A mortgager would register the note with Mers. Mers was supposed to give the loan a number and electronically keep track of the loan. Now when Mers registered the note with the county recorder, it would not state the actual owner on the note. It would state that MERS was the beneficiary. This is illegal because MERS never put up a penny for the loan. Mers is also a corporation registered in another state and thus had no standing when it came to foreclosing on a property. Furthermore, the identity of the investors who belonged to MERS is hidden. There are a number of scams that have been run using MERS.
No this is where Randi had it partially correct. Yes there was shredding of the promissory note. but it was not metaphorical. It was literal. When a mortgagor registered the loan with MERS, MERS would make an electronic copies of the promissory notes and actually shred the ORIGINAL promissory note. Then they would sell the promissory note over again one, 2, 3 or more times. Each time they sold the note to a different investor, they would sell it for the full value of the note.This is why there are at times 2 or 3 investors who show up to take back a property in foreclosure. Because there is no original promissory note, the servicer of the loan cannot legally foreclose on the property and there is a cloud on the title of the property because of these shenanigans. The only way to get clear title is to resell the property. In this way the property will receive a new deed. This is why banks would rather sell the property in foreclosure than modify an existing loan.
Great info. I've been following this issue closely and coming down to filing lawsuit.
Would you have any reference to cases where loan was sold multiple times at full value? I have heard of multiple investors foreclosing.
I would just add it's tough to win a case on MERS alone in CA esp with certain judges. Hopefully Randi and others will point out the plain ol' fraud that lenders and Wall St have committed. And while they're at it go over the 2 TRILLION dollars Chase alone received and other corporations per Bernie Sanders legislation.
Lenders have tried to cover their tracks with MERS and bad loans by going back and recording trustees etc with false documents, "employees" etc. Whatever system, technology being used THIS IS FRAUD. The loan modification process is pure chaos which lets them keep collecting while homeowners are strung along and keeps the REAL economy in a freefall.