Mortgage Electronic Registration Systems (MERS)
Mortgage Electronic Registration Systems, or MERS, is the only national database that publicly displays service information for homeowners who seek information for their registered home mortgages. MERS was created by the mortgage-backing industry to streamline the mortgage process. Utilizing internet and electronic technology, MERS has made access to mortgage origin and mortgage information as easy as clicking a button online.
Foreclosure Defense Attorney for Massachusetts Homeowners
The MERS system tracks the changes in servicing rights and beneficial ownership interests in mortgage loans that are registered in the database. Homeowners have public access to information for their mortgages, and local governments can even benefit from MERS by using the database to identify at-fault parties in real estate issues such as code or vacancy violations. MERS also acts as a complete record for lenders and borrowers. Any loan made in the United States will remain in the MERS database, no matter how many times the loan may be bought, sold, or traded.
Although the system is incredibly beneficial in the mortgage industry and tracks ownership interests in loans secured in residential real estate, the system can have disadvantages. All real estate titles and transactions are subject to state regulations, so MERS essentially provides a central database that tracks all mortgage loans in the nation. If a MERS deed is unlawful, homeowners could suffer the consequences. In some cases, courts have even held that MERS is permitted to foreclose on homes even when it is the holder of the mortgage. This has put unsuspecting and innocent homeowners across the nation at risk of losing their homes. By retaining our firm, you can gain insight into how this system works and may affect you.
Consult Glenn F. Russell, Jr. & Associates, P.C.
Having a collective and electronic database that encompasses the nation's loans and mortgages presents many advantages and disadvantages. The disadvantages, however, have led to foreclosures for many Americans. Because MERS relies completely on electronic activity, the effectiveness of the distribution and collection of legal documents is questionable. Documents that require notarized signatures could lack the proper signatures, but are still traded, bought, or sold.
Failure to follow strict standards outlined by the Federal Housing Association has led to the act of buying and trading unauthorized mortgages and loans. Without the proper legal information required, fraudulent transfers across the nation put homeowners at risk. To determine whether MERS is a contributing factor in your foreclosure, you need to speak with a Massachusetts foreclosure defense attorney from Glenn F. Russell, Jr. & Associates, P.C. immediately. You could have grounds for defenses to foreclosure or foreclosure appeals.