You May be Surprised About Who Holds the Note on Your House.
Harpers magazine has a fascinating article on the foreclosure mess. It goes into some detail about the banks, mortgage fraud and how wall street invented a new document recording system.
With this new system MERS (Mortgage Electronic Registration Systems) the banks thought they could just bypass the legal recording of the documents at the county recorders office.
When our system of property rights is just being run over by the banks and wall street, just to make it convenient for them to resell the notes, we have a serious problem.
“There is no evidence of record that establishes that MERS either held the promissory note or was given the authority [to] assign the note,” the Kansas court found, quoting a decision from a district court in California. Not only did MERS fail to legally assign the notes, the company presented “no evidence as to who owns the note.”
“Without the efficiencies of MERS there probably would never have been a mortgage-finance bubble.”