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Tim Silvers
  • Las Vegas, NV
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QUIET TITLE ACTION VICTORY on 2ND MTG/HELOC but with a CATCH

Tim Silvers
  • Las Vegas, NV
Posted Jul 10 2022, 22:10

So I retained counsel to file a quiet title complaint to remove a defaulted and charged off 2nd mortgage HELOC that under state (NV) statutes was no longer enforceable (past the 10-year SOL from the date of acceleration).

The good news: we prevailed and the lien is now extinguished.

The 1st mortgage remains remains current.

The bad news (letter HERE): The 2nd lienholder we sued was MERS who took over from the original lender some years back.

The 1st mortgage is with Bank of America (BOA) and is an entirely unrelated loan. Somehow, BOA "retained legal counsel in an effort to protect the interest held in the property" and assessed over $2000 in legal fees to the 1st mortgage loan balance "per the terms outlined in your deed of trust that are considered recoverable from the borrower." This was subsequent to reaching out to BOA, making it explicitly clear to them that they made an error in that the litigation was against a mortgage that is completely separate and does not in any way affect the 1st mortgage.

My attorney is completely baffled as to how this could have happened and has no idea how to resolve since he feels BOA will rely on the language in the Deed of Trust.

Side note: Upon looking at the Deed of Trust for the first mortgage, MERS is listed as "the beneficiary under this Security Instrument".

It almost seems like MERS merged the loans under one case and charged back their legal defense fees to the remaining BOA mortgage so it cost them nothing even though there was no case directly brought against their BOA loan - only their 2nd. They did this in error and are making the borrower pay for their mistake.

Has anyone experienced this in a quiet title action against a loan on a property in which there is more than one lender?

Would appreciate any and all input.

Las Vegas, Nevada

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