MERS is going down the crapper - Huge implications

[Mouse]

I know there was an article buried in foreclosuregate section about NY Judge ruling MERS broke the law in mortgage assignments. This has continued to get more interesting, yesterday MERS sent a letter to all members that they cannot use MERS in their foreclosure actions going forward.

Today this from ZH, bitchez - lot's of good comments there. This could be the biggest clusterfuck evar!

One Step Closer To The End: MERS Corporate Secretary Demoted
Submitted by Tyler Durden on 02/18/2011 16:01 -0500




MERS is finished. A month after CEO and President R.K. Arnold was the first rat to jump the sinking fraudclosure enabling ship, the company's (and we use the term loosely - typically companies actually do stuff instead of just handing out $25 stamps) Corporate Secretary has Bill Hultman was just shown a purple slip, by being demoted to Senior Vice President. Although following earlier news that MERS is basically suspending its operations, we are surprised that anyone pretends there is even a business model behind the fraud. Per Bloomberg: "Merscorp Inc., operator of the electronic mortgage-registration system under criticism by consumer advocates amid a probe into lender foreclosure errors, replaced Bill Hultman as its corporate secretary."

More:

Merscorp has made a series of changes as courts debate what role it has, if any, in home foreclosures. Chief Executive Officer and President R.K. Arnold, who hired Hultman in 1998, retired last month. The company also is examining reforms, including a proposed rule change on the company’s website Feb. 16 that would stop members from foreclosing in its name.

“They’re trying to clean up their house,” said Christopher L. Peterson, a law professor at the University of Utah in Salt Lake City who has written law-review articles critical of the company. “I’m not sure Hultman was the problem. It seems to me the problem is the business model.”

Lejarde declined to comment on the reason for the change in Hultman’s role. A telephone message left for Hultman wasn’t immediately returned.

And here is a reminder why with the extinction of MERS, virtually all US mortgages will be null and void.

Merscorp’s Mortgage Electronic Registration Systems Inc. contains more than half of all U.S. home mortgages. Members, which include the nation’s largest banks, log changes on the private database rather than filing mortgage assignments with county records offices each time loans change hands.

But don't tell the ponzi market. After all just like everyone now claims they had no idea that Madoff was a ponz, so in a year or so, everyone will be stunned, stunned, that everything we see on CNBC each and every day was a pyramid scheme.

http://www.zerohedge.com/article/and-so-it-ends-mers-corporate-secretary-joins-other-ship-jumping-executives-leaving-company

[Serpo]

Love to see this play out

[Cebu_4_2]

BoA, Fannie mae, Lawyers... and the foreclosure claimed on the sales date? Yes, MERS, no legal standing at all but all the corrupt judges here honor MERS as a legal entity... such complete bullshit.

[ShortJohnSilver]

SO what happens when 20 million + real estate titles across the country are irrevocably screwed up? How is THAT going to get fixed?

[General of Darkness]

SO what happens when 20 million + real estate titles across the country are irrevocably screwed up? How is THAT going to get fixed?


It won't be fixed, it will just drive home prices down further.

[Cebu_4_2]

SO what happens when 20 million + real estate titles across the country are irrevocably screwed up? How is THAT going to get fixed?


It won't be fixed, it will just drive home prices down further.


how much further? I went from 280 to 110... Wish I could post the chart, it's breath taking if your on the right side of the deal.

[Book]

Love to see this play out



http://3.bp.blogspot.com/_utk4RcQXYVc/SgzpeG2YcpI/AAAAAAAAACs/OzQmxmLzgY8/s400/The+Road++movie+by+John+Hillcoat.jpg

[ShortJohnSilver]

SO what happens when 20 million + real estate titles across the country are irrevocably screwed up? How is THAT going to get fixed?


It won't be fixed, it will just drive home prices down further.


Let's say prices drop and someone buys the home... how do they absolutely KNOW that they have received clear title, when the title insurance companies will no longer guarantee some of them?

Besides which, even 100,000 titles having to be paid up by a title insurance company would wipe it out.

[Twisted Titan]

SO what happens when 20 million + real estate titles across the country are irrevocably screwed up? How is THAT going to get fixed?


It won't be fixed, it will just drive home prices down further.


