Mortgage registrar cannot transfer mortgages-court

Reuters ^ | 2/14/11 | Jonathan Stempel

[Kartographer]

A company that tracks roughly half of all U.S. home loans has no right to transfer mortgages, a ruling that could significantly affect the foreclosure process nationwide, a federal bankruptcy judge concluded.

Merscorp Inc, a private company known as MERS and owned by large banks and mortgage processors, cannot act as an agent of the banks that own mortgages, wrote Judge Robert Grossman of the U.S. bankruptcy court in Central Islip, New York, located on Long Island.

MERS, which stands for Mortgage Electronic Registration Systems, tracks more than 60 million mortgages, and has filed thousands of foreclosure actions on behalf of lenders.

[WalterSobchak2012]

I would love to know if the said individuals feel an obligation to pay the bogus copier toner invoices IDC Servco spews out of every fax machine in North America.

[Kartographer]

So I wonder why the ABA Journal took it serious enough to post the same story? You would think that the ABA would know at least as much as you and had discount the situation as a non-story.

[bruinbirdman]

The judge couldn't have made it more plain as has been said since the first case went to court:

". . . parties seeking in bankruptcy proceedings to avoid the ban on legal claims must show they own both the note and the mortgage."

yitbos

[Roccus]

Whatever you do, when talking to Laquisha, Daneequa or whoever, NEVER EVER refer to Chase as “you people.”

I have found the total lack of professionalism at Chase “customer services” to be appalling.

[Danae]

So... Does this cover CitiMortgage and Nationstar? If so, what’s that mean for me? I am not in foreclosure, or even late. My mortgage just got sold a couple months ago.

[Carry_Okie]

I wonder what will happen when people realize that “paying off the note” under the MERS system is also invalid. The whole residential real estate market could freeze up.

Worse, our mortgage was initiated by Washington Mutual. Because they went belly up, it is supposedly administered by Chase but the note is held by the FDIC!!!

Although we are not far from paying it off and are paid six months in advance, now we literally do not know if we should be paying on this note at all. I'd really like to know what to do.

[April Lexington]

At some point, title insurance companies stop insuring titles because the risk of loss is too great. Either we have clear titles or we don’t...

[DuncanWaring]

That has already started to happen.

[DuncanWaring]

And your basis for making this assessment is ...?

[Kartographer]

If it’s been transfered through MERS it has a good chance to apply.

[kearnyirish2]

“I have found the total lack of professionalism at Chase “customer services” to be appalling.”

Just another symptom of cost-cutting by corporations; I can’t believe the number of work-related calls I get from people with horrible accents or terrible speech. In the past this would have precluded them from customer service work; they probably earn 1/2 of what the professional Americans they displaced used to earn.

[redgolum]

But will it stand? The trend is “If it hurts the monied or political interests, the law does not apply”.

[RipSawyer]

That is what I have been wondering abut for a long time. How can a person be sure that he will ever have a clear title or be able to resell a house once the debt is paid off.

[Kartographer]

But will it stand? The trend is “If it hurts the monied or political interests, the law does not apply”.

A very good question, one I have no answer for. Surprisingly though there are may FReepers who believe that the banks should be above the law and that fraud, perjury and forgery should be accepted as normal everyday business practice.

[Kartographer]

That is what I have been wondering abut for a long time. How can a person be sure that he will ever have a clear title or be able to resell a house once the debt is paid off.

According to some that's not yours to worry about, just trust that the 'bankster' will do the right thing and just keep sending your money to who ever sends you a bill rather they actually hold the note or not.

[RushingWater]

Worse, our mortgage was initiated by Washington Mutual. Because they went belly up, it is supposedly administered by Chase but the note is held by the FDIC!!!

That was my situation on my 2nd note, and when I called for the MERS number Chase said they didn't use it and when I pay it off they will file it in the courthouse,

[mad_as_he$$]

later.

[LuvFreeRepublic]

What a mess. The longer it gets fixed, if even possible, the harder the crash. Something needs to be done so the mortgages in default go through some kind of process. My heart lies with those who have paid their debts.

[mad_as_he$$]

Without reading the case filings I cannot be sure but I think you miss the point. From the article the Judge is saying MERS cannot be the “record” holder AND service the debt. Seems like he is saying that the whole concept of MERS is flawed (which we all knew). If that is what he said the house of cards is really going to collapse. It is how ever Reuters.

[Kartographer]

I think Karl Denninger explains fairly well here:

http://market-ticker.org/akcs-www?singlepost=2410491