FREE HOUSE? MAN BEATS BANK – And Creates Mortgage Banking MERS Bomb

COMBO Title and Securitization Search, Report, Documents, Analysis & Commentary COMBO Title and Securitization Search, Report, Documents, Analysis & Commentary

EDITOR’S NOTE: If you don’t get your chain of title and claims of securitization of your loan analyzed after reading this article and watching these short videos, you are walking away from your own wealth. The “free house” that you are accused of trying to take is being stolen by parties with no financial interests in your loan. We know you want to pay your honest debts, but do you really want someone who is not your creditor to get the money or the house? What will you say to the REAL creditor if he shows up and demands payment (again)? With whom will you speak when you find out that title companies will refuse to issue a new policy when you refinance or sell your house?


Remember also that there is a name game with MERS — MERS, MERSCORP, Mortgage Electronic Registration Systems, Inc., and Mortgage Electronic Registration System, Inc. to  name a few. Sometimes more than one of these separate entities, some of which were dissolved, may show up along side others with similar names in the same chain of title.


MAN BEATS BANK – And Creates Mortgage Banking MERS Bomb –

Lost Paperwork Means Free Homes For Borrowers



Very interesting story, and not without ramifications for other states.

Walter Keane poses for a portrait at his office.  Keane filed and recently won a lawsuit that resulted in several homeowners in Utah getting title to their property, even if they owed the full mortgage, all because of chaos introduced into the nation’s property recording system by MERS.

The attorney for another man in Draper, Utah, says he has won two other cases this way, and another attorney in Utah got a default judgment giving title to borrowers who owed $417,000 on a home.

Utah Professor Chris Peterson weighs in on the significance of the rulings.

In Utah, missing paperwork means a lot; Borrowers gain title for free.


David Dayen at FDL

Salt Lake City Tribune

A Utah court case in which the owner of a Draper townhouse got clear title to the property, even though he still owed $132,000 on it, raises new legal and financial questions about a property-records database created by mortgage bankers.

The award of a title free of liens means that whoever owns the promissory note on the Draper property — likely a group of faraway investors — no longer has the right to foreclose to collect on a delinquent loan. Indeed, the townhouse owner has sold the property and kept the money. Those who own the promissory note probably don’t even know what occurred.

Decisions such as the one 3rd District Judge Glen Iwasaki handed down in the Draper case could have a big impact as the state wends its way through hundreds of lawsuits involving foreclosures, loans on properties for more than they’re worth and predatory lending practices that led Utahns to lose their homes as the real-estate bubble burst.

More from David Dayen…

This is all tied up with MERS, the online database that has stood in for the land records system in as many as 60% of the mortgages in America over the past decade or so.  As we’ve seen, MERS is essentially a way for the largest banks to avoid recording fees, by naming them as the mortgagee on the original record and then transferring the mortgage and the note through their database.  The problem is that MERS is named as an owner on loans in which it has no financial interest, and the judicial system doesn’t yet know how to manage that.  This has confused the hell out of title insurance companies, who cannot determine who holds the note or even who can collect payments on it.  As a result, in this case, the courts and the title company failed to figure any of that out, so they gave title back to the homeowner.

The attorney for the man in Draper, Utah, says he has won two other cases this way, and another attorney in Utah got a default judgment giving title to borrowers who owed $417,000 on a home.

The owners of the note could always go back and try to recoup this money, but as Christopher Peterson of the University of Utah says in the article, MERS calls into question their ability to succeed:

Under laws adopted by all 50 states, the owner of a “negotiable instrument” such as a promissory note must be in physical possession of the document, said Peterson. Otherwise it would be like someone trying to cash a photocopy of a check instead of the actual check.

“One cannot be a holder of a note unless one is in physical possession of that note,” he said.

But Peterson said evidence is coming out in courts that shows the actual promissory notes or mortgages signed by buyers were not transferred as the notes made their way into the mortgage-backed securities investment pools.

That could mean in these cases that no one is in a position to try to collect because the actual notes are lost or destroyed, potentially making some promissory notes investors think they hold worthless.

Start watching at the 1-minute mark.  Includes excellent testimony from foreclosure lawyer Thomas Cox, and Utah professor Dr. Chris Peterson.  Detailed article on MERS inside.

Hearing took place Dec. 15, 2010.

29 Responses

  1. […] This is for all of you who still think the people working hard for mortgage modifications and fighting foreclosure are just a bunch of “deadbeats” who “bought too much house” and are now “trying to get a free house.” […]

  2. & don’t forget the bullsh**t language MERS incorporates when an 80/20 loan is in play (Bear/EMC)

    You’ll see MERS and EMC buried in the court docket with separate entries for each ‘participant’ (Party #3 and Party #4) but then MERS as nominee for EMC listed in the complaint as co-defendant.

