You are exactly correct. The only thing MERS did was to give the banks the ability to transfer the mortgages between themselves or other investors; it didn’t give them a legal interest that could be exercised in foreclosure. This doesn’t mean that the borrowers are Scott free. The banks now need to go back, obtain an assignment from the original lender, record it, and then proceed to foreclose. And yes, they will have to pay those annoying recording fees to the counties - but the counties will be happy to accept them I’m sure.
And in case were the paperwork and the originial mortgage company doesn’t exsist like Coutrywide? And how many dollars and how man man hours and how much in legal fees will it take to get ‘Humpty’ put together again?
MERS did another thing, it dodged the recording and transfer fees that the local governments collect for such activities. Mr. County no like MERS.
The banks now need to go back, obtain an assignment from the original lender, record it, and then proceed to foreclose. And yes, they will have to pay those annoying recording fees to the counties
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EASIER SAID THAN DONE ... almost 100% of the securitized mortgages were table funded by an unnamed 3rd party ,, a party that is not currently recognized on any of the docs.
They have to decide if they want to forge an assignment from bank “A” to depositor “B” to Trustee “C” and risk being caught in the lie that bank “A” didn’t actually own anything because bank “AA” actually wired the money for the purchase...
Or do they want to acknowledge bank “AA’s” role and blow out the mortgage on TILA grounds as a void instrument..