Securitized mortgage trusts and other types of trusts
Real EstateA trust is a legal entity created by one party, the settlor, through which a second party, the trustee, has the right to manage the assets or property of the settlor for the benefit of a third party, the beneficiary. The five main types of trusts are:
1. Living trust created by the living settlor.
2. Testamentary trust constituted by means of a will and which enters into force, is created when the settlor dies.
3. Revocable trust that may be modified or terminated by the settlor after its constitution.
4. Irrevocable trust that may not be modified or terminated by the settlor after its constitution.
5. Mortgage Revocable securitized trust that is created by the bank or lender, the actual debtor, without the knowledge of the Borrower before the Borrower purchases a home, business or commercial property so that the lender or bank sells the same property multiple times for multiple benefit without proper disclosure through mortgage securitization.
The interest of the mortgage property and I will pay held by one party, the trustee, usually another bank, for the benefit of another, the beneficiary, generally another bank, created by the Lender, a bank through a mortgage broker or another bank.
The first four trusts are self explanatory. These can deal with anything from cars, boats, household items, jewelry, tangible items, or real estate that is passed on to the heirs.
These are common, everyday trusts that almost everyone knows about. The fifth is the securitized mortgage trust that almost no one is aware of.
The securitized mortgage trust is created by the lending bank months and sometimes years before you buy your property. Your lender did not disclose this to you at your closing, because this securitization allows the lender to sell your mortgage and pay multiple times for more money.
A bank can obtain insurance from more than one company in the event that you fall behind in payments and are foreclosed upon. When looking for a loan modification, your servicer will tell you that you must miss one or two payments to be considered for the loan modification.
In fact, when you are 90 days behind on payments, the next day the bank manager can collect the insurance for the face amount of your mortgage and I will pay. In this way, if they insured your loan with two different companies, they will be able to charge three times the total amount of the presumed loan.
They get paid from both insurance companies and the insurance company you have been paying for since the date of purchase. Additionally, for each home in foreclosure, the bank servicer gets 85 percent of the value of the loan awarded as tax returns, write-offs, or expense allowances from the IRS.
Even if there are no other insurance companies, the bank servicer gets at least 185 percent of the loan value between the IRS and the insurance company and still forecloses and robs your home.