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MERS legal case delaying home sales in Jackson, Possibly headed to State Supreme Court

MERS legal case delaying home sales in Jackson, Possibly headed to State Supreme Court


Michigan law states that whoever forecloses on a property must own the debt, and MERS did not.

MLive-

A family was expecting to close on a house on a Friday. On Thursday night, the sale had to be scuttled.

Fifteen to 20 pending home sales fell apart that one Jackson title company was preparing to handle. Banks started pulling homes for sale off the market.

First, Jackson County’s real estate market suffered from the foreclosure crisis. Lately, it has been going through another convulsion due to a little-known company that has its name all over mortgage documents in Jackson and around the state.

Continue reading [MLIVE]

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WHOA! MERS Ruling Forces HUD to Reforeclose on Michigan REO

WHOA! MERS Ruling Forces HUD to Reforeclose on Michigan REO


What about those already sold?


Mortgage National News-

The Department of Housing and Urban Development will re-foreclose on all its REO properties in Michigan where the original foreclosure was conducted in the name of MERS using the state’s nonjudicial process.

read the ruling below…

Michigan Court Of Appeals Rules, Consolidates (2) Cases MERS “STRAWMAN” Has No Authority To Foreclose

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[VIDEO] MI Rep. Hansen Clarke Discusses Making Lenders Prove Ownership to Foreclose, Supports $100M Class Action Against MERS

[VIDEO] MI Rep. Hansen Clarke Discusses Making Lenders Prove Ownership to Foreclose, Supports $100M Class Action Against MERS


Make this go VIRAL!!

Contact: https://hansenclarke.house.gov/contact-me

Uploaded by on May 16, 2011

Rep. Hansen Clarke discusses home foreclosures on WJR’s The Law Show

[image: VoiceofDetroit.net]

© 2010-17 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



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MICHIGAN CLASS ACTION | DEPAUW v. MORTGAGE ELECTRONIC REGISTRATION SYSTEMS, INC. “MERS”

MICHIGAN CLASS ACTION | DEPAUW v. MORTGAGE ELECTRONIC REGISTRATION SYSTEMS, INC. “MERS”


UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF MICHIGAN
SOUTHERN DIVISION

* * * * * * * *

MARLYA DEPAUW and SHARON & TERRANCE LAFRANCE, Individually and as Representatives of a Class of Individuals Similarly Situated,
Plaintiffs,

v.

MORTGAGE ELECTRONIC
REGISTRATION SYSTEMS, INC.
c/o The Corporation Trust Company,
as Statutory Agent
Corporation Trust Center
1209 Orange Street
New Castle, DE 19801,
Defendant.

Case Number: 2:11-cv-12032

JUDGE:
Magistrate Judge:


______________________________________________________________________________

CLASS ACTION COMPLAINT WITH DEMAND FOR JURY
TRIAL ENDORSED HEREON

EXCERPT:

16. In many of the actions filed by MERS, mortgagor homeowners responded by filing pleadings arguing that MERS did not have the capacity to foreclose by advertisement as they did not own or have any interest in the underlying indebtedness.

17. In response to these challenges, MERS would normally answer by providing confusing loan documents and claiming an interest in the underlying debt, even though they knew this was not true and that they were not complying with the requirements of MCL 600.3201, et seq.

18. Even in the face of these challenges, MERS did, and continued for a period of years, to knowingly, fraudulently and illegally foreclose using a State law upon which they had no authority or right to utilize.

19. In these cases, MERS lacked the authority to foreclose by advertisement pursuant to MCL 600.3201, et seq., as MERS was never either the owner of the underlying indebtedness or loan and was not the servicing agent of the mortgage.

20. On April 21, 2011, the State of Michigan, Court of Appeals in the consolidated case of Residential Funding Co., LLC v. Gerald Saurman, (Residential Funding Co, LLC v. Saurman, 290248, 291443 (MICA)), issued a ruling stating in pertinent part that in cases where MERS did not own the underlying indebtedness, did not own an interest in the indebtedness secured by the mortgage, or did not service the mortgage, MERS was therefore unable to comply with the statutory requirements of MCL 600.3201(1)(d), and subsequently had no right to foreclose by advertisement.

21. The Court of Appeals continued, and ruled that in those such cases where MERS did foreclose by advertisement upon the foregoing conditions rendered those foreclosure proceedings void ab initio.

Continue below…

[ipaper docId=55154803 access_key=key-bpb1wcaawkzt44d8izs height=600 width=600 /]

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Merscorp Mortgage Registry Sued Over Non-Judicial Foreclosures in Michigan

Merscorp Mortgage Registry Sued Over Non-Judicial Foreclosures in Michigan


Now we SAW this baby coming across miles away, and this will not be the last. Just yesterday, Fannie said MERS poses a significant risk…no DOUBT!

