Wright v. Ocwen Loan Servicing LLC

          ORDER GRANTING DEFENDANTS' MOTION TO DISMISS

          VICTORIA A. ROBERTS UNITED STATES DISTRICT JUDGE

         I. Background

         Plaintiffs Beatrice Wright and iHeart Realty bring suit against Defendants Ocwen Loan Servicing LLC (“Ocwen”) and U.S. Bank, N.A. for state and federal law violations arising from the foreclosure of Wright's home.

         Wright received a mortgage loan in 2006. Both parties agree that Ocwen was the loan servicer during all relevant times. Wright first defaulted on her loan in 2011 and then filed for bankruptcy. From here, details become less clear and there are conflicting dates in the complaint, which makes it difficult to discern what Plaintiffs' factual allegations are.

         However, what is known for sure is Plaintiffs were notified of Defendants' intent to foreclose in spring 2017. This prompted Plaintiffs to submit an application to Defendants for loss mitigation in the form of a short-sale to iHeart. Defendants then sent a discount payment agreement (“DPA”) to Wright either before or after receiving that application. It is contested whether Plaintiffs accepted the DPA, but it is clear it went unused. Wright's house was then foreclosed without a DPA or short-sale option. Foreclosure was initiated in September 2017, and finalized with a sale on February 1, 2018 to Defendant U.S. Bank, the loan provider. Plaintiffs make several other factual allegations, but they conflict with one another or are inconsistent with their own exhibits.

         Around February 25, 2018 Defendants filed an eviction action in state court. Plaintiffs brought this suit with five counts against Defendants in March, 2018:

         Count I: Violations of the Real Estate Settlement Procedures Act, 12 U.S.C. § 2605 (“RESPA”), and regulations promulgated under it including 12 C.F.R. § 1024.41 (“Regulation X”) and 12 C.F.R. § 1024.21;

Count II: Breach of contract;

Count III: Promissory estoppel;

Count IV: Fraudulent inducement; and

Count V: Violation of MCL 600.2907A.

         Plaintiffs ask for specific enforcement of the DPA, the sheriff's deed to be voided, damages from wrongful foreclosure, damages pursuant to RESPA, damages pursuant to MCL 600.2907A, and any other appropriate relief.

         Defendants filed this motion to dismiss all counts on May 9, 2019. Plaintiffs, proceeding pro se, have not filed a ...