Protecting Your Property

Curtis Hertel, Jr. Ingham County Register of Deeds

The importance of property records

Maintaining an accurate history of land records is an essential part of any Democratic or Capitalist country.
It is for that reason that almost every state has an elected official responsible for the keeping of land records. It is also why communist regimes in countries such as Cuba and the USSR, made the destruction of property records a priority. In Michigan, under current law, that right is being taken from citizens with little or no due process.

Property ownership under at tack

Foreclosures affect us all! These are just some of the ways that a foreclosed home impacts the community: -Your own property value: when there are multiple vacant homes in your neighborhood, the value of your own property can sink accordingly. -Community blight: Uninhabited homes mean less direct investment in your community, and a less attractive area for new residents or businesses. - Tax base: when there are less citizens paying property taxes, the cities, townships & counties have less money to pay for new roads, community health programs, public safety, parks & recreation, and many other services.

Foreclosure fraud why does it happen?

A large part of the problem stems from the fact that your mortgage is no longer owned by a local bank! Large, multi-national banks now own most home mortgages, and in an effort to manage all of the paperwork, they got together and created Mortgage Electronic Registration Systems.

Foreclosure fraud how it works

What is Mortgage Electronic Registration Systems? - Established as a service to banks, to track the ownership and transfers of mortgages from one servicer to another. - Can be seen on documentation as a mortgagee, an assignor, and even discharge of mortgages. - Has 65 employees to manage 35 million mortgage loans.

Foreclosure fraud how it works

With a limited number of employees, MERS cannot possibly manage all of those loans, and handle all of the foreclosure documentation as well. So they contract that work out to foreclosure mills like Trott & Trott, and Orlans & Associates.

These mills employ over 2000 vice-presidents who sign foreclosures on behalf of the banks that still hold the mortgage.

Foreclosure fraud how it works

The Michigan Court of Appeals has ruled that foreclosures that were signed and executed SOLELY by MERS were not legal, as MERS never actually owned any interest in the debt!!

This ruling has prompted many questions about the ownership situation on properties, as many foreclosure processes have started over, and many people who have bought homes that were originally foreclosed on by MERS, now have a cloud on their title.

An example of an ILLEGAL foreclosure:

An example of a LEGAL foreclosure:

Foreclosure fraud how it works

Robo signing
Another important reason behind the creation of MERS was to avoid recording feeds in offices like the Ingham County Register of Deeds. MERS can internally assign a mortgage from bank to bank to bank, but the true owner of a mortgage is never on public record until right before a foreclosure. MERS can save the costs of recording each of these assignments by just sending in ONE assignment to our office when it is concluded that a foreclosure is necessary. Unfortunately, MERS lost a ton of these assignments. Suddenly, even MERS didnt have the record that showed who owned whose mortgage. So they contracted with companies like LPS (Lender Processing Services), and DocX, to come up with thousands of makeup assignments so that they could foreclose on homes. This is where we first nationally encountered the idea of robo-signing.

Examples of Robo signing

What is an assignment of mortgage?

Examples of Robo signing

Examples of Robo signing

Foreclosure fraud how it works

Robo signing
Instead of hiring more employees to perform individual investigations of each situation, or seek modifications with homeowners, many banks hired service companies, who would then pay other individuals minimum wage, to quickly sign as presidents, attorneys, etc., on behalf of the bank. Robo-signing refers to the process of either forging a signature, signing a paper using a title (such as vice-president) that is not your own, or signing stacks of paperwork in an expedited manner without reading the paperwork. Using this definition, robo-signing is not limited to assignments of mortgage alone! Take a look at these foreclosure signatures

Examples of suspected Robo signing

Marshall Isaacs

Foreclosure fraud what we are doing

Robo signing
A few options for Ingham County residents who find themselves victims of these types of foreclosure fraud: For those who are still in their home and facing foreclosure, free Legal Aid, contracted and paid for by the county, to negotiate with the lender and try to stay in their homes. Modifications, etc. Legal Services of South Central Michigan is the firm we have contracted for help you can reach them at this #: 517-394-2985, extension 257 You can also call our hotline and we can do a referral to Legal Aid for you: 517-676-7210

Foreclosure fraud what we are doing

For those who have already been evicted, MERS victims can get involved with a class-action lawsuit against the company. If you are not sure whether you have had any illegal paperwork filed on your property, we can take a look for you and refer you to the right place. Call our Foreclosure Fraud Hotline at:

517-676-7210
Leave us a message at that number, and we will call you back to talk to
you about the documentation you have recorded with Ingham County.

