How can Mortgage Electronic Registration Systems, Inc (MERS) convey or assign a promissory note or debt that it doesn't own?

Asked over 4 years ago - Cicero, IL

MERS never owns or holds any beneficial right or interest in a promissory note, and doesn't buy or sell mortgages or notes, doesn't originate or service loans or lend money, and never stores original promissory notes. MERS admits all of the above on it's own website mersinc dot org.
So, how can it sell, convey, assign, transfer, or convey any right or interest in a promissory note? Especially when it is never named on the Note, and is not a contractual party to the original transaction.
MERS assigned my mortgage, note, and property "for value and consideration" to the servicer ten days after the servicer filed foreclosure complaint. How can MERS assign what it never had? Now, 14 mos later, the servicer states that it is only the servicer, not the title- or note-holder. HUH?

Additional information

The servicer says that it is not an assignee, just "merely the servicer". Also, it was the servicer's attorney that made the assignment (the same attorney that prepared the foreclosure complaint). But in the assignment, the attorney is an officer of MERS.
So let's see - MERS (servicer's attorney) assigns title and note (that it does not hold/own) to the servicer, but the servicer does not hold/own the note (admitted) and says MERS is the title holder. Will a knowledgeable attorney on Avvo please explain to me what has happened, please! Is this more fraud?

Oh I have lots of claims, just no attorney that has the balls to take my case on contingency. We don't qualify for a free attorney, and can't afford a real one. And a person cannot find out who owns the loan thru MERS unless he is a MERS member (borrowers are not).

Attorney answers (3)

  1. Henry Repay

    Contributor Level 16

    Answered . Depending on the issues in your case, a more specific determination may need to be made concerning the exact legal status of the parties involved over the life of the mortgage. You may have various claims based on loan servicing issues.

    A pragmatic explanation for the purpose of your question within the scope of this site is that MERS acts as an agent and only on the instruction of the holder of the note. The idea behind MERS was to simplify and avoid multiple recordings with county recorders with each assignment. So, instead of: Lender 'A' assigns to 'B' assigns to 'C' assigns to 'D' . . ., MERS takes the mortgage solely as a representative, all the assignments happen from lender to lender, presumably documented between the parties to the assignment and with MERS, and a party seeking to identify the current mortgage holder simply contacts MERS for the information. One mortgage remains recorded, without any assignments recorded, even when multiple assignments may have occurred.

    Again, the above provides a quick, simple review. You may, however, have claims to consider.

  2. Erica Crohn Minchella

    Contributor Level 14

    Answered . I have a defense pending on this same issue in the Circuit Court of Cook County. Your defense is that the Plaintiff lack "Standing" to bring the law suit. Most of the Judges in Cook County do look closely at the Assignment documentation, make sure you are in Court for the hearings that the Plaintiff notices up so you can bring it to the Court's attention. Most Judges there, if not all, will refer you to the free legal services in the Cook County Courthouse to get further help.

    This answer does not constitute legal advice and does not and is not intended to create an attorney-client relationship. The law may vary depending on the state in which you reside. It is intended only to give some direction in which to seek assistance.

  3. Erica Crohn Minchella

    Contributor Level 14

    Answered . I have a defense pending on this same issue in the Circuit Court of Cook County. Your defense is that the Plaintiff lacked "Standing" to bring the law suit. Most of the Judges in Cook County do look closely at the Assignment documentation, so make sure you are in Court for the hearings that the Plaintiff notices up so you can bring it to the Court's attention. Most Judges there, if not all, will refer you to the free legal services in the Cook County Courthouse to get further help.

    This answer does not constitute legal advice and does not and is not intended to create an attorney-client relationship. The law may vary depending on the state in which you reside. It is intended only to give some direction in which to seek assistance.

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