Let's say prices drop and someone buys the home... how do they absolutely KNOW that they have received clear title, when the title insurance companies will no longer guarantee some of them?

Besides which, even 100,000 titles having to be paid up by a title insurance company would wipe it out.



That is the big fat nasty Nobody is talking about........ Title insurance compaines wont issue a policy until they can make dam sure they are not going to held liable.

This and plus several other factors will collapse the hosuing market as we know it.


T

[Mouse]

This should have every thinking American with a mortgage or a foreclosure chasing down the assignments. Go to your county registrar and see who is registered. Then get to researching, I guess. I am not a big fan of lawyers, but I would bet that a lot of people are going to blow this hole open and get their notes erased. After that, a horde of people will try to do the same but there will be unconstitutional law passed to prevent it.

My mortgage is funneled through MERS.....it's securitized somewhere. I am not in default but if they don't own the note and the assignments aren't lawful, how do I know that I am paying a legitimate payment every month that is actually recorded to my mortgage that is owned by god know's who that has been improperly recorded however many times? Who owns the magic debt created from thin air.

If I can screw the banksters, I will pin them and make family style. I have few issues with morals when it comes to this. I am sure this will be covered up, wiped away, nothing to pass, but if enough people start to demand the note, this will be a huge wealth transfer in the proper direction.

[k-os]

This should have every thinking American with a mortgage or a foreclosure chasing down the assignments. Go to your county registrar and see who is registered. Then get to researching, I guess. I am not a big fan of lawyers, but I would bet that a lot of people are going to blow this hole open and get their notes erased. After that, a horde of people will try to do the same but there will be unconstitutional law passed to prevent it.

My mortgage is funneled through MERS.....it's securitized somewhere. I am not in default but if they don't own the note and the assignments aren't lawful, how do I know that I am paying a legitimate payment every month that is actually recorded to my mortgage that is owned by god know's who that has been improperly recorded however many times? Who owns the magic debt created from thin air.

If I can screw the banksters, I will pin them and make family style. I have few issues with morals when it comes to this. I am sure this will be covered up, wiped away, nothing to pass, but if enough people start to demand the note, this will be a huge wealth transfer in the proper direction.


Are you going to do anything about your mortgage? From what I remember, you are happy with your location and living situation. A friend told me my house is a MERS, but I never verified it. My house is still worth more than I paid for it (for now), and I am current with my mortgage, even if I haven't seen my home for 7 months. :o

It seems to me that this MERS fraud would only matter to someone underwater in their mortgage, and/or desperately trying to get out of their mortgage (job loss, health etc.) without having an effect on their credit score. Am I right, or do you think people like you and I are going to someday benefit from this?

[Twisted Titan]

Some day you will

But if you are pleased where you are and can manage what you pay........ just hold the line.

Rolling the dice with MERS and mortagage assigments is scary stuff and you can be a 100% right and STILL get laughed out of court by a equity judge.

The Rule of law never existed for the common person.

If you see serious movement of successful house challanges start to crop up watch how fast the hammer is put down .

Its scary when you live on the edge and I dont recomend it unless it cant be avoided.

[Mouse]

I was thinking more along the lines of quiet title. Still researching it. I don't think it will work and will probably cost a fortune. The approach would be to start a quiet title process, demand the note, follow the assignment trail and meanwhile continue to make the payments, but have the payments funneled to an escrow account pending the outcome. If the banksters win, then they get their money from the escrow and I have not defaulted, if I win I get clear title and they can pound sand.

[k-os]

I was thinking more along the lines of quiet title. Still researching it. I don't think it will work and will probably cost a fortune. The approach would be to start a quiet title process, demand the note, follow the assignment trail and meanwhile continue to make the payments, but have the payments funneled to an escrow account pending the outcome. If the banksters win, then they get their money from the escrow and I have not defaulted, if I win I get clear title and they can pound sand.


Sounds like fun to me!

[dys]

There is absolutely no way in hell that the bankers are going to allow significant numbers of their victims to escape from their clutches.
But I guess we can hope.

dys

[Mouse]

Time is of the essence. The early bird gets the worm. The window might be open but I agree, it will be shut by .gov before there is much pain to the bankers. They won't have reason to freak out until a few cases get away from them.

