“MERS is suing MERS because it is named on both the Harvey and Sedgwick deeds of trust… 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.”
Bankers’ mortgage system survives legal storm in Utah
Property records » But lawsuit that catches couple shows gaps it leaves behind.
It says something about the ubiquity of the alternative mortgage registration system created by the nation’s bankers that it is now suing itself in a Utah lawsuit.
But even without that anomaly, the lawsuit is a bizarre confluence of factors that has caught a Draper couple in a situation where they bought a home based on a clean title report only to now be in court fighting to ensure the transaction was legitimate.
The case demonstrates both how much the Mortgage Electronic Registration Systems Inc. bankers created in the mid-1990s has invaded the state’s traditional property registration system and how it also left cracks along the way.
And while MERS has beaten back a flood of lawsuits in Utah challenging its legality, it faces serious legal actions in other states over its usurping of traditional real estate recording practices.
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.