Legal Suit Claims that the Foreclosures in Wayne County Were not Legal

investigations-foreclosures

A class action legal suit claimed that foreclosures in Wayne County were not legal. The numbers involved were hundreds of thousands stretching right across the state. It has been alleged that the sheriffs failed to abide by state laws when they operated the foreclosure actions.

Attorney Paul Nicoletti of Bloomfield Hills filed this suit in the federal court. He is targeting the setting aside of Wayne County foreclosures initiated by 46 plaintiffs. This has the potential to rope in hundreds and thousands of others in the same boat.

The pivotal point is the deeds of the sheriff that had been given to the purchasers of properties sold by court order to realize unpaid dues. The complaint makes the allegation that Warren Evans, who was the sheriff at that time, failed to the sign the appointment of the deputy of the sheriff who had executed the deeds. This was mandatory as per the letter of the law. Instead the under-sheriff made the appointment. This was the norm in most of the counties in Michigan. Nicoletti said, “It’s a hyper-technical argument, but it’s due process.” To support his point he referred to a couple of rulings.

The critics are skeptical about the hope of its success. Ralph Robers a realtor from Macomb County said, “The sad thing about it is it’s probably giving false hope to people. If you miss dotting an ‘i’ or crossing a’t,’ it doesn’t change the whole process.” Roberts has written books and given talks on the foreclosure calamity.

Nicoletti has pointed out that in a ruling made in August by USA Bankruptcy Judge Paul J. Tucker a foreclosure had been set aside on similar technically based argument. The sale happened in 2007 but the deputy was appointed for 2008.

One of the plaintiffs was Yvonne Cross. She said that she was evicted from her house in Detroit because of foreclosure but she had felt that there were many technical faults with the process. Cross said, “I hope that everybody in this lawsuit gets their property back free and clear.”

It remains unclear what would be the consequences even if the suit met with success. In the bankruptcy issue the judge had invalidated the foreclosure but reinstated the mortgage dues. It meant that the plaintiff was still saddled with the problem of the debt.

Evans, who is now Detroit Police Chief, as well as present Wayne County Sheriff Benny Napoleon, did not make any comments.