Reply #18: Title uncertainty caused by MERS, PSAs, foreclosure fraud [View All]

[soryang]

It isn't just general economic conditions that are dragging down the home resale market. Due to widescale fraud in the investment banking industry there are several levels of fraud clouding marketable title on homes. This is lowering liquidity in the real estate market in general.

When you buy a home whether previously foreclosed upon or not, you need to have confidence in the marketability of title. The multistate electronic recording system or MERS does not conform to state real estate laws for recording of title. In addition to Wall Street's use of this bogus system to avoid properly recording assignments of mortgages, not recognized in many states, the Pooling and Servicing Agreements may not meet New York State law requirements for these instruments. Accordingly, so called Mortgage Backed Securities may neither backed by mortgages nor secure.

In addition to fraud in the inducement of mortgages, (so called "liars loans") their is fraud in the assignments, and fraud in the massive CDS market insuring and gambling on these MBS instruments. There is an additional layer of fraud in the foreclosure actions themselves.

Who holds the legitimate security interest in your mortgage? If all mortgage assignments to successors in interest weren't recorded at the county courthouse as they should be under state law for marketable title, how do you know the title is marketable? If a foreclosure was induced by an alleged successor who used forged and otherwise fraudulent documents to get a default judgement, that title will not be good (until cured by statutes of limitation of quiet title laws which can take as long as twenty years to cure such defects.) In real estate, it is generally extremely difficult to not possible to remedy defective title actions after the fact. This is harsh reality of real estate law which the press and the investment industry is hiding from the public.