Federal Judge Agrees, Fannie Mae Foreclosure Could Violate U.S. Constitution

Comments Based On Findings By MFI-Miami And Michigan Attorney 

Steve Dibert, MFI-Miami

On May 7, 2012, Judge Robert J. Jonker of the United States District Court, Western District of Michigan dismissed Fannie Mae’s Motion for Summary Judgment in the case of Pablo Bocardo and Guadalupe Bocardo v. Select Portfolio Services and The Federal National Mortgage Association. (Docket # 1:12-cv-177) and is allowing this to go to trial.

Judge Jonker agreed with two points that the Bocardo’s attorney, Jason Jenkinson of the Northern Michigan Law Center argued.

Jenkinson argued that denying the Bocardos the right to contest the merits of their foreclosure after their redemption period would violate their due process rights under Article III of the U.S. Constitution. Judge Jonker agreed by stating, “…from my perspective, standing is an Article III jurisdictional issue. It deals with injury in fact first of all.  And I can’t imagine anybody better than the party that says they are entitled to lawful possession of the house because something was wrong with foreclosure process.”

During the investigation leading up to the lawsuit, Steve Dibert of MFI-Miami discovered a memo from Fannie Mae to their mortgage servicers stating Fannie Mae’s ownership interest.

 “This discovery allowed Jason to question whether the proper party in this matter foreclosed on the Bocardo’s home and if Fannie Mae has the authority to evict,” explained Dibert.

By denying The Defendants’ Motion to Dismiss, Judge Jonker ultimately forwarded the idea that further inquiry was needed to determine whether Michigan Statute MCL 600.3204 was violated by the alleged foreclosure and/or the improper attempt to evict

After the decision, Jenkinson commented that “it’s refreshing to see that someone is willing to look into how the foreclosure mills spearheaded by Fannie Mae and Freddie Mac have been working overtime to throw people out of their homes.  Hopefully this will lead to more attempts by the banks to modify deserving homeowners.”
Bocardo Transcript 5-15-12

Share

Ingham County Sees 50 Percent Decrease In Foreclosures

Lansing State Journal

Ingham County Treasurer Eric Schertzing and Register of Deeds Curtis Hertel reported recently that the number of Sheriff’s Deeds in Ingham County for April 2012 compared to April 2011 decreased 50 percent.

The number of Sheriff’s Deeds recorded in April 2012 was 76 — 50 percent less than the 153 recorded in April 2011. In March 2012, there was a 33.7 percent decrease in Sheriff’s Deeds compared to March 2011.

Overall for 2012, the number of Sheriff’s Deeds is 452, which is 26.8 percent lower than the 618 that had been filed by the end of April 2011.

In the mortgage foreclosure process, a Sheriff’s Deed typically starts a six month redemption period for the property.

“I want to encourage citizens who are having trouble making mortgage payments to call 211 or visit www.holdontoyourhome.org for a referral to a financial counselor,” Ingham County Register of Deeds Curtis Hertel said.

Read more here

Share

Robo-Signing Found At Foreclosure Mill Run By Michigan State Rep’s Brother

Palling Around With Robo-Signing Law Firms Is Not Just A GOP Thing Anymore

Steve Dibert, MFI-Miami

Since MFI-Miami began exposing robo-signing by Michigan foreclosure mills eighteen months ago, one law firm has managed to stay off the radar until now and the managing partner of that hirm has a sister who is a Democratic state Representative who sits on the committee overseeing foreclosure legislation.

MFI-Miami has discovered multiple affidavits and mortgage assignments dated from April, 2010 through May 2011 from multiple Register of Deeds offices through out Michigan, allegedly signed by Jason Canvasser, a Michigan attorney who once worked at the law firm of Randall S. Miller and Associates in Bloomfield Hills, Michigan.  Randall S. Miller and Associates is the fifth largest foreclosure mill in the country and they handle foreclosures in California, Indiana, Michigan and Minnesota.  Jason Canvasser left Randall S. Miller and Associates in July of 2011 is now with Kupelian Ormond & Magy, P.C., a commercial litigation firm. As you can see, the signatures are very different and the pattern seems to fit the typical foreclosure mill business model.

Jason Canvasser Signatures

Family Ties

Lisa Brown For Oakland County Clerk

 

 

 

 

 

Miller’s law firm has been able to stay off the MFI-Miami radar when it comes to robo-signing because except for Michigan, Miller’s firm does business in three states MFI-Miami does very little or no business unlike Trott & Trott or Orlans.

Unlike David Trott or Linda Orlans, Miller’s firm has been relatively low key about their political contributions and connections.  Linda Orlans, who as the President of the Michigan Chapter of the Koch Brothers’ faux non-profit, Americans for Prosperity lavishes money on GOP candidates and has entertained high dollar fundraisers for Michigan Secretary of State Ruth Johnson at her $4 million mansion in suburban Detroit.  David Trott is currently the Michigan Finance Chair for GOP Presidential candidate Mitt Romney.  Trott, his wife and his staff have given nearly $25,000 to Michigan Attorney General Bill Schuette.  Together Orlans and Trott have raised nearly $250,000 for both Johnson, Schuette and the Michigan Republican Party.

