The Michigan Supreme Court has reversed an appeals court ruling that had cast doubt on thousands of home foreclosures across the state. The court said Wednesday that it’s legal for Mortgage Electronic Registration Systems (MERS) to foreclose by advertisement when a loan turns bad. Known as MERS, the company acts as an agent for lenders. In a 4-3 decision, the Supreme Court says MERS has an interest in the debt and acted properly under Michigan law.
Needless to say, many Michigan homeowners who have been hoping to dodge their foreclosure through a possible MERS loophole will need to figure out their next step.