MERS has no agency – New York Bankruptcy Court: in re Agard

The following is a New York Bankruptcy motion for relief from stay ruling from February 10th, 2011

UNITED STATES BANKRUPTCY COURT

EASTERN DISTRICT OF NEW YORK

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In re:

Case No. 810-77338-reg

FERREL L. AGARD,

Chapter 7

Debtor.

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MEMORANDUM DECISION

Before the Court is a motion (the “Motion”) seeking relief from the automatic stay

pursuant to 11 U.S.C. § 362(d)(1) and (2), to foreclose on a secured interest in the Debtor’s real

property located in Westbury, New York (the “Property”). The movant is Select Portfolio

Servicing, Inc. (“Select Portfolio” or “Movant”), as servicer for U.S. Bank National Association,

as Trustee for First Franklin Mortgage Loan Trust 2006-FF12, Mortgage Pass-Through

Certificates, Series 2006-FF12 (“U.S. Bank”). The Debtor filed limited opposition to the Motion

contesting the Movant’s standing to seek relief from stay. The Debtor argues that the only

interest U.S. Bank holds in the underlying mortgage was received by way of an assignment from

the Mortgage Electronic Registration System a/k/a MERS, as a “nominee” for the original

lender. The Debtor’s argument raises a fundamental question as to whether MERS had the legal

authority to assign a valid and enforceable interest in the subject mortgage. Because U.S. Bank’s

rights can be no greater than the rights as transferred by its assignor – MERS – the Debtor argues

that the Movant, acting on behalf of U.S. Bank, has failed to establish that it holds an

enforceable right against the Property.1 The Movant’s initial response to the Debtor’s opposition was that

MERS’s authority to assign the mortgage to U.S. Bank is derived from the mortgage itself which

allegedly grants to MERS its status as both “nominee” of the mortgagee and “mortgagee of

record.” The Movant later supplemented its papers taking the position that U.S. Bank is a

creditor with standing to seek relief from stay by virtue of a judgment of foreclosure and sale

entered in its favor by the state court prior to the filing of the bankruptcy. The Movant argues

that the judgment of foreclosure is a final adjudication as to U.S. Bank’s status as a secured

creditor and therefore the Rooker-Feldman doctrine prohibits this Court from looking behind the

judgment and questioning whether U.S. Bank has proper standing before this Court by virtue of a

valid assignment of the mortgage from MERS.
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Ben Ezra Order to Show Cause Why Ben Ezra & Katz Should Not be Held in Contempt of Court on Feb 11, 2011

Ben Ezra Order to Show Cause Why Ben Ezra & Katz Should Not be Held in Contempt of Court on Feb 11, 2011

From LivingLies, which posted it from 4ClosureFraud.org …

How is this for some timing.

Last night Fannie Mae announced they are dumping this firm and today we get this…

CENTRAL MORTGAGE COMPANY,
PLAINTIFF,

VS.

EDUARDO GONZALEZ DELREAL
ETAL,
DEFENDANTS,

ORDER TO SHOW CAUSE WHY BEN-EZRA &  KATZ SHOULD NOT BE
HELD IN CONTEMPT OF COURT ON FEBRUARY 11, 2011 AT 9:00A.M.

From the order to show cause…

Counsel  for  the Plaintiff, Ben-Ezra &  Katz were properly noticed  to  appear for  hearing  on  January 21,  2011  and  failed  to  do  so.  The Court attempted to  contact Ben-Ezra &  Katz  to  address  this matter  during hearing,  but was unable  to get anyone on  the  telephone.

In  the  instant Case,  Plaintiff filed  an  action  of foreclosure  on Defendant’s property located at 1301  SW 2601 h  Terrace, Homestead, FL 33032.

Continue reading “Ben Ezra Order to Show Cause Why Ben Ezra & Katz Should Not be Held in Contempt of Court on Feb 11, 2011”