Homeowners' Rebellion: Could 62 Million Homes Be Foreclosure-Proof?

"Over 62 million mortgages are now held in the name of MERS, an electronic recording system devised by and for the convenience of the mortgage industry. A California bankruptcy court, following landmark cases in other jurisdictions, recently held that this electronic shortcut makes it impossible for banks to establish their ownership of property titles—and therefore to foreclose on mortgaged properties. The logical result could be 62 million homes that are foreclosure-proof."

http://www.yesmagazine.org/new-economy/homeowners-rebellion-could-62-million-homes-be-foreclosure-proof?utm_source=fb&utm_medium=socmed&utm_content=BrownE_Rebellion&utm_campaign=100818_NewEconomy

The way they buy and sell mortgages is ridiculous. The homeowner has no say whatsoever who their mortgage company is, and I think that's wrong. If I get a mortgage through ABC123 Company, I expect it to stay there.

Banks used to make a profit by holding onto loans until they were paid off. Should still work. Greed ruins everything.

Many years ago I decided for many reasons to not do business with Bank of America. My mortgage was originally with Countrywide who surprisingly didn't sell my mortgage immediately after granting it. Unfortunately Countrywide was eventually bought by who else than B of A. So now totally against my desire to not do business with B of A I am required to be their customer. The other idea is that if I take out a mortgage with a local bank or mortgage loan company because I like being able to go directly to their offices to deal with my mortgage needs then I get totally screwed when they sell it off to some national bank. The truth is if those that initially grant a mortgage had to keep it for the life of the mortgage it would probably be much harder to get a mortgage but those that did get mortgages would be much stronger financially. I think lenders being able to sell individual mortgages and packaging up a bunch of mortgages and selling them is why so many risky mortgages were given out recently.

Talk about a major monkey wrench in the works.

experience. I always assumed that a mortgage is a mortgage and its bulletproof - this is not the case. At the frequency that these loans are transferred between banks, a lot of mistakes can happen that invalidate them - people just don't know so they keep paying.

It woulds be poetic justice to see their tactics of greed come back to bite them in the ass really hard. What still royally ticks me off is that we taxpayers have been forced to bail the banks out when it should have been the shareholders and executives who paid the price instead of reaping ill gotten gains of years past.

If the banks can't establish ownership of these pooled tranches of mortgages then they can't foreclose...good!.