MERS is folding up its tent as far as foreclosing in its own name, or filing pleadings in bankruptcy court in its own name, as it told is clients they have to get an, and then file stuff in their own name.
No more MERS foreclosures in Michigan.
Our Michigan court of appeals probably influenced its decision, holding that MERS could not foreclose in Michigan by publication.
Even this is not good enough for Abigail Field of the Foreclosure Fraud site, who wants MERS outlawed.
I yield to no one in anti-MERS sentiment, but am philosophically opposed to just outlawing stuff I think, even know, is bad.
Not good precedent.
I believe there are enough laws on the books against fraud, civil and criminal. They just need to be enforced.
The government runs all criminal prosecutions, so all we can do there is harp on our elected officials.
At least the Michigan attorney general is investigating at mortgage fraud issues.
MERS Assignments Valid?
But this does not end the issue of the validity of foreclosures with MERS in the chain of title.
If MERS cannot foreclose in Michigan (by publication), how can the company it assigns its rights to foreclose?
How can it assign greater rights than it holds?
Put another way, if you do not own a car, you cannot sell it to me.
Now, if you transfer your interest in the car to Joe Blow, how can Joe Blow sell me the car? He does not own it either.
So MERS new policy is not dispositive of the underlying issue: what interest does/did MERS hold in a home being foreclosed?
And title to homes in which MERS already foreclosed is still clouded, as we say in the legal biz.
Many of those homes are going through the foreclosure process AGAIN, just to make the title companies happy.
image credit: bleacher report.com