American residential real estate system wrecked almost beyond repair

quoted from MERS – THE UNREPORTED EFFECTS OF LOST CHAIN OF TITLE ON REAL PROPERTY OWNERS AND THEIR NEIGHBORS

A spokeswoman for Fannie Mae told the New York Times that the company could never rely on MERS to find ownership of a loan. In 2010, Professor Alan M. White of Valparaiso University Law School matched MERS ownership records to public domain records and found that fewer than 30% of mortgages had an accurate record in MERS. Currently, it is estimated that MERS holds over half of all mortgages in the United States – approximately 60 million mortgages and, in the event the chain of title is lost, MERS has a negative effect on the mortgaged homes, and each adjoining property (even those homes with no mortgage)…

Now that chain of title is destroyed or severely diluted, these same boundary disputes will require court intervention to settle boundary lines. Additionally, because of clouded titles, both foreclosed properties and their neighbors may not be able to sell their properties because buyers will not be able to obtain title insurance (without indemnification that banks may provide but subsequent individual sellers will not be able to provide) and consequently, they will not be able to obtain financing…

Chain of title destruction boils down to the destruction of a basic American right – land ownership with a verifiable clear title.

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