Historically, if a loan was registered in the Mortgage Electronic Registration System (MERS), then the lender or servicer as the movant for the Motion for Relief (MFR) would bring the motion in the name of “Mortgage Electronic Registration System, Inc., as nominee for its assignees and/or successors in interest.” Homeowners and Borrowers have challenged Motions for Relief from the Automatic Stay on the basis that MERS is not the proper party to pursue a MFR based on lack of standing. This issue has not only sparked debate in bankruptcy courts but also in the foreclosure arena, in which attorneys across the country have questioned MERS’s capability of serving as a foreclosure beneficiary.
MERS recently released Policy Bulletin-Number 2011-5 which reiterates that no Proof of Claim or Motion for Relief from Stay in a bankruptcy may be filed, in the name of MERS. The Bulletin further indicates that the assignment of the Security Instrument from MERS must be executed before initiating legal proceedings. Please contact the attorneys at Trejo Law Corporation if you have further questions about this.
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