  3. Deb wynn and Karen Pooley

    The message was targeted for ‘those that have ears let them hear’.

    It’s not meant for everyone to understand and I don’t do drugs…not even government supported, ie legalized, labeled as prescription, drugs.

    Thanks for your comments,

    With unconditional Love,
    Light and Love,
    Trespass Unwanted, alive, allodial, corporeal, life, live born, born alive, free, freeman, whole blood, jure divino,

  4. John Gault- did you mean that the homeowner can VOID a deed of trust? And what about the case of a forged and fabricated assignment? Any mention of this in other states? thanks.

  5. We all need that attorney!
    In related news, an AZ court just ruled that a chapter 11 debtor may avoid a deed of trust where the assignment has not been recorded. Feel free to email me for the decision.

  6. State of Arizona
    Fiftieth Legislature
    First Regular Session
    SB 1259

    Introduced by
    Senators Reagan, McComish: Biggs

    If SB 1259 does not pass next week, then it defines the chain of corruption within the government / judges who ignore written law and side with the foreclosing bank who has no standing.

    Remember, this PONZI scheme stole from the sub prime, fleeced the middle class, deflated your neighborhood, and now they steal your house payments, tax dollars and the homes

    that surround your streets ! All for their unjust enrichment ! We shall no longer be enslaved to this scam !

  7. @Trespass,
    Did you forget your meds today?

  8. Trespass wow
    there comes a time when St s certain age I have thrown up my arms and I say ” what the f ammo supposed to do” I know how to fight and do that’s what Im doing because I wronged and my laws should protect me fight law with law where are you lawyers bring your game if you cheat YOu KNoW you cheated you never won and so …. Material things come n go no problem
    BUT. Freedom and fighting for what you believe in I’d at issue for me. I had no choice I could not Walk. Thstvwould if Been a

  9. Lisa,
    Are you commenting on my truck-driver language??? Can you use anything but “fuckers” when describing the bankers??? I mean, really!

    Happy Fucking Birthday.

  10. American Securitization Forum has a meeting next week in Florida….

  11. Great article. Were the lawyers co-conspirators and lack of due diligence:

  12. Tamara,
    The system will punish you for putting someone to ‘represent’ you. That’s why Pro Se or I’d say Sui Juris litigants are winning. They are not ‘putting other Gods before them.”

    Everyone else:
    (with all due respect and much love, unconditional, I make these statements. I know nothing and if I think I know something I know nothing.)
    If you are a creation of the Creator, made in the image of the One who created you…why do you need to be represented? To use money to pay for someone to represent you is almost akin to those that sell their flesh for dough, so to speak.

    Their system will punish you for your ignorance first before they look at the issues.

    I love you, so don’t take this the wrong way, but draw a picture on a piece of paper.

    A bank (no eyes, no nose, no mouth, no teeth, can’t speak, can’t eat, can’t think, can’t talk, can’t sleep, can’t pray) hires an attorney to represent it.

    You (eyes, nose, mouth, teeth, can speak, conscious, can think, can eat, can create life, can sleep, can pray) hires an attorney to represent you.

    The two attorneys negotiate with each over of the outcome of the situation…since two (unlike entities) are in a dispute, the two attorneys are the common or similar entities that can resolve it.

    The each go back to their ‘clients’ to return the results. Each client has to accept the outcome.

    Now the bank, how do you think it reacted? Happy, smiling, joyful, did it thank the attorney and offer to buy him a cup of coffee over lunch sometime?


    It has no eyes, no nose, no mouth, no teeth, can’t speak, can’t eat, can’t think, can’t talk, can’t sleep, can’t pray, it can’t shake the attorney’s hands nor eat lunch with him.

    The judge was once an attorney, so he was one who once represented that “unknown’ entity that can’t do all those things. If you ever asked him whose interest he represented the judge would not say, “the living from the One Infinite Creator, who has inherited this earth by birth right”.

    So you by being represent were no more than the same thing that bank was. You were what is legally called ‘a dummy’, and so you had to be represented and dummies that have to be represented should not care about the outcome of their case. They are not competent enough to handle their own business. They want someone else to do it for them. to give them the hand out or the leg up.

    I mean this with all due respect. I’d been grabbed by this system for which I’m not a part of and should be protected from. That’s why the house of cards will fall, regardless of how the judge rules, regardless of how many get a free house. It won’t matter, not a stone will be left unturned.

