How to Determine If Your Mortgage is Compromised
- Thread starter Mr. Bill
- Start date
- 15,041
How silly. This is the exact opposite of reality, but it makes a good scare.
Once your mortgage disappears into MERS, the burden is going to fall on the lender to show ownership of the mortgage. This was the whole point of the county trustee and registering deeds and mortgages. So there would be a clear chain of title. Lenders tried to get around this and the filing fees by inventing MERS. It is now biting them in the butt as they can't show clear transfer of the mortgage from one lender to the next.
Once your mortgage disappears into MERS, the burden is going to fall on the lender to show ownership of the mortgage. This was the whole point of the county trustee and registering deeds and mortgages. So there would be a clear chain of title. Lenders tried to get around this and the filing fees by inventing MERS. It is now biting them in the butt as they can't show clear transfer of the mortgage from one lender to the next.
Ahhh yes, lose track of the difference between the title and the note. MERS was (is) about registering the liens of the note, not the title.
As a homeowner, you are on title. Mortgage holder has a lien on the title. MERS became an issue because only the holder of the note can foreclose and MERS effectively created a separation from who was recorded as the lienholder and who the noteholder was.
This then became a robo-signing adventure to fix all of the lienholders on the titles at the registrars office.
Problem has been settled in case law nowadays though. Banks paid a fine a while back, now all is good.
Dan
As a homeowner, you are on title. Mortgage holder has a lien on the title. MERS became an issue because only the holder of the note can foreclose and MERS effectively created a separation from who was recorded as the lienholder and who the noteholder was.
This then became a robo-signing adventure to fix all of the lienholders on the titles at the registrars office.
Problem has been settled in case law nowadays though. Banks paid a fine a while back, now all is good.
Dan
Similar threads
