The Michigan Land Title Association urges title agents to work closely with their underwriter when handling REO properties or transactions sold out of REO when the foreclosure evidenced by the chain of title was done in the name of MERS. After an initial analysis, it appears that there properties will need to be re-foreclosed.
The Michigan Court of Appeals issued a ruling in Residential Funding v Saurman & BofA Messner that challenges the validity of foreclosures by advertisement done in the name of MERS. The case ruled that MERS does not have standing to institute foreclosure proceedings in Michigan because it is neither an owner or the indebtedness nor a servicing agent. As such, the court held that the foreclosure was void from the beginning.
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