Bankruptcy and foreclosure are linked inextricably in the hearts and minds of many citizens of Illinois who are facing the loss of their homes. If you are struggling to pay your mortgage, you need to get professional advice from a bankruptcy attorney before you talk to your mortgage lender.
Who really owns your home? You may think that your original mortgage lender is the legal owner of your home, but this may not be the case. MERS (Mortgage Electronic Recording System) is an electronic database that handles the collating and recording of the title deed owners of properties in the United States. You may be able to make use is available to home owners trying to avoid foreclosure, but making your way through the legal system can be a nightmare. Don’t be swayed by stories about refinancing through banks etc. Talk to a reputable bankruptcy lawyer before you make any decisions.
The real estate boom of the 1990’s has a lot to do with the confusion around MERS and legal title of homes. While no one takes out a mortgage with MERS as an entity, many titles of homes and buildings were transferred to MERS as a way to keep track of the title deeds which were being transferred by banks in a series of real estate investment strategies during the boom.
The problem with MERS is that it makes it very difficult for homeowners to refinance their loans, obtain foreclosure help and even declare bankruptcy through the courts. Filing for bankruptcy is particularly difficult when you don’t know who actually owns your home. While banks are scrambling to establish legal title so that they can proceed with foreclosure notices, you are left out in the cold. This is why it is essential that you get legal help right up front. Talk to a bankruptcy attorney who understands the intricacies of bankruptcy law.
The best way to establish true ownership, which is vital if you are declaring bankruptcy as a means to avoid foreclosure, is to get an experienced bankruptcy lawyer who specializes in bankruptcy in Illinois to fight the monolithic banking and legal system for you. The confusion surrounding MERS may actually help you in court. Your mortgage lender will have to prove that they won the title deed of your property BEFORE they serve you with a notice to foreclose.
Recent court cases have forced MERS to change their systems so that it is no longer legal to foreclose on properties in the MERS name. It might sound complicated, but the MERS debacle could be your saving grace in the fight to grant an automatic stay in your foreclosure case. Handled by an experienced bankruptcy attorney, you just might be able to save your home.