Michigan Supreme Court Rules $3.75 Billion Of JPM Chase Mortgages Are Voidable
This is certainly a welcome turn of events. It appears the Michigan Supreme Court has upheld a ruling from the Michigan Court of Appeals in the case of Kim vs. JPMorgan Chase. In a 4-3 ruling the court determined that $billions in JPM mortgages were not properly recorded with the Register of Deeds. Apparently JPM’s acquisition of the mortgages from WaMu assets did not follow the proper “operation of law” in Michigan. When the FDIC put WaMu into receivership, that created a break in the recorded chain which JPM apparently didn’t rectify. After all, who needs to bother with simple things like chain of title when you have presidential cufflinks.
MCL 600.3204(3) states:
If the party foreclosing a mortgage by advertisement is not the original mortgagee, a record chain of title shall exist prior to the date of sale under section 3216 evidencing the assignment of the mortgage to the party foreclosing the mortgage.
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