Editor: David Reiss
Brooklyn Law School

January 10, 2013

Alabama District Court Finds that MERS had Standing to Foreclose Absent Showing of Fraud and Breach of Good Faith

By Gloria Liu

In Mortensen v. MERS, 2010 WL 5376332 (AL Distr. Ct, 2010), the court did not find that refusal to modify a mortgage obligation constituted a breach of good faith and dealing. The court also held that that there was no fraud or deception in telling the mortgagee that “he had to be in default in order to negotiate the mortgage loan modification” because it was not a false statement per se. Therefore, MERS had standing to foreclose.

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