Memo To Banks: You Are Toast

BusinessInsider ^ | L. Randall Wray

[Kartographer]

MERS has screwed up the records so badly that in many or most cases no one knows who holds the notes, who is entitled to receive mortgage payments, and who has got the deed. What we used to call “mortgage backed securities” are probably mostly unsecured. It is not clear that any of the securitizations of home mortgages were done properly. In that case, the securities are not mortgage backed. Mortgage servicers do not have the right to foreclose, and neither do the securities holders. Homeowners can follow the example in Utah because, apparently, all states have a similar provision to allow “quiet title action”. The mortgage debts are not secured by homes. The homeowners can keep their homes and tell the banks to take a flying leap.

[dynachrome]

Hmm. If many people go this route, could be a pretty major dam break in the mortgage fraud industry. “Prove you own the mortgage on my house before you can foreclose”

[Verginius Rufus]

This is not about “Mr. Cub,” Ernie Banks (now 79 years old).

[Notary Sojac]

I urge anyone with a mortgage to pursue the concept of a “quiet title search”. It might be the best money you ever spent.

[Jonty30]

Not just the banks.

Us. All of us.

[politicket]

Ping for later

[sheana]

You can ask your bank to ‘produce the note’. Legally they have to when asked. I did just that. Took me threatening them that I would quit making payments and consider the house mine, but they finally did.
Our house will be paid off in less than 2 years and I was worried about it in case we decide to move.

[Revel]

well of course the Fed now owns a whole lot them. And they created the money to buy them in order to save the banks. Of course we are still paying the tab every time we buy gas, or heating fuel, or even food.

[EVO X]

I wonder where this all will end?

It is just going to more of the same for a while. There is another year or so of Alt-A and Option Arms coming due. I doubt they would let any TBTF go under. Any new bad loans will get pushed over to the FED, Fannie and Freddie like they are now. You'll only see the end result of the carnage if you happen to live in area that is hard hit or try to earn some interest on your savings..

[No!]

As a 3rd generation old Savings and loan man....
this is the big one and you can “BANK” on it.

I replied over there to a great recap of the situation.

They sold these loans a dozen times! No wonder they “made” billions at 3%!!!

Sad state of affairs.

[gusopol3]

ERS was from inception a criminal conspiracy designed to [cheat counties out of recording fees, the US Treasury out of taxes, and] homeowners out of their homes

That answered my question; if it was started in 1995, yet was "designed to cheat homeowners out of their homes," then it was a total failure. As far as I know rates mortgage defaults, foreclosures, etc., did not begin to go up for over a decade after that.

[I_be_tc]

later

[DuncanWaring]

And a four-letter word at that.

[Alberta's Child]

The point is that the investor who now "owns" the mortgage bond may be in a position where the bond simply isn't performing -- i.e., that a large number of the properties whose mortgages are behind the bond are in foreclosure. Rather than deal with the question of who actually has the legal authority to foreclose on all of these properties (the original banks or the bond holder), the bond holder may find that it's cheaper to just challenge the legitimacy of the bond itself.

Basically (similar to your pipeline example), the bond holder is in the position of a person who buys a home and finds out afterward that there are all kinds of environmental hazards in the ground underneath it. Rather than get stuck dealing with a costly cleanup process, the new "owner" has every incentive to undo the purchase.

[FromLori]

MERS CEO R.K. Arnold Leaving Company

http://www.zerohedge.com/article/mers-ceo-rk-arnold-leaving-company

[1st I.D Vet]

For a blow by blow on this MERS concept and the securitization which has happened these are the two leading websites I’ve found to follow the happenings.

msfraud.org

livinglies.wordpress.com

Essentially anyone who has had a mortgage in the last 10 years MAY OR MAY NOT get their signed note back when they pay off the house.

Imagine paying on your home for all these years and at the end, the trustee or bank can’t sign off on it because they don’t have the note.

Imagine having someone else come up and saying “you still owe ME for your mortgage”

Essentially thats what we’re dealing with. When the deed of trust and note or mortgage and note dont follow each other and stay with each other there is potential for the innocent home owner to get screwed.

I’m in the process of asking the banks for my docs as we speak. I’ve never missed a payment in my life nor do I intend to; however, I’ll be damned if the wrong bank is going to take my payments and apply it to their bottom line and not my IOU.

Should be an interesting experience. I agree with a previous poster - Quiet title action may be the best money spend.

a couple preliminary steps should be necessary.

1. Have title company “A” pull title on your home.
2. Call your bank and have them tell you “we are the ones you owe money to”.
3. Take that banks name and the title report to title company “B” and see if that bank is the one who can sign off on a satisfaction of mortgage.
4. If title co B says they aren’t able, ask them for a letter indicating they won’t issue a title insurance policy.

then you have “cause for action” against your bank via a Quiet title action.