I-Team: Nevada Supreme Court Case Could Impact Homeowners

LAS VEGAS — A case before the Nevada State Supreme Court next week could have far-reaching impact on Nevadans struggling to stay in their homes. Among the issues before the justices is what proof lenders must provide to show they own the property they seek to foreclose.

This is the first time the state supreme court will consider issues related to the use of MERS, the Mortgage Electronic Registration System. During the housing boom, banks created MERS to serve as the mortgagee of record for lenders which allowed properties to change hands without publicly recording each transfer.

But in order to foreclose, banks must be able to establish the chain of title on a property and often use MERS which has no financial interest in the loan to show ownership. Whether that is legal is among the questions before the court.

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