This Could Be The Most Important Information You Ever Learn For Your Clients - NAR Are You Listening???!!!

Real Estate Agent with Platinum Real Estate Group

If you're involved in the real estate business, which if you're reading this I am sure that you are, then the article that was featured yesterday with a mere 16 comments by Eric Martell should be at the very top of your list to become educated about right now.

There is a huge S*** storm brewing that every real estate agent, real estate attorney, title company, and the National Association of Realtors should be up in arms with. Here is a summary of the problem in my own words and opinions, however, I leave it to you to study this topic with the diligence your clients expect of you as their fiduciaries and form your own opinion.

The problem going on right now could give 62 MILLION homeowners clear title. Did you read that? 62 MILLION HOMEOWNERS FREE AND CLEAR TITLE. How, you say? A bit of a history lesson first. 


To understand the problem, you need to understand MERS (Mortgage Electronic Registration Systems).

The MERS system from wikipedia: "MERS serves as the mortgagee of record for lenders, investors and their loan servicer's in the county land records. MERS claims its process eliminates the need to file assignments in the county land records which lowers costs for lenders and consumers by reducing county recording revenues from real estate transfers and provides a central source of information and tracking for mortgage loans."

In layman's terms: MERS makes it easy for lenders, investors, and loan servicer's to chop up their loans into a million pieces and sell them as securities to avoid paying title transfer fees. Which means, they avoid paying the county where the deed of trust is/was/should be recorded. They are ripping your local legislature off and they aren't happy about it and you shouldn't be either. We're talking about billions of recording fees that were never paid.


The Greatest Ponsi Scheme in American history?

Here's the deal. The MERS system allowed lenders to sell their loans in pieces, which means, if they want to foreclose on real property, they can't establish a clear chain of title entitling them to relief. The wall street big boys sold mortgages without holding clear title. Which means? Fraud. 

There are already many cases where judges agree, including the Kansas Supreme Court. You can read that case here. Another case in California where the judge said MERS could not foreclose can be found here.

Which brings us to the current class action lawsuit being put together. 


Figueroa Vs. MERSCORP - Class Action Lawsuit (Florida)

Defendants: Merscorp, Inc. , David J. Stern , Law Offices of David J. Stern, P.A. , DJSP Enterprises, Inc., American Land Title Association, Bank of America Bank, N.A., CCO Mortgage Corporation, Chase Home Mortgage Corporation, Citimortgage Inc., CRE Finance Council, Corinthian Mortgage Corporation, Everhome Mortgage Company, Fannie Mae, First American Title Insurance Company, Freddie Mac, GMAC Residential Funding Corporation, Guaranty Bank, HSBC Finance Corporation, Merrill Lynch Credit Corporation, MGIC Investor Services, Mortgage Bankers Association, Nationwide Advantage Mortgage Company, PMI Mortgage Insurance Company, Stewart Title Guaranty Company, SunTrust Mortgage, Inc., United Guaranty Corporation, JP Morgan Chase & Co., Wells Fargo Bank, N.A., WMC Mortgage Corporation and WMC Mortgage Corp.

All the big boys are involved in the fraudulent activity, and the Mortgage Bankers Association is holding a meeting in North Carolina as we speak. GMAC has issued internal documents telling all asset managers to hold off on foreclosure filings, contract negotiations, and closings for 30 days. 

Why bring up GMAC? As you will find in this link: GMAC forging over 10,000 affidavits a month, GMAC is the one that has been caught forging documents to foreclose. Although only GMAC has been caught, you will find that the class action suit being put together alleges all of the institutions above are doing the exact same thing, they just haven't been caught yet. 


Send Them To Jail? YES PLEASE!

The reason this class action is so important is because they aren't only challenging the right to title, but they are seeking criminal charges. How many times have you wanted the bailout banks, the wall street cronies, and the Ponsi scheme implementers in large financial instituions to face criminal charges?

I don't know about you, but every time I get a call from a seller saying they can't get anyone to help them at the bank with a modification, a short sale, or a re-negotiation of their interest rate that someone should be in jail. This class action suit, if it gets enough notice, could be the case that gets some revenge for the American people.

This is huge! And I don't see anyone on Activerain, or any real estate agent calling or mailing NAR to get their butts in gear on this subject and inform the people affected. 


Contact NAR - Contact Your State Reps - Write A Blog Post 

So the point of my post. It's time for you to stand up and fight back against the people who played back door paddy-cake selling our houses as derivatives when they didn't have the right to. It's time for you to call NAR, your state representatives, and let them know you're not happy about how things went down. 

