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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