BLOOMBERG-

Mortgage Electronic Registration Systems Inc. “illegally prosecuted” non-judicial foreclosures in Michigan and owes more than $100 million to people who lost their homes, lawyers for three homeowners said in a lawsuit.

The homeowners said Merscorp Inc.’s MERS, which runs an electronic registry of mortgages, used Michigan’s so-called foreclosure by advertisement process illegally and “misappropriated” their homes. Any foreclosures by MERS using this process in Michigan should be voided, they said in their complaint filed in federal court in Detroit.

© 2010-17 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



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Title agencies running scared, canceling closings after Michigan Appeals Court rules against MERS

Title agencies running scared, canceling closings after Michigan Appeals Court rules against MERS


DETROIT FREE PRESS-

Local Realtors say title companies are canceling closings on some bank-owned homes after a recent Michigan Court of Appeals decision made it more risky to insure them.

Late last month, the court ruled the Mortgage Electronic Registration System lacks authority to foreclose by advertisement in Michigan. The system is an electronic record-keeper of mortgages.

read the ruling below…

Michigan Court Of Appeals Rules, Consolidates (2) Cases MERS “STRAWMAN” Has No Authority To Foreclose

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DEPOSITION TRANSCRIPT OF DAVID J. STERN ESQ. FROM 1/19/2000 BRYANT v. STERN

DEPOSITION TRANSCRIPT OF DAVID J. STERN ESQ. FROM 1/19/2000 BRYANT v. STERN


Excerpts:

Q Can you tell me why these documents haven’t been produced prior to today?
April 18th, 1996, letter from Law Offices of Mr.
Stern to Vanessa Chernick, assistant general counsel
Fannie Mae, you didn’t maintain a copy of this document
in your Fannie Mae file and therefore, you didn’t
locate it when we asked you to produce these
documents?

MR. GEYER: Object to the form

A Repeat the question, please

(Thereupon, the portion was read by the reporter)

A At the time I was asked to produce the
documents, it was not in the file

By Mr. Guilday

Q Where did you find this document?
A In a Fannie Mae file
Q Whose Fannie Mae file?
A I’m not sure
Q Within the last few days, last few months,
when?
A I did not actually locate that letter. That
letter was located by one of my other staff members.
When, I don’t know. And to whom or by whom, I do not
know.

Continue reading below…

[ipaper docId=45971754 access_key=key-2c85vvj1227k9wo0sese height=600 width=600 /]

© 2010-17 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



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MUST READ | Finding The Missing Piece In The Reconveyance Puzzle

MUST READ | Finding The Missing Piece In The Reconveyance Puzzle


State-level legislation introduced earlier this year proposed that the beneficiary of a trust deed have only 30 days after payoff to deliver a written request to the trustee to reconvey the property back to the grantor.

If the beneficiary delayed delivery of the request and missed the 30-day deadline by even one day, the beneficiary would be liable to the grantor for $500, the legislation stated. This amount would be in addition to all actual damages incurred by the grantor.

Consequently, if a prospective sale of the property was lost because of a delay in following through with the reconveyance, the beneficiary would be held liable for substantial damages.

This can be a real trap if it takes more than 30 days to forward a request for reconveyance. The $500 fine could be just the beginning. In the opinion of George C. Reinmiller Trustee Inc., beneficiaries, loan servicers and trustees will probably see more of this type of legislation around the country, because a limited few have been slow in completing reconveyances.

The penalties and monetary losses don’t stop there.

With the rise in foreclosures and an increase in budget cutbacks, lenders and servicers have been seeing a higher demand to have complete and accurate collateral files to certify their pools of loans.

By completing an audit and ensuring everything is there, servicers will find it easier to close on the sale of the pool and will see a decrease in requests for the repurchase of certain assets in the file. These certified pools of loans are considered more valuable and are, therefore, sold relatively easily.

In today’s market, purchasers of pools look for any number of reasons for a seller to repurchase loans. One such reason – in fact, the most common reason – is incomplete files.

If there are problems within a pool, lenders and servicers can spend huge amounts of money trying to discover the missing pieces. Another possible headache is the time and money involved to go back and forth with the attorney trying to resolve these types of issues should the loan fall into foreclosure. If the issues cannot be resolved quickly, the seller may have to buy back the loans, which is something a struggling company shudders to hear.

What can lenders and loan servicers do to quickly correct these types of problems or keep them from occurring in the first place?

The more time that passes between origination and file verification, the more costly and difficult it becomes to obtain any missing documents. Sometimes, with cutbacks (such as loss of human resources) or, as we see happening more frequently these days, the relocation of offices, documents can be forgotten or misplaced and can end up sitting incomplete in an abandoned filing cabinet that will probably go untouched until someone accidentally comes across it.

