FORECLOSURES
Mortgage Electronic Registration Systems, Inc. (“MERS”) is a
proper party that can lawfully foreclose as the mortgagee and
note-holder of a mortgage loan. MERS
Membership Rule 8provides required guidelines that must be followed when
MERS is the foreclosing entity. Please
click here to access
the Rules of Membership, and reference the Rule 8 requirements.
In mortgage foreclosure cases, the plaintiff has standing as the
holder of the note and the mortgage. When MERS forecloses,
MERS is the mortgagee and it is the holder of the note
because a MERS officer will be in possession of the
original note endorsed in blank, which makes MERS a holder
of the bearer paper. MERS will not foreclose unless the note is
endorsed in blank and held by MERS.
The MERS
Legal Primer provides a sampling of cases
that address the standing of MERS to foreclose its mortgages.
These cases are not meant to be an exhaustive list involving
MERS but are merely to serve as a primer for the legal arguments.
BANKRUPTCY
MERS may file Motions for Relief from Stay and Proofs of
Claim related to mortgages that it holds. Each MERS member,
through its duly appointed MERS officer(s), is responsible to
ensure that pleadings on behalf of MERS in bankruptcy court
properly describe MERS. The MERSofficer(s) must also ensure
that all necessary proof is attached to the pleadings to show MERS
has standing at the time the pleading is filed.
Please
click here to reference MERS requirements.
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