Have you ever had days where the news you read makes you want to spit nails? Well, today once one of those days. If fact, at this moment I wish I were a high speed pneumatic nailer… that way I could rapidly spit nails and not purposefully injure myself!
I wrote on the subject of MERS, the Mortgage Electronic Registration System a couple of weeks ago. To be sure MERS represents a significant threat to centuries old chain-of-title law, while at the same time threatening to invalidate the link (remove the real estate collateral) between mortgages and deeds for over 60% of all outstanding mortgages.
There is no easy answer to this situation…
While it appears Congress is starting to take this issue seriously, it is hard to determine if the entire MERS issue will be whitewashed or resolved in such a way which supports existing property laws or not.
The author of “Will MERS Exam Be a Whitewash?“ suggests that the entire matter could actually be whitewashed. If you want to be entertained, read the transcript, further down in that blog post, of a November disposition of a MERS officer. I think my blood pressure went up 20 points.
Here are the full depositions if you’re interested:
September 25. 2009 Deposition of R.K. Arnold, MERSCORP
November 11. 2009 Deposition of William Hultman, MERSCORP
Can we rely on our elected representatives to STOP the To-Big-To-Fail banks from complete disregard of current laws?
I am not so sure! Read on.
As discussed in the Washington Post, the big banks and their lobbyists are not taking any chances and are pushing Congress to pass a retro-active bill which would legitimatize MERS existence and effectively violate our centuries old chain-of-title laws.
[And then my blood pressure went ballistic and that is when I needed that pneumatic nailer.]
The one bright spot is the actions being taken by each of the states’ Attorney Generals who don’t want a global or national level solution but instead want a bank-by-bank approach to resolving this issue… and I agree!
Here is my bottom line…
I am not excusing the defaults by millions of homeowners, but I am substantially fired up that large corporations could get away with willfully circumventing well established property laws and you should be also.
Why… because if we can’t trust our existing chain-of-ownership laws how can you be assured that the property you think you own is really yours?
Related posts:
- MERS, The Foreclosure Documentation Mess and The Elephant in the Room!
- Why Chain of Title is important to your investment property purchase
- The Sad Saga of Fannie Mae and Freddie Mac: BAILOUT! Conventional Wisdom Failed
- A Nightmare Closing Saga – Part I
- Home Ownership Below 50%: Is it Possible?
Article Author: Peter GiardiniPeter has written 87 articles for us.
Visit Peter's Website: http://www.theclubmastermind.com
Peter is an active and successful real estate investor in the Baltimore Maryland region for the past 8 years and is one of the founders of The Club Mastermind a real estate investing coaching program focused on local coaches helping investors to perfect their game.
Joshua Dorkin
{ 3 comments… read them below or add one }
Peter — Not long before he died, Dad told me that even though lenders caused most of their own problems, they would eventually buy themselves out of it. Furthermore, he continued, I shouldn’t be surprised at how completely amoral any solution might be.
As far as I’m concerned this issue alone is my line in the sand with our newly elected Reps and Senators. They should tread very carefully.
Jeff,
I am sure I am not telling you anything you don’t know… when I say your dad had great insight.
I agree totally that this issue for me and I am sure for many other investors and I hope homeowners will be the line in the sand. Only time will tell.
Pete
Excellent post and more people need to be made aware of this situation The main stream media cannot be relied upon to tell the truth about how the politicians and the banks are working together on this. This is sad and frightening at the same time.
I am tweeting, posting to FB and sharing in every way possible and kindly suggest that other do the same. Thank you Peter.