Michigan homeowners may be able to challenge their foreclosures as a result of a recent Michigan Court decision. The case is Kim v. JP Morgan Chase Bank, and the Michigan Court of Appeals held that Chase Bank was not authorized to have the foreclosure sale (known as a “sheriff’s sale”) before the bank’s mortgage interest was recorded. In short, the Court held that Chase Bank did not record its mortgage interest before the foreclosure sale and, as a result, could not foreclose.
Chase Bank acquired the mortgage at issue when it purchased the assets of Washington Mutual from the FDIC. Chase Bank then started a foreclosure by advertisement. The homeowner sued, claiming the foreclosure was invalid. The lower court initially upheld the bank’s position. However, the Court of Appeals held that Chase Bank was subject to the recording requirement of the foreclosure by advertisement statute and reversed the trial court’s ruling — the homeowner won.
Your mortgage documents are complicated. Foreclosure law is complicated. If you are in foreclosure, or were recently foreclosed (whether you are still in your home or not), you should have a knowledgeable foreclosure attorney review your foreclosure and let you know if your foreclosure was illegal. Call us at (888) 487-6150 or click on our “Free Case Analysis” and ask for our Free Foreclosure Checklist.