Remember the excitement of the US housing bubble? Property values were shooting up and lenders were throwing money at anything with a pulse. Now that the dust is clearing it seems so silly, but at the time even the ‘professionals’ seemed to think that prices would rise forever without a correction.
One small repercussion of those times is now making itself clear: in the excitement some people forgot to keep track of the records. At least one delinquent borrower has seen their $460,000 mortgage debt disappear, because the mortgage company was unable to prove they owned the loan.
Here in Canada the CMHC doesn’t seem to be heeding the ‘pumping money into the lower end of the market’ lesson from the US, but I doubt we’ll see this particular mistake made here. I bet everyone’s keeping immaculate records.