Monday, March 19, 2012

The Downfall of MERS in WA?

Thursday marked an important date in the fight for homeowner rights and the fight against illegal foreclosures in the state of Washington.  At 9:00 am, the State Supreme Court heard arguments in the Bain v. MERS case.  If you would like, you may watch the proceedings here.

The Court is being asked to decide if MERS, when it never had possession of the promissory note, could move forward with foreclosure and in greater breadth, whether a servicer which does not have the note may move forward with a foreclosure.

A group of like minded attorneys, including myself, representing victims of foreclosure submitted additional supporting breif (amicus brief) to the court to further flesh out our position that the MERS regime as constituted harms Washington homeowners and that the process used by this company and its member banks violates Washington State real property law.

You may find an analysis of the proceeding here from the Seattle Times, but it is my opinion that the case is clouded.  States with similar deed of trust acts have fallen on both sides of the debate.  The Justices asked compelling questions that I believe make it to the heart of the issue but as most justices, they have poker faces that would be the envy of many Las Vegas natives.  I am hopeful that the analysis will fall on the side of homeowners and really the public.  Our counties have lost untold millions in revenues from the use of the MERS system which has jeopardized our schools, roads, and other public interests dependent upon the recording fees that were avoided.  Our friends and neighbors have been evicted from their homes by those that had questionable rights to the property and if the Justices find for the homeowners, then those rights are not only questionable, but down right forfeit. 

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