Wednesday, May 16, 2012
Alabama lawsuits challenge MERS
A national company’s mortgage registration system makes it difficult to track property title ownership and allows it to avoid paying county record fees, according to lawsuits filed by two Alabama counties in recent months.
The cases filed by the Walker County Commission and Barbour County’s probate judge are among a number of lawsuits filed by counties and homeowners nationwide challenging the legality of the Mortgage Electronic Registration Systems Inc.’s system, known as MERS.
The company has won a number of those court challenges and other decisions are pending. Walker County filed its lawsuit, which seeks to be certified as a class action complaint on behalf of all Alabama counties, against the company and its parent company, Reston, Va.based MERS Corp, in April. The case was transferred to federal court in Birmingham last week. The Barbour County case was filed in November.