Testimony Of MERS CEO, Senior VP Available Online
Go here for the links to the above-referenced documents.
Documents available online courtesy of Mike Dillon at GetDShirtz.com.
Welcome to The Home Equity Theft Reporter, a blog dedicated to informing the consumer public and the legal profession about Home Equity Theft issues. This blog will consist of information describing the various forms of Home Equity Theft and links to news reports & other informational sources from throughout the country about the victims of Home Equity Theft and what government authorities and others are doing about it.
For the story, see 'Bank acts like home is a foreclosure' (Gowen couple files lawsuit against Deutsche Bank).
See also, WZZM-TV Channel 13: Family's recently purchased home, gutted by property removal service:
(1) DeMello currently represents a Massachusetts couple who got similarly screwed when they bought a foreclosing lender's REO on an all-cash basis, only to have the premises trashed out shortly thereafter. See ABC News: No Mortgage, Still Foreclosed? Bank of America Sued for Seizing Wrong Homes (In the Last Four Months, Three Homeowners Have Sued Bank of America for Mistakenly Foreclosing on Their Homes).
For the ruling, see In Re Aniel, Bankruptcy Case No. 09-30452DM (Bankr. N.D. Cal. April 21, 2010).
(1) The court when on to give this rationale for its ruling (bold text is my emphasis, not in the original text):
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For more, see Loan registry raises legal questions (Foreclosures: Courts, legal scholars question company's role).
(1) Landmark Nat'l Bank v. Kesler, 289 Kan. 528; 216 P.3d 158, 2009 Kan. LEXIS 834 (2009), affirming Kansas Court of Appeals in Landmark Nat'l Bank v. Kesler, 40 Kan. App. 2d 325, 192 P.3d 177, 2008 Kan. App. LEXIS 138 (2008).
Source: Fla. judge reverses GMAC loan.
(1) For those of you out there under the age 0f 80, Ralph Kramden is a character in the 1950's TV situation comedy The Honeymooners, played by the late actor Jackie Gleason.
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For the story, see Home loan confusion puts end to foreclosure of Oklahoma reverend (After housing bubble, toil and trouble, preacher wins).
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For more, see Modification and misery: Lawsuit claims house sold from under homeowner after push to alter loan.
Source: San Leandro woman pleads guilty to defrauding San Jose homeowner.
(1) Unwinding or undoing a scam like this requires the filing of a civil suit in which, among other things, a determination is sought as to whether the deed signed by the unwitting victim is void, or is merely voidable. See Schiavon v. Arnaudo Bros., 84 Cal. App. 4th 374; Cal.Rptr.2d 801 (Cal. App 6th Dist. 2000), for California case law that references the propositions that:
If the deed is found to be void, a subsequent bona fide purchaser for value is not protected by the state recording statutes, in which case his/her interest is a nullity. If the deed is found to be voidable, a subsequent conveyance to a bona fide purchaser will be recognized as valid. Fallon v. Triangle Management Services, Inc. (1985) 169 Cal.App.3d 1103 [215 Cal.Rptr. 748]:
For more, see Unwinding An Abusive Or Fraudulent Real Estate Transaction? Determining If The Deed Is Void, Or Merely Voidable.
For more, see Akron man takes chance, saves home from foreclosure.
(1) Presumably, the plan was considered risky because lenders who OK short sales combined with a leaseback and buyback option are probably doing so unwittingly, being kept in the dark about the short sellers' continuing possession of the premises, and their retention of an option to buy back the home in the future at an amount significantly lower than what the lender is owed. Failure to fully disclose any contemporaneous side deals to the lender/loan servicer approving the short sale, or any lender financing the short sale, could land the participants in these deals in hot water. See:
See also, The Stockton Record: Home program savior or sketchy? (Buyback investor deals risky, some experts say).
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For the story, see Greed 'overcame' man who took £40,000 from elderly neighbour.
(1) See: Man 'put home of neighbour up for sale':
For more, see Judge to rule on maintenance resposibility for foreclosing properties.
See also, The New York Times: Bid to Make Banks Fix Crumbling Bronx Properties (Housing advocates estimate that 4,700 apartments in dozens of buildings across New York City are in foreclosure, and that about 110,000 apartments are at risk).
Source: Calpers’ Board Approves Policy Shift to Protect Rent Control.
Source: KC woman accused of using elderly neighbor to land fraudulent reverse-mortgage loan.
