EXAMINING THE CASE OF ONE LOCAL “DEADBEAT”
Commentary by Matt Gardi
The last few weeks, in this newspaper, I have made an attempt to expose what is truly going on in the foreclosure process, and how it ties back to a myriad of other systematic issues affecting our daily lives. Last week, we touched on the fact that the court system is incentivized directly by the Banks that have caused this crisis.
But I would be remiss if I did not mention the Foreclosure and Economic Recovery Plan, aka the “Rocket Docket.” In FY 10 -11, our legislature, (clearly influenced by the Banking lobby) devised the Rocket Docket to appoint retired Judges to reduce the backlog (grease the skids) of foreclosure cases by 62 percent during the fiscal year.
You might note that appointed retired Judges do not face the scrutiny of elections.
Here in the Keys, that duty has been assigned to Judge Sandra Taylor. Taylor has made an effort to proactively dismiss cases for lack of prosecution, but according to a report by the Office of State Courts Administrator, she only disposed of 23 cases in the first three months by dismissing them, while granting 100 Summary Judgements of Foreclosures. That is a four to one ratio in favor of the banks.
Again, allow me to remind you that defendants are not challenging most of these cases, and if a decent review of each case is not conducted, you may end up with a watershed of adverse consequences down the road, as per my commentary from last week. Attention to the documents in each case is essential to preserve the integrity of our title histories, and ultimately our property values, regardless of whether or not a defendant is present.
But what happens when a case with questionable docs is contested? If, as I suggest, the documents are so egregious, surely a defendant would prevail and the Judge would recognize fraud, right? Well, one would hope. But let’s examine one such case, and you be the Judge. Case No. 2009- CA-471-K.
This is a case so baffling that it could be a novel if it weren’t true. A novel titled, “How many lawyers does it take to change a light bulb while Judges hold the ladder?” Here are the Cliffs Notes in a seriously abbreviated form.
The defendant, Mr. Deadbeat, takes out a mortgage on a property in 2006 with HSBC. Months later, Deadbeat is told that his mortgage has been sold to Countywide. Later, in 2008, while trying to sell his property, he is counseled by Countrywide that he needs to be 60 to 90 days behind on his payments even to have a short sale considered.
Now, Deadbeat had never missed a payment on anything in his life but chooses to ruin his credit and submit the short sale offers. The bank doesn’t make a short sale work, but does file for foreclosure. Countrywide hires renowned foreclosure law firm Marshall C. Watson to pursue the case.
Here is the catch— and pay attention— this is like trying to follow which shell the marble is under at Sunset Festival. Deadbeat’s mortgage is in the Clerk’s records as being held by HSBC. On February 24, 2009, Marshall Watson files an Assignment of Mortgage dated Feb 16, 2009, transferring the original mortgage FROM HSBC to Countrywide. This mortgage assignment is signed by one Ms. Patricia Arango, Assistant Secretary, and notarized by Ms. Kelly Anderson. Our friend Ms. Arango signs as Assistant Secretary of Mortgage Electronic Registration System as Nominee for HSBC.
Now, on March 10, 2009, a foreclosure complaint is signed on behalf of Countrywide by Ms. Karen Thompson of the esteemed Marshall Watson law firm, which includes a copy of the original note and mortgage, along with our sweetie Arango’s mortgage assignment.
One would think this Arango must somehow be affiliated with HSBC to have given their mortgage to Countrywide only days before the foreclosure filing. Deadbeat ponders why had he been paying his mortgage to Countrywide since 2006 if Arango only gave it to them in 2009. So a quick search of the County Clerk’s site shows that Arango has on file a form giving her power of attorney for, get this, Countrywide. Watch the marble now.
Didn’t Arango just give the mortgage FROM HSBC to Countrywide? If she is an agent of Countrywide, she just gave herself the mortgage, right? But hold on, who doesn’t love a two for one special? A search of the Florida Bar shows that Arango is actually an attorney for Marshall Watson, the very firm representing Countrywide as Plaintiff. Ultimately it is discovered that even the notary, Kelly Anderson works for Marshall Watson. Confused yet? So am I. I wonder why people aren’t disbarred and in jail yet. But wait, it gets even better.
