Spot on, OP!

Let's put this in short real life scenario summary:

You purchase a home and take out a mortgage. You refi a home and a new note is written.

Bank enters/registers your note with MERS.

Bank sells your note as a mortgage backed security. The mortgage may have been split into different tranches...read: split up and sold to different investment buyers.

Paperwork was fraudulent; recordations, assignments and conveyances were not properly executed.

RESULT: no one know who holds the note AND chain-of-title has been broken.

REPEAT: no one knows who holds the note AND chain of title has been broken.

IMPACT:

1. You want to sell your home to get out from under the note or to move, etc. You can't because the title is clouded due to chain-of-title being broken. House arrest. (This is happening to a GLPer in PA now.)

2. You pay off your mortgage according to the terms but your deed/title is not clear due to chain-of-title being broken. Repeat: your title is not clear.

Do you think you are not impacted? Well, there are 62 MILLION+++ mortgages that are in question in the MERS system alone.

Who has the note?

Does the bank trying to foreclose have legal standing read: can they produce the note?

And is your title clear?


An educational aside: the title insurance you paid at closing does NOT cover you; it covers the bank. The homeowner has to take out a separate policy for coverage.

However, the homeowner title insurance policy would only cover you up to the point of purchase. It will not cover you if your bank sold the note and your note became caught up in the broken chain of title MBS fraud after the title co. conducted their search and issued the policy.

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