Editor: David Reiss
Brooklyn Law School

July 30, 2013

Nevada Court Finds MERS Lacked Standing to Bring Foreclosure Action as it Failed to Establish Itself as a Real Party in Interest and Failed to Provide Sufficient Evidence of it Authority

By Ebube Okoli

In MERS v. Chong, No. 09-661 (D. Nev. 2011) the court affirmed the order from the bankruptcy court holding that MERS lacked standing to bring an action. In the underlying bankruptcy action, MERS filed its motion for relief from stay, seeking to have the automatic stay lifted so that MERS could conduct a non-judicial foreclosure sale.

The court affirmed the bankruptcy court’s determination that MERS was not a beneficiary as MERS failed to present sufficient evidence showing it was a real party in interest. The court found that MERS might have had standing to prosecute the motion in the name of its members as a nominee.

However, in this case there was no evidence that the named nominee was entitled to enforce the note or that MERS was the agent of the note’s holder. As such the court found that MERS lacked standing.

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