Chambers v. HSBC Bank USA, N.A., No. 14-1606 (6th Cir. 2015)
Annotate this CaseChambers purchased a condominium in Novi, Michigan for $608,294.00, with a mortgage loan of $583,294.00, and a second mortgage of $166,635.00. The mortgages were assigned to HSBC. Chambers defaulted on the first mortgage, in 2008. The second mortgage was discharged in 2009. HSBC began non-judicial foreclosure proceedings by publishing a notice. In January, 2013, the Oakland County Deputy Sheriff sold Chambers’ condo to HSBC for $744,734.33. In September 2013, Chambers sued, demanding that the sale be voided because HSBC did not comply with Michigan law governing foreclosure by advertisement in failing to mail her written notices containing information specified in the statute including notification of her right to request loan modification; that all defendants “acting in concert … willfully, knowingly and purposefully failed to comply with the mandatory notice provisions” in Michigan law, and committed fraud in doing so; and that multiple conveyances of the mortgage were flawed, rendering HSBC legally incapable of foreclosing on the property. The Sixth Circuit affirmed dismissal. Chambers had the opportunity during the redemption period following the foreclosure sale to request that a court convert the foreclosure by advertisement into a judicial foreclosure. She failed to act during the requisite time period and to request the exclusive remedy the court could grant.
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