Judge Finds Entire MERS Mortgage Process Illegal

Praise Mao.

We can expect the Zimbabwification of our economy to commence shortly.

Zero Hedge reports:

There was a time when news, especially very bad news, moved stocks. The last time that occurred was in the middle of 2009, before most robots had any idea just how massive the chairsatan’s schizoid break with reality was. Now, that the appropriate sociopathology is fully priced in, bad news tends to have an even more profound upside impact on stocks than good news, as it guarantees that the Zimbabwe stock market will be upon us far sooner than if the economy were to have to go through another inter-QE episode. Which is why the just released news out of US Bankruptcy Judge Robert Grossman of Central Islip, New York, that MERS lacks rights to transfer mortgages will likely send the entire S&P circuit breaker up.

Of course, it’s not just America that is going to be Zimbabwified:

This is simply stunning. A quick parsing of the data released every ten days by the National Bureau Of Statistics of China indicates that the average price of food in 50 cities in the January 21-31 period has increased by 4.6% compared to the prior 10 day period (and 416% annualized)!

reply to post by mnemeth1

“It is up to the legislative branch, if it chooses, to amend the current statutes to confer upon MERS the requisite authority to assign mortgages under its current business practices.”

Since Congress can act retroactively, I'm not sure how you see this as being as serious as you say? The Judge was pointing out with the above statement, that there is a simple and quick solution available to the Legislature.

star and flag
This ought to put the pressure on...
of course this will make the derivitive bubble back up till it blows like a festering yellowstone sized cauldera.
Still, I think it is good news.
I just fully bailed from the markets today.


i don't think any corrective action taken will benefit the peeps at all

After reading the " article ", I question the seriousness of the situation. Seriously, all this means, is pulling the MERS system and instructing the lenders to actually take " reign " of there customers. If I understood correctly, having a MERS system that ultimately decides who gets what client and such, is a concern. Why should the MERS system decide what loaning agency is going to get this particular customer over another. Would seem that the MERS system, thinking about it even deeper, simply allowed for the elite to decide who was most beneficial as a client, thus profiling each prospective client. I dunno, unless I understood wrong, it would seem this would be a good thing?

Originally posted by Blaine91555
reply to post by mnemeth1

 

“It is up to the legislative branch, if it chooses, to amend the current statutes to confer upon MERS the requisite authority to assign mortgages under its current business practices.”

Since Congress can act retroactively, I'm not sure how you see this as being as serious as you say? The Judge was pointing out with the above statement, that there is a simple and quick solution available to the Legislature.

So you're banking on the democrats, who control the congress and the whitehouse, to pass a bill that screws mortgage holders up the ass?

LOL

There's about as much chance of that bill passing as their is for the US congress to balance the budget this year.

Further, think about what you just said.

You are essentially saying this problem can be fixed if congress passes a law that makes mortgage fraud by the banks legal.

LOL

Originally posted by mnemeth1


So you're banking on the democrats, who control the congress and the whitehouse, to pass a bill that screws mortgage holders up the ass?

Free houses, all around for everyone? Just asking? I prefer an open floor plan, no neighbors and view.

Originally posted by Blaine91555

Originally posted by mnemeth1


So you're banking on the democrats, who control the congress and the whitehouse, to pass a bill that screws mortgage holders up the ass?

Free houses, all around for everyone? Just asking? I prefer an open floor plan, no neighbors and view.

Yes, that is exactly what should happen.

The mortgages should be declared illegal and the owners should be allowed to retain the properties.

The mortgages should be declared bad debt and they should be written down.

This means the banks should all be bankrupted and solvent banks should created by entrepreneurs to take their place.

The federally backed mortgages that are basically on the government's books should be wiped out.

That debt has to be eliminated through bankruptcy.

Reset button anyone? What also holds true, ( found this out during the short sale of my home ) that according to the real estate agent I cornered, she basically came right out and stated, that 90% of homes purchased is an illegal transaction to begin with. The official mortgage, that you " agree ' to officially does not have YOUR signature on it. the only signature upon any documentation is the loan docs, which only state you agree to pay back what is loaned. Problem is, if the official and original mortgage, doesn't have your signature, then the " loan " is deemed null and void. Remember when B of A stopped foreclosing there for awhile> It was because people got wind of this, and started crying foul, which to my surprise many of whom, kept there homes free and clear.

reply to post by Whereweheaded


That is how contract law works.

A mortgage is a contract.

If the contract is voided because the banks were swapping it and securitizing it illegally, then the debtor is not obligated to pay it.

I wonder what this will all come too... i bet you will not see this on the MSM and the bankers will get another pass. what good is a judges ruleing when it doesn't get inforced? does the law stand if no ones hears about it? kind of like the ago old question. does a bear S*** in the wood? how would you know? did you see it?

reply to post by mnemeth1

That's what they're hoping for.....
too bad that it's all under the jurisdiction of the states...
and we wouldn't want to step on the state's rights, now, would we?

Originally posted by dawnstar
reply to post by mnemeth1

 

That's what they're hoping for.....
too bad that it's all under the jurisdiction of the states...
and we wouldn't want to step on the state's rights, now, would we?

edit on 14-2-2011 by dawnstar because: (no reason given)

Well, it is and it isn't.

In a purely private contract between private parties, the State doesn't even need to involve itself at all. Contract disputes can be resolved in private arbitration.

Because the root of this problem stems from federal regulations, the federal government has injected itself into the mortgage mess.

It remains to be seen exactly how this will play out, but it wouldn't surprise me if the supreme court stayed out of the mess and simply let the state courts deal with it.

reply to post by mnemeth1

because mers shunned the traditional way to record the transfer of land.......recording them in local clerk's offices us usually, and thought that keeping them in one big, privately owned database, well...
almost everybody's property rights have been compromised. the fact that the semi feds, fannie and freddie are part owners of mers should be reason enough to exclude them from legislating the solution!