Editor: David Reiss
Brooklyn Law School

March 20, 2013

Washington District Court Holds that if MERS has a Beneficial Interest, the Designee can Initiate Foreclosure

By Gloria Liu

In Daddabbo et al v. Countrywide Home Loans, No. C09‐1417‐RAJ, 2010 WL 2102485 (W.D. Wash. May 20, 2010), the court found that MERS had a beneficial interest in the note that the deed of trust secures. The court rejected the contention that MERS has no beneficial interest in the note, and that Recontrust therefore has no power as MERS’s designee to initiate a foreclosure action. The court found that the deed of trust, of which the court takes judicial notice, explicitly names MERS as a beneficiary.  Since the deed of trust grants MERS not only legal title to the interests created in the trust, but the authorization of the lender and any of its successors to take any action to protect those interests, including the right to foreclose and sell the Property, the court found that Recontrust had standing to foreclose.

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