After looking at the entire case of the now famous Quiet Title case by Walter Keane in Salt Lake City 3rd district court, it pretty evident that it’s really is a great case. I pulled the entire case form the court 3rd district court house in Salt Lake City. After digesting the case it did give the Draper town home owner the ability to sell his home with no liens. Now that didn’t release the note. He still owned that. I’m sure they will be suing him for that.
A quiet title action is a lawsuit designed to handle clouds on title. In English, that is a way to handle removing disputes, like easements for instance a neighbor built a shed that is 4 feet on your property and they want it as their own property. It can also be used to transfer the property in a new person’s name. For instance a parent dies and the property needs to be vested in a name of their children to be sold. Quiet title can do that. It can also be used as Mr. Keane did to remove liens security on the home. You notify the Trustees, the original broker or lender that did the loan and any other recorded parties of interest, accept MER. By not notifying MERS the real owner can’t come forward and that is the real surprising part of the case that Judge Glenn Iwasaki accepted the argument that MERS was not a real beneficiary just a paper one with no interest in the property. Wikipedia defines Mortgage Electronic Registration Systems (MERS):
Mortgage Electronic Registration Systems (MERS) is a privately held company that operates an electronic registry designed to track servicing rights and ownership of mortgage loans in the United States.
MERS asserts to be the owner (or the owner’s nominee) of the security interest indicated by the mortgages transferred by lenders, investors and their loan servicers in the county land records. MERS maintains that its process eliminates the need to file assignments in the county land records which lowers costs for lenders and consumers by reducing county recording revenues from real estate transfers and provides a central source of information and tracking for mortgage loans. MERS’ role in facilitating mortgage trading was relatively uncontroversial in its early days a decade ago but continued fallout from the subprime mortgage crisis has put MERS at the center of several legal challenges disputing the company’s right to initiate foreclosures. Should these challenges succeed, the US banking industry could face a renewed need for capitalization.
Now attorney Keane definition of MERS Is:
MERS is a tax evasion broker which has deprived local governments of essential funds by collecting fees otherwise necessary to property record trust deeds and assignments of the same.
My opinion is MERS is:
A company specifically designed by the large lenders, mortgage insurance companies and title insurance companies to collude to make it impossible for an outsider to find out who actually owns the security instrument and note on a home with MERS as the beneficiary. My evidence is who owns MERS, click the link MERS Owners it looks like a Who’s Who of the mortgage securitization system. I can’t think of a really good reason to keep the info private unless you were going to create an impenetrable smoke and mirrors system to shield any fraud, by way of mortgage securitization or foreclosure procedures. I agree it also takes money out of the counties by not paying for recording of assignments of trust deeds usually 3 to 8 pre-loan’s life. At $20 to $60 a loan pre-recording that a lot of money since 1996 for every county; if the county doesn’t get that money they raise the taxes on the home owners because the county need the same amount of money to run every year. No money form assignments more money from home owner in property taxes.
Mr. Keane did get the 3rd district Court Judge Glenn Iwasaki to agree MERS is not a legal beneficiary in a security instrument and that is a break through. We’ll see how it goes on for here if they banks run there same playbook they will go to a federal Judge to overturn that precedence without a hearing the next time it is made. In the end the trustee With Drew and the original lender stipulated they had no interest the 2nd mortgage was releases along with the trust for the 2nd mortgage who answered the complaint. Since the first mortgage had no recorded real beneficiary that was it a default Judgment with Prodigious for the home owner. From start to finish April, 28, 2010 to Aug, 30, 2010 Judge Order of judgment quieting title took 4 months. So In Salt Lake City for a Quiet title action and a favorable Judge who knows? You still have the Note to deal with under the commercial code laws of the state.