MERS - Principal Reduction and MERS Loan Modification

MERS Loan Principal Reduction

If your loan was registered in MERS (Mortgage Electronic Registration System), you might be able to receive a principal reduction on your loan. The only requirement is that your loan was registered in MERS. Click the button below to see if your loan was registered in MERS or visit our free MERS Loan Registration Check page.

(Click the above button to see if your loan was registered in MERS)

How was this opportunity created?

In September and October, 2010, the U.S. has been rocked by revelations of improper and even fraudulent foreclosure and documentation processes used by many of the nation’s top lenders, paving the way for principal reduction for many homeowners. The problem is so bad, that lenders now realize they must accept loan modification offers from homeowners or risk legal liability and public scrutiny of their practices. This presents an unprecedented opportunity for homeowners to reduce the principal balance and interest rate on their home loans through a negotiated loan modification process.

Never before have homeowners enjoyed leverage of this magnitude over their lenders. Big banks and lending institutions are terrified their rampant mistakes and outright fraud will become known by the general public resulting in thousands of lawsuits that they will very likely lose. This would likely cause billions of dollars in liability and could potentially threaten their very existence.

We are not out to destroy the banks. We simply want to provide homeowners the relief they need to get out from under crippling mortgages. We want to help families rebuild by lowering the principal balance and interest rate on their loan, reducing their payments, giving back equity and helping families restore their honor and pride.

Our loan modification program is NOT based on the government Making Home Affordable program. There’s no income qualifying at all. We just need to find out whether your loan was sold on the secondary market. If it was, we approach your lender explaining that they have no standing to foreclose and therefore have no collateral for their loan. Lenders realized they made mistakes and are willing to modify the loan in order to salvage something from their errors.

We guarantee we’ll be able to obtain at least a 10% reduction in your principal balance. We are also frequently able to obtain a reduction in interest rate as well. The process takes some time, though as the lenders are overloaded with short sales, foreclosures and loan modifications. All you have to do though is give us some basic information about your loan and we’ll let you know if you’re a candidate for a loan modification/principal reduction.

(click the button above to see if your loan was registered in MERS)

What Mistakes Did the Lenders Make?

Some of the nation’s largest lenders concede that their foreclosure procedures have been improperly handled. Lawsuits reveal a great number of crucial mistakes in loan-related documents.

Some recent headlines:

• J.P. Morgan will halt foreclosures on 56,000 homes in the U.S. due to questionable documentation processes

• GMAC Mortgage, JPMorgan Chase and Bank of America have recently suspended foreclosures in 23 states

• Foreclosures in Florida are being dismissed because the lender sold the loan on the secondary market and lacks standing to foreclose

Between 2002 and 2007 millions of loans were originated and sold to securitization trusts with little or no regard for proper paperwork. Files are missing the required documentation proving chain of title (assignment of the mortgage and note from originator to a trust).

Lawyers and Judges say that the wave of defaults does not excuse lenders’ failures to meet their legal obligations before trying to remove defaulting borrowers from their homes.

Examples include documents signed by employees who say they have not verified information, documents not signed in the presence of a notary and recreating documents after deadlines have passed in an attempt to fraudulently recreate the chain of assignment.

Rampant violations of the Uniform Commercial Code, Truth in Lending Act, Fair Credit Reporting Act, Real Estate Settlement Procedures Act and Fair Debt Collection Practices Act have come to light in the last 30 to 90 days, but have been noted in the legal record since at least 2005.

And that’s not all. Many loans were sold on the secondary market to investors that combined loans into securities called Collateralized Mortgage Obligations. This transfer of ownership was hidden using a system called MERS or Mortgage Electronic Registration System. When the original lender foreclosed on defaulted borrowers the courts dismissed the foreclosures because only the actual note holder can foreclose. Lenders tried to say that MERS, as the lender’s “nominee” had the standing to foreclose, but the courts have rejected this argument many times.

All of the rampant mistakes and dismissed foreclosure cases have put lenders squarely on the defensive. In fact, in many cases the lender has no standing whatsoever to foreclose, meaning that a homeowner could stop making payments on the mortgage and the lender wouldn’t be able to foreclose (they will still try, though, and we don’t suggest you take this route).

However, lenders realize that they have little option but to negotiate with homeowners to modify loan terms so payments become affordable.

What Will LoanModificationUSA.com Do?

This is where LoanModificationUSA.com comes in. We will approach your lender and obtain a principal reduction of at least 10% of your outstanding loan balance, guaranteed. Many times we’re able to negotiate a larger reduction than that. In addition, many cases receive a reduction of interest rate as well, which will further reduce your payment. And, there’s no “qualifying” for your principal reduction. We just have to find out if your loan was sold on the secondary market (90% of all loans were sold) or if there might document mistakes.

The bottom line is that lenders are throwing in the towel. They know they made massive mistakes and are very likely legally liable for massive fraud. They are negotiating terms for borrowers in hopes that they won’t be taken to trial, which would only bring much greater media exposure and public scrutiny of the lender’s mistakes .