Saturday, May 26, 2012

MERS vs MERS | Couple Buys Home Based On a Clean Title Report Then Sued by MERS, AHMSI, Deutsche Bank to Reinstate Lien on Previous Owner to Foreclose

A clear title? » Draper townhouse owners Garrett and Sarah Sedgwick have been drawn into the case that previously received national media exposure because the former owner managed to gain title free and clear through state court even though he owed $136,000 on a mortgage.

Now, that case has been reopened with MERS and a loan servicer for Deutsche Bank contending the homeowner, Scott Aedan Harvey, and attorney Walter T. Keane, failed to follow standard legal procedures in obtaining the ruling that gave Harvey a title to the property, after which he stopped making mortgage payments.

Loan servicer American Home Mortgage Servicing Inc. and MERS have gotten a judge to overturn the quiet title action and are suing Harvey, the Sedgwicks, their lender FPF Wholesale, servicer Wells Fargo Bank, Equity Title and MERS itself in order to reinstate its lien and foreclose so it can collect on Harvey’s mortgage default.

MERS is suing MERS because it is named on both the Harvey and Sedgwick deeds of trust, the recording of which secures a lender’s interest in a property. Since its inception, MERS has grown to become listed on most deeds of trust in Salt Lake County as the beneficiary or the loan owner and the agent of the new owners as mortgages are sold and repackaged into investment bundles.

Because it held that position on both the Harvey and Sedgwicks’ deeds of trust, it had to name itself as a defendant in the same suit in which it tries to undo the effects of the earlier court decision.

While now listed on most deeds of trust, it wasn’t long ago that MERS did not even exist.

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