Miller doesn’t need to throw money around like Rich Uncle Moneybags to have an impact on legislation.  He has an ace-in-the-hole that he’s been able to keep pretty quiet about until now. Miller’s sister is Michigan State Representative Lisa Brown (D-West Bloomfield) who currently sits on the Michigan House Judiciary Committee.  The same committee that debates and approves foreclosure related legislation before it goes to the full Michigan House of Representatives.  Last year, during the debate to change Michigan’s foreclosure laws we heard nothing from Brown or the Democratic caucus who sat and did what the GOP majority told them to do.

Ready For Prime Time?

Last month, Brown announced because of redistricting, she was not seeking a third and final term in the Michigan House and has instead decided to run for Oakland County Register of Deeds against Republican Bill Bullard, a career politician who was appointed to the position in January of last year when Ruth Johnson was elected Michigan Secretary of State.  In her announcement last month she attacked Bullard by saying,

“It’s clearly a problem that Bill Bullard takes his role as a Republican political operative more seriously than serving the public as clerk.” 

Brown’s legislative performance could be seen by many as lackluster. She steered away from controversial issues, campaigned on issues her constituents wanted to hear and voted the way her party leadership told her to just as Bullard had done for almost 30 years as a County Commissioner,State Representative and State Senator.

Brown has also had her share of being a “political operative”. In 2010, she took campaign contributions from two people involved in the voter fraud scandal that rocked the Oakland County Democratic Party.  As Bullard pointed out in the same article:

“One of the most important jobs of the Oakland County Clerk is to safeguard honest and fair elections. I think Representative Brown should show her commitment to election integrity by first returning the campaign donations she received in the past,” 

The mortgage crisis that has had Michigan homeowners in a financial Anaconda Vice Grip since 2006 has also been very rewarding to Brown because she has been able to profit from both sides of the fight.  Her brother has given handsomely to her three legislative campaigns and her husband Brian Parker is a consumer lawyer currently doing foreclosure defense.

The question should be, is Lisa Brown ready for prime time?  Running for the Oakland County Clerk/Register of Deeds office is like running a congressional campaign and she’s  trying to do it against a seasoned veteran of Oakland County politics who has held one office or another in Oakland County since Brown was in elementary school in the 1970s.

County Register of Deeds in Michigan has traditionally been where aging politicians as their political careers wind down.  That all changed with the financial crisis as the office is now one of the most important elected offices in the state.  As Ingham County Register Curtis Hertel, Jr. has shown, the job actually does require leadership and political skill.  Unfortunately, Lisa Brown in her four years in Lansing, has shown she’s a follower.

Her brother, the foreclosure mill operator also creates an issue.  If she gets elected Register of Deeds and forged documents are discovered to have been filed in Oakland County by her brother’s firm will she take it to the prosecutor?

Her platform so far has been to attack the Bullard on an issue only the elites in the Michigan Democratic Party and the Oakland County Democratic Party seem to care about.  That issue is the shrinking and redistricting of the Oakland County Commission.  This is an issue most Oakland County residents don’t know or care about and she manages to get smacked down by Bill Bullard over it.

Share

Michigan Supreme Court Justice Plays Property Shell Game To Short Sell Home

Ross Jones, WXYZ

Behind the stone walls of the gated Windermere Country Club are some of Central Florida’s nicest homes. And nestled along the rolling fairways of its 18-hole golf course, you’ll find a 4,300 square foot home on beautiful Lake Crescent.  Complete with a pool and private boat dock, it was valued last year at almost $740,000.

And its owner is crying poor.

The owner is Justice Diane Hathaway.  Last November, she convinced her bank she didn’t have the money to keep making payments on her Michigan home on Lake St. Clair, even though she owned her  Florida   lakefront home free and clear.  

In fact, records show in a little over a year, she’s owned four homes: one in Florida, and three in Grosse Pointe Park.

The homes are a part of a dizzying property shuffle that experts say raise ethical and legal questions, but Justice Hathaway has been ducking those questions for more than six weeks.

Hathaway was a Wayne County Circuit Court judge before being elected to Michigan’s highest court in 2008.  She ran as an ethical and accountable judge.

But records obtained by 7 Action News have some asking if she was she ethical in how she convinced her bank to let her out from her mortgage on her Lake St. Clair home.  It saved her potentially hundreds of thousands of dollars in unpaid mortgage payments.

Hathaway was allowed to do what’s called a short sale. That’s when a homeowner convinces the bank to sell their home at a loss rather than go into a foreclosure.  In this economy, with home values plummeting, lots of people try to do the same thing, dodging their debt through a short sale.

But not everyone gets one.  To qualify, a homeowner needs to prove to their bank that they can’t afford to keep making their mortgage payments because they’ve suffered some type of hardship, like a loss in income. The process can take months, if not years as Don Marquette learned.  When times got tough, his grown-children moved in with him and his wife, and then she lost her job.

He was supporting five adults on his own, so he asked his bank for a short sale, but they wouldn’t approve it.  The bank kicked him and his family out of their home.

“It was mortifying,” Marquette said.

“I’m 60 years old, I’ve worked 28 years, I’ve worked all my life. Basically I felt like a bum.”

Hathaway’s story was different.  She hasn’t had a shortage of homes to live in.  There’s home #1 in Florida valued at about $740,000 that she and her husband bought in 1999.  Two years later, they bought home #2 on Lake St. Clair.

Read more here

Share