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shlomo
August 22, 2010, 07:48
Sometimes the obvious is hidden in plain sight. Fair-use from the article:

"Over 62 million mortgages are now held in the name of MERS, an electronic recording system devised by and for the convenience of the mortgage industry. A California bankruptcy court, following landmark cases in other jurisdictions, recently held that this electronic shortcut makes it impossible for banks to establish their ownership of property titles and therefore to foreclose on mortgaged properties. The logical result could be 62 million homes that are foreclosure-proof."

http://seekingalpha.com/article/221344-homeowners-rebellion-could-62-million-homes-be-foreclosure-proof

L Haney
August 22, 2010, 08:26
Think I remember DABS making a statement along these lines quite a while back. Seems the banks got so slap happy bundling all those loans into more abstract forms to hide what stinkers some of them were. The paperwork from the origination kinda sloughed off in the process and those are what is key in establishing who actually owns what loan. If a bank can't produce those papers, they can't prove title to the property. The courts seemed less than impressed by a few lines on a spreadsheet when it came to foreclosing on a home.

RG Coburn
August 22, 2010, 08:27
"Produce the note"....

festus
August 22, 2010, 09:01
I just spent an hour googling this subject.
This should tie up the courts for decades and endanger the banks that are too big to fail, unless......
Obama acts immediately to file suit against the states for having the audacity to question the legal standing of Freddy Mac, Fannie Mae, Bank of America, Citi-Bank, AIG, and the legal firms retained by them to streamline the foreclosures.
It would be ironic if people that bought unsustainable home mortgages and subsequently defaulted were suddenly free from the financial obligations, but that would mean that nationalization of the banks would be necessary to ensure their existence.
Oh, the other thing was that by eliminating the transfers of deed from one buyer to another multiple times, county and state governments were defrauded of billions in transfer fees that they should have been paid.
This is playing out like the Pelican Brief.

Insider
August 23, 2010, 23:43
You can always get an Allodial Title.

shlomo
August 24, 2010, 04:33
Originally posted by Insider
You can always get an Allodial Title.

Getting the organized crime syndicate to recognize it is Problem Two.
Just sayin'.

AliYahu
August 24, 2010, 14:16
This *ONLY* works in "Lien Theory" states like Texas. In a lien theory state, the buyer holds the title, the mortgagor holds a promissory note. The banks have a nasty habit of losing the promissory notes. No promissory note = no possible foreclosure!
In a "Title Theory" state like New York, the bank holds the title until the property is paid off. Even if they lose the loan agreement, they still have the title.

Eli