I just learned that my original lender no longer exists. A news report said it was involved in an investigation and the findings warranted legal action for alleged HUD violations relating to a developer who defaulted on a $6M loan.
(MERS Sec/Treas) Hultman testified last week that MERS is the agent or nominee of the original lender. Does it somehow create agency through its membership agreements? If so, should a power of attorney or like instrument be available somewhere, and should the borrower ask for it at some point in the lawsuit?
It seems to me if agency was created, then the original lender goes out of business (essentially dies
), then MERS' right to act on behalf of the original lender ceases. Would it be the same as if a husband gave his wife power of attorney, then the husband died, and the power of attorney ceased at the moment of the husband's death?
Carrie this is not legal advice but the truth is thousands have hoped for some sort of "silver bullet" magical escape after their servicer or lender went out of business. (It's not an infrequent occurrence.) When a lender fails the corporate hull is scooped up by skilled hardball collectors with schemes and scams sometimes worse than what you originally had. I would advise you not to waste any money and minimal time if any on this semi-hopeless dream so many have pursued to no avail.