From the attached amended complaint.
That Deed of Trust (“DOT”) contained a false representation on its face when it represented that Defendant MERS was a beneficiary under the DOT. Paragraph (E) States that “MERS is a separate corporation that is acting solely as a Nominee for Lender and Lender’s successors and assigns. MERS is the beneficiary under this Security Instrument.” As will be demonstrated below, MERS is NOT the beneficiary under the DOT, it never had ownership or possession of the Promissory Note which is the obligation which is secured by the DOT, and MERS has never been entitled to receive one cent of remuneration from Mr. Buse’s loan proceeds.The statement that MERS is the nominee is nonsensical language which means nothing in a real estate transaction and most certainly, MERS has never been nor is it now the beneficiary under the DOT.  The language is a sham.

From MERS explained by Aurora Lawyers, Bold emphasis are my highlights.

A. The Residential Mortgage Market and Function of MERS
When a mortgage lender loans money to a home buyer, it obtains a promissory note in the form of a negotiable instrument from the borrower, as well as a mortgage instrument in the form of a deed of trust which is recorded in the county official records. The lender often does not continue to hold the note. Instead, the lender sells the note into the secondary mortgage market, most often to one of the government or government-sponsored entities created by statute to purchase residential mortgage loans from banks and other lenders. See 12 U.S.C. §§ 1451-59, 1716-23 et seq. (creating the Government National Mortgage Association (“Ginnie Mae”), Federal National Mortgage Association (“Fannie Mae”), and Federal Home Loan Mortgage Corporation (“Freddie Mac”)). In turn, these entities re-sell the notes into a tertiary mortgage backed securities market, usually as part of a bundle of notes held in trust for investors. As a result, the notes are held for the benefit of numerous people simultaneously, whose identities change as these negotiable instruments are sold and resold in these markets, and as the investors sell and re-sell their shares in the mortgage-backed securities.
Because of the secondary and tertiary mortgage markets, the original lender is then able to make the funds from the first sale of the note available to additional home buyers. The availability of these funds is the specific and intended result of the statutes that created the government and government sponsored entities – to increase funds for home ownership in the
United States. See 12 U.S.C. §§ 1451, 1716.
MERSCORP, Inc. and MERS were companies formed to play an integral part in the federally established free-market system created to increase liquidity in the market for home loans. In 1993, the Mortgage Bankers Association, Ginnie Mae, Fannie Mae, Freddie Mac and others in the real estate finance industry created an electronic registration and tracking system that is similar to the process used with great success by the Depository Trust Company for the securities industry. MERSCORP, Inc. was formed to track both beneficial ownership interests
in, and servicing rights to, mortgage loans as they change hands throughout the life of the loan.
This tracking assists the mortgage banking industry by reducing questions regarding these contractual interests as they are bundled into mortgage-backed securities. In this manner, MERSCORP, Inc. facilitates liquidity in the secondary mortgage markets. MERS serves as the mortgagee or beneficiary for the MERS member lender.
Upon the purchase of a home, the borrower signs a loan contract that names MERS as the beneficiary (as “nominee” for the lender and its successors and assigns as here). In the loan contract, the borrower assigns his or her right, title, and interest in the property to MERS. The borrower contractually agrees that, in the event of default, MERS is a proper party to foreclose on the home. The mortgage or deed of trust with MERS as a named beneficiary is recorded. When the note is sold by the original lender to others, the sales of the notes are tracked on the MERS® System. As long as the sale of the note involves a member of MERS, MERS remains a named mortgagee or beneficiary of record and continues to act as a nominee for the new holder.
This relationship is memorialized in the original mortgage or deed of trust to which the borrower is a party. If a member is no longer involved upon sale, an assignment from MERS to the non MERS member is made, executed and recorded in the county where the real estate is located, and the loan is “de-activated” from the MERS® System.

23 Responses

  1. Best you could make changes to the blog subject EXCELLENT MERS ANALYSIS: ILLEGAL SCHEME TO AVOID/EVADE STATE LAW, TAXES, FEES, FINES, PENALTIES Livinglies's Weblog to something more specific for your subject you create. I loved the post nevertheless.

