Foreclosed by MERS? VERY IMPORTANT NEWS!!

If you are facing foreclosure, or have been foreclosed in the past 4 years via the lender(s) using MERS as the trustee to file and produce documents, you may have just gained a major weapon in your fight to void the foreclosure action. A Federal District judge, John J. McConnell, ruling in the case of Cosajay v. MERS, this week ruled that borrowers facing foreclosure DO have legal standing to bring a suit against the lender and all transferees or successors to the mortgage. This is VERY important as previously only a local case in Massachusetts had gained this type of decision in a local Massachusetts court. The fact that this case, tried in Federal court in Rhode Island only covers RI cases, doesn't preclude you and your attorney from citing it to try to get a court elsewhere in the USA to state the same rule. It is NOT legally binding precedent as it is NOT from an appellate court, but its very existence can make it a powerful tool to win a case when a doubtful or fraudulent transfer/foreclosure through or to MERS is involved. Previously, all such cases from homeowners were usually summarily dismissed with the claim that the homeowner had no standing to sue as he/she hadn't been involved in the transfer from their lender to/through MERS. This ruling goes a long way to putting that theory in the trashcan where it belongs! If you have any questions, call your attorney and tell him/her of this case. If you cannot afford an attorney, call Legal Aid. As always, Good Luck.

CFPB Seeks Complaints

The Consumer Finance Protection Bureau, CFPB for short, has had as its main purpose since it was created a couple of years ago, the protection of consumers from any egregious procedures or unfair activity by lenders. Over the time of its existence, this has included fielding complaints from consumers who feel wrongfully treated by their lenders. Now they are planning on increasing this activity. The newest complaint procedure has not yet been rolled out, but in the meantime, if you feel wrongfully dealt with on your financing, or that your rights were violated, you can still send your grievance to them for investigation. One place to go is: www.consumerfinance.gov , which is their web site. That site will then guide you through the complaint process. As always, good luck.