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Tracey v. Recovco Mortg. Mgmt. LLC

United States District Court for the District of New Jersey

April 3, 2020, Decided; April 3, 2020, Filed

Civil Action No. 20-3298 (MAS) (TJB)

Opinion

MEMORANDUM ORDER

This matter comes before the Court upon Plaintiff Constance T. Tracey's ("Plaintiff") Application for Entry of an Order to Show Cause with Mandatory Injunctive Relief. (ECF No. 2.) Defendants Recovco Mortgage Management LLC d/b/a Sprout Mortgage ("Sprout") and Hugh Goldson ("Goldson") (collectively, "Defendants") opposed (ECF No. 13), and Plaintiff replied (ECF No. 14).

I. INTRODUCTION

At the time of this Memorandum Order, the country is grappling with the uncertainty of the coronavirus crisis. It is against this backdrop that the Court reviews Plaintiff's Application and is in the unenviable position to evaluate the legal ramifications of an unfortunate set of facts.

Plaintiff, the owner of several rental properties, is an 81-year-old woman seeking to purchase her dream home. Sprout is a mortgage company dealing with the current economic downturn. The dispute [*2]  concerns a misrepresentation made by a Sprout representative that funding for Plaintiff's mortgage was approved. Following the Sprout representative's misrepresentation, Plaintiff received the keys to the home and quickly moved in her belongings, only to find out hours later that Sprout failed to disburse the funds. Sprout contends it cannot fund the mortgage for reasons related to the financial crisis. Faced with the seller's threats to remove her from the home, Plaintiff sued the mortgage company and its representative, seeking to compel them to immediately fund the mortgage.

The Court is sympathetic to the parties' difficult situations, but for the reasons set forth below is unable to grant the relief Plaintiff requests.

II. BACKGROUND

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2020 U.S. Dist. LEXIS 58852 *

CONSTANCE T. TRACEY, Plaintiff, v. RECOVCO MORTGAGE MANAGEMENT LLC d/b/a SPROUT MORTGAGE, and HUGH GOLDSON, Defendants.

CORE TERMS

mortgage, funding, merits, preliminary injunction, alleges, damages, Reply, likelihood of success, irreparable harm, injunctive relief, injunction, discovery, expedited, factors, message, e-mail, negligent misrepresentation claim, documents, mandatory, argues