Many Foreclosures in Oregon Halted Due to Decisions Against MERS « naked capitalism

Even if this doesn’t bode well for banksters, what does it mean for the health of banks and the overall economy? It may actually help as the economy continues to deteriorate that banks aren’t able to evict people from their homes, but it also means these homes are now unable to be sold, except under a clouded title.

There will need to be a national consensus about how to resolve title, and I’m sure the banks are lobbying the states Attorneys General hard to preserve title as security. As I understand the problem with MERS is the note was transferred, while the collateral interest was not. Does this mean that the loan underwriter owns title?

Also, Fannie Mae and Freddy Mac guarantee 97% of these loans, who would be able to make a claim in the event of a default?

If the dollar collapses, the promissory notes don’t disappear, they would be converted into whatever replaces the dollar, and the debt is still owed. Even in the event of a societal collapse, and we return to a standard of living that resembles the 19th century more than the 20th, there is still a County Register where these notes are recorded. Clearing title is going to be an issue, almost any way you look at it.

Many Foreclosures in Oregon Halted Due to Decisions Against MERS « naked capitalism