Westwood, NJ (PRWEB) February 26, 2011
“It really is a sad story and all too actual for consumers that have come to us in New Jersey looking for assist with stopping the foreclosure approach. The story about Kendra and Todd Parker attempting to steer clear of foreclosure with no missing a payment is some thing that is sadly not exclusive,” says lawyer Joshua Denbeaux of the law firm Denbeaux & Denbeaux. He sees the Mortgage Electronic Registration Technique, recognized as MERS, at the root of the difficulty and uses a mortgage foreclosure defense that is a way to cease foreclosure in New Jersey.

Formed in 1989, Denbeaux & Denbeaux is a law firm located in Westwood, New Jersey, devoted to supplying leading level legal representation to its consumers. The partners, Marcia and Joshua Denbeaux, represent people and firms in New Jersey State and Federal Courts. The firm primarily practices civil litigation, with a concentration in mortgage foreclosure, organization, insurance coverage coverage and employment litigation.

According to an post by Yepoka Yeebo on two/16/11 in the Huffington Post, the issues started for the Parkers when they found out that their loan would no longer be serviced by the original lender, Metropolitan National Bank, but would be handled by PHH Mortgage of Mount Laurel, New Jersey.

PHH Mortgage of Mount Laurel, N.J., is ranked eighth amongst America’s leading ten mortgage servicers by volume of loans serviced, according to a list compiled by Mortgage Servicing News. Bank of America and Wells Fargo best that list.

In an interview with Housing Wire final year, PHH President Luke Hayden mentioned “There are opportunities for lenders who are willing to rethink standard approaches to originating, servicing and investing mortgage items.”

In order for lenders and mortgage services to capitalize on this opportunity, they necessary a way to move the vast amounts of mortgage documents and verifications from one particular lender to yet another. The dilemma was that to be able to legally transfer a mortgage, the paperwork had to be hand signed and filed with the neighborhood country clerk. A cumbersome and tedious task, but a single that has been at the heart of American actual estate law for centuries. The remedy came in the Mortgage Electronic Registration Systems, or MERS, Merscorp Inc., operator of the electronic-registration system which now includes about half of all U.S. property mortgages.

Lenders and servicers attempted to argue that circumventing the established practice of delivering original hand signed and “wet-ink” documents and going to an electronic registration system in between banks was an acceptable practice and provided proof needed to transfer a mortgage. Nevertheless, it was recently ruled by a Federal bankruptcy judge that MER’s has no legal correct to transfer the mortgages beneath its membership rules.

According to the Feb. 10 opinion of Bankruptcy Judge Robert E. Grossman in Central Islip, NY, in the case of Agard, 10-77338-reg in the U.S. Bankruptcy Court, Eastern District of New York, “MERS’s theory that it can act as a ‘common agent’ for undisclosed principals is not supported by the law. MERS did not have authority, as ‘nominee’ or agent, to assign the mortgage absent a showing that it was given specific written directions by its principal.”

In other words, a lender has no legal correct to transfer mortgages employing the MERS program.

Josh Denbeaux says, “For the Parker’s as properly as our clients it is essential to note that circumventing the rules of proof and not getting the original lender are the foundations to a strong defense against foreclosure. We challenge the standing issues and guidelines of proof. This causes the Plaintiff to shed the motion for Summary judgment based on failure of proofs. We are discovering that other lawyers are coming to us for support in New Jersey to help with their instances simply because of our profitable defenses with these sorts of instances.”

Property owners want to be in a proactive state of mind in order to know their rights and make good choices about their options when dealing with banks. If you have concerns about a residence foreclosure, or are obtaining difficulty in acquiring a home loan modification please call Joshua Denbeaux of the Westwood, New Jersey, law firm, Denbeaux and Denbeaux to answer your inquiries at 201-664-8855. or send an e mail to pr(at)denbeauxlaw(dot)com

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