The UDM Mortgage Foreclosure Defense Clinic argued at Wayne County Circuit Court this week that Paramount Land Holdings failed to properly notify homeowners about their previous payment failures.
According to a release issued by the clinic, Paramount Land Holdings, which is locally funded by the Detroit Police and Fire Pension Fund, purchased foreclosed properties for as little as $10. Through land contracts, it sold these assets for inflated prices to buyers who were assured that Paramount had paid all back taxes.
However, homeowners learned that this was not the case when Wayne County began foreclosure proceedings for back taxes. As a result, many homeowners stopped making their monthly payments to Paramount.
According to a Detroit News article earlier this year, the owners of the company have not been available for comment as they have been "on the run from a federal warrant for stealing 10 million dollars" from the Detroit firefighters' retirement fund.
The receiver, appointed by the Wayne County Circuit Court to maintain Paramount properties, obtained a court order to terminate land contract interests to gain exclusive possession of the assets, therefore taking title of the homes. If this happens, homeowners will be deprived of their properties and evicted from their homes.
Furthermore, the clinic said, the receiver obtained the order without providing the homeowners any opportunity to contest the motion stating that their rights would be affected through the motion.