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Jeminson v. Montgomery Real Estate and Co.

Michigan Court of Appeals
210 N.W.2d 10 (1973)


In 1970, Jeminson (plaintiff) agreed to purchase a home in Detroit from Montgomery Real Estate and Company (Montgomery) (defendant) under a Federal Housing Administration (FHA) mortgage insurance program. Jeminson signed a mortgage agreement with Michigan Mortgage Corporation (Michigan) (defendant) to borrow the purchase price of $11,800. Shortly after she moved in, Jeminson discovered that the house was uninhabitable. Jeminson abandoned the premises, and Michigan foreclosed. Jeminson sued Montgomery and Michigan. Jeminson claimed that Montgomery fraudulently misrepresented the condition and value of the house and did not qualify under FHA regulations for financing. Jeminson further claimed that Michigan, as mortgagee, had a duty to protect Jeminson, as mortgagor, from the deceptive practices used by Montgomery to sell Jeminson the home. Michigan moved for summary judgment. The trial court granted Michigan’s motion. Jeminson appealed.

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