Glenn Russell Jr | What is MERS and what is its role in foreclosures?

What is MERS and what is its role in foreclosures?

As probably the only attorney in Massachusetts that has specifically limited my practice to the defense of mortgage foreclosure over the past 7 years, I frequently encounter this very familiar question, “So what is this MERS who owned my mortgage, and now sold my mortgage to some bank or trust that is now seeking to foreclose on me?” A very tricky, and complicated, question indeed.

Once upon a time, all “lenders” (usually banks) granted loans (mortgages) to their customers, based (and limited to) a percentage on monies that this particular bank had on deposit. The “bank” also had a personal stake in the credit quality of the borrower as the bank’s money was at risk.

A key concept to remember is the fact that a “mortgage” actually consists of two completely separate instruments: 1.) the promissory note in which the borrower receives and signs a “note” (as the “maker”) in which he, she, it, promises to repay the amount of money loaned to the “payee”; and 2.) the Security Instrument (or mortgage) that states if the borrower fails to repay the note as promised (or breaches any other condition in the mortgage contract) paragraph 22 of the mortgage allows the “lender” to exercise the power of sale in the mortgage to sell the property to satisfy the outstanding indebtedness on the note. As mortgage foreclosure in Massachusetts is “non-judicial,” foreclosure operates completely extra-judicially, as a “creature of contract.”

Rest here…

Glenn Russell Jr. is Fall River attorney who specializes in foreclosure defense Community Voices is a weekly column featuring community-based experts or specialists.


5 Responses to “Glenn Russell Jr | What is MERS and what is its role in foreclosures?”
  1. Kathleen Burt says:

    Is MN the only state where a judge ruled that MERS does have the right to represent the plainfiff in court? Hopefully this precedent will be overturned.

    I heard that sometimes the line for the assignment of mortgage was puposely left blank to make it easier for MERS to resell the note several times? Is that true? Egad.

    It sounds like a shell game. I guess we keep going to the MERS site for the latest news on our loans? Mine has changed several times.

  2. marilyn lane says:

    The abominable banking system that is in place today, gives a bank great incentive to foreclose on an Ultra Vires contract, as the bank demands lawful money returned for the unlawful money lent.

    By what Authority are the Banks doing this? There is no authority for doing this. This is in complete prohibition to Art 1 Para 10 Cl1 of our US Constitution.

    All of our cases with slightly different facts all stem from the same Fraud.
    The Bank did not lend you ‘LAWFUL MONEY” but the Bank intentionally wrote
    a “bad check” and gave it to you –to circulate as “money”

    I certainly did not know this kind of fraud was going on when I signed my mortgage and note. Did you?

    The Mortgagor puts up a down payment, the Mortgagor pays a lot of fees and probably paid an attorney to represent them, all in order to get this “bad check”

    Would a Mortgagor have put in all that money, if one knew the truth of how the Banks ran their illegal business. I bet not.

    Did anyone notify you after that big day – the Bank’s check bounced – of course not. When the check that the Bank wrote came back to the Bank that wrote it, the bank didn’t say “we only have 5% , if that much and it was not stamped “insufficient funds” the bank stamped it “paid”

    So since the Bank did not have the money sitting in the bank’s account when they wrote the check, what the bank gave you is their credit.

    That is exactly what is prohibited by Art. 1 Para 10 Cl 1 of the US Constitution.

    What authority gives the Bank the right to make contracts with “bad checks”

    Nothing- Nada.

    “Lawful money” is needed to make a contract valid.

    Over and Over Mortgagors gave a Bank a mortgage on their castle , in return for a Bank giving you a credit entry on their books and charging you Interest on this credit. Also illegal.

    Did the Bank give you lawful money or is that what you got, credit?

    Banks are not allowed to lend their credit- Banks are in the business to lend
    “lawful money” There is not a Bank charter that allows a Bank to lend their credit.

    And as we continued to make monthly payments the Bank collected more money on their fraud.

    You try writing a check when you don’t have funds sitting in your account to cover it.
    You can be sure that check is coming back marked”insufficient funds” You are not allowed to do it and either is a Bank.

    This scam of Ultra Vire contracts caused injury to us, the true homeowners.

    In addition the banks are laundering “bad checks”.

    The Banks violate Truth in Lending Laws.

    The Banks are collecting Interest on money that doesn’t exist. (Lending you 5% and collecting Interest on 95% of thin air)

    And once the Bank gets their Ultra Vire contract going, they start flipping them to MERS, Securitizations , Wall Street, Title Companies etc. there is no shortage of people all wanting to get their piece of the illegal profits.




  3. Equity Free says:

    Mers is an electronic registry of inaccurate & unverified mortgage info .
    It has no meaningful purpose in any foreclosures .
    It has conspired with others to steal billions in fee’s from county’s around
    the country .
    They are a huge part of the sub-prime , fraudclosure economic crises .
    Disband and seize everything they have !

  4. Seekintruth says:

    Why does every contract state for value received grantee was paid $10.00. This is the first deception on the contract. Under UCC 3 309 or 901 it reads that a waranty deed must to be delivered to grantee and accepted by grantee. The deed in these transactions are never perfected and are deceitfully purchased from grantee by some trustee for $10.00 and given to some purported lender who never paid or loaned one dime.

    If the truth had been told about home mortgages America would be still on top financially. by the way will someone please explain reverse mortgage to me.

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