Tag: mutual mistake

N.C. Court of Appeals: Wells Fargo v. Coleman- Statute of Limitations for Reformation of Deed of Trust is a Factual Determination; Reasonable Diligence not required for Mutual Mistake


The Colemans own lots 42, 43, 44, and 45 of a subdivision, with their home located on lots 42 and 43 and lots 44 and 45 being undeveloped. In 2007, Mr. Coleman borrowed $137,567.00 from (now) Wells Fargo, secured by a Deed of Trust signed by the couple. The Deed of Trust described the property as:

All that real property situated in the County of Davidson, State of North Carolina:
Being the same property conveyed to the Grantor by Deed recorded in Book 1007, Page 1013, Davidson County Registry, to which deed reference is hereby made for a more particular description of this property.… Read More

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N.C. Court of Appeals: Wells Fargo v. Huntley- Purchaser in Foreclosure can seek reformation of Deed of Trust


Wells Fargo sought a reformation of a Deed of Trust, which it discover, after the borrowers defaulted and Wells Fargo foreclosed (putatively purchasing the property itself), did not describe the actual real property upon which the house was built. The trial court held that as Wells Fargo, having purchased the property at foreclosure, was no longer a lender and lacked standing as a purchaser to seek reformation.

The Court of Appeals disagreed, following Citifinancial Mortg. Co. v. Gray, 187 N.C. App. 82, 85, 652 S.E.2d 321, 322 (2007), and holding that the purchaser at foreclosure can pursue reformation.


Free advice to the borrowers- Quickly, file bankruptcy and Wells Fargo will be wiped away.… Read More

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N.C. Court of Appeals: Inland Harbors HOA v. St. Joseph’s Marina (Inland Harbor III)- Reformation of Deed of Trust


Following Hice v. Hi-Mil, Inc., 301 N.C. 647, 273 S.E.2d 268 (1981), the Court of Appeals (in its third opinion in this case) held that in an action for reformation of a written instrument the moving party must show by clear, cogent and convincing evidence that there was ” not just a mistake on its
own part, but a mutual mistake on the part of all parties.”

For a copy of the opinion, please see:

Inland Harbors HOA v. St. Joseph’s Marina (Inland Harbor III)- Reformation of Deed of Trust.pdf Read More

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N.C. Supreme Court: Willis v. Willis- Mistake of One Party Insufficient to Reform Deed


Janice Willis had two sons, Eddie and Anthony. In December 2004 she drafted a will bequeathing “any interest that I may own in my home place” to Eddie, expressing her “wish” that, if she conveyed the property to Eddie before her death and he decided to sell it, Eddie would divide the proceeds with his brother Anthony. The will also bequeathed the residue of her estate to Eddie and Anthony in equal shares, to pass to their children per stirpes if either or both predeceased her. Mrs. Willis did transfer the property to Eddie, subject to a life estate, but Eddie died a few years later, while Mrs.… Read More

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