The Sophisticated and The Scammed II

A Few Months Here. A Few Months There.

For Part I of this series see The Sophisticated and The Scammed I here

A few examples from Morgan Stanley Mortgage Loan Trust Pass-Through Certificates Series 2006-6AR (MSML 2006-6AR) – examples from American Home Mortgage Servicing & Wells Fargo as servicers.

Example One

Kipp Kyle
4408 Vicliff Road
West Palm Beach, FL 33406

Loan # 981227 (American Home Mortgage Servicing as Servicer)

Original Mortgage Amount $154,000

Fraudclosure docket here.

Think there was some fraudclosure issues here? Lost note! Unrecorded assignment!

 

19 NOF – NOTICE OF FILING
Filing Date: 30-JUN-2010
Filing Party: LASALLE BANK NATIONAL ASSOCIATION,
Disposition Amount:
Docket Text: COPY OF UNRECORDED ASSIGNMENT OF MORTGAGE
23 NOF – NOTICE OF FILING
Filing Date: 01-SEP-2010
Filing Party: LASALLE BANK NATIONAL ASSOCIATION,
Disposition Amount:
Docket Text: AFFIDAVIT OF LOST PROMISSORY NOTE

Fraudclosure Auction May 5, 2011. The home did not go back to the bank, rather a new buyer, Anthony W. Rizzo, purchased the Mr. Kyle’s home for $29,800. The certificate of title was recorded on May 23, 2011 (below).

Palm Beach County, Florida property appraiser info showing sales history here.

27 COFS – CERTIFICATE OF SALE
Filing Date: 06-MAY-2011
Filing Party:
Disposition Amount:
Docket Text: SOLD TO ANTHONY W RIZZO FOR $29,800.00
30 COFT – CERTIFICATE OF TITLE Book 24538 – Page 1161
Filing Date: 23-MAY-2011
Filing Party:
Disposition Amount:
Docket Text: ISSUED TO ANTHONY W RIZZO

It appears that for four and a half months this non-existent asset was then kept on the trust’s books, inflating the remaining balance of the trust and presumably incurring all manner of bogus monthly fees; REO insurance, property preservation, servicing fees, etc. The Jan 2012 investor report informs the investors that the “effective liquidation date” was 10/11/2011.

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Interestingly, this loan was never in REO status. It went from current to delinquent to foreclosure to foreclosure auction to new buyer. REO status is defined as bank owned either though a deed-in-lieu or through a foreclosure where the home reverts back to the fraudclosing entity because no other buyers bid high enough at the fraudclosure auction.

Another aspect of the fraudclosure enterprise’s outright lies and/or flagrant incompetence is the widespread “errors’ in the reported loan status in investor reports.

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This fraudclosure case was brought by one of the mills that went down in flames, Ben Ezra Katz (BEK). Mass confusion has been left in the wake of BEK’s demise, similar to what is happening with Stern and Baum’s cases. A new mill, Ablitt/Scofield took over in Aug 2011. In Sept 2011, this new mill requested the clerk issue the money from the fraudclosure auction. Regardless, this still does not explain the reported “effective liquidation” date as Oct 11, 2011.

 

Filing Date: 26-AUG-2011
Filing Party:
Disposition Amount:
Docket Text: ALLOWING SUB OF COUNSEL FOR PLT – ORDERED THAT ABLITT/SCOFIELD PC IS HEREBY SUBSTITUTED AS PLTS COUNSEL. DTD AUGUST 22, 2011 JUDGE HOY
CHECK – CHECK PRINTED
Filing Date: 15-SEP-2011
Filing Party:
Disposition Amount:
Docket Text: A Disbursment of $29,800.00 on Check Number 33724 to ABLITT/SCOFIELD, P.C.

 

Example Two

Carole Hanks
9310 Blazer Place
San Antonio, TX 78245

Loan #1228348 (Wells Fargo as Servicer)

Original Balance $98,900

Bexar County, Texas property tax assessor site here shows the new owner’s name but not the date of the sales transaction but this is easily seen in the REO deed from trust to new buyer dated Sept 23, 2011 (below).

The trust reported this loan as liquidated effective 12/2/2011.

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Example Three

Steven Saxton
5962 Madrano Drive
Sarasota, FL 34232

Loan #3000877940 (Wells Fargo as Servicer)

Original Balance $148,000

REO Deed to new buyer dated July 26, 2011 below.

From the Sarasota County, Florida property appraiser

Last Sale or Transfer
Recorded Consideration: $148,000
Transaction Date: 7/26/2011
Transaction Qual. Code: 12
Instrument Type: WD
Seller/Grantor: BANK OF AMERICA NA T
Instrument #: 2011117794

 

“Effective liquidation date” reported to be Oct 7, 2011.

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4closureFraud.org

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Kipp Kyle Fraudclosure Action Deed to New Buyer

Carole Hanks REO deed to new buyer

Steven Saxton REO deed to new buyer

MSML 2006-6AR Jan 2012 periodic report