MORTGAGE RIGHTS
The New Foreclosure Defenses MERS
MERS has been accurately described as a nightmare for our public land records system. Since everyone is required to give their mortgage to MERS, the land records list MERS as the owner of the mortgage in thousands and thousands of records. But, MERS is not the owner; it merely is an agent of the bank that lent the money to purchase the home. Instead of using the public land record system, we now have to go to the MERS website. The MERS website, however, does not let the public search for the beneficial owner of the mortgage. This information is secret.

 

Why Are the Beneficial Owner Records Kept Secret From the Public? I was able to get the MERS records for one of my clients during discovery. The report I looked at, the MERS Milestone Report, recorded the changes in ownership of the beneficial interest. The story the Milestone Report told was wildly at odds with the story the servicer told the court about the path the loan took to the trust. I put together this exhibit to show the difference. The top half of the exhibit is what Aurora claimed happened in the conveyance of the loan to the trust. It did not bother to present admissible evidence of this alleged series of conveyances because it only had to show that it had possession of the note to have standing. The bottom half is what the MERS records showed. According to the information in the MERS records, which was entered by Aurora, the trust never owned the beneficial interest in the mortgage. Moreover, the beneficial interest was conveyed 3 times after "all right, title and interest" in the loan was supposedly conveyed to the trust. What Are the Members of MERS Tracking? Homeowners generally do not concern themselves with issues about the ownership of promissory notes. Homeowners just need to know who to pay. This type of question is governed by Article 3 of the Uniform Commercial Code(UCC), Negotiable Instruments. Article 3 tells us whether the plaintiff in a foreclosure action is a person entitled to enforce the note (aka a PETE). A PETE has standing to bring a foreclosure and may be the party designted to collect monthly payments. a PETE may, but does not need to be, the owner of the note. Article 9 of the UCC governs questions about the ownership of notes. The owner of the note is entitled to its economic value, which is the monthly payments and the proceeds of a foreclosure). According to MERS, "[w]hen the beneficial interest in a loan is sold, the promissory note is [] transferred by an endorsement and delivery from the buyer to the seller [sic], but MERS Members are obligated to update the MERS® System to reflect the change in ownership of the promissory note...." In re Agard, (Bankr. E.D.N.Y. 2011) at 22. The transfers of beneficial interests in my client's case show that the members of MERS treated his loan as NOT being owned by the Trust. Here are some points for you to think about: MERS records that do not support the mortgage company's story about how the loan was conveyed to the trust could be used at a later stage of the proceedings to support an affirmative defense that the note was stolen. Since the mortgage companies enter the information into the MERS records, MERS records that do not support the mortgage company's story about how the loan was conveyed to the trust casts doubt on the mortgage company's honesty and raises the question whether the mortgage loan servicer can properly represent the trust.
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 MORTGAGE RIGHTS
The site does not provide legal advice. Neither Susan LaCava nor her law firm, LaCava Law, S.C., represent you until there is a signed retainer agreement.
The New Foreclosure Defenses MERS  MORTGAGE RIGHTS
MERS has been accurately described as a nightmare for our public land records system. Since everyone is required to give their mortgage to MERS, the land records list MERS as the owner of the mortgage in thousands and thousands of records. But, MERS is not the owner; it merely is an agent of the bank that lent the money to purchase the home. Instead of using the public land record system, we now have to go to the MERS website. The MERS website, however, does not let the public search for the beneficial owner of the mortgage. This information is secret.
