Who is "MERS" and why are they foreclosing on my mortgage?
With mortgage foreclosures at a record high, more people are beginning to learn who MERS is. They see this acronym as the party foreclosing on their mortgage and yet, they have never signed anything with this entity. MERS stands for Mortgage Electronic Registration System. Its an entity formed by the mortgage industry used to hold the mortgages that consumer sign with banks. The idea is that if the mortgages are managed by a central repository such as MERS, that it will be easier and quicker for lenders to foreclose on their loans. Guess what? It is not working out that way.
Many people are challenging MERS in court stating that they never signed anything with MERS and hence, MERS cannot foreclose on their mortgage any more than the man on the moon. People are winning these fights, but these victories are short lived. Many times, MERS does not have the supporting documents to show that the mortgage in question had been assigned to it and the courts have, in many instances, dismissed the foreclosure actions. Ultimately the lender that truly owns the mortgage loan begins its own foreclosure action as it usually does have the documents to show that it is the owner of the mortgage.
My advice: If you get a foreclosure notice from MERS, go ahead and challenge it. Do not roll over and allow MERS to steamroll its foreclosure process over you. It will buy you more time in the home and send a message to the lender that you will not be unilaterally put out of your home. Moreover, it may give the bank pause and make them more amenable to talking to you about a mortgage modification.
If you have been victimized by a debt collector or have items on your credit report that are incorrect, call or email Attorney Gary Nitzkin for a free consultation at (888) 293-2882. For more information about your credit rights as a consumer, visit our blog at www.micreditlawyerblog.com. Visit our website at www.micreditlawyer.com.