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The Michigan Messenger going forward

By Staff Report | 11.16.11

I am writing today to announce the closure of the Michigan Messenger. After four years of operation in Michigan, the board of the American Independent News Network, has decided to shift publication of its news into a single site, The American Independent at Americanindependent.com. This is part of a shift in strategy, towards new forms [...]

Colorado-based abstinence program provided false and misleading information to Michigan students

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By Todd A. Heywood | 11.16.11

An abstinence-only presentation provided to numerous school districts in Calhoun and Eaton Counties in October of this year provided false and misleading information to students about HIV, experts allege.

Class action lawsuit filed against MERS over unpaid taxes

foreclosure
By Todd A. Heywood | 11.15.11

Two county registers of deeds filed a class action lawsuit Monday on behalf of Michigan’s 83 counties alleging that the Mortgage Electronic Registration Services owes millions of dollars in property title transfer taxes.

Schuette fights important mercury regulations

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By Eartha Jane Melzer | 11.14.11

Despite evidence of the impact of mercury on children and public health, Michigan Attorney General Bill Schuette last month joined with 24 other state attorneys general in filing a lawsuit to scuttle new EPA regulations that would reduce mercury emissions from power plants.

foreclosure signs

Ingham County to fund attorney to help with foreclosures

Register of Deeds finds more than 100 cases of fraud
By Todd A. Heywood | 06.08.11 | 8:33 am

A committee of the Ingham County Board of Commissioners unanimously approved a plan to fund an attorney that will be dedicated to helping homeowners battle the growing number of foreclosures based on faulty documents.

In a meeting Tuesday night, the General Services Committee of the Board approved a contract worth up to $60,000 for Legal Services of South Central Michigan. That money will be used to pay an attorney full time to work with county residents caught up in the burgeoning cases of foreclosures based on bad documents.

Those documents have been identified as robo-signed documents from the now defunct company Docx in Georgia. Curtis Hertel, Jr, the county’s register of deeds, discovered the documents after seeing a 60 Minutes report on the company. Those documents, which Hertel says number more than 100, have been referred to both the Michigan Attorney General’s Office and the FBI. In addition, other questionable documents have been found, and Hertel says investigations into the documents are ongoing.

In related news a judge in Washtenaw County ruled on Tuesday that foreclosures involving any title exchanges controlled by Michigan Electronic Recording Systems, Inc. (MERS) were improper. That ruling could void thousands and thousands of foreclosures in the state because it is likely the bank or mortgage company had no legal right to foreclose on the property.

Michigan law requires each mortgage assignment — which means company A sells the mortgage to company B — to be registered with the country register of deeds office. MERS marketed itself as a company that would keep track of the transfers, without all the fees associated with filing assignments. Many of the mortgages were sold over and over again, but the judge ruled that MERS had failed to keep an accurate accounting of the assignments.

In short, no one knew who exactly owned the mortgage, and thus had the right to foreclose. Hertel said his office was contacting those homeowners who were affected by the fraudulent foreclosures.

“In all honesty, this is not just right for the people, it is right for the taxpayers,” Hertel said.

The ultimate goal, Hertel said of the proposal, was to force banks and lenders to the table to work out a new deal on the mortgage to keep the home owner in their home.

Hertel also announced he would be holding public meetings about the foreclosure crisis and the new program through the non-profit legal group in various Ingham county locations.

General Services Committee Chair Debbie DeLeon praised the move by Hertel.

“I am very proud of the fact that we have a register of deeds that is taking such a leading role where no one has led before,” DeLeon said after the meeting. “This is going to save people’s homes. It will be like a miracle.”

The entire County Commission will take up the resolution on Tuesday and is expected to approve it.

