The Bankruptcy Boot Camp spends a significant amount of time discussing MERS and the implications on mortgages both in and out of Bankruptcy. Check out this interesting read by Ellen Brown in Yes Magazine.
Over 62 million mortgages are now held in the name of MERS, an electronic recording system devised by and for the convenience of the mortgage industry. A California bankruptcy court, following landmark cases in other jurisdictions, recently held that this electronic shortcut makes it impossible for banks to establish their ownership of property titles—and therefore to foreclose on mortgaged properties. The logical result could be 62 million homes that are foreclosure-proof.