"United States Bankruptcy Judge Robert Grossman has ruled that MERS's business practices are unlawful. He explicitly acknowledged that this ruling sets a precedent that has far-reaching implications for half of the mortgages in this country. MERS is dead. The banks are in big trouble. And all foreclosures should be stopped immediately while the legislative branch comes up with a solution."
I think the article overstates things but the decision is important. from the decision:
""MERS argues that notes and mortgages processed through the MERS System are never "separated" because beneficial ownership of the notes and mortgages are always held by the same entity. The Court will not address that issue in this Decision, but leaves open the issue as to whether mortgages processed through the MERS system are properly perfected and valid liens. See Carpenter v. Longan, 83 U.S. at 274 (finding that an assignment of the mortgage without the note is a nullity); Landmark Nat'l Bank v. Kesler, 216 P.3d 158, 166-67 (Kan. 2009) ("[I]n the event that a mortgage loan somehow separates interests of the note and the deed of trust, with the deed of trust lying with some independent entity, the mortgage may become unenforceable")."
Hi Roger. Thanks for this information. As you know, the WA S. Ct (Bain) has already ruled that MERS is not a legal beneficiary and cannot initiate foreclosures. Whether this bankruptcy court decision will have impacts beyond the WA court decision seems questionable. Still this is important to be aware of. It would be nice to get some guidance from some real estate foreclosure experts on all of this.
I need to apologize. It turns out this is an old case. It popped on my screen with today's date on it. I've tried to delete the original post and couldn't. Sorry all.
Roger, if you'd like to delete it, check the "Options" button menu at the top of the page, under the banner, toward the right. Or say the word and I can do it.