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View Diary: A Brief History of Band-Aid Accountability in the unfolding MERS Foreclosure Scandal (11 comments)

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  •  Part of the MERS problem which is not getting (2+ / 0-)
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    A Voice, jamess

    enough attention is a corollary of MERS being supposedly created to avoid state registration of mortgage fees.  If they are not registering the mortgages, then the problem for any buyer of a house which has passed through MERS may have a mess with title insurance if it turns out a MERS mortgage is not registered and does not show up in the title report, a critical issue as buyers usually only want a house as to which they can get clear title.

    Who wants to find out after they bought that there was an unrecorded mortgage at MERS and that potentially, depending on the law of the state in question as to the priority and validity of unrecorded mortgages, the house they thought they bought free and clear and for which they got title insurance is encumbered by a mortgage one or two or three owners back, or by a clerical error. Aside from the title company who doesn't want to find that out either, since they may well be on the hook for the mortgage they didn't discover because it was never recorded in the place it is required to be recorded.

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