May 31st, 2011 6:58 PM by Lehel S.
MERS Impacted Foreclosures in Michigan:
On April 21, 2011, the Michigan Court of Appeals determined that MERS is not eligible to take advantage of the non-judicial statutory foreclosure process in Michigan because MERS does not own or have an interest in the indebtedness secured by the mortgage, nor is MERS the servicer agent of the mortgage, as required by the statute. Most of the major title insurance company underwriters have ceased issuing title insurance for any properties where MERS foreclosed by advertisement.
As a result, any Michigan REO properties in HUD’s inventory that cannot close due to an inability to obtain title insurance must be re-foreclosed in accordance with the Michigan Court of Appeals opinion. To facilitate this process, mortgagees should identify the affected properties within 7 business days of this notice and notify HUD’s Mortgagee Compliance Manager by email to: email@example.com after which the properties will be re-conveyed by HUD to allow the mortgagee to cure the title defect.
let's see how this will travel the country and what impact it will have