Is Your Mortgage Status Designated _Inactive__ (MERS)

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Is Your Mortgage Status Designated _Inactive__ (MERS)
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  Where’s the “IOU” for the mortgage debt? Real Estate Investment News & Blog Is Your Mortgage Status Designated Inactive? By Rick Tobin 31 Comments 210 Like 2 14 Share Many homeowners find out their existing mortgage is listed as “inactive.” An inactive statuscan refer to the transfer of their mortgage to another loan ser vicer, or to a few other factorsas noted below.The difference between having an inactive or an active MERS (Mortgage ElectronicRegistration System) loan may determine if the property owner has any improved or worsened home equity, or a truly saleable asset. What is MERS? MERS functions as a centralized electronic registry of mortgages, and it was supposed totrack   the ownership of these mortgages, which are typically sold multiple times during theloan’s life. MERS potentially affects upwards of 60 million residential mortgage loans nationwide, and almost completely crashed the U.S. housing market by itself because of somany problems with the packages.MERS was created by lenders and title insurance companies, so it would be easier   toransfer  the beneficial interests to other secondary mar ket lenders. Yet, some mortgages ended up significantly discounted due to packaging problems, which made them inactive. The MERS Scandal Missing documents, notary fraud, and“robo-signing” led the way.There was a lot of chaos involved withMERS mortgage packets, which contained no srcinal promissory notes (the “IOU” for he mortgage debt) in these same MERSfiles.Knowledgeable homeowners were able to completely stop their home foreclosures by pointing out that the foreclosing entity,such as the mortgage servicing company,didn’t have a legal right to foreclose onheir homes, since they didn’t have all of their valid mortgage paperwork in their files.These questionable ownership interests in the mortgages led to foreclosure moratoriums,court settlements, and inactive statuses.There were a large number of allegations of notary fraud in which real or fake notaries suchas “Linda Green” were allegedly part of the massive “Robo-Signing Scandal” nationwide.It has been suggested that promissory notes, deeds of trust or mortgages, and other loan or itle documents were forged, left blank, or illegally assigned to numerous mortgage investors.Since MERS was set up to become as paperless, speedy, and efficient as possible, therewas not enough third party oversight to check whether these documents were valid. Questionable Beneficial Interests “No Note = No Debt” became the mantra for homeowners who were in the midst of their ownforeclosures due to the weaker U.S. economy. Some savvy property owners were able to legally void their existing mortgage debt altogether   by proving that the foreclosingmortgage company had no valid beneficial interests in the existing mortgage, and thus had tolegal right to collect any payments.Other homeowners were able to show that their MERS files had fraudulent notary signaturessigned on behalf of both owners and lenders, which moved their file designations over to“inactive” as well.Mortgage lenders that have collapsed or imploded since the official start of the Credit Crisis(www.thecreditcrisis.net) back in 2007, such as Countrywide, Indy Mac, Lehman Brothers,orld Savings, Downey Savings, and Washington Mutual still figuratively exist by way of heir asset or beneficial interest transfers to the “strawman” named MERS.MERS, may pay no taxes or employ anyone. Without the proper assignment of these MERSmortgages, these same imploded mortgage companies’ loans could have ceased to exist. The Shadow Inventory & MERS Categories  Apartments Asset ProtectionBuy and HoldCommercial Real EstateCreative Real Estate InvestingFinding BuyersFixer – RehabForeclosures/Short SalesHouse Flipping/WholesalingIRA, 401K, Retirement FundsMiscellaneousMotivated SellersNo Money DownPrivate Lenders/Private MoneyReal Estate Investing NewsReal Estate InvestingStrategiesReal Estate Investor ResourcesReal Estate Success StoriesReal Estate Tax Strategies Most Popular  4 Big Mistakes Real EstateInvestors Should Avoid6 Ways to Find Owners of Vacant Houses13 Warren Buffett Quotes for Real Estate Investors14-Year-Old Real EstateInvestor, Today a Few Houses,Tomorrow…5 Must-Have Apps for RealEstate Investors3 Ways to Build Wealth byInvesting in Real Estate NowTop 20 Web Resources for RealEstate InvestorsWhy House Flipping TV ShowsCan Be Hazardous to Your HealthWhat They Don’t Tell You AboutFlipping HousesHow to Build a Portfolio of Rentals Without a Bank6 Reasons to Invest in Single-Family HomesSection 8 Rentals: The Good,the Bad, and the Ugly View Cart   Name   Email   Sign Me Up! Let Us Help You Achieve Better Results. (IT's FREE!)  