Active/Inactive Status on Mers

hibiscus

LoanSafe Member
Sep 19, 2011
146
2
18
California
I have noticed that the most recent Substitution of Trustee naming the new Trustee of Securitization is MERS final involvement as beneficiary of the Original Lender in loans. Sometime thereafter the status of the homeowner goes from active to inactive on the MERS website.

Has anyone else tracked this?

My question is how are they able to legally get away with acting as the most recent agent in this transaction if the loan was sold years ago and the lender sold any interest at that time? Doesn't it stand to reason that MERS was not named as beneficiary of the MBS Trustee and any action as such is invalid at this point? In most loans the only relationship to the original lender is that they remain as the current servicer; which doesn't give them any legal standing in allowing MERS to file any deed related document.
 

freedomwon

LoanSafe Member
Oct 30, 2010
2,794
23
38
California
I have tracked my loan status within MERS and found that MERS filed & recorded an assignment of mortgage back in Feb '11; however, the loan status did not change to inactive status until Oct '11. Loan servicer is BofA & BONY is the investor. This is consequently after I have sent 2 requests to MERS requesting the chain of title information. When both requests were sent in July '11 & again in Sept '11 my loan was active in the MERS system. An interesting fact is the servicing rights on my 2nd was sold from BofA to Greentree over a year ago, with BONY as the investor & this loan is still in "active" status in the MERS database.

MERS has made it a point to keep all abreast of their favorable "rights to foreclose" by publishing court rulings on their website. And of course they wouldn't be showing us any cases where the ruling was unfavorable! LOL

http://www.mersinc.org/newsroom/press_details.aspx?id=295]MERS - Newsroom - Press Releases
[/URL]
MERS - Newsroom - Press Release Details

MERS - Newsroom - Press Release DetailsAll I can say, it's we're fighting a MONSTER! In answer to your other questions, MERS gets away with this because judges are not interested in being educated on the subject. The judges are in cahoots with the banks! I'm with you hibiscus. This whole thing just doesn't seem right!
 

jdog35

LoanSafe Member
Oct 21, 2011
26
0
0
Walnut Creek, CA
Hi Freedomwon:
I noticed yesterday that MERS is noted as the beneficiary on my note. I bought a house in CA in 2007 from Shea Mortgage who immediately sold it to Countrywide, then BofA, and as of 8/1 GreenTree. I am wanting to know, what if any significance might Mers on my loan have on me as I consider walking? Any advice you have would be appreciated.

p.s. I also used the FannieMae link you provided on another thread and my property shows up as being a FannieMae loan.

Thanks!
 

freedomwon

LoanSafe Member
Oct 30, 2010
2,794
23
38
California
Hi Freedomwon:
I noticed yesterday that MERS is noted as the beneficiary on my note. I bought a house in CA in 2007 from Shea Mortgage who immediately sold it to Countrywide, then BofA, and as of 8/1 GreenTree. I am wanting to know, what if any significance might Mers on my loan have on me as I consider walking? Any advice you have would be appreciated.

p.s. I also used the FannieMae link you provided on another thread and my property shows up as being a FannieMae loan.

Thanks!
Jdog35 - In the grand scheme of things, having MERS on your documents, in the state of Ca., hasn't had much significance. MERS was devised by the banks, for the banks, to electronically track the "chain of title". More often than not, bypassing your local county recorders office. Do I think what they did is illegal? YES Do I think they should be held accountable? YES. MERS has concealed most of the information in their database & after 4 written requests from me, they will not provide me the information I've requested concerning my loan. Homeowners have challenged MERS in the CA court system & to my knowledge there have been no wins. I still believe MERS is a contributing factor towards a "clouded title" on a homeowners property because many times there are missing assignments in the chain of title. Until the courts start recognizing that, it won't affect your walking away from your property.
 

Mello

LoanSafe Member
Oct 18, 2012
1
0
0
Inactive MERS account

My mother and I got a loan in 2007 from Indymac Bank with both our names,we did a modification in 2010. My mother pass away in December 2001,February 2012 I could no longer view my mortgage account online( I did call and ask about it was never fix).I start searching and that how I found out Onewest is my services and Deutsche National Bank is the trustee. My account is inactive on the MERS website,not only that the account is in my mother's name only.What I want to know is who owe the loan? Can they foreclose on my home? The bill comes in my name only from Onewest Bank.
 

isisis

LoanSafe Member
Jun 22, 2010
1,764
241
63
North bay
I have noticed that the most recent Substitution of Trustee naming the new Trustee of Securitization is MERS final involvement as beneficiary of the Original Lender in loans. Sometime thereafter the status of the homeowner goes from active to inactive on the MERS website.

Has anyone else tracked this?

