REFinBlog

March 31, 2013

The Michigan Court of Appeals Holds that Sheriff’s Sale was Invalid because MERS Foreclosed on Homeowner’s Property using Nonjudicial Foreclosure by Advertisement even though MERS was only a Mortgagee

In Richard v. Schneiderman & Sherman, PC, 294 Mich. App. 37, 818 N.W.2d 334 (2011), the Michigan Court of Appeals held that MERS foreclosure by Advertisement was void ab initio. Aaron Richard, homeowner, appealed an order granting summary disposition in … Continue reading →

March 26, 2013

US District Court for Arizona Rejects Split-Note Theory Claim Made in Multi-District Litigation

In In Re MERS Litigation, 09-2119-JAT (D. Ariz. 2011), the case was a multi-district litigation concerning claims related to the formation and operation of MERS, Inc. and MERSCORP, Inc. The plaintiffs alleged violations of Arizona Revised Statutes (“A.R.S.”) § 33-420; the … 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 →

Florida Circuit Court Holds that MERS has No Standing if it Never Held the Mortgage Note

In MERS, Inc. v. Cabrera, (11th Cir. Sept. 16, 2005), the court held that MERS’s allegations that it “owned”, “held” and “possessed” the mortgage notes are clearly, palpably and inherently false because it never held the Note in its physical … Continue reading →

March 2, 2013

Arkansas Supreme Court Holds that MERS is Not a Beneficiary and Not a Necessary Party in Foreclosure Proceedings

In MERS, Inc. v. SouthWest Homes of Ark., Inc., , 301 S.W.3d 1 (Ark. 2009), the court held that MERS was at most the mere agent of the lender Pulaski Mortgage Company, Inc., and thus held no property interest and … Continue reading →

February 22, 2013

Kentucky Court of Appeals Holds that Bank Lacked Standing Because it did Not Obtain an Interest in the Note Until after Commencing the Foreclosure Action

In Morgan v. HSBC Bank USA, NA, 2011 WL 3207776 (Court of Appeals of KY, 2011), the Court of Appeals of Kentucky reversed the trial court’s judgment as a matter of law that HSBC Bank USA, NA (“HSBC”) had standing … Continue reading →

February 21, 2013

Ohio Court Holds that a Bank Cannot Cure Lack of Standing by a Subsequent Mortgage Assignment

In Wells Fargo Bank, Nat’l Assoc. et al. v. Byrd, 897 N.E.2d 722 (Ohio Ct. App. 2008), the Court of Appeals ruled that Wells Fargo (the “Bank”) lacked standing because it commenced a foreclosure action before executing a mortgage assignment. … Continue reading →