Topeka KS | Court ruled unanimously that Mortgage Electronic Registration Systems MERS had no standing to bring action in a foreclosure case

http://www2.ljworld.com/news/2009/sep/24/statehouse-live-parkinson-owns-kpers-error/

September 24, 2009, 9:02 a.m. Updated September 24, 2009, 1:53 p.m.

Topeka — 1:55 p.m.

Some are touting a recent Kansas Supreme Court decision as a major development in the protection of people facing foreclosures.

In Landmark National Bank v. Kesler, the court ruled unanimously that Mortgage Electronic Registration Systems had no standing to bring action in a foreclosure case.

According to some reports MERS holds some 60 million mortgages, over half of all new U.S. mortgages.

While the case applies only to Kansas, folks who defend homeowners are saying courts in other states could take note of the ruling.

The decision was handed down Aug. 28 and involved a case out of Ford County where a property was foreclosed and sold at auction.

In the complex proceeding, Landmark National Bank was the first lienholder, while MERS claimed to be the second mortgage holder. But the state Supreme Court ruled unanimously that MERS was not legally the owner of the loan. MERS has filed a motion for reconsideration.

The case opinion can be accessed at http://www.kscourts.org/Cases-and-Opinions/opinions/supct/2009/20090828/98489.htm