Failure to redeem from judicial foreclosure renders appeal moot.

In Can IV Packard Square LLC v Packard Square LLC, a published opinion of the Michigan Court of Appeals, the plaintiff obtained a judgment of foreclosure of its mortgage.  The defendant appealed, but the judicial sale went forward during the pendency of the appeal.  After the redemption period expired, the appellee filed a supplemental brief on appeal arguing that the issues raised by the appellant were moot due to the failure to redeem.

Relying upon the analysis made in Bryan v JPMorgan Chase Bank, which held that a mortgagor who failed to redeem from a foreclosure by advertisement lacked standing to challenge the underlying foreclosure, the court held that the failure to redeem the property from a judicial sale similarly ended all of the mortgagor’s rights to the property foreclosed.  Since the court was unable to grant the appellant any relief even if it prevailed, the appeal was moot.

The procedural history recites that the appellant tried twice while the appeal was pending and prior to the redemption period to either expedite the appeal or to stay the running of the statute of limitations, but failed to cure defects in its motions, resulting in the motions being denied. 

© Steve Sowell 2022