So if your lender sold your mortgage to another investor through MERS, now you don’t have to pay your mortgage? What a windfall!
Abrogating millions of mortgages would be both an unethical theft from lenders and a devastating blow to the financial system.
To not pay it back is theft.
I believe that there are ways to sell a mortage and to document that sale in a way the would satisfy the court than the mortage holder has standing to sue for foreclosure. However, it appears that MERS may not be the way.
I am a Kansas homeowner. My bank has not sold mortages except under unusual circumstances. As a consequence, they have avoided risky loans and are financially stable today. They are still making all manner of loans to old and new customers who meet the standards of good business practice. Many of their competitors are not so fortunate.
yes this is terrible,butt there is noway this ruling lasts.
any bets onwho nominated these morons?
First, most Realtors agree, do not move out of your house when you get the first forclosure notice. Keep trying to get the interest rate reduced or payment's renegotiated. Don't move out until all other negotiations have failed and you have to. It takes 6-12 months to finally get a court order to physically remove you, after you receive the first notice.
In order to win a case like this, you have to hire a attorney and a very expensive one at that to pull this kind of suit off. This sounds like you may be going up against the powers that be that are running the world.
I think this judgement cost my brother his job. When his employer saw the results, they immediately ceased all business in Kansas and fired all of their employees in the state.
“The sole goal of the [bailout schemes] is to prevent owners of mortgage-backed securities, many of them foreigners, from suing U.S. banks and forcing them to buy back worthless mortgage securities at face value right now almost 10 times their market worth. The ticking time bomb in the U.S. banking system is not resetting subprime mortgage rates. The real problem is the contractual ability of investors in mortgage bonds to require banks to buy back the loans at face value if there was fraud in the origination process.
. . . The catastrophic consequences of bond investors forcing originators to buy back loans at face value are beyond the current media discussion. The loans at issue dwarf the capital available at the largest U.S. banks combined, and investor lawsuits would raise stunning liability sufficient to cause even the largest U.S. banks to fail, resulting in massive taxpayer-funded bailouts of Fannie and Freddie, and even FDIC . . . .
What would be prudent and logical is for the banks that sold this toxic waste to buy it back and for a lot of people to go to prison. If they knew about the fraud, they should have to buy the bonds back.
OH MY!!!!
I have sucessfully used this defense several times in mortgage foreclosure actions as far back as the early 1990s whenever a “servicing agent” is the named plaintiff in the mortgage forclosure action. At the same time that I serve and answer to the complaint, I also serve a set of interrogatories and document demands that require the plaintiff to establish the paper trail from the original lender that gives the plaintiff the right to foreclose upon the mortgage.
And there lies the problem: Through a series of assignements, the right to receive payment under the note is packaged into an investment product with literally thousands and thousands of other notes, that is then sold to pension funds, insurance companies, mutual funds, etc., as an investment. The plaintiff in the mortgage foreclosure action is usually a servicing agent for the investors. However, neither the investors nor the servicing agent has received an assignment of the mortgage that secured the original debt. The last recorded mortgage is still in the hands of the bank that initially loaned the money or perhaps in an assignee bank, but rarely has the mortgage been assigned to the servicing agent, who is the named plaintiff in the mortgage foreclosure action, or the underlying investors, or even if the mortgage has been assigned, they can’t produce the documents to prove it.
The Kansas ruling is absurd. The housing crisis would be on its way to recovery if the government allowed banks to quickly foreclose on deadbeats.
Wow...fascinating.
bunch of crooks.
The article is right, a bunch of people should have gone to jail. Instead we apparently gave them large amounts of money.