September 25, 2009 by christine
In case you haven’t heard, a Kansas Supreme Court has ruled that MERS has no standing to foreclose.
It was just a matter of time before a court somewhere decided against MERS.
For those of you who don’t know who or what MERS is, it’s the Mortgage Electronic Registration System, essentially an electronic database that was created by the mortgage industry to circumvent the proper recording of deeds at the local level.
They are a private company owned by the banks, and mortgages that are registered with MERS are usually done so at the time of the loan closing. In fact, some of you might have seen the MERS fee of three or four dollars on your HUD-1 settlement statement.
As we mentioned in an earlier blog post on MERS, its alleged status as a “beneficiary” under Deeds of Trusts is false. MERS is an electronic database! MERS is not a beneficiary under any Deeds of Trusts or mortgages and it cannot foreclose because it cannot and does not have standing to.
This decision is significant because there are SIXTY MILLION mortgages registered in their database, about half of all the mortgages in the United States, and MERS has no standing to foreclose on any of them.
It will be interesting to see how the banking industry will maneuver its way out of this mess. In the meantime, millions of homeowners in Kansas just got an extension of time.
I’ll bet the lenders start negotiation with homeowners in Kansas now! They may not have a choice, knowing they cannot foreclose.
You can read the full decision here.
Related posts:
- The MERS Database: Anoth
September 25, 2009 by christine
In case you haven’t heard, a Kansas Supreme Court has ruled that MERS has no standing to foreclose.
It was just a matter of time before a court somewhere decided against MERS.
For those of you who don’t know who or what MERS is, it’s the Mortgage Electronic Registration System, essentially an electronic database that was created by the mortgage industry to circumvent the proper recording of deeds at the local level.
They are a private company owned by the banks, and mortgages that are registered with MERS are usually done so at the time of the loan closing. In fact, some of you might have seen the MERS fee of three or four dollars on your HUD-1 settlement statement.
As we mentioned in an earlier blog post on MERS, its alleged status as a “beneficiary” under Deeds of Trusts is false. MERS is an electronic database! MERS is not a beneficiary under any Deeds of Trusts or mortgages and it cannot foreclose because it cannot and does not have standing to.
This decision is significant because there are SIXTY MILLION mortgages registered in their database, about half of all the mortgages in the United States, and MERS has no standing to foreclose on any of them.
It will be interesting to see how the banking industry will maneuver its way out of this mess. In the meantime, millions of homeowners in Kansas just got an extension of time.
I’ll bet the lenders start negotiation with homeowners in Kansas now! They may not have a choice, knowing they cannot foreclose.
You can read the full decision here.
Related posts:
- The MERS Database: Another Piece of the Mortgage Mess The lending industry has created a nifty way for themselves...
- Produce the Note I get asked a lot of questions about the produce...
- Suge Knight’s Sold by BK Court Knight’s House sold in Bankruptcy court for $4.56 million. It...
- Truth in Foreclosure Takes on the Obama Housing Plan Todd at the Truth in Foreclosure website is keeping on...
- Federal Mortgage Program Isn’t Helping the People Who Need it the Most Many homeowners were hopeful earlier this year when the President...
- er Piece of the Mortgage Mess The lending industry has created a nifty way for themselves...
- Produce the Note I get asked a lot of questions about the produce...
- Suge Knight’s Sold by BK Court Knight’s House sold in Bankruptcy court for $4.56 million. It...
- Truth in Foreclosure Takes on the Obama Housing Plan Todd at the Truth in Foreclosure website is keeping on...
- Federal Mortgage Program Isn’t Helping the People Who Need it the Most Many homeowners were hopeful earlier this year when the President...
