REFinBlog

March 14, 2013

Michigan Appellate Court Holds that Party with Ownership of an Interest in the Note May Only Foreclose by Judicial Process

In Bakri v. MERS, No. 297962, 2011 WL 3476818 (Mich. Ct. App. Aug. 9, 2011), the Court of Appeals held that Defendants may only foreclose by judicial process since they only had an ownership interest in the note, and not … Continue reading →

In Cooke v. Mortgage Electronic Registration Systems, Inc., et al., CA No. PC 2011-3487 (R.I. Sup. August 29, 2012), the plaintiff alleged that the assignment of the mortgage interest from MERS to the Federal National Mortgage Association, FNMA, was invalid. … Continue reading →

March 13, 2013

Texas Court of Appeals Holds that Foreclosure Proceedings Do Not Require Production of the Original Note

In Hornbuckle v Countrywide Home Loans, Inc.,  No. 02-09-00330-CV (TX Ct. App. 2, May. 19, 2011), the court affirmed a lower court decision allowing judicial foreclosure. The homeowners purchased home by obtaining an FHA loan from Principal Residential Mortgage, Inc. … Continue reading →

Arizona Bankruptcy Court Imposes Duty on Attorney to Act with Reasonable Diligence

In In re: Madison, No. 2:09-bk-22225-SSC (Bankr. D. Ariz., March 30, 2011), the court held that an attorney has the duty to act with reasonable diligence in representing his client and communicating adequately with both the client and the court. The … Continue reading →

U.S. 9th Circuit Court of Appeals Holds that Lenders Still Entitled to Repayment of Loans Even If MERS is Not a Beneficiary

In Cervantes v. Countrywide Home Loans, Inc.,  No. 09–17364 (U.S. 9th Cir. 2011), there was a putative class action challenging origination and foreclosure procedures for home loans maintained within the Mortgage Electronic Registration System (MERS). In their complaint, the plaintiffs … Continue reading →

California Court of Appeals Holds that MERS and its Assignee have Standing to Foreclosure Without Holding Original Promissory Note

In Ferguson v Avelo Mortgage, LLC.,195 CA 4th 1618 (2011), the court held that MERS and its valid assignee, Avelo, had authority to initiate foreclosure proceedings and invoke the tender rule against Tenants, even when neither held the original promissory note. … Continue reading →

March 12, 2013

Alabama Circuit Court Holds that MERS has Standing to Foreclose if it is a Nominee of the Lender

In Henderson v. Merscorp Inc.,  No. 08-CV-900805 (Ala. Cir.Ct. May 6, 2010), the Alabama Circuit Court dismissed an action claiming that MERS lacked standing to foreclose. The borrower sued MERS after MERS initiated foreclosure proceedings after a default, and alleged … Continue reading →