Deadbeat starts to challenge this charade, and Ms. Thompson plays her trump card and files what she claims to be an “Original NOTE.”
There. In this case file. For the world to see is the Original Note signed by Deadbeat himself. Checkmate.
Deadbeat takes a look at this note and almost concedes. It has a color signature with numerous undated stamps of transfer through Countrywide affiliates, but ultimately endorsed in blank. Even though the affiliates don’t correlate with the mortgage assignment or plaintiff, and the signatures are just rubber stamps, Deadbeat feels he has met his match. They have the note.
Except for one small detail:
The first two pages of the note don’t have initials on them. Virtually every other page of every doc from closing has Deadbeat’s initials, except Marshall Watson’s “original note.” Could this have been an error at closing? Deadbeat checks his copy from closing and, yup, there are his initials, along with other typos on those pages as well.
Deadbeat still can’t believe that someone would fabricate a note, and THEN file it with the Court. That has to be illegal, right? So he calls up Chicago Title and asks them to retrieve their copy from their archives in Orlando. Guess what? Chicago Title’s copy matches Deadbeat’s copy exactly.
It’s starting to seem like Sesame Street, “One of these things does not belong!”
So if you think you have your eye on the right shell at this point, you can clearly see what happened. Countrywide probably did buy the mortgage from HSBC, but more than likely immediately securitized it and was made whole.They then continued to collect payments from Deadbeat until which time he stopped paying. At which point they called up their chums at Marshall Watson and had them initiate a foreclosure on their behalf, not the investor’s.
They never filed a true mortgage assignment when they sold the mortgage to evade the filing fee and defraud the investor, so they needed Marshall Watson to whip up some docs for them.
So Marshall Watson has Arango whip up an assignment from HSBC to their plaintiff, Countrywide, then has a notary in their office sign off on it, and away they go, bada bing, bada boom. Investor is defrauded, original note is destroyed, filing fees are evaded, and Countrywide runs away with another house after having already sold the mortgage. That is what is happening in the majority of these cases. But what happens when Deadbeat actually stands up and fights back?
On November 23, 2009, Deadbeat filed a formal motion to dismiss highlighting all of these issues. Oddly, on December 10, 2009, Marshall Watson suddenly came up with the investor info and did an ex-parte change of plaintiff. Guess what, it’s Fannie Mae, that’s you.
This latest artwork of an assignment filed by Marshall Watson is dated March 4, 2009, before the case was even filed. That means, had Deadbeat not fought back, more than likely Countrywide would have been given the ol’ rubber stamp and you, the taxpayer, after having your “bank owned” Congress bail out Fannie Mae, would have been left holding an empty sack.
Also, remember that this questionable hand-off to Fannie Mae occured only after it appeared as if it might be hard for Countrywide to steal the house, and the government was buying up troubled assets from banks. Fannie Mae never appears even on the fake note and may not even be the original investor.
Deadbeat has never once, as a pro se defendant, tried to delay the case. But he is opposed by six lawyers and two law firms whom he can’t get to show up in court, has unanswered interrogatories pending for almost six months, and has a standing motion to dismiss and to auction the property for charity.
Either all of Deadbeat’s allegations are true, or the five attorneys from Marshall Watson, and the counsel they have retained because they feel so threatened, are the most blithering bunch of incompetent lawyers in existence.
Surely the Judges will see through this shell game and toss Marshall Watson out of their courtroom. Surely, Attorney General Pam Bondi will arrest these culprits for the obvious second degree felonies of perjury, fraud and forgery.
Most assuredly the Florida Bar will take action and disbar all those involved.
Surely our pro se defendant, Mr. Deadbeat, will be provided due process to expose this blatant fraud upon the court. Or, on the other hand, you might find out that Judges who rubber stamp untold numbers of these cases might resign and take a job with Marshall Watson. Find out more next week.
And, yeah, you picked the right shell, I’m Mr. Deadbeat.
.