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Metro Detroit real estate expert, Al Block, provides editorial, statistics, real estate listings, and useful community information to SE Michigan consumers--the Tri-County area population centers of Macomb, Oakland, and Wayne Countes and the surrounding area. Al Block, abr,gri,sres,qsc is a real estate industry veteran serving the industry since 1987. He is a Realtor for RE/MAX First, a limited licensed Appraiser and owner of Block Appraisal Service, and also an expert in real estate finance. Contact him at 1-800-SOLD-678

Thousand of title problems with bank owned properties (a must see video and read).

Watch this video after reading below (fast forward to 3 min. mark) 

This case involves a term you may have heard called "robo-signing".  MERS (Mortgage Electronic Registration System) is a vital system in the world of mortgage financing and serves as an electronic registry designed to track servicing rights and ownership of mortgage loans in the United States.  MERS maintains that its process eliminates the need to file assignments in the county land records which lowers costs for lenders and consumers by reducing county recording fee expenses resulting from real estate transfers and provides a central source of information and tracking for mortgage loans. MERS' role in facilitating mortgage trading was relatively uncontroversial in its early days a decade ago but continued fallout from the subprime mortgage crisis has put MERS at the center of several legal challenges disputing the company's right to initiate foreclosures.

A Michigan Court of Appeals decision in Residential Funding vs. Saurmer (the "MERS case") has voided thousands of foreclosures resulting in Banks, HUD, and other lenders pulling thousands of REO properties off the market because of improper foreclosures.  This has caused the cancellation of hundreds of closings in the past two weeks.  The MERS case does have <span><span>act fast- </span>the distressed properties will be coming back on the market in September or sooner!</span><span><span>a silver lining,  </span>however, as it has created an opportunity for savvy agents and homeowners to sell privately owned properties with less competition. Because of the MERS case, thousands of distressed, cut price Bank inventory will be off the market for at least four months while lenders go through the entire foreclosure procedure all over again. These properties will miss the </span>

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<span>Short Sellers can also benefit from the MERS case, If they are already deep into the foreclosure process, their Lender has to go back to square one on their foreclosure, This will give the Short seller additional leverage in their negotiation, as the Lender faces an additional 9 to 21 month delay in foreclosing on the property.</span>

Published Saturday, May 14, 2011 9:06 AM by Al Block

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