Standing in Our Own Sunshine: Reconsidering Standing, Transparency, and Accuracy in Foreclosures

Dustin A. Zacks

King, Nieves & Zacks PLLC

September 5, 2011

Quinnipiac Law Review, Vol. 29, No. 3, p. 551, 2011

This Article provides a critical analysis of the involvement of Mortgage Electronic Registration Systems, Inc. (“MERS”) in the mortgage foreclosure process. As an ambiguous pseudo-agent of lenders, MERS currently appears in thousands of foreclosures and bankruptcies, either as the foreclosing entity or as a party seeking to lift an automatic bankruptcy stay. MERS also participates in such actions through assignments of mortgage that purport to assign MERS’s rights to the foreclosing or moving party. Judicial treatment of MERS, however, has not been uniform across jurisdictions. The widespread use of MERS mortgages and the resulting inconsistent judicial treatment has had significant implications for mortgagors and the foreclosure process. In particular, MERS implicates substantial transparency, accuracy, and anti-democratic concerns. This has led some to call for a legislative ban of MERS. However, this path fails to recognize the benefits currently provided by MERS, such as its publicly available, easy to access, online database that reveals what company is servicing a debtor’s loan. This Article argues that strengthening MERS, such as allowing it to electronically store and index actual documents, combined with providing for efficient regulatory oversight of the records’ accuracy, could actually provide a foundation for a more convenient, cost-effective, and accurate alternative national public recording system that addresses current systematic weaknesses.

Number of Pages in PDF File: 60

Keywords: Mortgage Electronic Registration Systems, MERS, Foreclosure, Bankruptcy, Real estate, Housing, Mortgage, Uniform Commercial Code, UCC

Open PDF in Browser Download This Paper

Date posted: November 13, 2011  

Suggested Citation

Zacks, Dustin A., Standing in Our Own Sunshine: Reconsidering Standing, Transparency, and Accuracy in Foreclosures (September 5, 2011). Quinnipiac Law Review, Vol. 29, No. 3, p. 551, 2011. Available at SSRN: http://ssrn.com/abstract=1958645

Contact Information

Dustin A. Zacks (Contact Author)
King, Nieves & Zacks PLLC ( email )
West Palm Beach, FL
United States
HOME PAGE: http://www.knzlaw.com
Feedback to SSRN

Paper statistics
Abstract Views: 1,017
Downloads: 198
Download Rank: 115,121

© 2016 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollobot1 in 0.219 seconds