Edelstein v. Bank of New York Mellon

In this appeal, which arose out of Nevada's Foreclosure Mediation Program (FMP), the Supreme Court examined the note-holder and beneficial-interest status of a party seeking to foreclose. The Court concluded (1) to participate in the FMP and ultimately obtain an FMP certificate to proceed with the nonjudicial foreclosure of an owner-occupied residence, the party seeking to foreclose must demonstrate that it is both the beneficiary of the deed of trust and the current holder of the promissory note; (2) when the Mortgage Electronic Registration System, Inc. (MERS) is the named beneficiary of the deed of trust and a different entity holds the promissory note, the note and deed of trust are split, making nonjudicial foreclosure by either improper, but any split is cured when the promissory note and deed of trust are reunified; and (3) because the foreclosing bank in this case became both the holder of the promissory note and the beneficiary of the deed of trust, it had standing to proceed through the FMP. View "Edelstein v. Bank of New York Mellon" on Justia Law