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Legal Alert - Nevada Upholds MERS in Foreclosure Proceedings

10/04/2012

by Justin R. Cochran and Robin E. Perkins
 

The Nevada Supreme Court validates the use of the Mortgage Electronic Registration System, Inc. (MERS), allowing foreclosures to proceed.  On September 27, 2012, the Nevada Supreme Court issued Edelstein v. Bank of New York Mellon, 128 Nev. Adv. Op. 48 (Sept. 27, 2012), clarifying and establishing rules affecting the transfer of real property interests.  Prior to this decision, judges in Nevada struggled with the effect of MERS as a nominee or beneficiary of a deed of trust.  This holding abolishes the repeatedly asserted claim that MERS, as a nominee or beneficiary, invalidates the security interest and prohibits foreclosure.  This landmark decision eliminates a major stumbling block faced by lenders and servicers defending wrongful foreclosure claims.
 

[Read the full alert.]