This seems to be a very low end decision by a very local court, with lots of room for appeals. It may yet be overturned. And it’s based on a legal trick. The title still exists, MERS knows where it is and who the current beneficiaries of the mortgage are, MERS is recorded as a beneficiary under the deed of trust, but the attorney managed to convince the judge that MERS does not have to be notified, because it’s not a “real” beneficiary. (A very similar argument was rejected by the U.S. District Court in Arizona, in Olga Cervantes et. al. vs. Countrywide Home Loans et. al.)