The Nevada Supreme Court voted 7-0 to uphold the role of MERS (Mortgage Electronic Registration System Inc.) in the foreclosure process. MERS is an industry database that was designed, according to William Uffelman, president of the Nevada Bankers Association, to “bring loan recording into the 21st century.”
Consumer advocacy groups had argued that the involvement of MERS in the foreclosure process made it impossible for delinquent homeowners to face an actual lender. Had the involvement of MERS been ruled unlawful, banks would have faced a much more difficult path through the foreclosure process.
Jacob Hafter, an attorney for a homeowner suing MERS, believes that the Nevada court "has cleared a path to begin foreclosing in a mass effort." That might not be such a bad thing. Foreclosures have dwindled to a mere trickle since AB 284 was passed late last year. The result has been extremely light inventory and the creation of what some fear will be yet another artificial rise in home prices here in Las Vegas.
It remains to be seen how much effect this ruling will actually have on the number of foreclosures processed in Las Vegas. It is also unclear whether banks would begin to liquidate foreclosures individually, on the open market, as they have in the past, or through larger, bulk packages of properties, as seems to be the current trend. Either way, Team Plantone is poised to help our investors purchase these new foreclosures. We are very familiar with the traditional trustees’ sale method of liquidation and we have also positioned ourselves to give our clients access to larger, bulk packages of REOs as they come available.
A Loan Modification is a change to the terms of your mortgage in order to cure a delinquency and avoid foreclosure.
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