MERS Taking Hits, But May Stick Around to Haunt Miami Foreclosures, Legal Analysts Believe

Legal analysts say the way that Mortgage Electronic Registration Systems handles mortgage assignments during securitizations should change, but that doesn’t mean that the system will be dismantled, housingwire.com reports.

Miami Foreclosure Defense Lawyers have witnessed time and time again how problems with MERS have affected the foreclosure cases of many homeowners in Miami and throughout South Florida. Errors in paperwork, as well as confusion over who actually owns the house after the mortgage has been sold from investment group to investment group, allows homeowners to negotiate from a position of strength. Fighting a foreclosure in Miami has become a little easier with all the banks screw-ups and we are glad to point those out in defense of our clients.
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As previously detailed in Miami Foreclosure Lawyer Blog, MERS was created in 1993 as a private system so banks could keep track of sales at a quicker pace than county clerk offices.

But foreclosure defense lawyers and courts have noted many problems in the system; when a mortgage is sold, information is registered in MERS, but no assignment is recorded. So, if a homeowner faces a foreclosure, county records may not reflect whether the company, a trust of investors or another lender actually owns the house.

And that has led to many homeowners being able to live in their houses without paying a mortgage, sometimes for as long as several years, because the banks don’t have their paperwork in order. Robo-signed documents, where mortgage servicers sign documents for bank officials who never look at the paperwork or verify its accuracy, have also been a big problem in the industry. Courts are finally starting to penalize banks for their shady practices by telling them they can’t foreclose on a house if they can’t prove they own the mortgage.

According to the article, the debate over MERS intensified recently when a New York appellate court invalidated a foreclosure, ruling that MERS assigned the loan to a trustee without having possession of the underlying note from the originator. See more details at Miami Foreclosure Lawyer Blog.

It’s unclear what the future of MERS is, but what these court decisions say and what the increased news media attention about MERS will do, is put pressure on the troubled system. It’s entirely possible that MERS must be altered so that homeowners’ rights are better protected when lenders try to foreclose on a person’s house.

The good news for people who want to fight a foreclosure in Miami is that these high-profile cases involving MERS show that a foreclosure can be beaten. It takes hard work and an aggressive Miami Foreclosure Defense Lawyer, but it can be done. We will exploit the mortgage industry and all its problems for our clients and work to either stop a foreclosure, get a bank to modify its mortgage or work with the client on the best solution possible for his or her case.

If you are fighting foreclosure in Miami or the surrounding areas, contact Jacobs Keeley for a confidential appointment to discuss your rights. Call (305) 358-7991.

Additional Resources:

Legal analysts say MERS is down, but not completely out, by Kerri Panchuk, Housingwire.com