MERS Hit with $400,000,000 Lawsuit | Mortgage Electronic Registration Systems Sued Over Michigan Foreclosures
“$100 million in actual damages on multiple counts including fraud and wrongful foreclosure, as well as more than $300 million in punitive damages”
Mortgage Electronic Registration Systems Inc. “illegally prosecuted” non-judicial foreclosures in Michigan and owes more than $100 million to people who lost their homes, lawyers for three homeowners said in a lawsuit.
The homeowners said Merscorp Inc.’s MERS, which runs an electronic registry of mortgages, used Michigan’s so-called foreclosure by advertisement process illegally and “misappropriated” their homes. Any foreclosures by MERS using this process in Michigan should be voided, they said in their complaint filed in federal court in Detroit.
Michigan is one of 27 states where banks don’t have to get a court’s permission to seize a property, meaning homeowners have to bring their own lawsuit to halt a foreclosure. Michigan law lets mortgage lenders or servicers foreclose after advertising a default in a newspaper for four consecutive weeks.
Check out the rest from Bloomberg here…
Pulling the case file and will put up shortly…
Case file below…