Conlin v. Mortgage Electronic Registration Systems, Inc.

Summarized by Dean Langdon , DelCotto Law Group PLLC
12 years 10 months ago

Citation:

File Name: 13a0102p.06; Docket No. 12-2021

Tag(s):

Ruling:

The Court of Appeals affirmed the district court's dismissal of plaintiff's complaint seeking to set aside a Michigan foreclosure on the grounds of an alleged defective mortgage assignment from MERS to U.S. Bank. Applying Michigan law, the Court of Appeals found that after Michigan's redemption period expires, a party must clearly show fraud or irregularity in the foreclosure process AND prejudice from failing to comply with the statutory foreclosure process. The Court of Appeals held that Conlin's allegations of a "robo-signed" assignment and MERS lack of capacity to assign the mortgage did not demonstrate any prejudice to him.

Procedural context:

Plaintiff Conlin appealed from the July, 2012 dismissal of his complaint under FRCP 12(b)(6) after his case was removed to the federal district court for the Eastern District of Michigan.

Facts:

After refinancing a Michigan property in April, 2005, Mr. Conlin's mortgage was held by MERS and serviced by GMAC Mortgage. MERS assigned the mortgage to US Bank as trustee in May, 2008, and in November, 2010 a default letter was sent to Conlin on behalf of GMAC as creditor or servicing agent. In March, 2011, the firm handling the foreclosure published its sale notice stating that the mortgage was held by US Bank as trustee. US Bank bought the property at the foreclosure sale on March 31, 2011. In October, 2011, Conlin sued to have the sale set aside based on defects in the assignment of the mortgage. The action was removed to federal court and applying the Iqbal - Twombly standard, the complaint was dismissed in July, 2012.

Judge(s):

Merrit, Martin and Clay; opinion by Clay

ABI Membership is required to access the full summary. Please Sign In using your ABI Member credentials. Not a Member yet? Join ABI now - it is absolutely worth it!