[Libertytree]

I was thinking more along the lines of quiet title. Still researching it. I don't think it will work and will probably cost a fortune. The approach would be to start a quiet title process, demand the note, follow the assignment trail and meanwhile continue to make the payments, but have the payments funneled to an escrow account pending the outcome. If the banksters win, then they get their money from the escrow and I have not defaulted, if I win I get clear title and they can pound sand.


Sounds like a good tact to me, doing it quietly aggressive and being in on the front end helps you out immensely IMHO.

[Silver Shield]

There is only one way this is all going to play out.

Hyperinflationary depression.

All paper assets will burn including real estate ( what is a property worth without 30 year mortgage or title insurance )

I am looking for the day a hundred ounce bar of silver buys a house.

[Twisted Titan]

I was thinking more along the lines of quiet title. Still researching it. I don't think it will work and will probably cost a fortune. The approach would be to start a quiet title process, demand the note, follow the assignment trail and meanwhile continue to make the payments, but have the payments funneled to an escrow account pending the outcome. If the banksters win, then they get their money from the escrow and I have not defaulted, if I win I get clear title and they can pound sand.


Sounds like a good tact to me, doing it quietly aggressive and being in on the front end helps you out immensely IMHO.


That is EXACTLY what the Mortage Servicers do

They string you along promising you a modification which never comes but behind the scences the have your forclosure being fastracked so you can get tossed by the sherriff.

[kregener]

I need something more than "Tyler Durden" says so.

[Still Barbaro]

Forgive my ignorance. At least I admit it.

I didn't know (and still don't know) what MERS actually is.

Yes, I googled, and read the top 4 links.

Not good explanations. Can someone enlighten me on this?


Thanks, in advance.

[Spectrism]

Forgive my ignorance. At least I admit it.
I didn't know (and still don't know) what MERS actually is.
Yes, I googled, and read the top 4 links.
Not good explanations. Can someone enlighten me on this?
Thanks, in advance.


A broad view, as I understand it... MERS is a computer/software management of mortgage notes to expedite and ease the horrendous tracking needs of multiple resales of the notes. It does not own anything and only provides the service of tracking the transfer of the notes. Instead of maintaining a paper file of the official signed note, MERS just maintains digits on computers. Without authorization or oversight, as far as I know, they began a transfer management system much like the stock exchange or bank money transfers. If this is so, then they may "cure" the whole issue by miraculously legislating that it is now legal. I think the main problem is that there is no oversight and no proper management of the paper notes. Those ARE the ASSETS with the signatures of the mortgagor. The digits on the computer are not the assets as is clear in that MERS claims NO ownership ever.

[Still Barbaro]

Forgive my ignorance. At least I admit it.
I didn't know (and still don't know) what MERS actually is.
Yes, I googled, and read the top 4 links.
Not good explanations. Can someone enlighten me on this?
Thanks, in advance.


A broad view, as I understand it... MERS is a computer/software management of mortgage notes to expedite and ease the horrendous tracking needs of multiple resales of the notes. It does not own anything and only provides the service of tracking the transfer of the notes. Instead of maintaining a paper file of the official signed note, MERS just maintains digits on computers. Without authorization or oversight, as far as I know, they began a transfer management system much like the stock exchange or bank money transfers. If this is so, then they may "cure" the whole issue by miraculously legislating that it is now legal. I think the main problem is that there is no oversight and no proper management of the paper notes. Those ARE the ASSETS with the signatures of the mortgagor. The digits on the computer are not the assets as is clear in that MERS claims NO ownership ever.


Thanks, Specrism. Now I have a foundation, and will read the entire thread. Thanks.

[etc]

There is only one way this is all going to play out.

Hyperinflationary depression.

All paper assets will burn including real estate ( what is a property worth without 30 year mortgage or title insurance )

I am looking for the day a hundred ounce bar of silver buys a house.




I think so too. But we have a long, long way to go. Or to fall. Meaning that it could happen in a short time. But we are not even close.

[jimswift]

what is a property worth without 30 year mortgage?


That's the question I ask people all the time about housing.

Get the ole blank look 9 out of 10 times like it never crossed their mind.