    We must stop, and look at who we are. Are we the ‘man’ created in Chapter 1, Genesis, in the image of the Creator, (unconditional love), or are we the man created in Chapter 2 Genesis while God rested, LORD God created him from the ground, gave him conditions for his existence (conditional love) and cursed him when he disobeyed.

    Both are in this existence and we are mixed with each other. The home, many will lose their soul over that home. If you read far enough many lost their money over the modification and then lost the home when they couldn’t afford the mod. Many got the modification and can’t keep up the payments, the economy is bad, they have / will still lose their home. Many got it free and clear in bankruptcy, and will lose it as soon as someone puts a lien on it that they can’t afford to fight in court. I”m reading MERS is doing that, but I can’t prove it, so head’s up if it’s true, and if it’s not true, I’m not slandering anyone, they need to go find out who’s spreading that rumor and should be glad I posted it so they’d know. IF it’s true, these judges making these rulings aren’t going to let you ride on that court case you won to deal with a new claim.

    It’s all by design. We must get our humanity back. There is people starving, at war, economies are crushed, power plays with electricity and gas supplies are going on this winter, prices are soaring, jobs are unstable, companies are hoarding supplies to combat inflation, when the supplies run down and they have to pay more for the same thing they had hoarded, you’ll see a whole new existence. Anger is what ‘they’ need you to be. They can harness the energy of anger and vibrates different from the energy of love. You contribute to their power when they ‘feed’ you the stuff they ‘feed’ you through their ‘programs’. The tell you you are watching a ‘program’ and you still don’t get it. They control your thoughts and you permit it everyday by sitting in front of their ‘programming module’ every day/evening/night. They program your kids.

    You must, or at least try to see we are more than what they have you believe. All of you are ‘as a God’ with the knowledge of good and evil. Which side do you want to tap and how do you want to use it? They tap the evil side more than good, and it’s by design. What’s your tool? evil vs. evil creates more evil.

    You do not need to be represented. You need to tell them ‘who you are’ and make it known that unless that attorney is going to testify, his statements are probably taken as an affidavit. IF it is, you have a right to cross examine him over his statements. In these lower courts they will walk all over you if things aren’t on the record, and there are no witnesses. A notary is a great witness for these situations.

    A court is a business. They took an oath. They aren’t even citizens and are taking your property in the name of an entity that isn’t even alive.

    You seem to be in a bubble. Maybe their programming does work. They’ve spent years developing it. When you start waking up, they throw something fearful at you, a ‘purported threat’, or one they orchestrated and paid for and hired the guys to do it, and have you running from an invisible enemy or looking at your brothers and sisters created by the same Creator as if they are your enemy.

    A lot of us have lost our way…they don’t need your hatred, they need your unconditional love to find their way home. The things that don’t exist will go away when we stop treating them like they exist.

    We go to court to fight ‘the Nothing’.

    The movie The Never Ending Story, the Nothing was trying to take over the land.

    There’s a lot of learn and listen to. It’s more than football, and whether you get to have the same neighbors or you kids get to go to the same school. It’s bigger than you…but it starts with you.

    Look inside and wonder if you are having loving thoughts. If not…you are feeding the beast that is harming you and hurting everyone else around the globe. Your energy of fight, hate, anger, fear, feeds it. It cares not how you fight (court, domestic dispute, family turmoil, divorce), who you hate (illegal aliens, terrorists, protesters), what you fear (terror attacks, loss of job, loss of home, loss of money, loss of friends in the neighborhood), etc…it just needs you to do anything but love.

    We are disjointed as a civilization because inside we were born to Love, and all these distractions are keeping us from doing it. As soon as we hold hands, they’ll send someone in to break it…then we look at each other as if there is a problem. There is no problem. There are God created man, and LORD God created man. We are mixed together.

    Please, my loving brothers and sisters. See more than the physical possessions. Please see if you can tap inside and find out if anything I’ve stated resonates and makes you want to seek the truth. This power struggle for the soul is coming to a head. Men how love will NEVER be caught up in the outcome, we are saved. Men who can’t wake up and see, will have to go through harder trials until they wake up one day and say ‘hey!?’ how did we get here, and what do I need to do to change it. When that day comes, you will be without the power to make the change for many hundreds of years, and you will live with your decision to fight for nails and wood and shingles and concrete instead of saving your own soul.

    NO one ever gets lost for an eternity, but your journey can be longer than you want for not seeing the opportunity that is here, to live and experience and enjoy these final battles and watch the outcome. This is going on for ‘us’. We are a part of the entire event happening on the globe, not just your neighborhood.

