The above graphic describes what happens to a note that is securitized. The mortgage in this scenario is transferred to Mortgage Electronic Registration Systems, Inc. (MERS). MERS was supposed to maintain records of ownership of the mortgage. In most cases MERS only maintained records of the current owner, and in some cases it does not know who the actual owner is, only the servicer. This is why challenging the bank’s claim to ownership of the note and mortgage is so important. The bank may not be able to prove it owns your loan.
If you have been sued for foreclosure, please do not hesitate to call to discuss how I can help you.