GMAC Mortgage, LLC v. Dyer

Summary

The Indiana Court of Appeals considered whether a proposed deed-in-lieu-of-foreclosure agreement for an FHA-insured mortgage adequately released the borrower from personal liability. The court held that the agreement's provision stating that GMAC and HUD would not pursue a deficiency judgment complied with federal law and HUD regulations and was sufficient to release the borrower from all obligations under the mortgage. The court reversed the trial court's order requiring GMAC to add express language releasing the borrower from personal liability and remanded for further proceedings.

Holdings

1. Because matters outside the pleadings were presented and considered, the trial court properly treated the motion for judgment on the pleadings as one for summary judgment, and the appellate court applied the summary judgment standard.
2. Under federal law and HUD regulations, a deed in lieu of foreclosure for an FHA-insured mortgage releases the borrower from all obligations under the mortgage, including personal liability for a deficiency.
3. GMAC's proposed deed in lieu agreement contained the precise HUD-required language and therefore sufficiently released Dyer from all personal liability; GMAC was not required to add Dyer's requested express release provision.

Questions Presented

1. Whether the trial court properly treated Dyer's motion for judgment on the pleadings as a motion for summary judgment.
2. Whether GMAC's proposed deed in lieu of foreclosure agreement, containing HUD-required language that neither GMAC nor HUD would pursue a deficiency judgment, released Dyer from all personal liability under the FHA-insured mortgage.
3. Whether GMAC was required to add Dyer's requested express personal-liability-release provision to the deed in lieu of foreclosure agreement.

Disposition

reversed_and_remanded