Editor: David Reiss
Brooklyn Law School

March 2, 2013

Arkansas District Court Holds MERS’s Note Assignment Valid and Gives Purchaser Standing to Appoint Agent to Initiate Foreclosure

By Gloria Liu

In Peace v. MERS, 2010 WL 2384263 (E.D. Ark. June 11, 2010), the court held that MERS’ assignment to Note purchaser was valid and properly gave purchaser standing to appoint an agent to initiate a non-judicial foreclosure. The promissory note provides that in return for a loan received from American Home Mortgage, Peace will pay the principal sum of $56,000.00. The mortgage names Defendant MERS as mortgagee, solely as the nominee for AHM, and grants MERS and its successors and assigns the power to sell the property. MERS later assigned the mortgage to BAC Home Loan Servicing. Therefore, since BAC was the holder of the note and mortgage, and ReconTrust was acting as agent of BAC and not on behalf of MERS, BAC had standing to initiate a non-judicial foreclosure.

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