Editor: David Reiss
Brooklyn Law School

February 8, 2013

Minnesota Court of Appeals holds that MERS has Standing to Foreclose By Advertisement

By Gloria Liu

In In re Sina, No. A06-200, 2006 WL 2729544 (MN. Ct. App. 2006), the Court of Appeals of Minnesota held that MERS had standing to foreclose when it held legal title to a mortgage and was acting as nominee for the holder of the note. Candice Sina, the appellant, had executed a mortgage on the property in favor of Maribella.  Maribella then executed an assignment of mortgage in favor of MERS.  After Sina defaulted on her mortgage payment, MERS recorded the assignment and commenced foreclosure proceedings. Although the record showed that a secondary broker serviced the mortgage, the assignment of mortgage was recorded in MERS’s name and by agreement, MERS retained the power to foreclose the mortgage in its name. Therefore, they had standing to foreclose the property by advertisement.

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