Comments

  • http://www.facebook.com/people/Steve-Dibert/100000856504338 Steve Dibert

    Todd, good article but you’re over simplifying the ruling. What the judge said was that they violated the Pooling and Servicing Agreement that governed this Mortgage Pool or Trust because they didn’t record it in the Washtenaw County Register of Deeds prior to the cutoff date that is stipulated in the PSA.  The assignment was recorded in the Register of Deeds but was done over a year after the cutoff date.  The judge also claimed that they violated NY Banking Law (which governs this PSA) by violating the terms of the PSA.  That is why he nullified the assignment.  He did say the originating lender, First Franklin could still come back and initiate a foreclosure action.

  • http://pulse.yahoo.com/_SUBVKBLJO5RW232C46YMIJYQA4 bro mqt

    the originating lender could initiate foreclosure- however the originating lender SOLD that mortgage to someone else, who sold it to someone else on and on-  so the originating lender has NO legal or financial obligation to initiate foreclosure on a property they no longer have ANY financial lien or claim against… succeeding purchasers of the fraudulent mortgage securities DO have claims against originator, but that would just be a FINANCIAL claim not a secured mortgage claim against the property itself-  trying to initiate lawsuit against all possible holders of the chain of the lien sounds near nigh impossible.

  • Anonymous

    Please supply us with the number of people who honered their mortgage commitment…paid bills…that were foreclosed on illegally.

    The basic idea is NO PAY…NO STAY!!!

    • http://twitter.com/chitown2020 Linda Venturella

      Sorry, when they bundled up good loans and bad they caused all loans in that pool to fail. THAT WAS DECEPTIVE PRACTICES PROSECUTABLE UNDER RICO. They committed massive fraud when they set people up to fail by bundling and rating those loans AAA when they were not. They also sold unsecure notes as security instruments which is securities fraud Prosecutable under RICO. Any fraud in the contract is a nullity of the mortgage. Homeowners have been victimized by a massive Ponzi Scheme by WALL STREET AND THE GSE’s and the U.S GOVERNMENT MUST MAKE THEM PAY. OUR HOMES ARE PAYED FOR BECAUSE OF THEIR PONZI SCHEME AND THEY ARE WHO IS IN DISHONOR. UCC CODE ALLOWS A BORROWER TO DISCONTINUE PAYING WITHOUT DISHONOR UNTIL THE “LENDER” CAN PROVE THEY ARE OWED THE MONEY.  THEY DESTROYED THE NOTES TO COVER UP THEIR PONZI SCHEME. THEY NEVER PERFECTED THEIR COLLATERAL LIEN AT ORIGINATION. AMONG OTHER CRIMES OF INTENTIONAL DECEPTION, THEY LOST TRACK OF WHO OWNS THE LOAN AND THAT IS A NULLITY.

  • http://twitter.com/chitown2020 Linda Venturella

    Selling a note, without a mortgage is a nulllity.  They invested in the money flow, not the property. 40 million mortgages are not legally forecloseable because  not only did they never perfect the collateral lien at origination at the recorder of deeds BY NOT ASSIGNING THE MORTGAGE TO THE DEED,  and therefore sold unsecure instruments, they also bifurcated the mortgage and the note when they sold unsecure notes which is not only a nullity it is a federal crime…If their is a defect in your title. That means someone committed fraud in your name and they have no right to take your home or property. THERE IS SLANDER ON MILLIONS OF TITLES.THE PONZI SCHEMERS DESTROYED LAND RECORDS TO MILLIONS OF HOMES AND SHOULD BE FORCED TO RESCIND BECAUSE OF MASSIVE MORTGAGE FRAUD. MAKE THE FRAUDSTER PONZI SCHEMERS PAY FOR THEIR PONZI SCHEME. BLOOMBERG REPORTED TRILLIONS OF DOLLARS OF MORTGAGE PAYMENTS GO THE FED AND THEY BUY TREASURIES WITH THE MONEY., CNBC REPORTED WALL STREET MADE 60 TRILLION DOLLARS IN 1999 OFF OF MORTGAGE DERIVATIVES ALONE.  MAKE THE CROOKS PAY.THEY ROBBED AMERICA BLIND AND THEY STILL ARE. IT IS AN ONGOING CRIMINAL ENTERPRISE THAT MUST BE STOPPED.