MERS- Walker Case CA

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In Re: Walker, Case No. 10-21656-E-11 – Eastern District of CA bankruptcy court rules MERS has NO actionable interest in title. "Any attempt to transfer the beneficial interest of a trust deed without ownership of the underlying note is void under California law." "MERS could not, as a matter of law, have transferred the note to Citibank from the original lender, Bayrock Mortgage Corp."

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("MERS") is In mortgage foreclosure cases, the plaintiff has standing as the holder of the note and the mortgage. When MERS forecloses, MERS is the mortgagee and it is the holder of the note because a MERS officer will be in possession of the original note endorsed in blank, which makes MERS a holder of the bearer paper.

Since MERS only has an interest in the deed of trust, it lacks the power or standing to effectively transfer the debt from lender to another unless the other elements of perfecting the transfer are met. Rickie Walker filed for Chapter 11 bankruptcy in the Eastern District of California, sacramento division (case No. 2010-21656).

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In this case, Katz’s client was using this basement storage area. Although the master bedroom had a walk-in closet, the client was already using it, which meant her new spouse was storing all his.

This situation is called a "true default" because more than 30 days have passed since the petitioner (the spouse/partner that started the case) served the petition and summons, and: The respondent (the other spouse/partner) did not file a response (so he or she "defaulted"),