Tuesday, May 17, 2011

Unwitting Homebuyer Of MERS-Related REO Told "Don't Move In, There's A Problem!" As 'Crappy-Title Clouds' Darken Over F'closd Houses Thru-Out Michigan

In Three Rivers, Michigan, WWMT-TV Channel 3 reports:

  • A foreclosure mess is putting people's status as homeowners in question. It has to do with a recent Michigan Appeals Court ruling that calls into question thousands of foreclosures. The court says a company called Mortgage Electronic Registration Systems didn't have the right to initiate foreclosures. That company keeps mortgage records.

  • Now, some people who bought foreclosed homes, or homes in the process of foreclosure, are finding themselves in limbo.

  • “It's hard to find a replacement for the perfect house,” said Bob Van Zalen. Van Zalen says he'd found the perfect home, a foreclosed home near Three Rivers. Van Zalen closed on it a few weeks ago. “It was typical closing, flawless,” said Van Zalen. “Title company was there, bank was there, realtor was there.” Van Zalen got the keys and an hour later his moving crew and rental truck were ready to go.

  • “Standing in line at the rental place, phone rang,” said Van Zalen. “Realtor said 'don't move in there, there is a problem.'” Van Zalen had already gotten the utilities turned on, and even had to rush to the house to stop the cable company from installing service.

  • Three weeks later, and Van Zalen still can't move in. Big questions are being raised about the sale of foreclosed homes related to MERS, the mortgage record company accused of fraudulent practices. Until the mess is sorted out, Van Zalen is in limbo even though he has the keys and is packed and ready to move in. “I have signed documents saying I am the owner,” said Van Zalen.

  • “What if I find another house, then this gets straightened out, then I have two homes.” The foreclosure mess is something that the registrar of deeds offices across the State of Michigan and the rest of the country are dealing with.(1)

Source: Foreclosure mess puts homeowners in limbo.

In a related story, see The Battle Creek Inquirer: Michigan appeals court ruling could erase thousands of foreclosures:

  • Debbie Barnett, the owner of the East Lansing real estate company Tomie Raines Inc., said the company already has halted one sale of a MERS-foreclosed home.

  • Not only have people lost their homes under a process the Court of Appeals declared illegal, said Curtis Hertel Jr., the county register of deeds, but "we also have people who have legitimately bought those homes and now are going to have problems insuring the title in the future when they go to sell the property."

In a related post, see Michigan To Join Massachusetts As Real Estate Resale Market Quagmire After Recent State Appeals Court 'Anti-MERS' Ruling?

(1) For more on the crappy title problem in connection with improperly foreclosed homes, see

Posted by Home Equity Theft Reporter at 12:09 AM

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)