The Oregon Court of Appeals rules in a case affecting lenders who use a mortgage registration system

by AP, for
Monday, July 23rd, 2012

The Oregon Court of Appeals ruled Wednesday that lenders using an electronic system to rapidly package and sell mortgages must go through the courts to begin foreclosure proceedings.

The ruling issued by a three-judge panel of the court said creditors that use Mortgage Electronic Registration Systems instead of publicly recording the ownership history of a trust deed cannot take advantage of a foreclosure process outside the court system.

To foreclose on a property without judicial involvement, lenders must file with county authorities a full history of who has owned a loan.