I have recently been studying a growing problem across the US. The problem is, "How do you know they own it?" Here in Massachusetts, real estate documents are recorded in the Regisrty of Deeds for the appropriate county. When you want to know who owns a property, you go to the registry and look up the address. All the document related to that property can be found (it takes more time in some regirstires than in others.)
But recently there has ocurred a problem with who owns a mortgage. In 1993 and entity called the Mortgage Electronic Registration Service (MERS) was started. They cataloged their first loans in 1996, and they have grown since then. It appears that when a loan is taken by a MERS member, it is given a MERS number. This allows tracking through their private system and they skirt any recording in the public registries of deeds. The problems have arrisen when one of those mortgages need to be foreclosed on. Who now "proves" ownership? If the note has been assigned without regard to the public record, what record is reliable?
The public record is there for a reason. Once again, as entites try to hide assets and skirt the existing system, they can't forsee all the problems they should have. Like the trails left on tv for CSI investigators to find, we now need an MSI team - mortgage scene investigation.
Heath Coker, Associate Broker
Robert Paul Properties
www.CapeGroup.com / email@example.com
508-274-5613 Licensed in MA
Its a beautiful day on Cape Cod!
@CapeGroup Skype: heath.coker