When You’re Facing Foreclosure On An Underwater Mortgage, Who Is Foreclosing?

Have you received a notice of default (NOD) on your underwater mortgage debt?

Or do you think you will soon get a default notice? 

When you’re facing foreclosure, who’s the one who is foreclosing on you? You may think like there’s an obvious answer, the bank.  But is it the bank you are dealing with now or the one who originally made you the mortgage loan that will foreclose? Or is it really someone else?

Who Holds The Title To Your Mortgage Deed?

In many cases you may not actually know who has your mortgage note, that legal piece of paper that you signed when you got your mortgage to buy your home. The problem comes from the current operating procedures of the banks during this boom time of mortgage lending. MERS (Mortgage Electronic Registration Systems) was created to handle the volume electronically and not let you know who has your mortgage note.

Who Is This MERS?

According to Timothy McCandless Esq. on his Weblog The Problem with MERS Mortgage Electronic Registration Systems “Major players in the mortgage lending industry created MERS to simplify the process of transferring mortgages by avoiding the need to re-record liens – and pay county recorder filing fees – each time a loan is assigned.” When a bank sells your mortgage note that bank doesn’t have to bother to record that transaction with the local county recorder.

Does The Foreclosing Party Have A Right To Foreclose On Your Home?

According to a landmark decision in the Supreme Court of Kansas Landmark National Bank v. Kesler, 2009 Kan. LEXIS 834, if MERS is listed on your mortgage note or trust deed as the title holder, MERS has no standing to foreclosure on you. And you can challenge their right to take your home. If you’re not in Kansas, this may apply to you too.

Also as far as California is concerned Timothy McCandless Esq. states in 90% Foreclosures Wrongful that “In 2009 it is this attorneys opinion that 90% of all foreclosures are wrongful in that the lender does not comply (just look at the declaration page on the notice of default).”

What Does Facing Foreclosure With An Underwater Mortgage Mean For You?

If you’re in the position of facing foreclosure on your home and you have an underwater mortgage you have options.

1. You can choose to fight it yourself and see whether you can win against the bank or MERS whoever is foreclosing.
2. You can also choose to use our Mortgage Debt Reset Program to get back to 100% financing and make lower monthly payments.

In either case you don’t’ have to just let the banks or MERS foreclose on you and lose your valuable home.

To see what you need to qualify for our Mortgage Debt Reset Program, go to Find Out More About Our Mortgage Debt Reset Program and sign up to receive our free no obligation information package.