it to a grinding halt in some cases.
I.e. you’re foreclosing and the bank wants you out of the house. You demand to see the loan and the bank can’t find it. Until they can show it to you, they can’t kick you out. Yeah, really. So often people are staying in their houses mortgage-free for months before the bank can track down the loan and actually foreclose/kick them out.
The Crisis of Credit Visualized from Jonathan Jarvis on Vimeo.