United States District Court, E.D. Michigan, Southern Division
ORDER GRANTING DEFENDANTS' MOTION TO
VICTORIA A. ROBERTS UNITED STATES DISTRICT JUDGE
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.
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
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.
February 25, 2018 Defendants filed an eviction action in
state court. Plaintiffs brought this suit with five counts
against Defendants in March, 2018:
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.
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.
filed this motion to dismiss all counts on May 9, 2019.
Plaintiffs, proceeding pro se, have not filed a ...