Why Are the Beneficial Owner Records Kept Secret From the Public? I was able to get the MERS records for one of my clients during discovery. The report I looked at, the MERS Milestone Report, recorded the changes in ownership of the beneficial interest. The story the Milestone Report told was wildly at odds with the story the servicer told the court about the path the loan took to the trust. I put together this exhibit to show the difference. The top half of the exhibit is what Aurora claimed happened in the conveyance of the loan to the trust. It did not bother to present admissible evidence of this alleged series of conveyances because it only had to show that it had possession of the note to have standing. The bottom half is what the MERS records showed. According to the information in the MERS records, which was entered by Aurora, the trust never owned the beneficial interest in the mortgage. Moreover, the beneficial interest was conveyed 3 times after "all right, title and interest" in the loan was supposedly conveyed to the trust. What Are the Members of MERS Tracking? Homeowners generally do not concern themselves with issues about the ownership of promissory notes. Homeowners just need to know who to pay. This type of question is governed by Article 3 of the Uniform Commercial Code(UCC), Negotiable Instruments. Article 3 tells us whether the plaintiff in a foreclosure action is a person entitled to enforce the note (aka a PETE). A PETE has standing to bring a foreclosure and may be the party designted to collect monthly payments. a PETE may, but does not need to be, the owner of the note. Article 9 of the UCC governs questions about the ownership of notes. The owner of the note is entitled to its economic value, which is the monthly payments and the proceeds of a foreclosure). According to MERS, "[w]hen the beneficial interest in a loan is sold, the promissory note is [] transferred by an endorsement and delivery from the buyer to the seller [sic], but MERS Members are obligated to update the MERS® System to reflect the change in ownership of the promissory note...." In re Agard, (Bankr. E.D.N.Y. 2011) at 22. The transfers of beneficial interests in my client's case show that the members of MERS treated his loan as NOT being owned by the Trust. Here are some points for you to think about: MERS records that do not support the mortgage company's story about how the loan was conveyed to the trust could be used at a later stage of the proceedings to support an affirmative defense that the note was stolen. Since the mortgage companies enter the information into the MERS records, MERS records that do not support the mortgage company's story about how the loan was conveyed to the trust casts doubt on the mortgage company's honesty and raises the question whether the mortgage loan servicer can properly represent the trust.
 MORTGAGE RIGHTS
The site does not provide legal advice. Neither Susan LaCava nor her law firm, LaCava Law, S.C., represent you until there is a signed retainer agreement.
The New Foreclosure Defenses MERS  MORTGAGE RIGHTS
MERS has been accurately described as a nightmare for our public land records system. Since everyone is required to give their mortgage to MERS, the land records list MERS as the owner of the mortgage in thousands and thousands of records. But, MERS is not the owner; it merely is an agent of the bank that lent the money to purchase the home. Instead of using the public land record system, we now have to go to the MERS website. The MERS website, however, does not let the public search for the beneficial owner of the mortgage. This information is secret.
Why Are the Beneficial Owner Records Kept Secret From the Public? I was able to get the MERS records for one of my clients during discovery. The report I looked at, the MERS Milestone Report, recorded the changes in ownership of the beneficial interest. The story the Milestone Report told was wildly at odds with the story the servicer told the court about the path the loan took to the trust. I put together this exhibit to show the difference. The top half of the exhibit is what Aurora claimed happened in the conveyance of the loan to the trust. It did not bother to present admissible evidence of this alleged series of conveyances because it only had to show that it had possession of the note to have standing. The bottom half is what the MERS records showed. According to the information in the MERS records, which was entered by Aurora, the trust never owned the beneficial interest in the mortgage. Moreover, the beneficial interest was conveyed 3 times after "all right, title and interest" in the loan was supposedly conveyed to the trust. What Are the Members of MERS Tracking? Homeowners generally do not concern themselves with issues about the ownership of promissory notes. Homeowners just need to know who to pay. This type of question is governed by Article 3 of the Uniform Commercial Code(UCC), Negotiable Instruments. Article 3 tells us whether the plaintiff in a foreclosure action is a person entitled to enforce the note (aka a PETE). A PETE has standing to bring a foreclosure and may be the party designted to collect monthly payments. a PETE may, but does not need to be, the owner of the note. Article 9 of the UCC governs questions about the ownership of notes. The owner of the note is entitled to its economic value, which is the monthly payments and the proceeds of a foreclosure). According to MERS, "[w]hen the beneficial interest in a loan is sold, the promissory note is [] transferred by an endorsement and delivery from the buyer to the seller [sic], but MERS Members are obligated to update the MERS® System to reflect the change in ownership of the promissory note...." In re Agard, (Bankr. E.D.N.Y. 2011) at 22. The transfers of beneficial interests in my client's case show that the members of MERS treated his loan as NOT being owned by the Trust. Here are some points for you to think about: MERS records that do not support the mortgage company's story about how the loan was conveyed to the trust could be used at a later stage of the proceedings to support an affirmative defense that the note was stolen. Since the mortgage companies enter the information into the MERS records, MERS records that do not support the mortgage company's story about how the loan was conveyed to the trust casts doubt on the mortgage company's honesty and raises the question whether the mortgage loan servicer can properly represent the trust.
