Thursday, March 15, 2012

State Supreme Court to rule on legality of mortgage recording system (MERS)

For the first time, a local homeowner's fight to keep a house is headed to the state Supreme Court.

What happens there will effect thousands of people who've taken out mortgage loans in the past 10 years. If you own property, you need to know about a system known as MERS.

MERS stands for Mortgage Electronic Registration Systems. It was created by the real estate finance industry to simplify the process of transferring mortgage loans.

But struggling homeowners complain MERS also conceals the true note holder when your mortgage is sold to investors.

Kristen Bain's comfortable condo in Tukwila is tied up in the MERS debate. First, she had to sue her mortgage broker and the lender for predatory lending and failure to provide proper documentation as required by law.

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