Gary Thompson v. JP Morgan Chase Bank, NA
563 F. App'x 440
6th Cir.2014Background
- Foreclosure by advertisement on a Roseville, Michigan home after default,”
- JPMorgan Chase foreclosed in October 2012; assignment from Washington Mutual to Chase occurred in July 2012
- Plaintiff Thompson filed suit April 12, 2013, just after the six-month redemption period began or expired
- District court dismissed for failure to allege fraud or irregularity in the process
- Court cites Michigan law allowing equitable extension of redemption only upon clear fraud/irregularity
- Court concludes no fraud or irregularity alleged and affirms dismissal
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether redemption period can be t tolled or voided post-sale without fraud/irregularity | Thompson seeks to void sale due to statutory noncompliance | No tolling without fraud/irregularity; remedy to convert to judicial foreclosure if timely | No tolling; requires fraud/irregularity to void sale |
| Whether Michigan loan-modification procedures create an independent action to unwind foreclosure | Violations of § 600.3205c require relief | Statute provides remedy to convert to judicial foreclosure, not independent action | No independent claim; remedy conversion only; no unwind without fraud/irregularity |
| Whether plaintiff adequately pleaded fraud or irregularity to toll the redemption period | Plaintiff pleads irregularities in foreclosure process | Plaintiff failed to allege fraud/irregularity | Plaintiff failed to plead fraud/irregularity; no relief |
Key Cases Cited
- Schulthies v. Barron, 16 Mich. App. 246, 167 N.W.2d 784 (Mich. App. 1969) (equitable extension only for fraud/irregularity to toll redemption period)
- Freeman v. Wozniak, 241 Mich. App. 633, 617 N.W.2d 46 (Mich. App. 2000) (absence of fraud/mistake generally prevents tolling)
- El-Seblani v. IndyMac Mortg. Servs., 510 F. App’x 425 (6th Cir. 2013) (tolling not available absent fraud/irregularity; conversion remedy only)
- Conlin v. Mortg. Elec. Registration Sys., Inc., 714 F.3d 355 (6th Cir. 2013) (after redemption, challenge requires fraud/irregularity)
- Block v. BAC Home Loans Servicing L.P., 520 F. App’x 339 (6th Cir. 2013) (post-redemption rights vanish without fraud/irregularity; revival via fraud)
- Smith v. Bank of Am. Corp., 485 F. App’x 749 (6th Cir. 2012) (failure to comply with §600.3205c after sale yields no relief; can only convert to judicial foreclosure)
- Kim v. JPMorgan Chase Bank, N.A., 825 N.W.2d 329 (Mich. 2012) (statutory remedy limited; unwinding requires fraud/irregularity)