Cramer’s mortgage contained a provision requiring her to pay monthly tax and insurance pa y ments into an escrow account held by the bank in addition to principal and interest. Cramer paid the principal and interest regularly but refused to pay the tax and insurance e s crow payments. The bank brought foreclosure proceedings. Did it have the right to foreclose on Cramer’s mortgage? Explain. Cramer v. Metro. Sav. & Loan Ass’n., 258 N.W.2d 20 (MI).
As per the facts of the case, Cramer's mortgage was foreclosed because of non-payment of insurance and tax charges into a escrow account even when she was paying the principal and interest payment in a timely manner. The court decided that since she has paid the loan component in a timely manner, so the foreclosure has to be restrained. Also she was granted a full jury trial and the plea by Metro (which was the financial institution) to proceed with foreclosure was dismissed. Also all costs was put on Metro for the case under consideration
Cramer’s mortgage contained a provision requiring her to pay monthly tax and insurance pa y ments...