United States District Court, D. Minnesota
ROBERT A. MANN and LAURINDA M. HOLM, Plaintiffs,
NATIONSTAR MORTGAGE, LLC, Defendant.
Caitlin Guilford, and Jonathan L. R. Drewes, Drewes Law, PLLC, Counsel for Plaintiffs.
Andrew Peters, and Jared D. Kemper, Dykema Gossett, PLLC, Counsel for Defendant.
MEMORANDUM OF LAW & ORDER
MICHAEL J. DAVIS, District Judge.
This matter is before the Court on Plaintiffs' Motion for Summary Judgment. [Docket No. 28] The Court heard oral argument on Friday, March 13, 2014.
A. Factual Background
Plaintiffs Robert Mann and Laurinda Holm (collectively "Plaintiffs") reside at 3438 39th Avenue South, Minneapolis, MN 55406 ("the Property"). ([Docket No. 30] Mann Aff. ¶ 2.) On July 14, 2005, Plaintiffs delivered to State Bank of Long Lake a promissory note secured by a mortgage on the Property ("the Mortgage Loan"). ([Docket No. 32] Guilford Decl., Ex A, Sheriff's Certificate of Sale p. A-3; [Docket No. 1-1] Compl., Ex. A, Notice of Mortgage Foreclosure Sale.) The principal amount of the Mortgage Loan was $233, 900.00. (Compl., Ex. A, p. 2.)
State Bank of Long Lake then assigned the Mortgage Loan to Bank of America, and Bank of America assigned the Mortgage Loan to Defendant Nationstar Mortgage LLC ("Defendant"). (Guilford Decl., Ex A, p. A-3.)
Around mid-2011, Plaintiffs became delinquent on their Mortgage Loan payments. ([Docket No. 36] Kemper Decl., Ex. 2, Plaintiffs' Correspondence with Habitat for Humanity ("HH").) In December 2011, Plaintiffs contacted HH to inquire about a loan modification. (Id.) However, after Plaintiffs failed to follow-up with HH over several months, HH closed its file on Plaintiffs. (Id.)
On April 16, 2013, Defendant executed a Notice of Pendency on the Property. (Compl., Ex. C.) As of April 23, 2013, Plaintiffs owed $214, 156.93 on their Mortgage Loan. (Compl., Ex. A, p. 16.)
On April 23, 2013, Defendant mailed to Plaintiffs a Notice of Mortgage Foreclosure Sale ("Notice of Sale"). (Compl., Ex. A.) The Notice of Sale advised Plaintiffs that they were in default on their Mortgage Loan and that a sheriff's sale was scheduled for June 14, 2013. (Id.) Plaintiffs postponed the June 14, 2013 sheriff's sale by exercising their rights under Minn. Stat. § 580.07, which allows a mortgagor to postpone a sheriff's sale for five months in exchange for a shortened redemption period. (Kemper Decl., Ex. 1.)
On October 31, 2013, Plaintiffs submitted a loan modification application (hereinafter "Loan Modification Application") to Defendant through HH. ( Id., Ex. 2; Guilford Decl., Ex. B, p. B-5.) Defendant accepted Plaintiffs' Loan Modification Application. (Guilford Decl., Exs. B-5, B-6 (indicating that Defendant had accepted Plaintiffs' "initial package" and "core documents")). On November 5, 2013, Defendant requested additional materials from Plaintiffs, namely, Profit and Loss and 1099 forms. (Kemper Decl., Ex. 3.) Plaintiffs submitted the requested materials to Defendant on November 12, 2013. (Id.)
The Defendant sold the Property by sheriff's sale ("the Sheriff's Sale") on November 14, 2013. (Guilford Decl., Ex. A, p. A-3.) Defendant recorded the certificate of sale ("the Sheriff's Certificate") on December 10, 2013. ( Id., Ex. A., Receipt Acknowledging Recording of Sheriff's Certificate.) The ...