Local Govt's to Secondary Lenders: Cough Up What You Owe

(Via Naked Capitalism)

Remember that whole MERS thing? Y'know the one where big lenders are too impatient and cheap to follow local laws about title transfer - so they make up a shell corporation so they can ignore the law?

Well, local govt's smell money they're owed - and they're suing.

“Defendants have not paid the Transfer Tax because they have claimed on the face of the documents they have recorded that the transaction is exempt from the Transfer Tax. They sometimes claim the transaction is exempt because they are government entities and, under Michigan statute, government entities are exempt. Other times they claim they are exempt pursuant to federal statute.

“Neither claimed exemption applies. Defendants are federally chartered private corporations and not government entities. Defendants’ federal law exemption from certain taxes does not include the Transfer Tax.”

Give 'em hell, folks. There's money in them thar hills!!