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Foreclosed and bankrupted homeowner cannot sue over fraudulent mortgage assignment

MIchael and Suzie Baker lost their home in a foreclosure action.  The next year they filed for Chapter 7 bankruptcy.  They later learned that the assignment of mortgage pursuant to which they were foreclosed was, in fact, fraudulently executed.  They attempted to pursue a claim for damages.  The defendants in the Baker's civil lawsuit contended that even if the Bakers could prove "a fraud upon the court," they had no remaining interest or standing to take legal action.  The Court of Appeals agreed, holding that the Bakers sole remedy would have been to raise the "fraud on the court" argument in the Court where the purported fraud occurred.

Thompson O’Neil, P.C.
309 East Front Street
Traverse City, Michigan 49684
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