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Worried about foreclosure on your home? You may wish to read this.

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posted on Oct, 4 2009 @ 05:36 AM
A landmark ruling in a recent Kansas Supreme Court case may have given millions of distressed homeowners the legal wedge they need to avoid foreclosure. In Landmark National Bank v. Kesler, 2009 Kan. LEXIS 834, the Kansas Supreme Court held that a nominee company called MERS has no right or standing to bring an action for foreclosure.

MERS is an acronym for Mortgage Electronic Registration Systems, a private company that registers mortgages electronically and tracks changes in ownership. The significance of the holding is that if MERS has no standing to foreclose, then nobody has standing to foreclose – on 60 million mortgages. That is the number of American mortgages currently reported to be held by MERS.

Over half of all new U.S. residential mortgage loans are registered with MERS and recorded in its name. Holdings of the Kansas Supreme Court are not binding on the rest of the country, but they are dicta of which other courts take note; and the reasoning behind the decision is sound.

60 million mortgages with fatal defects in title could give aggrieved homeowners and securities holders the crowbar they need to exert some serious leverage on Congress – serious enough perhaps even to pry the legislature loose from the powerful banking lobbies that now hold it in thrall.

Finally, some good news for US citizens worried about losing their homes. The full article is very informative and spells out exactly where citizens stand.

Read the full article here:


posted on Oct, 8 2009 @ 09:10 AM
That is good news...with a but...

This new plan to buy up toxic loans would take all those loans and give them to Fanny and Freddy to administer... thus taking them out of MERS... Lately those two, don't mess around. once your 90 days past due your house goes to auction...

another new trend is with all the banks going belly up the FDIC is taking those bad notes and selling them at auction... Without your knowing someone could knock on your front door and demand payment in full...
You'd have one of two choices, get out or refinance said loan...

Here's and auction notice from FDIC

[edit on 8-10-2009 by DaddyBare]

posted on Oct, 8 2009 @ 10:21 AM
reply to post by DaddyBare

Thanks for the resurrection

quoting from the link in my OP

"MERS as straw man lacks standing to foreclose, but so does original lender, although it was a signatory to the deal. The lender lacks standing because title had to pass to the secured parties for the arrangement to legally qualify as a “security.” The lender has been paid in full and has no further legal interest in the claim. Only the securities holders have skin in the game; but they have no standing to foreclose, because they were not signatories to the original agreement. They cannot satisfy the basic requirement of contract law that a plaintiff suing on a written contract must produce a signed contract proving he is entitled to relief.

The Potential Impact of 60 Million Fatally Flawed Mortgages

The banks arranging these mortgage-backed securities have typically served as trustees for the investors. When the trustees could not present timely written proof of ownership entitling them to foreclose, they would in the past file “lost-note affidavits” with the court; and judges usually let these foreclosures proceed without objection. But in October 2007, an intrepid federal judge in Cleveland put a halt to the practice. U.S. District Court Judge Christopher Boyko ruled that Deutsche Bank had not filed the proper paperwork to establish its right to foreclose on fourteen homes it was suing to repossess as trustee. Judges in many other states then came out with similar rulings."

I am not familiar with the plan to sell all the MERS mortgages to F & F and on the face of it, it seems highly illegal to me. I will look into this but I do understand that millions of NOTES were lost during many of the transactions and if a homeowner disputes ownership with the evictor/forecloser and demands to see the note, if it cannot be produced this is often sufficient to stop the process of foreclosure dead un its tracks.

Demand to see the note.


posted on Oct, 8 2009 @ 10:53 AM
reply to post by DaddyBare

Anyone who is getting foreclosed and doesn't fight it under several points is an idiot. 75% of the mortgages in the US cannot be legally foreclosed if the homeowner chooses to fight it. Things to insist upon if you are getting foreclosed:

1. The original loan document. Most owners of your mortgage do not have these documents. At the very least you can delay things several months by insisting upon the original. The banks will try to submit an affadavit that they have these documents. You can contest this and the courts legally cannot allow it. Make them provide originals.

2. Next is proving that the folks foreclosing on you, are actually who you owe the money to. The majority of US mortgages were placed in MERS. The Mortgage Electronic Registration System. The ones that weren't, were likely sold outside of this system, making ownership even murkier. MERS then took thousands of mortgages, bundled them together and then sold pieces to hundreds of investors. They did this over and over. A Kansas Supreme Court decision said that MERS is not the legal owner and that they don't have the right to foreclose. The hundreds of investors would all have to file the action which is improbable and immensly complicated. Thus they really can't foreclose on you. In this case you can stay in your house until you die without making a payment.

These are two easy ways to prevent foreclosure. The judge will not be your advocate so you will need to put up this fight or you WILL be foreclosed upon. You should also retain competent legal counsel. Keep looking until you find someone who will pursue this angle. Many lawyers won't. At worst you can use this as leverage to renegotiate your loan to reasonable levels. Especially if you are upside down.

One other option is to argue the whole creation of money angle. The banks virtually created the loan money out of thin air. It is basically illegal under most states statues to create money and then loan it out. Some folks have won with this defense but it is much more complicated and would mean much higher legal expenses to fight it in this matter.

If you are overwhelmed with credit card debt file Chapter 13. Obviously if you cannot pay back your debt you don't deserve any more debt, so use the next 7 years to put yourself in better position.

Some folks have moral dilemna's when it comes to fighting debt. I think you actually owe it to America to fight your debt. The sooner you can be on your road to contributing to the economy again, the better off the rest of us will be. The banks will also be better off, they can start moving toward a future of higher prosperity with increasing profits. As more people fight, ultimately it will cause better business practices. This will help us all down the road. Sometimes two wrongs do make a right. It certainly isn't worth ruining the rest of your life in order to repay what were actually fraudulent loans, and also consider all the actions which contributed to you no longer being abe to pay.

Individual jubilees for everyone.

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