Keith Mitan v. Federal Home Loan Mortgage Corp.
2012 U.S. App. LEXIS 25979
| 6th Cir. | 2012Background
- Mitan, personal representative of Frank Mitan's estate, sued in 2010 after FreddieMac foreclosed by advertisement on Frank's Michigan residence.
- Redemption period followed foreclosure; FreddieMac purchased at sheriff's sale on Feb. 2, 2010; redemption expired six months later.
- Mitan filed suit two weeks before expiration, challenging foreclosure as violating Michigan law; sought damages, title quieting, costs, and a jury trial.
- District court granted FreddieMac summary judgment, holding Mitan lacked standing after expiration of the redemption period.
- Court reversed and remanded to determine whether Wells Fargo violated loan-modification statutes, which could render the redemption period ineffective and preserve Mitan's standing.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Mitan had standing to sue after redemption expired. | Mitan retained standing if foreclosure was void ab initio. | Michigan law extinguishes post-redemption claims; no standing after period. | Remand needed to determine if loan-modification law voided foreclosure; standing hinges on factual findings. |
| Whether the foreclosure violated Michigan loan-modification provisions such that it was void ab initio. | Foreclosure violated §600.3204(4)(f) and related provisions, lacking authority to foreclose. | Foreclosure valid unless statutory requirements violated; need factual record. | Likely structural defect if law not followed; requires factual development on remand. |
Key Cases Cited
- Davenport v. HSBC Bank USA, 739 N.W.2d 383 (Mich. Ct. App. 2007) (structural defects render foreclosure voidable or void depending on authority)
- Piotrowski v. State Land Office Bd., 4 N.W.2d 514 (Mich. 1942) (post-foreclosure standing issues in Michigan)
- Jackson Inv. Corp. v. Pittsfield Prods., Inc., 413 N.W.2d 99 (Mich. Ct. App. 1987) (notice defects do not necessarily defeat underlying right to foreclose)
- Dowling v. Cleveland Clinic Found., 593 F.3d 472 (6th Cir. 2010) (de novo review standard on summary-judgment rulings)