Contact NAR here or find out how to contact your state representatives here. Let them know you won't sit idly by while these big financial institutions hold closed meetings with government to come up with a plan to fix this problem. They must be held accountable. 


Re-Blogged 3 times:

Re-Blogged By Re-Blogged At
  1. Pat & Wayne Harriman 09/22/2010 08:17 AM
  2. Amy Law 09/22/2010 12:09 PM
  3. Sandra Paulow 09/22/2010 02:40 PM
  4. Keith Sellers 09/22/2010 02:46 PM
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Peggy Noel
RE/MAX Commonwealth - Chesterfield, VA
Bouchard, ABR, CDPE, SFR

This is great info - I have my assignment for tomorrow - thank you !

Sep 22, 2010 12:39 PM #46
Elizabeth Cooper-Golden
Huntsville Alabama Real Estate, (@ Homes Realty Group) - Huntsville, AL
Huntsville AL MLS

Lisa, I say lock the jerks up. Enough is ENOUGH.  Disgusting.  I had no idea.  Thanks for enlightening me.  Now, I need a Tylenol, lol.  

Sep 22, 2010 01:10 PM #47
Sandra Paulow
Aspen Properties, Inc. - Pinetop Lakeside, AZ
REALTOR, Associate Broker, GRI, SFR

I heard about this yesterday.  Will it really result in homeowners gaining clear title to their properties?  Probably not.  Somehow this will all end up being shoved under ther rug right along with all the other fraudulent schemes that have caused the mess we are in.  It is enlightening to say the least, the Public needs to know this.  It won't be on the National News I can guarantee!  Thanks for sharing this with us all. 

Sep 22, 2010 02:38 PM #48
David O'Doherty
Raleigh Realty Inc - Clayton, NC
Clayton NC Homes, Raleigh, NC

Lisa, I'll have to look into this somemore!

Sep 22, 2010 02:44 PM #49
Keith Sellers
Sellers Real Estate - Kalamazoo, MI
Greater Kalamazoo and Lakeshore

I appreciate your passion as much as your good information.  

Sep 22, 2010 02:52 PM #50
Lane Bailey
Century 21 Results Realty - Suwanee, GA
Realtor & Car Guy

I have a feeling that instead of homeowners getting free title, what will happen is that intrest rates will have to rise to pay the legal fees for the armies of lawyers that are going to rake it in... 

And this isn't a Ponsi scheme.  Social Security is, but this isn't close. 

And Jon (#45) has a VERY valid point.

Sep 22, 2010 02:59 PM #51
Fred Cope
Reliant Realty in Nashville, TN - Nashville, TN
Looking For Homes With A Smile

Lisa, thanks for ringing the bell!  IF REALTORS® want to restore the Housing Industry, we must be certain we have a solid foundation.  Whether MERS is Friend or Foe, WE MUST KNOW.  How can we give our clients good counsel without sifting through these issues?  We must not delay in our defenses, but must not go off half-cocked.  NAR MUST BE INVOLVED!!! 

Perhaps this will re-focus a light on politicians in the Nation's Capital who sold us down the river.  Chuck Dodd & Barney Frank are thinking they got away with their deeds.  Many of their collegues practicing a drill we learned in the 1950's.  It was called "Duck & Cover."

Things like this re-inforce the need to stop all this "Nationalization" of everything from Wal-Mart to National Health Care.  We need local accountability and local involvement.  Political parties, Unions, Corporations, Banks, Education, et al have been moved further from the people.  Even NAR needs to be more accountable to the local associations vs. dictating policy.

IN THE END, YOU AND I CANNOT SIT BY: WE MUST BE THAT WELL-ARMED MALITIA (well-armed with knowledge & resolve).  After all, "We The People..." includes REALTORS®.

We have homework to do.

Sep 22, 2010 03:14 PM #52
Bruce Swedal
Denver, CO
Denver Real Estate

Something made for or by lawyers to argue about. I have a tough time seeing how 62 million homeowners would be given free and clear title. 

Even if free and clear title were given, the home is only collateral. Wouldn't they still own the $$$.

Sep 22, 2010 04:13 PM #53
Patty Luther
Rock-n-Roll Realty - Lewiston, ID
Lewiston ID Real Estate, Idaho-Washington

Great info Lisa, thanks for this Blog ~ I am going to keep this one to refer to....

Sep 22, 2010 07:43 PM #54
Debe Maxwell, CRS | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

I'm not quite sure how REALTORS are open for liable here--I definitely need to do more homework/research before making an educated comment!  

Thanks for opening my eyes to this--I have NO earthly idea why this isn't ALL over the media.  Go figure?

