Landmark decision promises massive relief for Homeowners and trouble for Banks

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John99's picture
John99
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Landmark decision promises massive relief for Homeowners and trouble for Banks

Another great article from Ellen Brown. Also read that banks can rarely find the original mortgage document that the borrower signed. Anyone being foreclosed upon should ask to see their original signature on the mortgage papers. Now, more trouble for the banks......

“A landmark ruling in a recent Kansas Supreme Court case may have given millions of distressed homeowners the legal wedge they need to avoid foreclosure. In Landmark National Bank v. Kesler, 2009 Kan. LEXIS 834, the Kansas Supreme Court held that a nominee company called MERS has no right or standing to bring an action for foreclosure. MERS is an acronym for Mortgage Electronic Registration Systems, a private company that registers mortgages electronically and tracks changes in ownership. The significance of the holding is that if MERS has no standing to foreclose, then nobody has standing to foreclose – on 60 million mortgages. That is the number of American mortgages currently reported to be held by MERS. Over half of all new U.S. residential mortgage loans are registered with MERS and recorded in its name. Holdings of the Kansas Supreme Court are not binding on the rest of the country, but they are dicta of which other courts take note; and the reasoning behind the decision is sound.” Cont'd at:

http://www.webofdebt.com/articles/mers.php

james_knight_chaucer's picture
james_knight_chaucer
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Re: LANDMARK DECISION PROMISES MASSIVE RELIEF FOR ...

In normal circumstances, if this happened here in the UK, you can bet that the government would next day rush out legislation to 'correct' the matter.

However, we are not in normal circumstances, and I would guess the US government would find it quite convenient if no-one could be kicked out of their homes. I can't see this being the case for long though, as it will mean that every mortgage where the original papers have been lost is worthless. I think this would do more harm to the global economy than the sub-prime crisis.

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Damnthematrix
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Re: LANDMARK DECISION PROMISES MASSIVE RELIEF FOR ...

"I think this would do more harm to the global economy than the sub-prime crisis."

Oh yeah......? What makes you think ANY of these debts will ever be repaid? Where will the growth come from to generate the cash necessary to pay the debts AND the interest borne on them?

The sub-prime crisis is barely the tip of the iceberg. One day, there will be no choice but to cancel ALL debts, reboot the economy and come up with a new plan to kick start a truly sustainable society. And the sooner the better as far as I am concerned.....

Mike in Australia

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james_knight_chaucer
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Re: LANDMARK DECISION PROMISES MASSIVE RELIEF FOR ...

It is not whether the debts will be repaid that I was talking about. In view of this judgement, virtually half of US mortgages are unenforcable. Therefore they cannot be sold on, and there is no incentive for any of their holders to make their monthly mortgage payment.

The sub-prime crisis revealed maybe 10 to 20% of mortgages to be worthless, and that had a major effect on the global economy. What would be the result of 50% of them being worthless?

I think the 'growth' you ask about will be generated by government created inflation, which it is already trying to do with QE. (Yes I know it's not real growth, but if you have 100% inflation, your mortgage is halved.) This is some way to cancelling of the debt that you talk about.

James

 

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cow0478
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Re: Landmark decision promises massive relief for ...

My mortgage company is notoriously unresponsive, never returning calls, never resolving issues.  The only thing they can be relied upon to do is take my money; anything else is just futile.  So if I contact them asking for a copy of my original signed mortgage (a really interesting idea), what's to keep them from saying ok, then simply not bothering to send it?  This would be so typical of them.  And if they do that, even after multiple tries (which is exactly what I would expect), what proof will I ever have that they've lost the original (which is really what I would have been getting at all along).  I will try anything, but I doubt that my lender would ever admit to me that they lost my original mortgage.  If that is the case, experience has taught me that they are likely never to acknowledge the fact.  Any ideas?

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docmims
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Re: Landmark decision promises massive relief for ...
cow0478 wrote:

My mortgage company is notoriously unresponsive, never returning calls, never resolving issues.  The only thing they can be relied upon to do is take my money; anything else is just futile.  So if I contact them asking for a copy of my original signed mortgage (a really interesting idea), what's to keep them from saying ok, then simply not bothering to send it?  This would be so typical of them.  And if they do that, even after multiple tries (which is exactly what I would expect), what proof will I ever have that they've lost the original (which is really what I would have been getting at all along).  I will try anything, but I doubt that my lender would ever admit to me that they lost my original mortgage.  If that is the case, experience has taught me that they are likely never to acknowledge the fact.  Any ideas?

They would have to produce it to the court IF you challenge them in foreclosure hearings.  They have to have a court hearing and get a judgement to have you evicted.  They can't order you out.  Only a judge can.  That being said, don't try arguing before a judge by yourself.  It will not go well.  You really need a lawyer.

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