- Real Estate
Foreclosure Fraud And MERS
MERS stands for Mortgage Electronic Registration Systems, which is involved in around 70 MILLION mortgages throughout the US.
MERS is only acting as an agent for the true owner of the mortgage. MERS does not own any mortgages.
MERS was created as a brainchild by the banks in order to allow financial institutions to evade county recording fees, avoid the need to publicly record mortgage transfers and facilitate the rapid sale and securitization of mortgages. For centuries, when a property changed hands, the transaction was recorded at the county recorder’s office. These records ensured that the history of a property’s ownership was complete and that the priority of multiple liens placed on the property, including a mortgage, were accurate.
The banks have up to this point evaded over TWO BILLION DOLLARS in recording fees by transferring mortgages under the shell of MERS, rather than complying with hundreds of years of property law, which requires that each transfer of property ownership be documented in the county recorder’s office.
The NOTE was used as a promise to pay back a certain amount of money for a certain amount of years at a certain interest rate. The MORTGAGE was used as collateral to secure or “perfect” the lien. The same party must be in possession AT ALL TIMES of both the note and mortgage, in order to have an enforceable lien.
During the mortgage securitization spree, mortgages changed hands rapidly many times over. Securitization involved in multiple transactions which were not documented and recorded. In order to make the most money as quickly as possible by not recording each transaction, MERS was created by the banks to keep track of mortgage assignments electronically.
The MERS scam was exposed when falsified documents were created and submitted in foreclosures, with various persons signing as a “Vice President” for whatever corporation was needed for that particular document. When the bank is forced to produce the original note in court, often times a "Lost Note Affidavit" will be filed, claiming that the original note was lost, which we all know is not the case. It was destroyed.
These robo-signers have now admitted they did not actually review the files and were not employees of MERS.
Thousands of foreclosure proceedings have been filed in the name of MERS. Attorneys have now began questioning how an electronic registry with no ownership of the that did not own the mortgages could be allowed to foreclose and evict people from their homes. Lawyers are also questioning whether MERS should be allowed to act in court as the owner of the mortgage, when in fact it is not the owner of the mortgage, instead only representing a bank who actually owns the note, or a bank who sold shares of a pool of mortgages to investors, who could themselves have resold the shares.
If courts find that foreclosures involving MERS are invalid, then ownership rights of millions of mortgages are in question.
Just because your loan was securitized doesn't mean that there ever was any transfer of the loan. It is one thing to securitize the mortgage, which is the difference between documentating the sale and transfer of the loans, and the actual money. The only thing that anyone was actually interested in was the MONEY, which was the only thing that was securitized. The money that was pooled by the investors was the only thing that was securitized, and the monthly payments received from the borrowers were passed around like baseball cards on the playground. The "securitization" of mortgage backed assets never actually happened.
The obligation is legally unsecured in every MERS-related transaction. The attempt to foreclose based upon documentation that on its face misrepresented the real parties in interest is a FRAUD. The REAL parties have failed to establish a perfected security interest, which has created a fatal defect in the chain of title.
Homeowners have a rather large hurdle to overcome with Judges having the biased assumptions, in that as long as the homeowner is not paying their mortgage, they are a “deadbeat” who is just trying to scam the system and get a “free house”. “Your Honor, fraud has been committed on the court with these fraudulent robo-signed documents which have been submitted by the bank. Who owns my mortgage?
When MERS and forged documents are used to foreclose and throw a homeowner out of their house and into the street, the homeowner still owns the property that they thought was lost due to foreclosure. A forged document cannot convey title to a new buyer, nor can a clear title be based on fraud.