Court of Civil Appeals of Alabama, in Favor of Borrower, Vacates and Dismisses Judgment

Posted by & filed under 2012, Alabama, Downstream litigation, Foreclosures, MBS industry.

The court in Nelson v. Federal National Mortgage Association, 97 So.3d 770 (2012) the Court granted Fannie Mae’s summary judgment as to its ejectment action against the borrower because the Court found that Fannie Mae received valid title to the property from MERS subsequent to the foreclosure sale conducted by MERS. However, on appeal, court… Read more »

MERS’ Assignments are Recognized as Valid as New York Appellate Court Overturns ‘N.Y. v. Alderazi’ & ‘LaSalle v. Lamy’

Posted by & filed under 2012, Downstream litigation, Foreclosures, MBS industry, MERS/Bank has standing, New York, Note ownership litigation.

In the case of Bank of New York v. Eddie Sachar, et al., 95 A.D.3d 695 (2012), the court found the Bank of New York Mellon had standing to foreclose based on a MERS assignment and the delivery of the note. The court’s ruling granted the plaintiff’s [Bank of New York Mellon] motion for summary… Read more »

Bates Fails to Shake MERS’ Standing in Indiana Superior Court

Posted by & filed under 2012, Downstream litigation, Indiana.

In Bates v. MERS, et al., 49D12-0911-CT-051734 (June 22, 2012) Bates filed suit against MERS and several lenders in the mortgage industry on behalf of all counties in Indiana, alleging that the MERS system is an attempt to falsify records to avoid paying recording fees. The Marion Superior Court dismissed Bates’s complaint for lack of… Read more »

U.S. District Court for Hawaii Rules in Favor of MERS in Non-Judicial Foreclosure Proceeding, Validating its Right to Transfer, Foreclose, and Sell Property as the Lender’s Nominee

Posted by & filed under 2012, Downstream litigation, Foreclosures, Hawaii.

In Pascual v. Aurora Loan Services, No. 10–00759 JMS–KSC, 2012 WL 2355531, at 1-18 (D. Haw. June 18, 2012), the court explained the role of MERS in mortgage transfers and granted Defendant Aurora Loan Services’s motion to dismiss the Plaintiff Pascual’s claim that the non-judicial foreclosure executed by Defendant was void as a result of… Read more »

Texas Appellate Court Rules that Foreclosure can be Initiated Without Specific Endorsement in the Note and Before the Formal Transfer of the Deed

Posted by & filed under 2012, Downstream litigation, MERS/Bank has standing, Texas.

In Robeson v. MERS (Tex. App. 2012) WL 42965, No. 02-10-00227-CV the court affirmed the lower court’s ruling finding that Robeson was given adequate time for discovery, MidFirst had authority to send default notices prior to the assignment date of the deed of trust, and MidFirst gave sufficient foreclosure notice.  The court held that Robeson did… Read more »

Indiana Supreme Court Allows Citimortgage to Intervene in ReCasa’s Foreclosure Proceeding

Posted by & filed under 2012, Downstream litigation, Foreclosures, Indiana.

In Citi v. Barnabas, 975 N.E.2d 805 (Ind. 2012), the Indiana Supreme Court held that Citimortgage had a right to intervene in ReCasa’s foreclosure proceeding and sale since Citi held a first mortgage on the property, reversing the decision of the Court of Appeals and trial court. The homeowner, Barnabas, granted a first mortgage on… Read more »

Florida Court Dismisses Class Action Against MERS Over Unpaid Recording Fees

Posted by & filed under 2012, Downstream litigation, Florida, Foreclosures, MERS/Bank has standing.

The court in Fuller v. MERS, No. 11cv-1153 (M.D. Fla., June 27, 2012) was “confronted with an old problem: the difficulty of reconciling new technology with old law, thus raising the centuries old separation of powers controversy.” In deciding this case the court found that the Florida statute, which created the recording system, was a… Read more »