A bevy of recent state foreclosure court decisions around the United States has spurred optimism that as many as 62 homeowners may not be able to be foreclosed on by their lenders. At the center of the controversy in most of these cases is Mortgage Electronic Recovery Systems or MERS. To read a previous post explaining what MERS is and how it works click here. Essentially, MERS was created by large financial institutions to facilitate the transfer and assignment of mortgage and their accompanying promissory notes in order to cut down on the amount of work necessary to securitize these mortgages. Today around 62 million mortgages are now held, allegedly, in MERS name.
In most states a lender has to prove that it is the proper party to bring a foreclosure case by providing the original mortgage and promissory note, and assignment of the mortgage if the party bringing the case is not the original lender. Many cases focus on MERS inability to provide that necessary documentation but several state courts have now begun ruling that MERS never has standing to bring a foreclosure case because it is only a nominee and was not entitled to collect on the mortgage. There is a growing tide of states, including California, New York, Kansas, Nevada and Ohio that hold this view. While these decisions are not binding in other states courts, they can provide persuasive authority that courts in other states can look to.
This is just one of the defenses that a Jacksonville Foreclosure Lawyer may be able to raise in a Florida Foreclosure Lawsuit. As courts learn about the specific issues that a Florida Foreclosure Lawsuit presents they seem to be untangling the web of deceit that may lenders have weaved over the last decade. If you are facing a Florida Foreclosure Lawsuit, contact a Jacksonville Foreclosure Lawyer to discover what defenses may be available to you.
