What is MERS?
The Mortgage Electronic Registration System (MERS) is something all mortgage holders should be aware of, though few may actually know much about it. MERS is important to you if the system holds your mortgage, and borrowers should be aware of how MERS can affect them—especially in a case involving foreclosure.
MERS was created to address some problems in the real estate market. It is a private company with an electronic database that tracks the ownership of mortgages in the U.S. The main reason for its establishment is that it allows mortgages to be traded within the system without reporting the mortgage assignments at county offices. This makes the process faster and helped lenders avoid paying certain fees.
The Problem with MERS:
While MERS has been profitable for many participating lenders, this profitability was largely founded in fraud. Lenders were using MERS to bypass fees, amounting to billions of dollars in losses over the course of millions of home sales and realty transactions. MERS has since been struck down by the supreme court and outlawed in many states.
Why is this significant? The fact is, most mortgages held by MERS may be defective. MERS doesn’t have the legal right to initiate a foreclosure or other things that may affect your loan. This means that if your mortgage is held by MERS and you face these circumstances, then you may just be a victim of wrongful foreclosure.
What can I do if I suspect I’m a victim of mortgage or foreclosure fraud?
The legal codes and regulations surrounding mortgages and foreclosures are heavy and complicated. Even skilled attorneys may not be comfortable handling foreclosure cases. The best course of action is to find and consult an attorney that specializes in mortgage or foreclosure fraud. Consultations are often available for free or at a low cost, and an experienced legal professional will be able to determine if you have a case or not. It’s important to have all your documents on hand (lending papers, records of conversations with your lender, notices from your lender, eviction notices, etc.) before meeting with an attorney. By organizing ahead of time, you give yourself the best chance to identify flaws in your documents and discover if you are a victim of fraudulent lending or foreclosure practices.
Billions of dollars have been paid out to victims of wrongful foreclosure on the part of MERS and fraudulent lenders. It is definitely worth your time to look carefully at your loan and ensure you are not a victim yourself. After all, you are responsible for your home and finances, and every course you can take to prevent further hardship is likely worth your efforts.
Reach out to one of our knowledgeable and competent consultants today for a free evaluation with absolutely no obligation.