Goldman Seizes Homes as Securities Sour

Just getting them to admit they hold your mortgage can be an ordeal
By Caroline Miller,  Newser Staff
Posted Nov 2, 2009 8:21 AM CST
Richard Genna, left, of Goldman Sachs directs trading for the initial public offering (IPO) of Artio Global Investors on the floor of the New York Stock Exchange, Thursday, Sept. 24, 2009.   (AP Photo/Henny Ray Abrams)
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(Newser) – Imagine finding yourself in a foreclosure battle and discovering that your opponent isn't the obscure lender who wrote your insane mortgage, but the formidable Goldman Sachs. It seems that after years of buying subprime mortgages and packaging them into bonds, at a handsome profit, Goldman is now in the business of chasing down defaulting homeowners.

And in hundreds of cases the homeowners have found themselves at an added disadvantage, McClatchy reports, because Goldman tries to hide who holds the mortgage, making it impossible for homeowners to qualify for rescue programs. One couple said Goldman, through a subsidiary, dodged them through "three years of obfuscation and resistance" even after they wrote to then-CEO Hank Paulson.