What will happen if 60 million mortgages can no longer be foreclosed because the owner “entity” is an electronic system that is used to own and manage these mortgages that are now securities sold as investments?

The banks obviously are not able to take the place of this electronic entity.  They have already been paid off, and sold the mortgage to the portfolio.  There is no one owner to represent these mortgages – not one with a mortgage note in hand, anyway.

This could be a HUGE bomb waiting to blow the investment market to oblivion….

MAJOR legal news last week out of the State of Kansas (I love those midwesterners – they are so common sense), that MERS (the electronic ‘entity’ that represents mortgages that were bundled and sold as securities) has NO STANDING to foreclose those mortgages pursuant to a decision in the State Court.   That means, ALL of the mortgages that were managed this way (60 million of them) may now be exempt from foreclosure proceedings.

This will be a VERY interesting case to watch.  There are some things that have to be done before it becomes useful in other states, but it’s time for the pendulum to swing back in favor of the borrower.

It’s very disturbing to me to see borrowers getting hung for signing mortgages where they allegedly offered false information regarding earnings or financials.  These people may end up going to Federal Prison.  I grant you that some ‘seasoned’ individuals did know what they were doing.  But Tom and Betty up the street who had never owned a home before – or Fred and Mary who had owned their same home for 15 years, what did they know?  Too many regular people got caught up in the lust of the “gold rush” and getting all you could was the only way to go – according to all the advertising we were being bombarded by….I remember quite well, it was totally sickening,

Why should I care about those people?  I will tell you why!!!   First, there but for the grace of God would be many of you!  Second, I do NOT care who you talk to, back when these “free and easy” mortgages were available to ANYONE, and I do mean ANYONE.

The bank you were banking at would all but shove it down your throat to get you to sign on the dotted line – they would state to your face that they would not be checking anything you provided, just make it work.  How do I know?  I was one of those people accosted almost weekly when I went in to my bank to transact deposits.  It was ridiculous!  I was being told I could qualify to buy a 1.2 million dollar Condo that I was renting at the time.  I was self employed with next to no net income, and my regular income was a Social Security Disability Check that never made it all the way through the entire month.

I never fell for it, I KNEW that if I couldn’t pay in the future, the alleged meaningless documents would come back to bite me.  I feel bad for the people who had trust in their bankers, their mortgage brokers and their real estate “friends” that led them down this rosy path to hell!

This new case law is not a long shot, folks.  This is very real and could suddenly turn the tables on a LOT of people [for the better].

I have such a hard time living with the idea that it was our very own government that got us here under the “old regime”.  Those guys were definitely not worried about the best interest of the U.S., nor were they representing the people.  It was all about their own best interests, what was easy and made them look good, and who in big business (their buddies) could prosper and benefit.  Let me translate:  Screw the American People!  Yeah, that is how it was.  Welcome to our nightmare.

I have had to attach the article as a PDF for you to read because this article is getting so much traffic on the Internet that the database serving it up to readers seems to be crashing on a regular basis.

READ THE ENTIRE ARTICLE – CLICK HERE!