My question is how are they able to legally get away with acting as the most recent agent in this transaction if the loan was sold years ago and the lender sold any interest at that time? Doesn't it stand to reason that MERS was not named as beneficiary of the MBS Trustee and any action as such is invalid at this point? In most loans the only relationship to the original lender is that they remain as the current servicer; which doesn't give them any legal standing in allowing MERS to file any deed related document.
Hi Hibiscus,

I hadn't noticed that specifically - frankly with all the court rulings for MERS it seemed like an inevitable evil so I've focused on other issues - still it's an important part of the puzzle. One thing regarding active/inactive status came to my attention in a CWABS PSA that said loans that had become delinquent could at the discretion of the master servicer be charged off to sub-servicers and at that point be removed from MERS. My loan recently went inactive and I've been transferred to Bayview. I'm wondering if other people are noticing the same and whether the transfers are actually charge offs.
 

cheryl999

LoanSafe Member
May 8, 2011
61
0
6
Hi Hibiscus,
My loan went inactive on the MERS system after a few months of missed payments, but no transfers or substitutions of trustees were ever recorded.
 

ramsey

LoanSafe Member
Mar 14, 2011
70
0
6
Can someone please explain what the active/inactive status means. Mine says active.
 

ramsey

LoanSafe Member
Mar 14, 2011
70
0
6
Can someone please explain what the difference between the active and inactive status on the MERS report. I just checked mine and it shows MIN: Active. We have not made a payment on this account in 2 years.
 

isisis

LoanSafe Member
Jun 22, 2010
1,764
241
63
North bay
My understanding is that there are three ways of becoming inactive on MERS:

1. When the loan is paid off.
2. When the loan is assigned from MERS (posing as the beneficiary) to the Bank (posing as the lender) and that's generally done for the purposes of foreclosure.
3. When the loan is charged off and sold to a third party for collection purposes.

Despite the fact you're behind on payments they generally don't bother doing assignments before they're preparing to foreclose.
 

Worried.homeowner

LoanSafe Member
Dec 30, 2012
49
0
0
So an inactive status on MERS means the bank is preparing to foreclose? I just checked mine and it says inactive. I am in the process of finalizing an fha-hamp modification (just received the signed and notarized copy of the perm mod back from BOA and the first perm payment is set for March). I was current going into the trial but because of the trial partial payments and extra partial payments while waiting for the perm docs, I of course show as delinquent. Should I be concerned or is this normal? I have been overly stressed about the bank trying to foreclose behind my back because my state does not require notice and foreclosure happens within weeks.
 

isisis

LoanSafe Member
Jun 22, 2010
1,764
241
63
North bay
I would be cautious and prepared just in case if I were you. It's good that you're keeping up with things like checking your MERS status. I think one of the key elements in keeping your home is planning ahead so you don't get blindsided.
Since MERS is the least transparent of organizations it's hard to say anything definitively so maybe your inactive status is just paperwork sort of thing, who knows? But it's a good warning to take and plan ahead your strategy to keep your home if they are planning to foreclose. You might want to read some of the threads about making legal challenges.
 

Worried.homeowner

LoanSafe Member
Dec 30, 2012
49
0
0
What can I do to find out for sure if they are trying to foreclose or if this is just part of the modification process? In my state (a non-judicial), the only requirement is to publish notice in a publication available in my county three weeks before the sale. My rep at BOA of course tells me that everything is okay-- the perm mod is approved and I have the papers signed by them to confirm. He says it should "close" shortly after they process my first permanent payment for March and that codes on the account keep the account from going into foreclosure until the mod is finalized and corrects the delinquent amounts. I know that I have to double check what I am told and that they have nothing to lose since I am an FHA loan. So what should my plan include?
 

isisis

LoanSafe Member
Jun 22, 2010
1,764
241
63
North bay
So are you saying that you have received a notice of default? One thing you should probably do is see if anything has been recorded in your county recorder's office like an assignment or a substitution of trustee. That would be a good indicator of their intentions. It just occurred too me that conceivably your inactivity on MERS might be due to Bofa themselves having purchased as a buy back. We may begin seeing more of than now with the BNY RMBS Settlement (that would be if you were originally a Countrywide loan though.)

Here's the best thread on Loansafe for standing up to your bank, [h=1]My recent letter to BofA (Part 2)[/h]
I've been fighting Bofa for over three years now and I'm still in my home, here's my thread,
[h=1]Bagels at a Bar Mitzvah[/h]


MBS
 

Worried.homeowner

LoanSafe Member
Dec 30, 2012
49
0
0
The only papers I have received from them are the mod related papers and my monthly statements that show the amount I lack to become current on my original loan. I have not received anything to make me think something is wrong-- I am just paranoid from reading horror stories. FHA and BOA say they see my mod is approved and that it is just a matter of finalizing and then updating the numbers. But as I said, I don't think they have to notify me of anything at all. I plan to go to file my signed perm mod papers at the county court office anyways, so I guess I can see what they can tell me. I don't really know to ask them though. I think my loan was countrywide (I bought through a small local bank who then sold it to cw).
 

isisis

LoanSafe Member
Jun 22, 2010
1,764
241
63
North bay
Well, you're probably fine but you're also wise to stay on top of things and be prepared. The information you could check wouldn't be at the court house but at the recorder or assessors office. You may be able to access their records online, just google your county recorder. Documents may have.been filed there in land or deed records - if indeed they are preparing to foreclose. If you find nothing new filed that should be somewhat reassuring but to be safe you might want to check regularly until you're sure you're out of the woods and your home is safe.