By AP
LANSING, MI –
The Michigan Supreme Court has reversed an appeals court ruling that had cast doubt on thousands of home foreclosures across the state.
The Supreme Court said Wednesday that it's legal for Mortgage Electronic Registration Systems to foreclose by advertisement when a loan turns bad. Known as MERS, the company acts as an agent for lenders.
Property owners in Kent and Jackson counties had convinced the appeals court that MERS couldn't take certain steps in the foreclosure process because it didn't actually lend the money. But in a 4-3 decision, the Supreme Court says MERS has an interest in the debt and acted properly under Michigan law.
Democratic justices in the minority wanted to keep the case alive and hear more argument.