Sep 22, 2010 07:48 PM #55
Pamela Seley
West Coast Realty Division - Murrieta, CA
Residential Real Estate Agent serving SW RivCo CA

The issue in CA, a nonjudicial state, is servicers are recording Assignment of Deed of Trust at the last minute in order to proceed with foreclosure.  In other words, the assignment was never filed and the servicer does not own the note.  Does a homeowner have a good defense against foreclosure?  Yes.  Does this mean homeowners can get title free and clear?  I doubt it.  I agree with Fred #52, we need to know, and stop all this nationalizing crap that's turning our country into a socialist black hole of ineptitude.

Sep 22, 2010 09:45 PM #56
Chuck Ward Local Video Marketing
Florida Mobile Fusion Mobile, Marketing, Local SEO - Tampa, FL
SMS Marketing, Google Plus Local Pages

What you failed to realize is that MERS is a conglomeration (of sorts) of the US Government.  banks, Fannie and Freddie.

Although the idea around MERS was to incorporate the information age of passing notes back and forth (between servicers), there wound up being a side benefit to the participating servicers and MERS - The inability to change assignments of mortgages WITHOUT having to pay the appropriate state and local government taxes

I worked for a company (in Florida) that attempted to sue MERS for the simple fact of NO ONE COULD PROVE OR DOCUMENT ASSIGNMENTS FROM ONE LENDER TO ANOTHER TO ANOTHER.  We had 50k homeowner files that we purchased from a imploded mortgage company (reopened such said mortgage company under another, yet similar name by adding "HOLDING") and attempted to contact clients behind or in foreclosure.

Our idea was to pull those people out of the situation, petitioning the courts that we were now the mortgage company who signed the original note (therefore any claim from anywhere/one else was null and void).  We were then going to have those cients pay us directly, until the credit report was changed over (reflecting no late payments on the mortgage) and rewrite the mortgage.  (Then one of the business partners went to jail and I was out of a job)

Unfortunately, we (as society) cannot SUE the US Government.  But I think this should open the eyes to everyone in a bad situation with a home.  Unless your current servicer has the ORIGINAL note, foreclosure cannot happen!

Sep 22, 2010 10:18 PM #57
Jim Hale
Eugene Oregon's Best Home Search Website

Lisa -

This is very complicated and therefore clear as mud.  I haven't a real clue after all this as to what the affect will be in judicial states.  It is even more unclear in the non-judicial states.

Sep 22, 2010 11:04 PM #58
Connie Harvey
Pilkerton Realtors - Brentwood, TN
Realtor - Nashville TN Real Estate

Wow Lisa, I'm like Debe, I don't know enough about this to make an intelligent comment. I AM going to get informed this morning! The implications are frightening.

Sep 22, 2010 11:36 PM #59
Kelly M. Fisher
The Property Shoppe, LLC - Lake Harmony, PA

Maybe I am naieve, but if this thing is as big as it potentially could be, then we could expect to see some major government intervention to protect mers and the big banks.  This is certainly a case to watch

Sep 23, 2010 12:00 AM #60
Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M

This is fascinating and something I may look into further. However, we are almost exclusively non-jucicial in California.

Sep 23, 2010 05:22 PM #61
Jark Krysinski *PREC (Personal Real Estate Corporation)

Lisa, thanks so much for this article.  While this doesn't apply to Vancouverites north of the border, I'm going to spread the word with among my American colleagues and will also speak to my broker about this over coffee to see what the likelihood is for such a scandal taking places in my home town.  Cheers and thanks so much for this article, Jark.

Sep 27, 2010 05:16 PM #62
Marcie Sandalow
Marcie Sandalow, Compass 301.758.4894 - Bethesda, MD
Bethesda Chevy Chase DC real estate

Lisa- I just clued into this post thanks to Pat Kennedy's mention.  Great information.  What a mess.  

Oct 05, 2010 01:52 PM #63
Yvette Chisholm
Long & Foster Real Estate, Inc. - Rockville, MD
Associate Broker - Rockville, MD 301-758-9500

Hi Lisa, it is a complicated mess.   If someone wants to foreclose, they better prove they actually have a right to do so.  There are a lot of problems out there and this is a big one.  Thanks to Pat Kennedy for bringing it to my attention. 

Oct 05, 2010 03:55 PM #64
Lisa Udy
Platinum Real Estate Group - Logan, UT
Logan Utah Realtor

Thanks Yvette! I will have to check out Pat's post, looks like she is sending a few people over here. 

Oct 06, 2010 05:01 AM #65
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