Nevada’s real estate market was devastated by the bursting real estate bubble and the subsequent foreclosure crisis. Home prices in many areas of Nevada are down by 50-60% or more since the market peaked in 2006. Until recently, Nevada has consistently had one of the highest rates of foreclosure in the country.
Now, the Nevada State Supreme Court is set to hear a case that may consider whether or not the Mortgage Electronic Registration System (MERS) has the right to foreclose on a property in its own name. If the State Supreme Court rules that mortgages assigned by MERS cannot establish ownership, homeowners could challenge any foreclosure done in MERS’ name. Other courts across the country are split on this issue.
MERS holds more than half of mortgages across the United States, and a similar number in Nevada. MERS has been at the center of much controversy over the past couple of years, and was recently the focus of a scathing piece in Harper’s Magazine (Stop Payment! A Homeowner’s Revolt Against the Banks), as well as an investigative report on 60 Minutes.
The housing market in Nevada is so bad, that according to Corelogic’s 3rd Quarter Negative Equity Report, as of November, 58.3% of homes with mortgages in Nevada are underwater, while 4.8% have near negative equity. Total home equity in Nevada among homeowners with mortgages is less than -$10.3 billion, making the average loan-to-value ratio in the state 110.2%. Nevada is the only state that has a net negative home equity.
As a result of this disaster, Nevada has been one of the most aggressive states in fighting mortgage abuses. In October, Nevada passed a tough anti-foreclosure law that makes it a felony for a lender, servicer or trustee to make false representations or claims over a title. In the wake of this law, foreclosures in Nevada plummeted.
Nevada Attorney General Catherine Cortez Masto has been very aggressive in fighting foreclosure fraud and robo-signing. Notably, she is pursuing criminal charges against robo-signers, has teamed with California Attorney General Kamala Harris in a joint investigation into mortgage abuses, and recently announced a suit against Lender Processing Services for consumer fraud in their foreclosure practices in Nevada.
This case could have a massive impact to say the least. I will be following this one closely and will report back with updates.
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chad
December 29, 2011 @ 5:13 pm
Thanks! Great info. I will keep checking back. And kudos to the State Attorney General.
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zograp
December 29, 2011 @ 10:27 pm
• If you happen to find yourself in foreclosure and you see a company listed on the paperwork called Mortgage Electronic Registration Systems, Inc. (MERS) the foreclosure is not going to be valid. Only the owner/holder of the NOTE, not the mortgage contract, can foreclose on a mortgage. If you separate the mortgage contract from the mortgage note (both have two different names as the owner/holder) in most states the loan does not exist.
Here’s some other information
o You have the right to demand to see the ORIGINAL BLUE INK paperwork you signed. If the NOTE can’t be produced with your blue ink signature, there is no note that can be lawfully collected against. Never acknowledge your signature on a mortgage document unless it is your signature in the blue ink you used at the closing. Anything less than the ORIGINAL document is a forgery and not admissible as legal tender.
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zograp
December 29, 2011 @ 10:36 pm
Based on the above facts, Rollins and putative plaintiffs are entitled to recover all of their damages that resulted from MERS’ and MERSCORP’s action in proceeding with the foreclosure, including, damages for severe emotional pain and suffering, punitive damages and for attorney’s fees.
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zograp
December 29, 2011 @ 10:38 pm
Why are none of the big fish is in prison?
We needh to fight . . It’s the greedy theives on wallstreet, bastard ceo’s, FDIC, OTS, and Federal Reserve. Tim Geitner, Obama and Bernanke Alan Greenspan.
Americans, Wake up and Fight.
We are all going to be homeless if we don’t figt.
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zograp
December 29, 2011 @ 10:39 pm
Why are none of the big fish is prison?
.
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bankkiller1
December 30, 2011 @ 7:50 am
Nevada gets it! Fraud and Forgery need to be punished! MERS is corrupt…as per “MERS CONSENT ORDER.” Google that and read what our government thinks and says about MERS…it is not good. Masto is my hero! Most AGs serve big business and not the people.
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Marcus
April 18, 2012 @ 2:26 am
More and more of the nevada residents need to have the BK lawyers fight for them in court instead of treating there customers like cattle. MERS can be brought down and force these companies to quickly REDUCE principal if they lose a few.
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