By L. Jed Berliner, Marlborough & Springfield, MA For
An investigation into a foreclosure defense will include tracing the rights to a mortgage and its underlying promissory note. MERS is very careful to only execute assignments of mortgages and not of notes. I’ve never seen it assign a note, and I’m reliably informed that MERS’ bylaws prohibit it from owning rights to a note.
(A promissory note is a payment obligation, and a mortgage creates a lien which secures a note’s payment obligation.)
Sometimes a document will assign a note and a mortgage to MERS, the Mortgage Electronic Registration System. MERS will then assign out the mortgage only, which leaves the note in limbo.
A New Piece in the "MERS" Puzzle I?ve spent more time than I care to admit lately puzzling out what I believe is the most peculiar company in American consumer finance. Mortgage Electronic Registration Systems, Inc...