Navigating Non-Judicial Foreclosures After Bain v. Metropolitan Mortgage Group, Inc., et al.

In August, the Washington State Supreme Court weighed in on the role of Mortgage Electronic Registration Systems, Inc. (“MERS”) in Washington’s non-judicial foreclosure process, holding that MERS does not meet the definition of “beneficiary” in Washington’s Deed of Trust Act (“DTA”) RCW 61.24.005(2), because it does not hold promissory notes evidencing residential mortgage loans. Bain v. Metro. Mortg. Group, Inc., et al., 175 Wn.2d 83, 285 P.3d 34 (2012). (In addition to MERS, Bain may have ramifications for servicers or agents initiating non-judicial foreclosures in Washington.) The result is that lenders must remain in the driver’s seat with regard to non-judicial foreclosures or risk invalidating efforts to realize upon real-property collateral.

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Navigating Non-Judicial Foreclosures