In TCF National Bank v Decker, an unpublished Michigan Court of Appeals opinion, the mortgagor defaulted under her mortgage. The bank foreclosed, and the redemption period expired. The bank then filed a complaint to recover possession of the property. The mortgagor filed counterclaims asserting fraud in the sale process, asking the court to set aside the sale or in the alternative for money damages.
The bank filed a motion for summary disposition and to dismiss the counterclaims, asserting the counterclaims were derivative of the foreclosure process and thus barred under Bryan v JPMorgan Chase Bank, which held that a mortgagor loses all rights to contest a foreclosure when the redemption period expires. The motion was granted and the mortgagor appealed.
On appeal, the appeals court held that an action to challenge a foreclosure sale must be filed within the redemption period. Once the redemption period expires, the mortgagor loses all rights in the property. Only if a suit challenging the foreclosure is filed prior to the end of the redemption period does a trial court have the power to equitably extend the redemption period. A court does not have the power to equitably revive a redemption period already expired.