Servicers should take aggressive document control and verify they have the documents they need in each file as soon as possible. If documents are missing, there are still strategies that can be employed.

Finding and obtaining missing original documents that have to be publicly recorded (e.g., mortgages, assignments and assumptions) are fairly easy to retrive. For instance, you can get a certified copy from the county recorder where the property is located, as long as the document was originally recorded.

Research can be done to verify whether the document was recorded by searching the county’s Web site or speaking with the recorder’s office. You may obtain a certified copy by phone or by mailing in a certified copy request to the county recorder. However, there are a few recording districts that require an abstractor to physically come in to research and/or request a copy of a document.

Obtaining copies of missing documents that were never recorded on the public record – such as title policies – can get much more complicated. One can always go directly to the title company or title agent that issued the policy, but with current conditions in the economy and mortgage industry, title companies have been closing their doors.

The next step is to contact the underwriter. Most underwriters will not send the original policy, because they normally do not have it. However, they should be able to send a certified copy. Because each purchaser is different and may have a different concept of what is acceptable, specificity is key. Get a clear definition of what a certified copy of a title policy is from the purchaser before obtaining one from the underwriter.

There is a chance that the underwriter may not have the policy, either. In that case, the underwriter might have to re-issue it, which can get pretty costly. To re-issue the policy, the underwriter will normally require a complete chain of assignments. Most underwriters will only reissue a title policy directly from the current beneficiary of the mortgage and will use the assignments on record to verify that person’s identity.

With Mortgage Electronic Registration Systems (MERS), missing assignments have, in recent years, become less of a problem for some, but there are still many mortgages that are not registered with MERS. With the countless number of banks and mortgage companies being sold or closing, it can become a Sherlock Holmes case trying to find an entity that can sign and, therefore, complete the assignment chain. It usually starts with searching various Web sites and tracking down the current holder or entity of the company.

When all else fails
Then the phone calls start in an attempt to find the right person to sign the document. What happens if you can’t find anyone to sign? In many cases, when there is no one left that can sign an assignment, a lost assignment affidavit is a possible resolution. But keep in mind that only certain states and/or recording jurisdictions allow these affidavits. If all else fails, then it is up to the courts to resolve the problem, which is when the expenses start to increase once again.

By having all loan files complete, one is able to move quickly if a loan is paid in full, as well. Steep penalties can be avoided in certain states by providing a release or reconveyance in a timely manner. This is especially important if Reinmiller’s opinion holds true and the trend of shortened compliance time frames grows further.

Lenders and servicers should take a proactive approach in their daily functions and do whatever it takes to ensure that their files are complete from the start to avoid costly mistakes with unpredictable results.

Jessica Woods is vice president of Richmond Monroe Group Inc., an outsource services provider offering processing and technology solutions to the servicing industry. She can be reached at (417) 447-2931 or jessicaw@richmondmonroe.com.


© 2010-17 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.



Posted in conflict of interest, foreclosure, foreclosures, MERS, MORTGAGE ELECTRONIC REGISTRATION SYSTEMS INC., STOP FORECLOSURE FRAUD, title company, trade secretsComments (1)

ARE FORECLOSURE MILLS Coercing Buyers for BANK OWNED homes? ARE ALL THE MILLS?

ARE FORECLOSURE MILLS Coercing Buyers for BANK OWNED homes? ARE ALL THE MILLS?


MASTER_OFFER_PACKET_03-10-2010[1][1]

In the Master Packet above go to Page 7

Below is from an ad in Trulia

fannie mae owned.bank property. property is vacant.all offers requiring financing must have preapproval letter.all cash offer require proof of fund(see attachement).this property is eligible for home path renovation mortgage-as little as 3% down.buyer must close with seller closing agent(david j. stern law offices,p.a).investors not eligible for first 15days.*for showing instr please read broker remarks* note:offers must be submitted using attachment.close by 30 june and receive extra 3.5% in closing cost

Looking further into this I noticed the following:

  • Still in the name of the owner
  • NOT named under any REO
  • Home last sold for 245K
  • Now listed at 120K

Here is the BIGGEST:

I found a Bank-owned packet for this “SPECIALLY SELECTED” Agent/BROKER in many other REO’s and in this package it states the following: (SEE ABOVE LINK PACKET)

9) Which title companies are the sellers and who do I make out the earnest money deposit to once offer is verbally accepted?

a. PLEASE LOOK ON MLX REMARKS FOR TITLE COMPANY. MLX WILL HAVE ONE OF THE FOLLOWING:
i. David Stern, P.A.
ii. Marshall C. Watson, P.A.
iii. Smith, Hiatt, & Diaz, P.A.
iv. Butler & Hosch, P.A.
v. Shapiro & Fishman, P.A.
vi. Spear & Hoffman, P.A.
vii. Adorno & Yoss, P.A.
viii. Watson Title

ix. New House Title (This is registered with FDLG address 9119 CORPORATE LAKE DRIVE, SUITE 300 TAMPA FL 33634)

10) Can the buyer use their own title company or must they use the title company selected by seller?

a. The buyer MUST HOLD ESCROW with Fannie Mae Title Company as stated on MLX.

