734-359-7018
Now Accepting New Clients!
Blog

Former homeowners must show fraud or irregularity in foreclosure proceeding after they fail to redeem property within statutory period

The court upheld the district court's decision to dismiss the plaintiffs' action to invalidate their home foreclosure because they failed to establish that the foreclosure proceedings violated Michigan's foreclosure-by-advertisement statute. Their negligence claim based on an alleged violation of HAMP and their Fifth Amendment due process violation claim also failed. There was no dispute that they failed to exercise their statutory right to redeem the foreclosed property within the six-month statutory redemption period. Thus, they were required to "allege 'a clear showing of fraud, or irregularity' that 'relate[s] to the foreclosure itself' and allege that they were prejudiced by such fraud or irregularity, that is, they must show that they would have been in a better position to preserve their interests absent the fraud or irregularity." The court rejected their claim that the foreclosing bank lacked standing to foreclose under Michigan's foreclosure-by-advertisement statute. MERS, "the original mortgagee, assigned the mortgage" to the bank and it was duly recorded. Notice of the foreclosure and sheriff's sale was published in the newspaper and a sign was posted on the property before the sale. "In the mortgage they signed, plaintiffs granted MERS the power to assign the mortgage" to the bank. "That assignment was recorded, creating a clear record chain of title. The mortgage also gave MERS, as mortgagee, the power to initiate foreclosure proceedings, and once assigned," the bank also had the power to foreclose. The plaintiffs could not argue that the bank was required to "be the assignee of both the mortgage and the promissory note" to foreclose because Michigan law makes it "lawful for the holder of the mortgage to be different from the holder of the debt." Any "severance of the mortgage from the note-even through securitization-had no bearing" on the bank's right to foreclose. The plaintiffs' negligence claim alleging that defendant-Freddie Mac failed to comply with HAMP procedures failed because they could not show that it "breached a duty owed to them. Plaintiffs have not cited any Michigan case holding that HAMP imposes a legal duty on a lender sufficient to support a claim for common-law negligence." Their due process claim failed because even if Freddie Mac is a government actor, "its compliance with Michigan's foreclosure-by-advertisement procedures satisfied the requirements of the Due Process Clause." Affirmed.

Basic responsibilities of an executor

Originally posted on 01/11/2017 The emotional toils of dealing with the death of a loved one can be considerably difficult. Nevertheless, perseverance is paramount; especially if you are appointed to be an executor to one’s...

What you need to compliment your will

Originally posted on 02/08/2017 Making end-of-life plans usually end with a will, but they shouldn't. Some believe that simply having a will is enough. However, this post will briefly explain how having other estate planning...

The benefits of home health care providers

Originally posted on 03/22/2017 As we get older or suffer an injury, we need a little extra help. Home health care providers or caregivers can provide the assistance needed to handle your or your loved one's health and safety...

What to know about bail conditions

Originally posted on 03/06/2017 If you have been arrested and are being held on the suspicion that you have committed a particular crime, chances are that the only thing you are thinking about is getting out of jail as soon as possible and...

College students and estate planning

Originally posted on 12/16/2016 With college semesters starting up in Michigan, it may not be so easy to get college students to think responsibly. This time can be especially tough with the need of moving back to school and getting...

Three reasons to put a power of attorney in place

Originally posted on 11/08/2016 While no one wants to think of the unfortunate possibility of being incapacitated or of a time when we can't handle our own affairs, this circumstance is a real possibility. If something happens and this...

How to approach parents about estate planning

Originally posted on 12/09/2016 Family forms a strong foundation for many people's first and most intimate community. It is important to strengthen these first relationships so even uncommon questions become natural. For those...

PROBATE 44: Petition for Mental Health Treatment

Michigan’s Mental Health Code governs the civil admission and discharge procedures for a person with a mental illness. Specifically, MCL 330.1434 sets forth the procedure and content requirements for a petition for mental health treatment.

Should you get your criminal record expunged?

Originally posted on 04/12/2017 If you have been convicted of a crime, have served your sentence, and have followed all court recommendations, you should be able to put your past behind you and move on with life. Moving forward is critical...

Choosing the right executor for an estate

Originally posted on 05/28/2017 When people are thinking about planning their estate, they often think about trying to minimize the estate tax, keeping their will updated, and keeping items out of probate court; however, there is another...

Understanding how the Miranda warning works

Originally posted on 11/25/2016 Michigan residents who have seen television police shows or movies involving law enforcement have no doubt watched many dramatic scenes with officers quoting something to the effect of, "You have the...

Don't let a bad decision, unfair contract, or a messy divorce get in the way of a promising future!
Contact the experienced team at Aldrich Legal Services today to schedule your free initial
consultation
and secure reliable and trustworthy representation today!
Get the Help You Need From a Team You Can Truly Count On: (734) 404-3000
734-237-6482
734-366-4405