MERS could not have possibly assigned the mortgage from Lender 2 to Lender 3. After MERS assigned it to Lender 2, it no longer had any interest in the mortgage to assign. Thus, the mortgages was out of the MERS system and there is no need to check MERS for a chain of its internal assignments. Lender 2 would have had to assign it to Lender 3 when it sold the note. It clearly didn't.
I don't think that any policy can be written on this property, an exception is inappropriate. The owner cannot convey title to something they do not own, and I do not beleive the own the property since they never had the right to foreclose in the first place.
But, I'm not writing a policy... this was just something another examiner called to ask for my opinion on. I told her to report the defect in the foreclosure to her client - from there it is up to them and their underwriter.
Best,
Robert A. Franco
SOURCE OF TITLE
to post a reply:
login - or -
register