Editor: David Reiss
Brooklyn Law School

March 14, 2013

Michigan District Court Grants MERS’s Motion for Summary Judgment because, as Mortgagee, MERS had Standing To Foreclose

By Abigail Pugliese

In Corgan v. Deutsche Bank National Trust Co., No. 1:09-cv-939, 2010 WL 2854421 (W.D. Mich. July 20, 2010), the District Court granted MERS’s motion for summary judgment because MERS had the right to foreclosure as “Mortgagee” pursuant to the mortgage documents.

Mortgagor Plaintiff executed a loan agreement with the note naming MERS as the “Mortgagee” and Decision One Mortgage Company as “Lender.” The note was transferred to Deutsche Bank. Later, Mortgagor Plaintiff signed a modification agreement. Then, Mortgagor Plaintiff defaulted on the note and MERS commenced foreclosure proceedings and was eventually granted a sheriff’s deed. Plaintiff claims that MERS had no standing to initiate foreclosure proceedings since it is not the owner of the mortgage note.

The Court concluded that Plaintiff agreed that MERS had the right to foreclose on the property because such right was expressly stated in the mortgage, and was not changed by any subsequent change in ownership. Thus, the Court granted summary judgment in favor of MERS.

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