CUNA Mortgage v. Aafedt

459 N.W.2d 801 (1990)

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CUNA Mortgage v. Aafedt

Supreme Court of North Dakota
459 N.W.2d 801 (1990)

Facts

In 1985, Dean and Pamela Aafedt (defendants) borrowed money from Williston Cooperative Credit Union to purchase three townhouse properties. The Aafedts signed three promissory notes and mortgages in the amount of $15,150. After the notes and mortgages were assigned to CUNA Mortgage (CUNA) (plaintiff), the Aafedts defaulted. In 1989, CUNA sued in foreclosure on all three mortgages. The Aafedts offered to reconvey the properties to CUNA to prevent foreclosure, but CUNA rejected this offer. CUNA claimed that the United States Department of Housing and Urban Development (HUD), which insured the mortgages, would not agree to the reconveyance or to reimburse CUNA for funding. Nevertheless, the Aafedts proceeded to reconvey the properties to CUNA by executing a quitclaim deed, which was recorded in 1989 without CUNA’s knowledge. The Aafedts then asked the trial court to dismiss the foreclosure actions, arguing that the properties had been reconveyed to CUNA and that CUNA had failed to respond. The trial court ultimately dismissed the Aafedts’ motion for summary judgment, ruling that the Aafedts reconveyed the property without CUNA’s knowledge or consent, and thus the quitclaim deed was void. The trial court granted summary judgment in favor of CUNA, allowing the three foreclosures to proceed. The Aafedts appealed.

Rule of Law

Issue

Holding and Reasoning (Levine, J.)

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