Posted by Linda_in_MI on 11/15/11 11:49am
Msg #404027

Class action lawsuit filed against MERS in Michigan

Register of Deeds in two counties (Ingham and Branch) filed the lawsuit on behalf of all of the 83 counties in Michigan.

"Curtis Hertel, Jr., the Ingham County Register of Deeds, and Branch County Registrar Nancy Hutchins filed the suit, which alleges that the company and numerous banks failed to pay property transfer taxes when the title to the company was transferred to another owner in the MERS system. "

http://michiganmessenger.com/54001/class-action-lawsuit-filed-against-mers-over-unpaid-taxes

Reply by Linda_H/FL on 11/15/11 11:52am
Msg #404028

Duval County in FL filed one too...seeking class action for

all counties in Florida.

http://www.sourceoftitle.com/article.aspx?uniq=6978

Reply by Carolyn Breckenridge on 11/15/11 12:26pm
Msg #404032

Re: Duval County in FL filed one too...seeking class action for

This is interesting, it will nice to see how this plays out. I think they are talking recording fee and not transfer taxes though. Am I wrong?

Reply by Carolyn Breckenridge on 11/15/11 12:21pm
Msg #404031

Interesting. In Florida when title is transferred between banks they are only required to pay mininum of 70 cents.

Reply by jnew on 11/15/11 2:50pm
Msg #404060

I don't understand what they mean by "title to the company". Were these property transfers of bank owned property after foreclosure which avoided a transfer fee or does Michigan charge a transfer fee on assignments of mortgage?

Reply by ReneeK_MI on 11/15/11 4:20pm
Msg #404067

I'm sure they know more than me, BUT ...

I'd thought, and the MI Dept of Treasury's site confirms that an assignment of the mortgage is exempt from transfer taxes. I don't get the math in the article - recording fees, yes, but transfer taxes?


http://www.michigan.gov/taxes/0,1607,7-238-43868-154584--F,00.html

Reply by Linda_H/FL on 11/16/11 9:41am
Msg #404137

Yeah..I didn't get that either... n/m

Reply by Julie/MI on 11/16/11 11:42am
Msg #404165

Re: I'm sure they know more than me, BUT ...

My puzzler is sore on this one as only on deeds that transfer title are revenue stamps collected on the purchase price. I collected those taxes for 7 years....there are no taxes collected on an assignment of mortgage.

If I had too much time on my hands, I'd check it out, but it seems the author of the article was a bit vague.

Reply by ReneeK_MI on 11/16/11 11:53am
Msg #404171

I found the actual complaint - they're going for taxes!

First they name MERS ...which is privatized record-keeping in leu of recordation - that would be recording fees they hope to recoup.

THEN the complaint goes out into left field from there ...wanting transfer taxes on assignments, but targeting the two prominent foreclosure processing offices in the state. That would indicate they want transfer taxes on sheriff's deeds? On Fannie/Freddie's acquisitions? On Fannie/Freddie's REO sales deeds? I'm completely baffled - but it's a state of mind I'm sort of getting used to. =)