Instead of upwards of 60 million residential MERS mortgages becoming inactive or possiblyeven completely voided and worthless, many of the largest banks and mortgage servicecompanies worked closely with the U.S. government to create the National MortgageSettlement in early 2012. This insanely small $25 billion settlement is but a mere fraction of he potentially trillions of dollars of MERS mortgages nationwide.The National Mortgage Settlement of 2012 and MERS Scandal were two of the primaryreasons why home listings nationally dropped dramatically.There were potentially millions of Shadow Inventory homes (mortgage payments are morehan 90 days late), which may not have valid promissory notes, or other mortgage or titleinstruments or documents, in the files. The lack of listed home inventory led to a rapidincrease of home prices between 2011 and 2013 (also partly due to the record low mortgagerates). The “Inactive” MERS Designation  An inactive MERS designation may relate to the loan having been refinanced or paid off,discounted, or completely voided due to the invalid mortgage documents in the file. Or, themortgage loan was assigned out of the MERS system to a completely new mortgageservicing company. A property owner with a MERS mortgage can find the status of their loan by searching for heir 18-digit Mortgage Identification Number (MERS MIN). Then, the same person maysearch online for the MERS Servicer ID system in order to check the status of their mortgage. Be Careful! Before attempting to pay off a MERS loan, it ‘s very important to find out if all   of the mortgagepayments have been properly applied to the account. The vast majority of MERS mortgageshave been assigned to multiple mortgage investors over the years, so it is very important tocheck your own payment history over the years in order to determine if all of your paymentshave been credited to every mortgage servicing lender’s accounts.It’s imperative that the owner pays off the correct amounts, which may mean more moneyback to the owner, and much less money for the current mortgage loan servicer. As such, alittle research and loan analysis by a property owner on their personal payment histories cansave them a lot of money and headaches. Sign Up for the CRE Online Newsletter Today ... It's FREE! Get our best real estate investing information delivered to your inbox.     enter your name   enter your email 210 Like 2 14 Share About the Author... Check out Rick's new book The Credit Crisis: 10 Years and Counting (August 2017publishing date) as well as The Credit Crisis Deals: Finding America's Best Real EstateBargains . Rick Tobin  has a diversified background in both the Real Estate and Securities fields for the past 25+ years. He has held seven (7) different Real Estate and Securities brokeragelicenses to date. He also writes college textbooks and real estate courses in severalstates for some of the largest educational firms nationwide.Rick has an extensive background in the financing of residential and commercialproperties around the U.S with debt, equity, and mezzanine money. His funding sourceshave included banks, life insurance companies, REITs (Real Estate Investment Trusts),Equity Funds, and foreign money sources.You can visit Rick Tobin at RealLoans.com. Comments Mary says: 2013-10-23 at 5:40 pm We haven’t made a mortgage payment in almost 4 years. we have applied for modifications time and time again, but kept getting denied. No one at Chase can answer any questions or give any details about the account. We have tried to get in contact withsome lawyers that were recomended here and there, but none of them will return our calls. We know that there are documents missing at the courthouse. The commissioner of the revenue told us that he doesn’t see how they can foreclose. Does anyone haveany suggestions? We have have decided to stay until the sheriff tells us to move. It still isnot a comfortable feeling. Any help would be greatly appreciated. REPLY Larry says: 2013-10-24 at 11:19 am I have researched mortgage fraud for several years. As a result, I uncovered severaloccurrences of fraud in my own mortgage with GMAC. As they began to foreclose on   Name   Email   Sign Me Up! Let Us Help You Achieve Better Results. (IT's FREE!)  me, I sued them and have been in court with them for 1.5 years. Since then, I havefound a much more effective method through administrative remedy coupled with aQuiet Title Action. Time does not allow me to get into a lot of detail, but theorganization offering this has a 100% track record over the past 3 years. It isestimated that the average loan has 20 instances of fraud. I wish you well in your efforts to win your case. If you want more info, please contact me atbizlocs@gmail.com. Thanks, Larry REPLY Carmen Planadeball says: 2016-11-07 at 11:51 am Hello Larry I have been fighting a foreclosure case against Wells Fargo..I haveasked my lawyer if he had done a proper chain of title search and I know theyhave not…now Im going to court November 14, 2016.where Wells Fargo is goingfor the Lost Note..i need someone that can help me check if they have standing todo this…do you know of anyone that can help me? have you heard of http://www.cfla.com? Please let me know..Thank you! 321-689-1336 Carmen REPLY SERENA may says: 2016-03-27 at 5:57 am Order your POOLING service agreement. It will prove there is no ASSIGNMENTS, IFTHERE IS NO VALID ASSIGNMENT THEN THEY CAN NOT STAND IN COURT.WRITE THEY ASS UP FOR FRAUD ON THE COURT. TO THE BAR ASSOCIATION. SEND PSA WITH BLUE RIBBON CERTIFED TO JUDGE. THATSIT. WITH A 1099A YOUR THE LENDER, OK IT WORKS EVERYTIME REPLY Rick Tobin says: 2016-03-27 at 11:17 am @ Serena: Thanks for the MERS tips. Your points seem very interesting. Have agreat day. REPLY Gustavo Cuenca says: 2016-04-11 at 9:02 am How we can order our PSA? Serena? REPLY Kelly Burns says: 2017-04-26 at 9:01 pm Serena thanks for the info! I did find my pooling service agreement however notsure what I’m looking for on there to prove there were no valid assignments…canyou