As I read this it turns the loan secured by a mortgage into an unsecured loan. I am not certain who owns the house though!
THAT is the other thing I’ve been saying for the last umpteen months too. As this charlie-foxtrot mushrooms, there will be an increased cost and drag on buying foreclosed properties to quiet the title.
I, as an investor, won’t buy foreclosed properties now, because most all of them have MERS on the title at some point, and I don’t feel like paying thousands to a lawyer on every house I’d buy just to clear the title. Real estate valuations are deteriorating badly enough as it is without adding the expense and hassle of quieting the title.
Bingo, we have a winner.