Fraudulent property records

[Tom_Mi]

pls forgive another elementary question....just want to make sure I understand.


Are we expecting only changes in 'lender' to be recorded, or changes with the servicer too?

I'm thinking the former, and that you all are suggesting Mers's assignment should be recorded if a lender uses them.

So this debate is about Mers' right to be recorded (and foreclose) if they have no equity.

Am I following this correctly?

[Mensa1]

Am I following this correctly?

Pretty much got it Tom.

[sofarsogood2]

I am taking all the info on websites with a grain of salt. But it is interesting and worth keeping an eye on IMO.

[Mensa1]

What is interesting is... there is appx 12 TRILLION dollars of outstanding residential mtg debt in the US. in 2010, (backed by about 18 Trll of property values). Not sure what percentage of those mtgs are part of the MERS membership, but substantial.

There have been a relatively small number of court rulings involving MERS, like less than a dozen. But, when a ruling is made... these yah many websites will write about the rulings as if every mtg in this country is going to be ruled null and void due to fraud, etc. In just about every ruling that has been made the ruling deals with some narrow item and effects just a small % (if that) of potential mtgs, but that portion is never written. Nor is it written what the intent of the Judge in the ruling is really trying to communicate, but in almost every one of these rulings there is a message far more clear than anything to do with MERS, specifically. But again, you really have to WANT to read and understand (being a serious student of the game) what is intended by such rulings. All too often the harvester of the message is looking to apply it to their business (legal, marketing, etc. of foreclosure cures) so as to present the perfect solution to ones problems in foreclosure; just give me your $$$ and I will solve your foreclosure issue, and this message hits the yearning receipient right between the glassy eyes, as well as the pocketbook.

Fed'l Court Judge Boyko, in Cleveland, OH made a ruling in Nov 07 which terminated 32 foreclosure cases. This case had some impact on the subject but moreover what the Judge was saying is this case doesn't belong in Fed'l court; foreclosure is a state court issue. But many have molded this decision to say whatever they want it to say, but you won't read the above on any of those sites.

The Kansas Supreme Court ruling in Aug 09 is a ruling which by some will turn MERS on its ear. Not hardly. The ruling revolved around the definition or lack thereof of the term "NOMINEE". The term was used in the original mtg docs and the term was NOT explained in the docs, and this essentially was the basis of the decision by the Kansas Supreme Court... that they couldn't identify what a Nominee was, as it related to this case so they upheld the lower courts rulings. Stranger than fiction, really.

The above ruling is fraught with all kinds of errors, IMO, that are converse to standard title theories involved in real estate. That said, the impact of the decision is relatively narrow as it only relates to a 2nd or Jr mtg notice, which is what the case involved; Noptioce or lack thereof of a 2nd mtg that MERS was the Nominee. This case has little impact beyond that but all the wizard websites have the ruling knocking down the MERS house completely. NOT going to happen.

Anyway, the MERS issues are all over poor house keeping and record keeping procedures. The messages sent and learned early on by cases have caused the filers of foreclosures, lenders and Attys alike, to get their house in order before filing trash with the court. They MUST have verified that they have all proper docs or else they run the risk of being run out of the courtroom, plain and simple. Sure there are some cases that may not get filed if proper docs do not exist and that is a good thing, but these are few and far between. Mostly seem to involve certain lenders which have been mentioned previously in this post.

Let me finish by saying... when you read that 60 million mtgs are going to be effected, take that with (less than) a grain of salt. Ask yourself what the author of the site or article has to gain by writing such a statement, and that may lead you to more reasoned ground. Just my opinion, of course.