help please REPLY Ray A. Angeles says: 2013-10-24 at 12:14 am Well written. Informative. What is your suggestion for ACTION. REPLY Rick Tobin says: 2013-10-24 at 8:12 am Thank you for your comments. There are various ways which may or may not work inone’s personal situation. As for legal and mortgage workout experts who may assist you,one must just try to ask around their local region for referrals to people with a decenttrack record of success.First off, I suggest that people thoroughly analyze the paperwork in their files. Is there anexisting Promissory Note (the “IOU” for the debt)? Are the notary signatures valid on thevarious documents in the file? Is the Grant Deed, Deed of Trust, or Mortgage in theproper format?If you can’t find your Promissory Note, then please contact your existing lender for acopy in their files. If they tell you that they cannot find it either, then this may be potentially   Name   Email   Sign Me Up! Let Us Help You Achieve Better Results. (IT's FREE!)  good news for you. It may also alert your lender to try to be more cooperative with yousince they know they have no Promissory Note in their file either.Is the srcinal mortgage funding company still in existence, or did they implode in recentyears (i.e., Countrywide, Washington Mutual, World Savings, Downey Savings, LehmanBrothers, Indy Mac, etc.)? Were their ownership interests wiped out too after theyformally collapsed or filed for Bankruptcy protection?Does your existing mortgage loan service company actually legally own the loan, or havevalid beneficial interests? Is your local court and individual judge truly fair and unbiased?One judge may rule in the homeowner’s behalf while another more biased pro-bank judgemay not be so friendly.I know of stories in which homeowners were able to stay in their multi million dollar for well over five (5) years before their existing mortgage lender began the foreclosureprocess. In many cases, frustrated banks know that their existing loan documentpackages are defective. As a result, these same banks may eventually offer a “Relocation Fee” to thehomeowners so that they will move in the near term, and not trash the home or stealappliances on the way out. Some of these “Relocation Fees” (a glorified “bribe” tocooperate with the mortgage company) have been as high as $35,000 from what I haveheard in recent years.I do personally know someone who legally wiped out her existing mortgage debt bypointing out in Court that the existing mortgage lender had no true valid ownership or beneficial interests in her existing mortgage. As a result, she ended up with a free andclear home, and clear title as well with no defects in the “Chain of Title.” She then sold thehome shortly thereafter, and pocketed a nice chunk of change.Best of luck to you all. REPLY Rick Tobin says: 2013-10-31 at 8:37 am Here is a link which may help people find out more information about their potential MERSaccount: http://www.mersinc.org/information-for-homeowners/my-mortgage-info REPLY Cynthia Jackson says: 2014-04-03 at 6:52 am Hello Mr. Tobin,I believe my existing mortgage lender has no true valid ownership or beneficial aswell. At the recording office in my County. The last recording is with World SavingsBank and the beneficial is Golden West Financial. There is not any bank legally activeon this particular loan. I tried several times for a loan modification written and orallyand was denied. I am in a financial situation that has me behind in my mortgage for thepast 8 months. I do not have a notice of default as of now. I have been threat of onerecently. Can you please help me with some advice if possible, Thank youCynthia REPLY Rick Tobin says: 2014-04-03 at 11:17 am @ Cynthia: I am sorry to read about your struggles with the existing lender. I typicallysuggest that the homeowner ask the current mortgage service company for a copy of thePromissory Note “for your records since you can’t seem to find your copy in your fileeither.” In many cases, there is no copy of the Promissory Note (the “IOU” for the debt)anywhere to be found by anyone.There have been homeowners in the past who have used this strategy to either void or postpone the foreclosure, to force a modification of the loan, or to completely eliminate theloan debt altogether as it relates to the “No Note = No Valid Debt” concept. Since your mortgage servicer has yet to file the NOD which begins the foreclosure process in manystates, then they may have some acknowledged paperwork problems in your file.If you ask ten (10) different people for their opinions in regard to what may work best for your situation, you may receive ten (10) different answers partly based upon wideranging court rulings around the USA. Obviously, World Savings imploded many yearsago, so now it is up to the existing mortgage service company to try to work with you.Regardless, it may be better to keep the lines of communication open with the currentlender or mortgage servicer which may make them want to work more with you to findbetter solutions. Performing loans are better for them than non-performing loans. Again, please ask the mortgage service company to fax or mail you a copy of thePromissory Note for your records. Due to the MERS Scandal which may have adverselyimpacted over 60 million mortgages nationwide, there may actually be no valid   Name   Email   Sign Me Up! Let Us Help You Achieve Better Results. (IT's FREE!)
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