Rhode Island Superior Court Rejects Wrongful Foreclosure Claim

08/01/2013BY: ESTHER CHO Printer Friendly View

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In Rhode Island, a superior court dismissed an attempt to invalidate a foreclosure conducted by OneWest Bank,MERSCORP Holdings, Inc. announced in a release.

The plaintiff in Akalarian v. RBMG, Inc., et al challenged the authority of MERS to act as a mortgagee and nominee of the lender and to assign the mortgage.

In the case, the borrower first received a notice of default, but failed to cure the account. OneWest then proceeded with a foreclosure sale, which the borrower argued was invalid since the foreclosure sale was conducted by MERS’ assignee, OneWest.

In the ruling, Superior Court Associate Justice Allen P. Rubine stated the “issue has been conclusively resolved by the recent Rhode Island Supreme Court decision in Bucci v. Lehman Bros. Bank, FSB wherein the Court affirmed MERS’ authority to act as a mortgagee and as nominee of the lender pursuant to a mortgage contract and to exercise the statutory power of sale granted to MERS under that contract.”

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