    Evidence of God and LORD God are in Genesis 1 and 2. One created the heavens and the earth, the other created the earth and the heavens.
    Evidence of a parable telling you there are two ‘mankind’ in existence here and each have different reasons for doing what they do’.
    Matthew 13 24-30 (KJV)
    Matthew 13 37-43 (KJV)
    Which mankind are you? Will you follow one mankind because they ‘made’ you do it? do you understand that by your ‘free will’ you are contributing to the choices being made in everything you do. No one ‘makes’ you do anything. You choose to or choose not to. You choose. I love you not matter your choice. I love you for being ‘uniquely’ you. I just want you to be aware of yourself a little more than you have been.
    Whether you are a God man, loved by your Creator, or a LORD God man, cursed by your Creator. I love you. I see no enemies. I see choices.

    Trespass Unwanted, alive, allodial, corporeal, life, live born, born alive, free, freeman, whole blood, jure divino,

  13. This is good news!
    The 9th circuit has not been so open and receptive though if you have already been foreclosed even if MERS is involved…there are thousands of cases in which the banks are able to defeat the COMPLAINT of a foreclosed party through a 12(b)(6) motion because very few attorneys and pro per litigants are able to plead the case properly….even if everything about MERS and the bank is true the homeowner bears the burden of offerring tender to even step foot in the court which is a requirement most COMPLAINTS cannot and don’t make…if a homeowner gets beyond that burden they must further bear the burden of proving misrepresentation by MERS and/or the bank in misrepresenting its authority to foreclose…which means proving falsity, reliance, and injury…if that sounds easy to plead look at all the cases that have been dismissed….NOT trying to burst the balloon for those who have already lost their homes, instead I am seeking a solution like you are. Let’s find out how to do this…there are still many “expert” real estate attorneys in the 9th circuit, many whom I have met and interviewed-THAT STILL DON’T GET IT-Lets find somone that does!!!

  14. More fun with MERS analogies:

    It’s like if Fannie, Freddie, BoA, and Chase were the four members (there’s that word again) of an internationally famous rock band. The name of their band is “The Banksters,” and they’ve been writing new material. They want to try the new material out in front of a live audience to see how it works, but want to keep it a small audience with no expectation of seeing “The Banksters” live so the band can feel that any positive or negative reaction from the crowd will be to the material rather than to the band’s fame and mystique.

    So they book a gig at a dive under a fake name to achieve this objective. The fake name they settle on is, of course “MERS.” So “The Banksters” play their show under the name “MERS.” People in the crowd aren’t expecting much from MERS, having never heard of them and sit at the bar and don’t pay the band any attention.

    Then one guy says to a friend, “That guitar player looks–and sounds–a lot like the guy in The Banksters. The singer, too…” His friend looks over and says, “You’re crazy, man, The Banksters would never play this place.” Through the whole gig, MERS never lets on that they’re really The Banksters, and as he’s leaving the bar, the guy who recognized them keeps trying to convince his friends that they just saw The Banksters. But his friends continue to tell him he’s crazy–that the band was clearly billed as MERS, and that The Banksters would never play such a dive under a lame assumed name like MERS…

  15. @zurenarrh yes, it makes sense and it’s well explained. Helpful also. As for those who rail against the “free house”, “deadbeat” slurs, it’s true that many of us spend countless hours reading, researching etc.

    Foremost though, is the fact that we all have PAID our mortgage until we either couldn’t due to the economy, unemployment and concomitant issues or due to the fact that we refuse to continue paying to an unknown creditor; some of us have paid for five or ten years.

    All of those payments are being ignored by those who call us deadbeats and people who want “free homes”. Calculate for yourselves the total amount that you’ve paid in on a mortgage to get an idea of the actual amount of the “debt” they’re claiming you owe. Add up the total amount; P & I because whatever you label it as, it’s still the amount you’ve sacrificed in an effort to retain your property. In some cases the face amount is almost equal to the payments already made.

    Ignore the disparaging comments; it’s often either people who are envious due to their lack of will to defy the banks or, in many cases, trolls working for the banks who post comments disparaging homeowners as part of their job description.

    None of us, if we manage to win, will be getting anything “free”.

  16. Here’s another problem MERS has: despite their claims to the contrary in my deed of trust, MERS is NOT a “separate corporation.” MERS, like any gang of thugs, has “members.” Just as the members of a street gang ARE the gang–no members, no gang–the “members” of MERS, i.e. Fannie, Freddie, BoA, Chase, etc.–ARE MERS.

