Major Banks Forging Ownership Documents

[Keith Saunders]

Just saw a story on 60 minutes about several very large banks manufacturing ownership documents. All related to mortgage forclosures in the past several years. It appears they can not come up with the real title of ownership documents due to all the selling and reselling of mortgages prior to the market crash in 2008.

Citi Bank, Wells Fargo, Bank of America as well as several other well known banks have outsourced this deception to a third party company which would hire anyone that could hold a pen and sign a name. The forgers would sign the name of non existant bank presidents, vice presidents and other key official at the rate of 350 bogas mortgages an hour per each forger.

You can catch the whole story on 60 minutes website im sure for all the dirty details. One question I have for all of you that deal in preforclosure, foreclosure and reo properties.

How are you going to protect yourself now that you know the ownership paper you may be buying on that great deal you just secured is in fact real? or is it just forgery that most likely will come back to bite you in the butt?

I know you are all thinking, thats what title insurance is for, right? But what happens when millions of bogus ownership documents hit the street all at the same time and the title insurance companies can't pay? Then what?

One more thing, and maybe some of the realestate legal experts can answer this. What if any repercussions may come to pass on all the previous properies already purchased and sold with ownership documentation that are found to be forgeries?

I am new to investing and don't want to be chicken little. But given the track record of banks in the not so distant past. Who do you think is going to be left holding the bag? Not the banks.