Add another thing to worry about when dealing with banks and short sales……
OMG! Just when you think you’ve seen it all, along comes a new horror story that makes the thought of doing short sales even more disgusting than before!!
Because of our intense hatred of all banks (BofA and Chase head the top of the list) we decided to stop doing short sales, and most conventional real estate transaction last summer and have been buying and flipping properties instead!
Fast forward to July 2011! Last week, we received a document from our Seller that he had received. Are you sitting down? It was a LAW SUIT on behalf of MERS and Fannie Mae (Plaintiffs) against the Seller and Buyer (Defendants) and a possible 23 other defendants, (Does) who are at this point unnamed!
Please tell us what the lawsuit alledged. Had the shortsale already closed, or was it pending or what?
Speaking of MERS… I know someone who has an assignment which states that MERS assigned her note and mortgage to New York Bank. She never closed a loan with MERS. How does one defend against MERS?
MERS never took any promissory note. It was the nominee of many mortgagees which participated in the MERS electronic registry. If this is a correct account of what is being claimed by a foreclosing entity, it is likely that a document mill has created a false claim that the promissory note was endorsed in favor of MERS and made that assertion on the assignment of mortgage. In millions of cases in which MERS was the nominee of the mortgagee MERS, the promissory note was never taken by MERS. A new form of document creation is now being undertaken in which the claim is made in pleadings that the promissory note and mortgage were both “assigned” to the foreclosing entity on the face of the assignment of the mortgage. These are false statements, after the fact, placed on the assignment of mortgage to make it appear that the promissory note and mortgage were simultaneously transferred at some point in time to the foreclosing entity. The defendant must attempt to use the litigation discovery process to demonstrate that the assignment of the mortgage contains a false assertion that the promissory note was “assigned” to MERS. Promissory notes are not assigned; promissory notes are endorsed. The defendant must ask for the note to be produced and seek any documents which demonstrate the date upon which the note was endorsed. MERS nominations appeared on the mortgages at the time of the closing.