In 2007, plaintiff secured a $193,000 loan for the purchase of a home in Michigan. As security for the loan, plaintiffs mortgaged the home. The mortgage was eventually assigned to defendant.
In 2011 and 2012, the loan was modified. Plaintiffs were offered a trial period for a third modification; however, they responded by requesting more information, and the loan was not modified for a third time. In 2015, it is undisputed that plaintiffs defaulted on the loan.
The bank sent notice of a foreclosure sale. Plaintiffs responded by filing a lawsuit with a complaint. The trial court granted defendants’ motion for summary disposition and dismissed all counts.
Plaintiffs argue that the trial court erred in dismissing all their claims.
Plaintiffs alleged that defendants engaged in fraud when defendants’ representatives made misrepresentations regarding the loan modification process.
The trial court ruled that this claim was barred by the statute of frauds.
MCL 566.132(2) provides an action shall not be brought against a financial institution to enforce any of the following promises or commitments of the financial institution unless the promise or commitment is in writing and signed with an authorized signature by the financial institution.
In this case, the factual allegations underlying the complaint all concerned alleged promises or commitments made by defendants—financial institutions—and plaintiffs did not allege or submit evidence that any of the promises or commitments were in writing and signed by an authorized representative.
Simply citing to paragraphs in the complaint to support the position that defendants violated, plaintiffs failed to create a genuine issue of material fact in that plaintiffs did not articulate what aspects of defendants’ conduct violated the statute and how that conduct resulted in damages.
Are you involved in a real estate dispute in Michigan? Are you seeking an efficient and effective resolution to a property litigation matter?
If you are facing a residential or commercial real estate, seek the advice of an experienced and skilled real estate litigation attorney at Aldrich Legal Services in Plymouth.