 MORTGAGE RIGHTS
The site does not provide legal advice. Neither Susan LaCava nor her law firm, LaCava Law, S.C., represent you until there is a signed retainer agreement.
The New Foreclosure Defenses MERS
 MORTGAGE RIGHTS
MERS has been accurately described as a nightmare for our public land records system. Since everyone is required to give their mortgage to MERS, the land records list MERS as the owner of the mortgage in thousands and thousands of records. But, MERS is not the owner; it merely is an agent of the bank that lent the money to purchase the home. Instead of using the public land record system, we now have to go to the MERS website. The MERS website, however, does not let the public search for the beneficial owner of the mortgage. This information is secret.
Why Are the Beneficial Owner Records Kept Secret From the Public? I was able to get the MERS records for one of my clients during discovery. The report I looked at, the MERS Milestone Report, recorded the changes in ownership of the beneficial interest. The story the Milestone Report told was wildly at odds with the story the servicer told the court about the path the loan took to the trust. I put together this exhibit to show the difference. The top half of the exhibit is what Aurora claimed happened in the conveyance of the loan to the trust. It did not bother to present admissible evidence of this alleged series of conveyances because it only had to show that it had possession of the note to have standing. The bottom half is what the MERS records showed. According to the information in the MERS records, which was entered by Aurora, the trust never owned the beneficial interest in the mortgage. Moreover, the beneficial interest was conveyed 3 times after "all right, title and interest" in the loan was supposedly conveyed to the trust. What Are the Members of MERS Tracking? Homeowners generally do not concern themselves with issues about the ownership of promissory notes. Homeowners just need to know who to pay. This type of question is governed by Article 3 of the Uniform Commercial Code(UCC), Negotiable Instruments. Article 3 tells us whether the plaintiff in a foreclosure action is a person entitled to enforce the note (aka a PETE). A PETE has standing to bring a foreclosure and may be the party designted to collect monthly payments. a PETE may, but does not need to be, the owner of the note. Article 9 of the UCC governs questions about the ownership of notes. The owner of the note is entitled to its economic value, which is the monthly payments and the proceeds of a foreclosure). According to MERS, "[w]hen the beneficial interest in a loan is sold, the promissory note is [] transferred by an endorsement and delivery from the buyer to the seller [sic], but MERS Members are obligated to update the MERS® System to reflect the change in ownership of the promissory note...." In re Agard, (Bankr. E.D.N.Y. 2011) at 22. The transfers of beneficial interests in my client's case show that the members of MERS treated his loan as NOT being owned by the Trust. Here are some points for you to think about: MERS records that do not support the mortgage company's story about how the loan was conveyed to the trust could be used at a later stage of the proceedings to support an affirmative defense that the note was stolen. Since the mortgage companies enter the information into the MERS records, MERS records that do not support the mortgage company's story about how the loan was conveyed to the trust casts doubt on the mortgage company's honesty and raises the question whether the mortgage loan servicer can properly represent the trust.
The site does not provide legal advice. Neither Susan LaCava nor her law firm, LaCava Law, S.C., represent you until there is a signed retainer agreement.  MORTGAGE RIGHTS