Huffington Post | April 29, 2016 It’s one of those questions that seems pulled from a final exam at the Harvard Business School but if you’re a homeowner caught in the foreclosure wringer it’s something worth thinking about. Now, if you’re seeking an answer about the trustee’s role from any of the parties suing to extricate you from home and hearth the response, no doubt, will be an unequivocal “no.”
When it comes to snatching houses current banking wisdom goes something like this: mortgages (most of them) are held in securitized trusts which in turn hire servicers to collect monthly payments and if something goes awry — say the homeowner defaults on monthly payments — the servicer can initiate a foreclosure action on behalf of the investors in the trust. The role of the trustee — whose name usually appears as “plaintiff” in a foreclosure lawsuit — is simply that of a passive custodian storing the original mortgage documents (“wet ink,” in the vernacular). Read more here.