    In other words, MERS is mortgage-speak for “the banks.” So when MERS is named the mortgagee or the beneficiary, that should be read as “the banks.” Effectively, ANY or ALL members of MERS could theoretically be my mortgagee or beneficiary–because MERS IS its members. That being the case, the beneficiary of my deed of trust was not disclosed to me.

    MERS is akin to an avatar icon used on a site like Facebook. No matter if it’s Bank of America, Fannie, Freddie, etc. actually using the Facebook account to post messages and updates, the MERS avatar does not change. In fact, it is IMPOSSIBLE for MERS to post anything on this theoretical Facebook account because 1) MERS is a computer and 2) MERS has NO EMPLOYEES. Therefore, anything purported to be done by MERS is actually being done by a MERS “member,” kind of like a hand in a puppet head.

    That is to say, it APPEARS that MERS exists, but actually MERS is a puppet on the hands of the banks. The point of this, of course, is that fraud exists in the mortgages/deeds of trust themselves–robosigning and fraudulent assignments only compound this original fraud in the documents themselves– because MERS is NOT a corporation separate from its members AND because MERS purposely masks the identity of the beneficiary/mortgagee, resulting in non-disclosure to the borrower at closing.

    Hopefully all that makes some kind of sense and is useful to someone…

  17. Happy Birthday, Lisa. May your wish comes true. Best.

  18. I feel the need to apologize, BUT today is my Birthday and I’ve been fighting foreclosure for 6+ years and I felt like I’m entitled to throw a few F-BOMBS … sorry!

  19. This is just my opinion from the article that I have read above. Did you notice the last name of the judge? I have some knowledge about the history of hardship of the Japanese American during the WWII in the U.S. They were DISCRIMINATED against for their property rights. Some judges can understand the hardships of the people in the U.S. who are used and abused by the rules and the system established by others that they can not control of.

  20. Mers messed everything up. Blame mers so I ask you who’s idea was mers really? ” mers is the genticslly engineers child that was born of the banks I believe that mers purpose was to hide what they were doing from public eye
    on direct conflict with why we have recording laws in place fir our protection why would anyone mess with a method that had prooved efficient safe and LEGAL since territorial days surely banks kNOW they can not be the ones to change this practice this area if law( unless our spineless government let’s you) the land laws were in place since the English landlords more than 200 yrs ago and if we can’t proove beyond a shadow of a doubt rights to land then what rights do we have, I refuse to walk the ” trail of tears” this is as wrong as it was then….
    mers is illegal no matter how you wsnt to look at it. Sorry judge Teilborg you are very wrong.

  21. Karen Pooley,
    Well said, but I miss the F-BOMBS … so I say this –
    If I wanted to be a fucking lawyer, I would have gone to fucking law school!
    Make it a great day~

  22. I really hate the term “free house.” For many of us, we have spent YEARS researching this, reading many hours per day. We have become mini-lawyers. How much would we be paid if we were lawyers, logging this many hours of research? Probably enough to pay for our mortgages.

    We are suing for fraudulent practices. When you have been the victim of massive fraudulent scam, you have the right to sue for damages. We are suing for being victims of a massive scam and the “free house” is the payoff for this massive scam that has been perpetrated on us. Many do not receive the payoff.

    Quit using the banker’s terms. This is NOT a free house. IF we are given the title, it is the payoff for winning a lawsuit in which the other side created this whole system to defraud.

  23. Great – millions more to go!

  24. MERS website should tell you whether or not MERS — and should tell you who the current “investor” is — but site tells you nothing.. Have even seen “investor does not want to identify itself.”

    For those that are not registered on MERS — would anyone like to speculate why??

  25. Let’s hope the bill that Marcy Kaptur has introduced in Congress to prevent Fannie and Freddie from buying notes with MERS included in them passes.


  27. Can you post any of the information, filings, they used?

  28. They will try to skirt the issue by having blank endoresements on the untransferred notes and the once lost and destroyed notes will come back to life.

    First Magnus Liquitating is using this very creative approach. Loans that were sold forward by First Magnus and securitized by Lehman, UBS,Countrywide are now being foreclosed on with the original notes with blank endorsement.

    Once they come to court with the notes, and the blank endorsement one is fried.

    The judge may not care if the DOT has mers on it. At least that is the case in Virginia. The judge could care less if the note has been paid for or not, since the evidence of that payment is not available without discovery.

  29. Love this post about ….”man beats bank”. Just pray that this result will occur in all States, and Courts. Down with the banksters and their cohorts.

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