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Washington’s highest court rules MERS cannot foreclose on homeowners

August 18, 2012

Washington’s highest court rules MERS cannot foreclose on homeowners

Sans the protesters in Russian and ‘Putin-ology’ in regards to those seeking government reform, we have found something, somewhere that the government can do for you. It’s this: The holder of the note can foreclose on a given property, if they can prove they hold the note. Seems that a Judge in Washington State understands this: The Washington Supreme Court ruled unanimously today that the mortgage industry’s controversial document-recording system lacked authority to start out-of-court foreclosures and might have violated state consumer protection laws. The state’s highest court ruled that lenders could not foreclose on homeowners in the name of the Mortgage Electronic Registration Systems Inc. It found that MERS did not meet Washington’s definition of a beneficiary and could not foreclose on behalf of a lender that holds the mortgage note. “Simply put, if MERS does not hold the note, it is not a lawful beneficiary,” the court wrote in an opinion written by Justice Tom Chambers and released today. The Oregon Supreme Court also is considering whether MERS can be a beneficiary under Oregon law, said Rick Fernandez, an attorney in Lake Oswego whose cases are before the court. In July, the Oregon Court of Appeals ruled that lenders could not use MERS to skirt state law requiring that all mortgage sales be recorded in county offices before launching out-of-court foreclosures. Read the Full Story >>

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