For more, see Bank forecloses on woman's home twice.
For more, see Outraged homeowners detail HOA fines, foreclosure threats to Austin lawmakers.
For the story, see Spotsylvania woman declared a felon in embezzlement case (Woman formally convicted in $188,000 heist; gets suspended sentence).
(1) Reportedly, Bennett's attorney, Claire Caldwell, tried to have Scott declared unfit to testify because of her mental slippage. Neely acknowledged he would have had no case against Bennett had the effort succeeded. But Judge David Beck ruled that Scott could testify and said it would be up to the jury to determine her credibility.
For the story, see Man pays back homeowners in loan modification case.
(1) “(They) were in danger of losing their homes to foreclosure and entered into an agreement that they believed would give them a little bit of time to get their financial house in order; instead, it resulted in them having a real risk of losing their home and not be able to get it back,” AG Kroger reportedly said. Barnes said he wrote another $4,000 check to a second family but said he only settled the case because it was cheaper than fighting the attorney general, according to the story.
For more, see Owners say they lost vacant homes to 'renters'.
See also, D.A. to examine vacant home scheme:
(1) According to the story, Hanloh twice declined comment, saying only that he is doing everything legally. "I will tell you that what I do is fight the banks," Hanloh reportedly said. Reportedly, the Orange County Sheriff's Department and Anaheim police say they are investigating. "We're getting an education, just like you are," said sheriff's Lt. Mark Levy, who oversees police services in Dana Point. "These quitclaim deeds, if misused, certainly muddy the water." Hanloh's official-looking paperwork has reportedly kept police officers from immediately taking action.
The story states that Hanloh's scheme appears similar to one in Pasco County, Fla., where a man took over 72 homes under a law called "adverse possession," renting out half of them, according to published reports. He was arrested in February on fraud charges. See C. Fla. Man Claims "Adverse Possession" Defense After Arrest On Home Hijacking Charges; Swiped 72 Houses, Rented Out 31 To Unwitting Tenants, Say Cops.
For more, see Police: Man tried to steal home.
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Source: Former L.A. firefighter pleads no contest in real-estate scheme.
(1) Acording to the story, Mathew’s girlfriend at the time, Joi Rochelle Smith, 34, was a notary public and part-time real estate broker who was also charged by authorities. In February, she pleaded no contest to one count of recording a false or fraudulent instrument, the district attorney said. Smith was sentenced to three years of formal probation and 52 days of community service, the story states.
For the ruling, see Riggs v. Aurora Loan Services, LLC, 4D08-4635, (Fla. 4th DCA, April 21, 2010).
For the story, see Ignorance Still No Defense, Court Says.
See also, The Wall Street Journal: Debt Collectors Can Face Lawsuits for Mistakes, Court Says.
For the ruling, see Jerman v. Carlisle, McNellie, Rini, Kramer & Ulrich, 08-1200 (April 21, 2010).
For earlier post, and links to all the briefs, see Supremes To Decide Whether Attorney Screw-Up When Pursuing Foreclosure Action Is Defensible As "Bona Fide Error" Under FDCPA.
(1) The consumer alleged the defendant violated the FDCPA because it compelled consumers to dispute the debt in writing when the FDCPA imposes no such requirement. See 15 USC 1692g(a)(3). The FDCPA states simply that if the consumer dipsutes the debt in writing, such written dispute operates to impose certain legal obligations on the creditor. See 15 USC 1692g(a)(4),(5); 15 USC 1692(g)(b). The consumer is always free to dispute the debt orally. Such oral dispute, however, will not impose those legal obligations on the creditor that a written dispute imposes.
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For the story, see Couple pleads guilty in Filipino Ponzi scheme.
(1) According to the story, they were indicted in January along with co-defendants Edmundo Rubi and Joseph Encarnacion. Encarnacion, 60, pleaded guilty to helping the scheme’s alleged ringleader, Rubi, by recruiting victims and assisting in a presentation in which the victims were encouraged to transfer titles to their real estate to the defendants, La Fond said. Encarnacion was sentenced to four years in prison and Rubi is scheduled for a mental competency hearing next month. Filipinos in San Diego were urged to invest in companies called “Apocalypse Trust” and “Amerisian Trust,” the prosecutor said. At the time he was indicted, Rubi had just gotten out of prison after serving a 70 month federal sentence for swindling $24 million out of 425 mostly Filipino victims in 2005, La Fond said.
