Kansas Supreme Court Decision on MERS and Foreclosure Standing

[LUEser]

This really needs more visibility. If you're facing foreclosure and have sought counsel, show this case to your lawyer if he's not already familiar with it.

In essence, the Judge concluded that MERS, the system, has no standing to foreclose. And that assignments through MERS may be deemed invalid.

Since the note holder in due course is separated form the deed of trust/mortgage instrument, the mortgage itself may be unenforceable in some cases.

Liberally construed this case could be the precursor to some serious litigation regarding securitized mortgages and the borrower's responsibility toward them.

You can find the full text here:

Kansas Supreme Court MERS Opinion

Hope this helps someone out there.

[trueq]

foreclosure defense strategy is gaining near critical mass court support!

[2ndTimeAround]

This really needs more visibility. If you're facing foreclosure and have sought counsel, show this case to your lawyer if he's not already familiar with it.

In essence, the Judge concluded that MERS, the system, has no standing to foreclose. And that assignments through MERS may be deemed invalid.

Since the note holder in due course is separated form the deed of trust/mortgage instrument, the mortgage itself may be unenforceable in some cases.

Liberally construed this case could be the precursor to some serious litigation regarding securitized mortgages and the borrower's responsibility toward them.

You can find the full text here:

Kansas Supreme Court MERS Opinion

Hope this helps someone out there.

Interesting POST

Have seen something similar - a home was built on property that was later proved to be owned by somebody else other than the seller. The lender and the homer owner both lost rights to the property. If the homeowner would of had title insurance, they would of kept the property or at least being repaid for the equity they had in the property.. That is the purpose of title insurance, to make sure there were no previous liens on the property before the sale.

The statement - "the statutory recording system is grounded in seventeenth-century property law that is entirely unsuited to twentieth-century financial transactions.".

Agree - the ways properties are recorded and Zoning laws are different (outdated) from county to county in every state across the country. We need a universal method so everyone is doing the same thing......