  2. “Quiet Title” is relatively straightforward — typically one migh name everyone involved as defendants (everyone who might claim that you still owe them money), and request from them quitclaims on the property so that you own it free and clear. (Evidence provided: the fact that you paid off all your loans.) I’m not a lawyer, this isn’t legal advice, there can be a lot of other demands in the quiet title motion.

  3. many months ago I stated on here our house was paid off, to this day we are still being told my “some” citimortgage employees that is the case, I recorded it, had an attorney ask me if a 120 Ruling, motion to sell our house has ever gone in front of a judge for approval. Well up until yesterday, there hasn’t been anything. We get in the mail yesterday, 11 days before our scheduled auction, a notice of hearing scheduled on sept. 1. How can citimortgage do things backwards? I do actually have proof that citi has already been paid first community mortgage from new mexico for this account and a letter from first community mortgages corporate attorney stating they no longer have any interest in our loan are not the servicer. How is this possible? I have also found evidence that his first loan was NEVER paid off by first community mortgage, just an open line of credit, that my husband was told was a second? We are filling with our District Court on Monday our response and putting our proof that citi has already been paid for this loan, as well as other docs.

    Can citi do this? All the steps are backwards? In colorado the motion to sale has to be done first? There are NO attorneys here in Colorado who will help any of us!

    Now what do we do? I have been told to do a Lis Pendus..not sure how to fill that out…file for a quite title…again not sure how to go about that, I want to name the correct parties. I have been told to do a full reconveyance since only my husbands name apprears on everything….again not sure how to do that..i have been told to place a lien…again not sure…..PLEASE ANY ONE???? wlough@bresnan.net

  4. Well Karen, you really should thank the public fool system for indoctrinating you/us/our children to “trust” people who are in business to make money to show some ethics and morals.

    You own your property once, that’s when you “trust” your deed to a trustee. Read your loan docs, you “irrevocably” grant your deed to the trust under the deed of trust.

    In ALL deed of trust acts, the grantor gives up ownership. So as far as that goes it’s not fraud.

    The fraud comes when a so-called “lender” is not really a lender at all but a “servicer” claiming to have loaned you money, when “in fact” they “sold” your promissory note as a financial asset for them, and then returned the proceeds to you “as” a loan. The sale of the note, ended all interests, liens and encumbrances.

    There is a myriad of contractual, issues involved that attorneys go to school for, then have ongoing training on, as well as special conventions on how to draft up contracts that maximize benefits and profits of the banks, while keeping us ignorant, and in perpetual debt.

    Crazy right??? I know.

  5. so we assigned our interest to this Mers when we agreed to the loan. So we never really owned our property Mers did? This sounds like fraud to me.

  6. I’m still hoping somebody will come across the solution for our situation.
    As of Jan.5 2010, MERS(as Beneficiary/nominee), TD Services(as sub-Trustee), Nevada Legal News(as Auctioneer), Chevy Chase Bank(as pretender), and U.S. Bank N.A. EE(The Holder of stolen property(our home, by a Trustee Deed) acquired through acts of Fraud, Racketeering, and Conspiracy, at least).
    Last week, I spoke with the Nevada Attorney General’s Office. Who, according to Assembly Bill 284 (AB 284), has sole jurisdiction over NRS 107.080 (Trustee Sales). When I informed a man with the N.V.A.G. about the Trustee’s sale of our home, and how according to NRS 107.080 all sales must be properly noticed, furthermore all sales must occur at the place and time stated in the Notice Of Sale, or if properly postponed, the sale must be postponed to a later date, at the same time and the same location. When I told him NOBODY was given proper notice of the sale that took place a day earlier than the postponed date, he said it didn’t matter. I pointed out that, NRS 107.080 SS 5 VOIDS the sale for that sole reason. To which he replied ‘ THAT’S ONLY A TECHNICALITY, and a weak one at that, and NO JUDGE WILL EVER ENFORCE IT AS STRICTLY AS, I BELIEVE, IT WAS INTENDED TO BE. Then I was told our family is trespassing if we’re still living in the house, and that we should get on with our lives. The last ‘advice’ he kindly gave us was, ‘ DO NOT CALL THIS OFFICE (The NV Attorney General) AGAIN. I told him we can’t give up. Then he offered Lawyer’s Referral’s #. I told him we have it and the Senators’ # as well. (which he said, won’t change anything he had to say).

