Coventry Parkhomes Condominium Ass'n v. Federal National Mortgage Ass'n
298 Mich. App. 252
| Mich. Ct. App. | 2012Background
- Coventry Parkhomes Condominium Association sues FNMA to foreclose its condominium lien and collect unpaid assessments after Walsh’s mortgage (Chase) existed.
- Chase financed Walsh’s unit; Walsh’s mortgage recorded August 18, 2005; Coventry’s lien recorded June 17, 2009 for unpaid dues.
- Chase assigned its mortgage to FNMA on July 20, 2010; assignment recorded September 9, 2010.
- Coventry filed action November 10, 2010 seeking foreclosure and unpaid assessments totaling $5,673.10 plus charges.
- Circuit court granted Coventry summary disposition finding Coventry’s lien superior; FNMA appeals; court reverses and holds FNMA mortgage priority over Coventry’s lien.
- This opinion concludes the circuit court erred by granting summary disposition to Coventry; FNMA mortgage has priority under MCL 559.208(1).
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Coventry’s lien has priority over FNMA’s mortgage under MCL 559.208(1). | Coventry: lien first; condominium lien priority over later mortgage. | FNMA: mortgage—first mortgage of record—priority over lien; assignee status doesn’t alter priority. | No; FNMA mortgage has priority as first mortgage of record; Coventry’s lien subordinate. |
Key Cases Cited
- Maiden v Rozwood, 461 Mich 109 (1999) (summary-disposition standard; de novo review on statutory interpretation common)
- Richards v Tibaldi, 272 Mich App 522 (2006) (race-notice concepts; constructive notice of record)
- Lakeside Assoc v Toski Sands, 131 Mich App 292 (1983) (priority and recording statute principles)
- Wilson v Campbell, 110 Mich 580 (1896) (assignee stands in assignor’s shoes; priority of recorded mortgage)