734-359-7018
Now Accepting New Clients!
Blog

REAL ESTATE 14: Plaintiffs challenge foreclosure, after redemption period.

In this case, Plaintiffs executed a promissory note promising to pay $162,600 to the Bank. The note was secured by a mortgage on plaintiffs’ home.  Plaintiffs entered into four loan modifications with the Bank and requested a fifth loan modification, which was denied.

In 2014, the Bank sent plaintiffs a letter denying their request for modification due to insufficient monthly income to sustain payments under any available loan modification program. The letter further stated that plaintiffs had the right to appeal the denial within 30 days. Plaintiffs appealed. At this point, the parties disagree on the facts.

Plaintiffs allege that they never received a response to their appeal.  The Bank, however, allege that it sent its decision on the appeal to plaintiffs.

March 2015, the Bank sent a letter to plaintiffs advising that it was closing its file.  October 2015, the Bank posted a notice on the premises stating the property was going to be sold November 2015. The notice contained an affidavit of posting, which was notarized. The sale was postponed a total of five times. The foreclosure sale was finally held on December 2015, and the property was sold. The six-month statutory redemption period expired on June 2016. Plaintiffs did not redeem the property.

Plaintiffs filed a three-count complaint alleging wrongful foreclosure and a due process violation.

Plaintiffs lacked standing to challenge the foreclosure after the expiration of the redemption period.  Once the statutory redemption period lapses, courts can only entertain the setting aside of a foreclosure sale where the mortgagor has made a clear showing of fraud, or irregularity.

Plaintiffs’ allegation of fraud or irregularity is their assertion that the Bank failed to respond to their appeal of the denial of their request for a loan modification and failed to notify them of the adjournments of the Sheriff’s sale. The bank provided five copies of notices of adjournment of foreclosure sale. At the bottom of the last notice adjourning the sale to December 2015, is a one-line oath by the deputy sheriff stating that he posted the notice of adjournment before or at the time of the sale and at the place of the sale.  Plaintiffs did not address or provide any evidence to rebut the bank’s proof of notice. Further, plaintiffs failed to show how defendants’ failure to respond to their appeal affected the foreclosure proceedings itself.

Accordingly, plaintiffs’ assertions are insufficient to meet the requisite fraud or prejudice to set aside the foreclosure sale.

Whether you are trying to save your home from foreclosure or your home loan is upside down and you are unsure of what you should do, you can find the sound advice and helpful support you require at Aldrich Legal Services in Plymouth, Michigan. We have helped many people find solutions to the real estate issues that you now face.

Contact us today to schedule a free consultation and learn more about options that may be available to you.

Contact Aldrich Legal Services

FSBO: 3 Tips to Help Effectively Sell Your Home

Many homeowners are taking real estate matters into their own hands, especially when it comes to their own homes. Some of the most difficult tasks FSBO sellers encounter are selling their home at the right price, understanding paperwork and selling...

How Is Debt Split Up In A Divorce?

For some, debt is inevitable. Many individuals have some form of debt whether it’s credit card debt or student loans. You and your spouse may have accumulated debt over the years and this raises a huge question. How is debt split up in a...

What Are Some Post Legal Divorce Issues?

Once a divorce is finalized, there still may be a few legal issues that can happen after the divorce proceeding. It’s even possible that new issues can arise after the divorce. In either event, a divorce lawyer can help guide you through these...

For Sale by Owner: Do You Need an Attorney?

  For sale by owner (FSBO) homes can be a daunting task. However, if you want to do it correctly and smoothly, it’s best done with some assistance from a real estate lawyer. A real estate attorney has the knowledge and experience to...

Michigan Marijuana Statutes

In the state of Michigan, the possession of marijuana is illegal unless you have a medical condition that is debilitating. Below we discuss the marijuana statutes in Michigan. Medical Marijuana The Michigan Medical Marijuana Act states that...

The Most Common Reasons for Real Estate Litigation

Real estate litigation can happen to anyone, from buyers and sellers to real estate agents, there’s always a potential for a lawsuit. With a lot of money on the line, it’s crucial to have an experienced attorney who has a great...

Refusing A Blood Alcohol Test in Michigan

In the state of Michigan, the law requires you to take either a blood, breath or urine test if arrested for an OWI. Michigan has an “implied consent” law which states that if someone lawfully arrested by an officer who has probable cause...

Do Background Checks Show Misdemeanors?

  Misdemeanors are often considered a less serious criminal offense compared to their felony counterpart. Common misdemeanors include reckless driving, petty theft, public intoxication, trespassing and more. Although misdemeanors don’t...

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