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Source: Legal assistant bilked millions (Woman pleads guilty to 16 charges).
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For the story, see Lender ordered to pay E. Northport couple $100G (A state judge accused a mortgage company of premeditated attempts to destroy an East Northport couple's chances of keeping their home).
For the ruling, see Emigrant Mtge. Co. Inc. v Corcione, 2010 NY Slip Op 20133 (Sup. Ct. Suffolk County, April 16, 2010).
(1) The story notes that Justice Spinner is the same judge who, back in November, 2009 voided Long Island residents Greg and Diana Yano-Horoski's $292,500 mortgage for similar conduct by the lender (see Indymac Bank F.S.B. v Yano-Horoski, 2009 NY Slip Op 52333(U), November 19, 2009). He had accused IndyMac Mortgage Services of failing to negotiate a loan modification in good faith. The lender's appeal is pending.
Spinner is also the same judge who recently belted Wells Fargo for giving a homeowner facing foreclosure a premature boot (see Long Island Judge Hammers Wells w/ $155K Tab For Oppressive, Heavy Handed, Egregious Conduct For Pre-Sale Lockout Of Homeowner In Foreclosure).
In his ruling, Justice Spinner makes this acknowledgement to a fellow New York trial judge:
(2) In a recent New Jersey case (see Gonzalez v. Wilshire Credit Corp., DOCKET NO. A-2634-08T2, 988 A.2d 567; 2010 N.J. Super. LEXIS 16 (App. Div. 2010)), the state appeals court found that unfair, deceptive, or unconscionable practices engaged in by a mortgage lender in connection with "negotiating" a one-sided loan modification agreement with a financially strapped homeowner was subject to the provisions of the New Jersey Consumer Fraud Act (CFA), N.J.S.A. 56:8-1 to -106. See Unfair, Deceptive Practices In Connection With Post-Foreclosure Judgment Loan Workout Negotiations Subject To NJ Consumer Fraud Act.
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For more, see When Foreclosure Threatens Elder-Care Homes.
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For more, see Foreclosure firm's revenues jump to
(1) In a related story, DJSP Enterprises has signed an agreement to acquire Timios, a national title insurance and settlement services company. Headquartered in Westlake Village, California, Timios is a licensed title insurance and escrow agent operating in 38 States. See Insurance Business Review: DJSP Enterprises Acquires Timios., and DJSP Enterprises, Inc. to Handle Processing for National Foreclosure Alternative Program for Leading Mortgage Lender.
Source: 3 charged with defrauding 45 homeowners in mortgage scam.
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Source: Defendant wins with no lawyers, no plaintiff.
(1) In the court's ruling, Beane v. Dailey, No. 34630, 2010 W. Va. LEXIS 25 (W.V. April 1, 2010), the court made this observation:
(Editor's Note: In the context of foreclosure actions, I still can't help wondering:
(2) The story goes on to set forth these details that led to the judgment against Dailey. Beane sued Dailey in 2002, over an auto collision that happened in December 2000. His mother, Cheryl Dailey, received a summons at her home in Dunbar, WV. Beane filed a default motion three months later, with an affidavit from Wood attesting to return of service. Judge Zakaib granted the motion but took two years to hold a hearing and three more to decide how much Dailey owed. In 2008, he awarded $1,600 in general damages and $449.86 in reimbursement of medical expenses, plus five years interest. Dailey appealed, writing that he was unaware of any hearing, trial or verdict. He wrote that as of May 2000, he lived at Whiteman Air Force Base in Missouri. He wrote that he was not a West Virginia resident at any point in the proceedings. As a matter of procedure he should have moved to set aside judgment before appealing, but the Justices let it slide because he lacked counsel, the story states.
(3) Since the Court reversed the default judgment entered below based upon insufficient service of process, it stated in its ruling that it was unnecessary to address any potential issues surrounding the Federal law known as the Servicemembers Civil Relief Act (SCRA) in regard to Mr. Dailey's contention that he was a member of the United States Armed Forces. The Court nevertheless issued a reminder to West Virginia trial courts that they are obligated to observe any applicable requirements of the SCRA, found at 50 App. U.S.C.A. §§ 501 et seq., which, according to the court, was enacted on December 19, 2003, as a recodification of the Soldiers' and Sailors' Civil Relief Act of 1940.