Foreclosures

[TJSDAD]

Computer cannot own homes, judge says

A Kansas Supreme Court judge has ruled that the Mortgage Electronic Registration System, created in 1997 by banks to track mortgage ownership, cannot be legally considered the owner of homes. The system was intended to act as the named owner of mortgages and to keep track of financial interests when mortgages were bundled into securitized instruments and changed ownership rapidly and frequently. MERS is legally named as the mortgagee on millions of loans. But as some homes are being foreclosed on, the judge said the computer program can't be considered a proprietor, a ruling that could affect millions of mortgages.

The New York Times (free registration) (9/26)

This might keep a lot of homes from being foreclosed on. I have read the MERS can't produce the original doucments so they can't foreclose.

[JohnH]

Aparently this is similar the the "Produce the Note" strategy that has been successful in several states to delay foreclosures. I remember sending info on this to a client back in Feb, but I never heard what happened to him.

http://www.huffingtonpost.com/2009/09/22/w...o_n_294169.html