UDM LAW CLINIC SUCCESSFULLY SETS ASIDE ORDER TO TERMINATE LAND CONTRACT INTERESTS FOR EXCLUSIVE POSSESSION AND TO QUIET TITLE

DETROIT, Mich. – December 17, 2012 – University of Detroit Mercy School of Law's Mortgage Foreclosure Defense Clinic successfully argued a motion today in Wayne County Circuit Court to prevent 70 Wayne County individuals and their families from foreclosure and wrongful eviction.

 Paramount Land Holdings, locally funded by the Detroit Police and Fire Pension Fund, purchased foreclosed properties for as little as $10. Through land contracts, it sold them for inflated prices to buyers who were assured that Paramount had paid all back taxes. Homeowners learned otherwise when Wayne County began foreclosure proceedings for back taxes. As a result, many homeowners stopped making their monthly payments to Paramount.

A receiver, appointed by the Wayne County Circuit Court to maintain Paramount properties, obtained a Court Order to Terminate Land Contract Interests and to Gain Exclusive Possession. Essentially, the Order sought to strip the homeowners from their property and evict them from their homes.

The UDM Law Clinic successfully argued that the Order was improper because the homeowners were victims of a land contract scam who did not have an opportunity to contest the receiver's assertions. The homeowners could not dispute the claims because no complaint was filed and no summons was obtained or served. As a result of the Clinic's intervention, the Order was set aside and the homeowners were able to remain in their homes. Professor Joon Sung, Director of the Clinic, commented on the significance of this victory for the homeowners, stating, "We ensured that victims of Paramount's land contract scam, which was funded by Detroit Police and Fire Pension Funds, would not be harmed again.

About UDM Law's Mortgage Foreclosure Defense Clinic

UDM Law students, working under the supervision of licensed attorneys/faculty members, represent victims of predatory lending practices in federal and state courts to stop homeowners from losing their homes due to foreclosure. Clinic students handle cases involving mortgage fraud, foreclosure rescue scams, and loan servicing errors. They have the opportunity to interview clients, argue motions, negotiate settlements, and conduct trials. In addition, students engage in community outreach through presentations and development of written materials to educate homeowners on foreclosure remedy options and rescue scams.