Skip to main content

Countrywide Home Loans v. Schmidt, et al.

Case Conclusion Date: 10.10.2007

Practice Area: Real estate

Outcome: Favorable trial court decison affirmed on appeal

Description: I represented Jeanne Mayer, who contracted to buy a house for $300,000 and had to sue for specific performance. While that action was pending, Countrywide loaned the seller $360,000 despite a lis pendens in favor of Mayer, and paid off $260,000 in mortgages that predated the lis pendens. In a separate appeal (which I also successfully handled), the Wisconsin Court of Appeals held that Mayer was entitled to specific performance. Countrywide in the meantime sued the seller for foreclosure, and joined Mayer because of her lis pendens. It plead equitable subrogation against her, and claimed that it was entitled to recoup from her the $260,000 it paid off, plus interest on the old mortgages since the payoff and taxes and insurance it paid, all adding up to $320,000, or $20,000 more than Mayer's purchase price for the property. The Wisconsin Court of Appeals held that equitable subrogation did not require payment of interest, taxes, or insurance because she was an innocent party. Mayer was allowed to eforce her purchase contract as written.

See all Legal Cases