    SO IF SOMEBODY, anybody would be willing to assist us, WE desperately need your help (in any form).

    Thank you very much..


  7. Does ( I guess I should say MUST) a loan modification be recorded just like it was a new lien? If so does that put an existing second lien into first position by virtue of being recorded before the modification?

  8. Everyone must download this 1 of a kind film…exposes MERS, B of A…
    see @ http://www.hangtownfilms.com
    Stay in your home…

  9. Hi Everyone,
    You must see my film exposing MERS, B of A and the system as my loan modification papers got lost 4 times…Recontrust Sec. signed a notarized doc. with our recorders office transfering our home to Reccontrust pretending she worked for MERS. in Foreclosure!!!!.. our sting shows she does this all day long for B of A…B of A can’t produce our note?????.
    Everyone must see my movie called Hangtown Foreclosure Bless everyone> keep fighting and NEVER LEAVE YOUR HOME! Help me expose this major story and fraud!

  10. Since MERS isn’t the Beneficiary, and their nominee standing is unravelling, here may be a point of attack.

    MERS has no right to record a “Substitution of Trustee” prior to foreclosure.

    I’m in a non-judicial state, what kind of document do I file with the court to protest that the Sub of Trustee is incorrect and invalid because MERS has no standing to do that?

    Would that then require them to file a lawsuit to foreclose instead of going with a non-judicial foreclosure?

  11. I took a peak at my Black’s Sixth Edition and found “Nominal”. = “Titular, existing in name only; not real or substantial; connected to the transaction or proceeding in name only, Not in interest. Park Amusement Co. v. McCaughn xxxx xxxx xxx xxxx xxxxx Not real or actual; merely named, stated etc. etc. etc. Can anyone tell me what this means?

  12. Please see my other post under “Letters and Notices”.
    For additional case info.

    Thank you,
    very much.


  13. I would like to believe, I just received the greatest birthday gift ever.
    I was told that Chevy Chase Bank was most likely only servicing my loan for US Bank. (county recorder shows this as well). How can I take action against the Trustee for changing the auction on 1/4 to 1/6, then auctioning it on 1/5 without notice.
    Also the Chevy Chase’s attorneys who filed a proof of claim in a Bankruptcy case stating Chevy Chase was the lender when they were only servicing for the Real lender US Bank. (would the correct penalty for filing a fraudulant claim be $500,000 sanction for fraud against Lender, and $250,000 against Chevy Chase’s attaorneys? If so, how to address? Also who gets the sanctioned money? If me how? Anybody like to help I’m in Las Vegas, NV.

  14. urgent..
    I’ve Mers as Ben, lender was Chevy Chase (Capital One aquired 7/09), on the back of my Note (Trustee’s copy) it says “PAY TO THE ORDER OF U.S. BANK, N.A. AS TRUSTEE / WITHOUT RECOURSE TO CHEVY CHASE BANK, F.S.B. signed by Dariene K. Opalski Assistant Secretary. (1st time I seen U.S. BANK on my papers, not on the front anywhere. What does it mean? Who got paid off?)
    They’re going to auction my house 1/4/10 9am. A sub of trustee (Melmet to TD sevice) more than a year after NOD. With the change in servicer, and sub of Trustee, does it mean the sale can be void if no changes were made prior to sale?
    Anyone who has answers please call me A.S.A.P.
    702_ 762._ 0876 THANK YOU FOR YOUR HELP..

  15. I signed with Greenpoint Jan 2002 & it states that MERS is the benificary> We went from Countrywyde to B of A and have not made payments to B of A because they can’t produce our note. We are now in foreclosure started by Recontrust who said they had the rights under MERS as benificary who owns our deed and note. The recorders show no history of any transfers ever and our deed still states Green point mortgage who are out of business. Who owns our note? & can MERS have rights to assing Recontrust to foreclose? we are 1 yr. w/o making payments. MERS can’t produce our note either. Countrywide & B of A have lost our loan modification doc’s 4 times…we have a 8.2% 1st. and 10.5% 2nd. Even our local DA states that MERS as the benificary has rights to foreclose because they are the benificary. HELP! who has rights to foreclose. Recontrust is owned by B of A.

