10th Circuit Court of Appeals rules MERS has right to foreclose

FOR IMMEDIATE RELEASE

CONTACTS:
Janis L. Smith
Phone: 703-738-0230
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Karmela Lejarde
Phone: 703-761-1274
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Reston, Virginia, December 30, 2011—A three-judge panel of the U.S. Tenth Circuit Court of Appeals in Denver, Colo. unanimously ruled in favor of Mortgage Electronic Registration Systems, Inc. (MERS) in pdf Commonwealth Property Advocates v. MERS (85 KB) . The case was consolidated with two others that were on appeal involving MERS deeds of trust.

“As the district court said, ‘By the clear language of the deeds of trust, MERS has the authority to foreclose and sell the property on behalf of both the original lender and the ‘lender’s successors’,” wrote U.S. Circuit Judge Bobby Baldock for the court. The judges rejected all of the plaintiff’s arguments that MERS lacked the authority under state law to foreclose, noting that the Utah Court of Appeals had previously decided this issue and found that MERS has the ability to foreclose and act as the beneficiary on a Utah deed of trust. The court also noted that the Utah Supreme Court declined to review the Utah Court of Appeals case.

“The 10th Circuit has ruled unequivocally that as beneficiary on deeds of trust, MERS has the authority to foreclose and sell the property on behalf of the note owner,” said Janis L. Smith, MERSCORP’s Vice President of Corporate Communications. “Similar to the 9th Circuit in pdf Cervantes v. Countrywide Cervantes v. Countrywide (99 KB) , the 4th Circuit in pdf Horvath v. Bank of New York (78 KB) , and the 1st Circuit in pdf Kiah v. Aurora (100 KB) , another federal appellate court has upheld MERS’ ability to hold mortgages and deeds of trust.”

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