Quiet Title Judgments and How MERS Efforts to Vacate One Expose MERS Violations

MERS is seeking to vacate a default quiet title judgment in a California lawsuit, by suing as a plaintiff on the basis that they were never properly served the lawsuit in which they were named as a defendant. Borrowers in California are increasingly using default quiet title judgments as a litigation tool, and we will discuss this process on the Show today.

In this particular case, in which MERS seeks to vacate the judgment, MERS is claiming a lack of proper service. Bill has exposed already in this case, through the discovery process, that MERS is not able even to demonstrate that they meet the minimum agency requirements of their own Membership Agreements.

An interesting wrinkle to this situaution is that it exposes the court bias often seen for institutional foreclosure litigants, in which same litigants are able to get the benefit of the doubt when it comes to the application of service rules in foreclosure-related lawsuits.