  16. MERS. What a way to make a living.

  17. Two recent published cases (In Re: Vargas by Judge Samuel Bufford and a Missouri Appellate Court decision published early March 2009) support the position that MERS is NOT a beneficiary under a California Deed of Trust. The law in California dates back to at least 1855 (Peters v. Jamestown Bridge Co., (1855) 5 Cal. 334) If anyone wants the cites or copies of the opinions please email me directly.

    Walter Hackett

  18. Diane,

    You have many questions, that seem to be un-answerable by ALL the parties at this time. Your situation requires some light on the subject, specifically with regard to discovery, and that can only be forced in a court of law.

    I am not a lawyer, and NEVER give any legal advice, I am an experienced Homeowner, offering guidance for those in the same boat.

    Allan Hennessey
    1-800-552-9313 Ext 111

  19. Diane,
    It would be important for you to ask by certified mail who is holding the Note and who is holding the Mortgage or Deed of Trust.

    Get them to produce both instruments.

    Email me back when they comply.

  20. This is what I’ve been studying all week after carefully reviewing my personal chain of title. This actually would make sense to me if my documents consistently reflected the explanation from Aurora.

    With that said, here is my case in nutshell:

    As of 4/22/04, the original beneficiary named on my note or “note holder” is Greenpoint Mortgage. The lender named on the deed of trust is Greenpoint Mortgage. The Trustee named on my deed of trust is Marin Conveyancing Corp. and “MERS” is named as the beneficiary under the deed of trust.

    As of 7/9/08 as noted on the N.O.D. the name of the “creditor” to whom the debt is owed is Greenpoint Mortgage. The name of the beneficiary is “MERS” and the name of the Trustee is Marin Conveyancing Corporation.

    As of 10/27/08 as noted on the N.T.S. the name of the “beneficiary” is “MERS” and the name of the Trustee is Old Republic National Title. (Makes no mention of Greenpoint Mortgage.)

    The Substitution of Trustee dated 10/13/08 attached to the N.T.S. states that the name of the Beneficiary is Greenpoint Mortgage Funding and the name of the Trustee is Old Republic National Title Insurance. (Does this imply that “MERS” is no longer the beneficiary even though they are currently listed as such on the NTS?)

    As of 12/9/08 the Notice of Transfer of Servicing states that the servicing of my loan is transferred from Greenpoint Mortgage to Countrywide Home Loans. Countrywide states that owner of my loan is CAPITAL ONE. (Does this imply that CAPITAL ONE is the beneficiary even though is makes no mention of this on the N.O.D. or N.T.S.?)

    Finally, what happened to MERS? Are they still active or did they “de-activate” themselves? I have no recorded assigment only a substitution of trustee with no reference to MERS.

    I called Countrywide yesterday to verify my TS date after already confirming it with Old Republic (trustee). Countrywide swears that since the servicing transfer they have no TS date set and it is stated as “suspended” in their system due to my insistence of the opportunity for a work out plan, reinstatement, payment history, terms of the note, pay off demand, goes on and on. They do not understand why Old Republic is reporting a sale date.

    Whenever I refer to Greenpoint when speaking with Countrywide they always say “we have nothing to do with Greenpoint, your loan is governed by us now.

    So then I always state “if there were to be a foreclosure sale on my home it would be brought on by Countrywide, not Greenpoint then”. They always agree.

    Does this mean that my timeframes should reset themselves under the premise that my loan is governed by Countrywide? Am I technically in foreclosure since I have never received an NOD or NTS from Countrwide? Or does Countrywide have the power to ride on Greenpoint’s coat tails in regards to timeframes implemented prior to their ownership interest in my servicing?

  21. The whole MERS thing is a tool impemented solely to help fascilitate the fraud these lenders have perputrated.

    Steve Cisko
    San Diego, Calif

  22. OOPS!, I guess they all accidentally forgot about this small detail as well.

  23. http://www.mersinc.org/about/shareholders.aspx

    This is a list of MERS Shareholders – on mers website it states:

    Shareholders played a critical role in the development of MERS. Through their capital support, MERS was able to fund expenses related to development and initial start-up.

    Being a shareholder means that you are an owner so since there are title companies on the list, shouldn’t they disclose that they have an interest in MERS?

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