Davenport v. HSBC BANK USA
Docket: 134458
Court: Michigan Supreme Court; February 7, 2008; Michigan; State Supreme Court
Original Court Document: View Document
The Michigan Supreme Court denied the application for leave to appeal the Court of Appeals' judgment from April 24, 2007, regarding the foreclosure proceedings initiated by HSBC Bank USA against Wanda Davenport. The Court of Appeals had determined that HSBC Bank could not commence foreclosure on October 27, 2005, because it was not the record holder of the mortgage at that time. Under MCL 600.3204(1)(d), only the owner of the indebtedness or a servicing agent can initiate foreclosure proceedings. The interpretation of “foreclosing” in this statute was central to the case, indicating that the initiating party must hold the relevant mortgage interest when the foreclosure process begins. Justice Markman dissented, arguing that the term "foreclosing" should be examined in light of MCL 600.3208, which discusses how notice is provided when a property is subject to foreclosure sale. He suggested that this could imply that initiating foreclosure procedures might not necessarily require ownership of the mortgage at the outset, potentially allowing HSBC to publish notice before the mortgage assignment occurred. Markman contended that the interpretation of “foreclosure” is significant and warranted further review by the Court. Justice Corrigan concurred with Markman’s dissent. The Clerk of the Michigan Supreme Court certified the order as a true and complete copy of the Court's decision on February 8, 2008.