A Massachusetts judge has ruled that although the Mortgage Electronic Registration Systems (MERS) may have passed a promissory note through a “line of owners” like a “hot potato,” the MERS title assignment – and resulting foreclosures – still stands[1]. Bankruptcy judge Melvin Hoffman ruled that under Massachusetts law, mortgagees with “no interest in the underlying obligation to foreclose” can still foreclose on properties. A Montana judge recently ruled similarly, as did a judge in Oregon.
The rulings further complicate matters for homeowners in foreclosure who may be hoping to stall or even halt their foreclosures based on rulings by judges throughout the country stating that MERS does not have the right to foreclose or must foreclose via judicial procedure, which is much more expensive than non-judicial foreclosure and takes more time. It appears that the MERS mess will continue to fog the foreclosure market and potentially slow the foreclosure process as cases continue to be decided on an individual basis.
Do you think that there needs to be a universal ruling for MERS foreclosures, or is case-by-case the way to go?
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[1] http://www.housingwire.com/2011/07/08/massachusetts-bankruptcy-judge-other-courts-validate-mers-assignments
OF COURSE there should be a National ruling on MERS, but this is no surprise to those of us currently living (and trying to invest) in the Socialist Republic of Oregon! Even Phil Knight, (founder of NIKE), wrote an op-ed piece in the statewide newspaper decrying the anti-business climate in this state that even included a not-so-veiled threat to move his headquarters elsewhere. To those of you who do not yet know, DO NOT COME TO OREGON TO DO BUSINESS!