Fannie mae & freddie mac

So whats the story with Fannie Mae & Freddie Mac? This story was widely covered by news outlets around the county, state & country, but is NOT actually a foreclosure fraud-related case. Curtis Hertel filed a lawsuit to recover transfer taxes that he felt were owing for many foreclosed properties that Fannie & Freddie re-sold over the last several years.

Fannie mae & freddie mac

What are transfer taxes?
-Transfer Taxes are paid on any transfer of property that takes place in Ingham County. The taxes are paid at the time that the deed is recorded in the Register of Deeds Office. - The county portion of these taxes goes into the general fund, which are used to pay for county services such as new roads, community health programs, public safety, parks & recreation, and many other services. - The state portion of these taxes goes directly into school aid.

Fannie mae & freddie mac

- Transfer Taxes are $1.10 for every $1,000 of value on the home being transferred, paid to Ingham County. $7.50 for every $1,000 of value on the home is also paid to the State of Michigan. So, for example, on a $100,000 home, a seller would owe $110 to Ingham County, and $750 to the state. - There are some exemptions that can be claimed, so that the seller does not have to pay the tax. One of the exemptions is if the seller or buyer is a government entity, such as the Ingham County Land Bank, or the federal Department of Housing and Urban Development. - Fannie Mae & Freddie Mac claimed to be government entities, and have thus far avoided paying transfer taxes as a result. Our lawsuit challenges the notion that they are actually government associations, and seeks to recover the lost transfer taxes on homes that they have sold, most of which were foreclosures.

Other types of property fraud

IDENTITY THEFT & MORTGAGE FRAUD

FBI studies have ranked Michigan #3 out of the top ten states affected by mortgage fraud since the subprime mortgage crisis began.

For the top ten cities affected by this fraud, Detroit was ranked #3 and Dearborn #10.

IDENTITY THEFT & MORTGAGE FRAUD

Individuals obtain a homeowners personal information through various means (dumpster diving, phone/mail scams, etc..) This information is used to obtain new forms of ID and use them to transfer ownership of the property for profit, or take out a second mortgage (pocketing the money). All that is needed to transfer property in Michigan is a signature of a homeowner, and a signature of a notary, both which can be easily forged. You may not realize what has happened for many months after the crime has taken place, and the perpetrator is far away.

IDENTITY THEFT & MORTGAGE FRAUD

The Ingham County Register of Deeds has paid for the Property Fraud Alert System, that will notify registered users (via email or phone call) of any new activity involving their property. This will also allow you to track activity concerning your property and notify you of any tax or construction liens filed against you.

IDENTITY THEFT & MORTGAGE FRAUD

Property owners will have to sign up for this free service at the county website.

www.ingham.org/rd/
Or visit the Property Fraud Alert website directly: www.propertyfraudalert.com You can also call their phone # to get signed up: 1-800-728-3858

Other types of scams

Deed Retrieval Services
Beware of mailings from the following:
Deed Retrieval Services National Deed Service National Record Service, Inc. State Record Retrieval Board

Other types of scams

Deed Retrieval Services

Other types of scams

Deed Retrieval Services
- A scam service that usually comes in your postal mail, telling you that you NEED to have copies of your property deed in your possession.
- Will usually charge between $50 - $85 dollars to obtain this paperwork for you and send it to you in a timely manner. - Citizens do not necessarily need to have copies of their deeds, since they are permanently available in the countys public records. - If you would like a copy of your deed, you can obtain it from the Register of Deeds office for $1 - $2. This can be done in person, online, or through the mail. - The deeds services will typically send in batch requests to our offices for your documents, and then pass them along to you in a month or twos time.

Other types of scams

Land Contracts Buyer Beware!
Not so much a scam, but a note here on land contracts, deeds, or other such person-to-person land transfers
NEVER sign a land contract, or any document concerning property, without first having an attorney look it over! The legal definition of a slumlord is an unscrupulous landlord who milks a property without concern for tenants, neighborhoods or their own long term interests. These types of people are everywhere, and they WILL find someone trusting enough to sign their contracts and live in their properties. The Ingham County Register of Deeds is powerless to directly interfere with any legal transactions, even if they seem dishonest or corrupt. Please be extremely careful drafting your own property documents, or dealing with someone who does this on their own.

