by Cynthia Kouril – Fire Dog Lake
In a take-no-prisoners decision late last week, a Long Island federal bankruptcy judge ruled that MERS system does not conform to the law and does not provide for valid assignments of mortgages. The decision also suggests that the mere fact of MERS registration very likely destroys the security interests in the property; meaning you would still owe the debt, but the bank has no claim to your house. I have dubbed this Mortgage Fractionalization.
In the same week, a federal Bankruptcy judge in Kansas ruled the opposite way and appears to think that MERS transfers are just peachy. So, if you are MERS and you split decisions you maintain the status quo ante , don’t you? [read more]