I ran across this video while reading articles related to the latest MA Supreme Court decison reversing a few foreclosures. Congressman Alan Grayson explains what MERS is and elaborates the ways that current foreclosures in Florida and across the US are being done incorrectly. The video is almost 8 minutes and I think it is worth watching - especially if you aren't sure what MERS is.
The problem that is now the 800 pound gorilla is: How do we fix the problem? Congressman Grayson indicated that there may be fraud in some cases, and that there has been an organized effort to bypass laws and IRS reporting requirements. There seems to be evidence that he is correct. But there is still no light in the tunnel. We all know we are in the tunnel, but how far is the end from here?
Does everyone in the MERS system get their mortgage forgiven? There really is no way to be sure who owns a MERS loan. Especially in light of things like foreclosure factory that Congressman Grayson uses as an example, and some of the other information in his video. Do we rely on MERS to "re-create" their records? And, what does this do to a chain of title? Do all insurable titles now start with the current owner? What kinds of exclusions are planned?
The mortgage meltdown is not over yet, and may be still picking up steam.