Finally a taste of justice coming from Michigan.
KIM v JPMORGAN CHASE BANK, NA Docket No. 144690.
Argued October 10, 2012 (Calendar No. 9). Decided December 21, 2012.In an opinion by Justice MARILYN KELLY, joined by Justices CAVANAGH, MARKMAN, and HATHAWAY, the Supreme Court held:
When a subsequent mortgagee acquires an interest in a mortgage through a voluntary purchase agreement with the FDIC, the mortgage has not been acquired by operation of law and that subsequent mortgagee must comply with the provisions of MCL 600.3204 and record the assignment of the mortgage before foreclosing on the mortgage by advertisement. Any defect or irregularity in a foreclosure proceeding results in a foreclosure that is voidable, not void ab initio._________________________________________________________
Michigan Supreme Court, 2012 MIch. LEXIS 2220, Kim v JP Morgan Chase, NA., 20121221
Applying this proposition, we hold that the transfer of WaMu's assets from the FDIC to Chase did not take place by operation of law. Defendant acquired WaMu's assets from the FDIC in a voluntary transaction; defendant was not forced to acquire them. Instead, defendant took the affirmative action of voluntarily paying for them. Had defendant not willingly purchased them, it would not have come into possession of plaintiffs' mortgage. WaMu's [*14] assets did not pass to defendant "without any act of [defendant's] own"20 or "regardless of [defendant's] actual intent."21 Accordingly, the Court of Appeals correctly concluded that defendant did not acquire WaMu's assets by operation of law.
Prior Articles:Kim v. JP Morgan Chase Bank | Court Sets Aside Foreclosure Sale Where Assignee Of Mortgage Failed To Record Its Interest Prior To Sale
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