Foreclosures in ingham county

2000 1800 1600 1400 1200 1000 800 600 400 200 0 2000 Ingham County Foreclosures

2002

2004

2006

2008

2010

Tax base in ingham county

2009: 2010: 2011: $7,527,594,303 $7,089,944,185 (-5.81%) $6,856,760,132 (-3.29%)

2009

2010

2011

Financial or foreclosure counseling

You do not need to pay for adequate counseling or assistance. There are many non-profit organizations in mid-Michigan, approved by the United States Department of Housing and Urban development (HUD) and the Michigan State Housing Development Authority (MSHDA), which provide counseling to the public free of charge.

Financial or foreclosure counseling

A foreclosure counselor will want to see: a complete copy of your primary mortgage and any secondary mortgage or home equity loan, proof of current income (pay stub, W-2 form, social security statement), and you current household budget (all expenses including billing statements). Ask the counselor to call your mortgage servicer with you after reviewing your situation.

Financial or foreclosure counseling

FINANCIAL HELP IS FREE IN MICHIGAN CALL 211
Center for Financial Health 2400 West Road East Lansing, Michigan 48823 517-319-1309 Franklin Street Community Housing Corporation 618 Seymour Street Lansing, Michigan 48933 517-482-8708 Lansing Affordable Homes, Inc 6810 South Cedar Street Suite #15 Lansing, Michigan 48911 517-694-6284

Tips for avoiding foreclosure

Don't ignore the problem. The further behind you become, the harder it will be to reinstate your loan and the more likely that you will lose your house. Open and respond to all mail from your lender. The first notices you receive will offer good information about foreclosure prevention options that can help you weather financial problems. Later mail may include important notice of pending legal action. Your failure to open the mail will not be an excuse in foreclosure court.

Tips for avoiding foreclosure

If you become unable to make your monthly payments, immediately contact your mortgage servicer. Do not wait to receive past due notices. Be polite and explain why you are, currently, unable to make your payments. Respond to all communication from your mortgage service and try to cooperate with them. Inform them that you do not intend to default on your loan and are working to become current with your payments.

Tips for avoiding foreclosure

Know your mortgage rights. Find your loan documents and read them so you know what your lender may do if you can't make your payments. Learn about the foreclosure laws and timeframes by contacting the State Government Housing Office. Understand foreclosure prevention options. Valuable information about foreclosure prevention (also called loss mitigation) options can be found at www.HUD.gov.

Contact a HUD-approved housing counselor. The U.S. Department of Housing and Urban Development (HUD) funds free or very low cost housing counseling nationwide. Housing counselors can help you understand the law and your options, organize your finances and represent you in negotiations with your lender if you need this assistance. Find a HUD-approved housing counselor near you or call (800) 569-4287.

Tips for avoiding foreclosure

Prioritize your spending. After healthcare, keeping your house should be your first priority. Review your finances and see where you can cut spending in order to make your mortgage payment. Look for optional expenses-cable TV, memberships, entertainment-that you can eliminate. Delay payments on credit cards and other "unsecured" debt until you have paid your mortgage. Use your assets. Do you have assets-a second car, jewelry, a whole life insurance policy-that you can sell for cash to help reinstate your loan? Can anyone in your household get an extra job to bring in additional income? Even if these efforts don't significantly increase your available cash or your income, they demonstrate to your lender that you are willing to make sacrifices to keep your home.

Tips for avoiding foreclosure

Avoid foreclosure prevention companies. You don't need to pay fees for foreclosure prevention help-use that money to pay the mortgage instead. Many for-profit companies will contact you promising to negotiate with your lender. While these may be legitimate businesses, they will charge you a hefty fee (often two or three month's mortgage payment) for information and services your lender or a HUD approved housing counselor will provide free if you contact them. Don't lose your house to foreclosure recovery scams! If any firm claims they can stop your foreclosure immediately if you sign a document appointing them to act on your behalf, you may well be signing over the title to your property and becoming a renter in your own home! Never sign a legal document without reading and understanding all the terms and getting professional advice from an attorney, a trusted real estate professional, or a HUD approved housing counselor.

Foreclosure scams
Offers involving a fee, membership, or subscription charge prior to service. (illegal in Michigan) Calls asking for you SS# Signing any contract by anyone other than a HUD or MSHDA approved organization/counselor Claims to immediately stop/end the foreclosure process. If you have been a victim of such a scam: Call 877-FTC-HELP and file your complaint online at www.michigan.gov/ag or call 1-877-765-8388