Michigan Supreme Court Approves MERS Foreclosures

Posted on November 17, 2011 by Fred Rivera

In a 4-3 decision, the Michigan Supreme Court approved non-judicial foreclosures instituted in the state by Mortgage Electronic Registration Systems (MERS).  The high court's order overturns an April 2011 lower court decision that determined MERS could not use the state's non-judicial foreclosure mechanism because it had no real interest in the underlying debt.

In the written decision, the Michigan Supreme Court stated that the lower court ruling "is inconsistent with established legal principles governing Michigan's real property law, and specifically foreclosure by advertising."  It continued that the Michigan Legislature did not create "a new legal framework in which an undisputed record holder of a mortgage, such as MERS, no longer possesses the statutory authority to foreclose."

MERSCorp's president and CEO Bill Beckmann stated that the ruling "affirms MERS' business model and will allow the Michigan real estate industry to get back to business and usual."   

Read more at Bloomberg Businessweek: MERS Wins Appeal of Decision Limiting Michigan Foreclosures and Housingwire.com:  Michigan Supreme Court gives green light to MERS

Read the Michigan Supreme Court Order here.

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