See: Mortgage.
We love things that are designed to make the world operate more efficiently, which is why we’re fans of MERS. (Not to be confused with the “murse,” which we suppose could also enhance efficiency, but only for the most fashion forward of men.)
MERS, which stands for “Mortgage Electronic Registration System,” is a database of mortgages that is managed by a privately held company (MERS, Inc.). And it doesn’t just record the mortgage itself, but all the changes to ownership and servicing rights that happen to that mortgage throughout the course of its life. In other words, when our mortgage is “sold” by one lender to another, that sale is captured in MERS.
This is great because, prior to MERS, every time something happened to a mortgage (i.e., it was bought, sold, or modified in some way), someone had to call the county recorder’s office and tell them what went on, and then usually fill out a bunch of paperwork to prove it. But with MERS, all that someone has to do is update the database. It saves time, and it saves money.
Of course, there are some criticisms. MERS might be saving folks a little money here and there, but it can also make it harder to follow a mortgage’s trail. Why? Well, when a mortgage becomes part of the MERSiverse, MERS becomes the official mortgagee of record. This means that if homeowners find themselves in a foreclosure-type situation, it can take longer to find out who actually holds the mortgage so they can try to work with them to save their home. And prior to 2011, some states actually allowed MERS to foreclose on a property, even though they don’t hold the promissory note and therefore don’t own the debt.
Related or Semi-related Video
Finance: What is a Mortgage?345 Views
Finance allah shmoop shmoop What is a mortgage Well people
a mortgage is just dead it's alone but one with
special tax treatment For most people simply put Any interest
you pay on a mortgage to buy a home is
tax deductible Morty morton's inputs down a hundred thousand bucks
to buy a home that costs four hundred big ones
his mortgages three hundred grand at five percent interest per
year So that's fifteen thousand dollars a year he pays
to rent the money from the bank which he uses
to buy his dream home with the loop de loop
waterslide Morty earns one hundred grand a year and pays
tax on his last fifteen thousand of earnings soas faras
The irs is concerned since morty can deduct his fifteen
thousand dollars in interest against his earnings he does not
in fact earn taxable wages of one hundred grand annually
Instead he earns taxable wages of eighty five thousand dollars
a year Essentially with government is doing is sharing in
some of the cost of renting the money Taub i'm
ortiz home well why would the u s government be
so charitable Well because home ownership has been integral part
of the american dream since the u s of a
i po'ed in seventeen seventy six easy access to mortgages
and then home buying can be a hugely beneficial asset
In the vast majority of cases homes create family stability
a store of wealth and tax dollars for local schools
in the form of real estate taxes So don't feel
bad about splurging on that water slide there Morty Just 00:01:42.93 --> [endTime] remember you're doing it for the kids Hello
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