News Release

School of Law Mortgage Foreclosure Defense Clinic Successfully Prevents Victims of Land Contract Scam from Foreclosure

University of Detroit Mercy School of Law’s Mortgage Foreclosure Defense Clinic successfully argued a motion recently 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.”

For more information about the University of Detroit Mercy School of Law, please visit www.law.udmercy.edu.

Release date: December 20, 2012

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The University of Detroit Mercy is Michigan's largest private Catholic University, offering approximately 100 majors and programs in 60 academic fields. Sponsored by the Society of Jesus (the Jesuits) and the Sisters of Mercy of the Americas, the University has three campuses located in downtown and northwest Detroit.

For the 12th consecutive year, UDM was ranked among the top tier of Midwestern master's universities in U.S.News & World Report's "Best Colleges," 2013 edition.