Beaufort County filed a lawsuit this week against the Mortgage Electronic Registration Systems Inc.
The county is the first in South Carolina to file a lawsuit against MERS and the filing is one of many nationwide, according to the county. MERS Inc. is a registry database, whose members are large banks.
The filing claims that MERS records mortgages in the name of MERS rather than name of the actual lender or owner, which renders the records kept by the county as inaccurate and unreliable.
"These activities have caused massive confusion and has made many of the Beaufort County Register of Deeds recording systems inaccurate and unreliable", said County Attorney Josh Gruber in a statement.
The county is asking the court to: prohibit MERS and member banks from filing fraudulent documents and correct fraudulent documents at Beaufort County Register of Deeds office, according to a news release.
Beaufort County is seeking remediation of its public records, if possible, or compensatory, consequential and punitive damages in the case.