January 11, 2010

Sometimes we’re asked, “Why is a MERS-owned property being foreclosed on?” Unfortunately, it’s a question we’re hearing more often in these economic times. Currently, in Ingham County alone, there are 52 judicial foreclosures pending which list “MERS” as the owner/tax servicer.

We have an easy explanation: It’s not us.

It’s an easy mistake to make, of course. But the MERS the notices refer to is actually the Mortgage Electronic Registration System (of Virginia), which is also abbreviated as "MERS." That service is a prominent foreclosure filer whose name appears in 30 percent of mortgage foreclosures nationally, as of 2007.

When a mortgage foreclosure is pending, property taxes often become delinquent. The Municipal Employees' Retirement System of Michigan pension trust does own real estate directly, but with no mortgage debt, and any taxes that may be owed are paid when due. So there’s no connection to the foreclosure notices and the MERS pension plan.

It’s a classic case of right acronym, wrong company.