Editor: David Reiss
Brooklyn Law School

January 10, 2013

Alabama District Court Continues to Uphold Enforceability of Mortgages Despite Split of Note and Mortgage

By Gloria Liu

In Brooks v. Freddie Mac, 2011 WL 3794683 (AL District Court, 2011), the court held that once a mortgage is assigned to another, foreclosure action is not attributed to the assignor. Therefore, when MERS assigned its interest to another party, the foreclosure was not initiated or undertaken by MERS. The court also agreed with a number of Alabama cases that held that mortgages could still be enforceable even if the note and mortgage had originally been split. Therefore, MERS can serve as the mortgagee as nominee for a lender without invalidating the mortgage.

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