NOW are we unleashing another dimension to this never ending SAGA?

We recently found out about WTF!!! DJSP Enterprises, Inc. Announces Agreement to Acquire Timios, Inc., Expand Presence Into 38 States , so is this a way for the Mills to Monopolize on the sales of these properties??

HERE IS same Agent/Broker for a FLORIDA DEFAULT LAW GROUP property:

THIS IS FANNIE MAE HOMEPATH PROPERTY.BANK OWNED.ALL OFFERS REQUIRING FINANCING MUST HAVE PREAPPROVAL LETTER. ALL CASH OFFERS REQUIRE PROOF OF FUNDS. THIS PROPERTY IS APPROVED FOR HOMEPATH AND HOMEPATH RENOVATION MORTGAGE FINANCING-AS LITTLE AS 3% DOWN,NO APPRAISAL OR MORTGAGE INSURANCE REQUIRED! ** FOR SHOWING INST PLEASE READ BROKER REMARKS** YOU MUST SUBMIT OFFER USING ATTACHMENT! INVESTORS NOT ELIGIBLE FOR FIRST 15DAYS.CLOSE BY JUNE 30 TO BE ELIGIBLE FOR EXTRA 3.5% SC. EMD: FL DEFAULT LAW GROUP.

Here is another same Agent/Broker for MARSHALL C. WATSON property:

FANNIE MAE OWNED.BANK PROPERTY. PROPERTY IS VACANT.ALL OFFERS REQUIRING FINANCING MUST HAVE PREAPPROVAL LETTER.ALL CASH OFFERS REQUIRE PROOF OF FUNDS(SEE ATTACHEMENT).THIS PROPERTY IS ELIGIBLE FOR HOME PATH RENOVATION MORTGAGE-AS LITTLE AS 3% DOWN.BUYER MUST CLOSE WITH SELLER CLOSING AGENT (LAW OFFICES OF MARSHALL C. WATSON).INVESTOR NOT ELIGIBLE FOR FIRST 15DAYS.*FOR SHOWING INSTR PLEASE READ BROKER REMARK* NOTE:OFFERS MUST BE SUBMITTED USING ATTACHMENT.CLOSE BY JUNE 30 TO GET 3.5% EXTRA IN CLOSING COST

Does the JUNE 30th Closing Day have any significance??

MAYBE it’s because of this? MERS May NOT Foreclose for Fannie Mae effective 5/1/2010I am just trying to make sense of this…Is there a grace period that followed?

  • What “if” the BUYER selects their own Title company? Does this eliminate their chances of ever even being considered as a buyer?
  • Why even bother to state this?
  • Is this a way for the selected Agent/ Broker to find the buyer and discourage other agents or buyers from viewing?
  • Was this at all even necessary to state?
  • Is this verbiage to coerce agents to get a higher commission rather than pass down the incentive of 3.5% towards closing cost “if” under contract by 6/30?
  • Why do investors have to refrain from buying for the first 15 days?

Coercion (pronounced /ko???r??n/) is the practice of forcing another party to behave in an involuntary manner (whether through action or inaction) by use of threats, intimidation, trickery, or some other form of pressure or force. Such actions are used as leverage, to force the victim to act in the desired way. Coercion may involve the actual infliction of physical pain/injury or psychological harm in order to enhance the credibility of a threat. The threat of further harm may lead to the cooperation or obedience of the person being coerced. Torture is one of the most extreme examples of coercion i.e. severe pain is inflicted until the victim provides the desired information.

RELATED STORY:

LENDER PROCESSING SERVICES (LPS) BUYING UP HOMES AT AUCTIONS? Take a look to see if this address is on your documents!

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Posted in butler & hosch pa, conspiracy, djsp enterprises, fannie mae, FDLG, florida default law group, foreclosure, foreclosure fraud, foreclosure mills, hiatt & diaz PA, insider, investigation, Law Offices Of David J. Stern P.A., law offices of Marshall C. Watson pa, marshall watson, MERS, MORTGAGE ELECTRONIC REGISTRATION SYSTEMS INC., Mortgage Foreclosure Fraud, new house title llc, Real Estate, REO, securitization, shapiro & fishman pa, short sale, spear & hoffmanComments (4)


GARY DUBIN LAW OFFICES FORECLOSURE DEFENSE HAWAII and CALIFORNIA
Kenneth Eric Trent, www.ForeclosureDestroyer.com

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