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Home | News | Foreclosure | Oregon Court Supports Non-judicial Foreclosures in Ruling
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Oregon Court Supports Non-judicial Foreclosures in Ruling

The Oregon Supreme Court ruled Thursday that ""Mortgage Electronic Registration Systems, Inc. (MERS)"": can commit certain actions on behalf of a lender when granted the authority to do so. The landmark ruling also allows for non-judicial foreclosures in the state.


The court released these decisions in its final rulings in _Niday v GMAC Mortgage, LLC_ and _Brandrup v Recontrust Company, N.A._

The court said in _Niday v GMAC Mortgage, LLC,_ ""if it can be shown that the original lenders and their successors conferred sufficient authority on MERS, to act on their behalves in the necessary respects, MERS may have the authority, as the true beneficiary's agent to hold and transfer interests in the trust deed.""


""We are confident that we have and can prove such authority,"" MERS said in response to the ruling in a ""statement"": on its website.

MERS has been the subject of many similar lawsuits across the country over the past few years.

An appeals court ruled against MERS in July in _Niday v GMAC Mortgage, LLC._ After the decision, lenders began sending foreclosures through the courts ""to avoid possible legal challenges,"" according to ""OregonLive."":

Thursday's decision reverses the appeals court's decision and allows lenders to confidently pursue non-judicial foreclosures in the state without recording every assignment of the trust deed as a result of a change in loan ownership.

In a ""joint statement,"": the ""Oregon Mortgage Bankers Association,"": the ""Oregon Bankers Association,"": and several other industry groups said, Thursday, ""We are pleased with many of the conclusions reached in the Court's opinions.""

The groups expressed their support for ""the non-judicial foreclosure process that has served Oregon well for more than 50 years, thereby minimizing unnecessary costs and burdens placed on Oregon's courts and those facing foreclosure.""

""We view today's opinions from the Oregon State Supreme Court as consistent with Mortgage Electronic Registration Systems, Inc.'s (MERS) role and authority to act on behalf of lenders in Oregon,"" MERS said in its statement.

""Ultimately this is a winning decision for the banks,"" Kelly Harpster, an Oregon attorney told ""OregonLive."":

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About Author: Krista Franks Brock

Profile photo of Krista Franks Brock
Krista Franks Brock is a regular contributor to and She previously served as managing editor of DS News magazine. Prior to joining DS News, she was managing editor of Southern Distinction, a regional lifestyle magazine based in Athens, Georgia. She is currently a freelance writer and editor for various online and print publications. She holds degrees in journalism and art from the University of Georgia, where she also earned a minor in Spanish.

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