Foreclosuregate: Time To Put A Fork In MERS?

2011-02-13 12:38
Karl Denninger
in Foreclosuregate

Time To Put A Fork In MERS?


I was wondering how long this would take.... it appears that all the crooners that have appeared in front of Congress and elsewhere have finally had their heads cut off by.... as I expected..... a bankruptcy Judge.

Bankruptcy Judges are federal judges. The Federal bench tends to have a very low tolerance for bullcrap, although they do get bamboozled and fall prey to political arguments from time to time, like any body composed of humans. Nonetheless if you want to find justice, you usually will have a better shot at it in a Federal courtroom than in a State one. This means that if you're trying to play a game, you want to be in State court - but if you're looking for facts and logical analysis, you want to be in Federal court.

The case at bar here is one in which the debtor actually lost his motion to debar the creditor from lifting a bankruptcy stay. How, you might ask, can MERS get cornholed from a win? Simple: The debtor lost not on the merits but on res judicata, the legal principle that says "what's decided is decided." In this case (if I'm reading this correctly; I don't have the entire case history) the foreclosure hearing was held and decided before the debtor filed bankruptcy.

But the judge was obviously ****ed off and tired of the games. He could have issued a one-page order saying "go away." He didn't. Instead, he analyzed the entire MERS edifice and found that it does not comply with NY State Property Law.

Oops.

"Finally, the court serves up the piece-de-resistance, quoting the Kansas Supreme Court in Landmark, which I have previously discussed was likely to come and bite these jackals in the arse: