October 2, 2013
Southern District of California Bankruptcy Court Holds that MERS’ Role as Beneficiary Does Not Provide Protection Against Foreclosure Deficiencies
In In re Doble , BK 10-11296-MM13, 2011 WL 1465559 (Bankr. S.D. Cal. Apr. 14, 2011), the court held that MERS’ limited role as beneficiary of the deed of trust did not provide protection against foreclosure deficiencies. MERS’ role did not provide the banks with the authority to enforce the deed of trust, the ability to assign the note without an endorsement, or an exception to recordation obligation. The homeowner owned property encumbered by a deed of trust secured by a promissory note payable to Plaza Home Mortgage, Inc. The deed of trust identified Plaza as “lender” and MERS as the beneficiary.