Plaintiff loaned defendant (her neighbor) $60,000 in exchange for a note and mortgage on defendant’s home.
Mortgage and Note
Under the mortgage and note, defendant owed a monthly payment to plaintiff, beginning on June 21, 1990. The mortgage and note also contained a clause requiring the balance of the mortgage note, if not paid off sooner, to become due on May 21, 1995. Sometime later, plaintiff loaned defendant another $20,000, though no documents were signed to memorialize this loan.
Plaintiff never received any payments on the $60,000 mortgage.
Plaintiff filed a three-count complaint on December 3, 2019, alleging breach of contract, unjust enrichment, and requesting foreclosure of the property. Defendant answered, pleading affirmative defenses, including that the statutes of limitations barred plaintiff’s claims. Defendant moved for summary disposition.
The trial court granted defendant summary disposition, finding the statutory limitations period had already run for plaintiff’s claims.
The statute of limitations for a promissory note state, an action to enforce the obligation of a party to pay a note payable at a definite time must be commenced within 6 years after the due date or dates stated in the note or, if a due date is accelerated, within 6 years after the accelerated due date.
The statute of limitations to foreclose a mortgage states, no person shall bring or maintain any action or proceeding to foreclose a mortgage on real estate unless he commences the action or proceeding within 15 years after the mortgage becomes due or within 15 years after the last payment was made on the mortgage.
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