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NY court holds that MERS cannot bring foreclosure actions

June 24th, 2011 by Joseph William Singer

An appellate court in New York has held that MERS (Mortgage Electronic Registration Systems) cannot file foreclosure lawsuits in its own name because it does not “own” the mortgage, having neither the right to payment under the note nor the right to foreclose. Bank of N.Y. v. Silverberg, 2011 WL 2279723 (N.Y. App. Div. 2011). Despite the fact that the parties put MERS’s name on the mortgage, it is not the real party in interest, having no right to payment under the note

Posted in Mortgages, Real estate transactions, Statute of frauds | Comments Off on NY court holds that MERS cannot bring foreclosure actions

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