Now Accepting New Clients!

REAL ESTATE 37: Trial court can set aside a foreclosure sale if there is a strong case of fraud or irregularity.

Plaintiff secured two mortgages. The first mortgage was in the amount of $297,050 and the second mortgage arose from a fixed-rate balloon note in the amount of $74,250. On September 1, 2008, plaintiff entered into a loan modification agreement F Company. The loan modification agreement defined and named F Company as the “Lender” of funds in the amount of $73,745.12, which was the amount payable under the note and mortgage, and stated that the borrower promised to pay the Unpaid Principal Balance, plus interest, to the order of Lender.

On August 31, 2016, the first mortgage assigned to S Company, all interest it had with regard to plaintiff’s second mortgage. On February 16, 2017, a Notice of Foreclosure on the second mortgage was published in the Oakland County Legal News, and at some point, plaintiff received a copy of the notice which had been attached to her premises.

The Notice of Foreclosure continued that the mortgage would be foreclosed by a sale of the subject premises on March 21, 2017, which would be followed by a six-month redemption period. The sale was subsequently adjourned until July 18, 2017, at which time S Company, purchased the property for $88,000 under a sheriff’s deed.

Proceeding in propria persona, on December 7, 2017, before the six-month redemption period expired, plaintiff filed a quiet title action. Plaintiff alleged that the first mortgage had no beneficial interest in her property to assign to the foreclosing entity, S Company, after she entered into the loan modification agreement with F Company, which was not affiliated with the first mortgage.

When the statutory requirements for mortgage foreclosure are met, a trial court generally lacks authority to set aside a foreclosure sale except in a strong case of fraud or irregularity.  In this case, plaintiff established her claim that S Company did not own an interest in her indebtedness that was secured by the second mortgage because F Company had owned the interest and that debt was paid, a significant irregularity would exist to set aside the foreclosure sale.

In summary, the trial court erred in granting defendants’ motion for summary disposition under the circumstances of this case. Therefore, the appeals court reversed the decision to grant defendants’ motion and remanded this matter to the trial court for further proceedings.

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

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...

PROBATE 42: Dissolution of professional corporation.

This case involves the estate of a doctor whose professional corporation also had to be dissolved upon his death. The personal representative of the estate sold the company’s assets but did not pay off the company’s debts before transferring the proceeds to the estate and distributing them to the heirs.

A basic introduction to wills

Originally posted on 10/31/2016 It can be difficult to consider the end of our lives when we are in good health. However, lives can change at any moment, so it is wise to be prepared for any situation that may arise. Despite the many...

REAL ESTATE 73: Quiet title action.

This case involves a dispute over real property located in Michigan. W and V who are D’s parents, acquired the property. In 1999, W and V conveyed the property to the Trust, to which W is the sole trustee, via a quit claim deed. At some point...

How Is Alimony Determined In A Michigan Divorce?

Originally posted on 06/22/2018. When filing for divorce in Michigan, you may seek alimony, spousal support, from their spouse whenever they require financial aid. A judge may order your spouse to pay certain alimony. However, it depends...

Is My Conviction Eligible for Expungement?

Originally posted on 10/11/2019. At one point or another, we have all made mistakes. For some people, those mistakes involved breaking the law. Convictions have a large impact on someone’s life. Beyond the sentencing ranging from...

PROBATE 45: The court held that the probate court did not err by granting summary disposition for Plaintiff, or by denying Defendant’s request for an extension of the discovery period, adjournment of mediation, and issuance of subpoenas and by dismi

This case arises out of competing petitions for probate. On November 19, 2018, Defendant initiated this case by filing a petition for probate, attaching Decedent’s death certificate and purported last will and testament, dated March 9, 2007,...

DIVORCE 57: Holding that the trial court’s factual findings were not supported by the record evidence, and thus could not stand, the court reversed, vacated the portion of the Amended Default JOD ordering defendant to pay $3,325 to plaintiff, and re

Plaintiff first testified that she and defendant purchased the marital home in 1995. At the time the first default judgment of divorce was entered in September 2017, plaintiff had the home appraised. The value of the home was determined to be...

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
and secure reliable and trustworthy representation today!
Get the Help You Need From a Team You Can Truly Count On: (734) 404-3000