# S U P E R I O R C O U R T

O F T H E



# S T A T E O F D E L A W

A R E

Je f f r e y J Clar k Ke n t Cou n ty Cou r thou se

Ju dge 38 T he G r e e n

Dove r

, DE 19901

T e le p hon e ( 302) 735-2111

October 5, 2016

M r

. P edr o Ri v er a & A

n ton i a Cas ti l l o Dan i el T

. Con way

, E s q.

275 Gr av el l y Ru

n B r an ch Road A tl an ti c L aw G r o u

p, L L C

Cl ay t on

, DE 19938 512 E as t M ar ket

Geor g etown

, D E 19947

S u bm i tted: S eptem

ber 30, 2016

Deci d ed: October 5, 2016

Re: JP Mor

gan Ch as e Ban k v. P

edr o River a & An t

on ia Cas tillo

K15L

- 09- 011 JJC

Dear M r

. Ri v er a, M s

. Cas ti l l o & M r

. Con way :

T h e m atter i n

v ol v es a m

or t g ag e f or ecl os u r e co m p la int f i l ed by P l ai n

ti f f J P

M or g an Ch as e B an

k ( h er ei n af

ter “ J P M or g an ”) ag ai n s t D ef en dan t s P edr o Ri v er a an d

A n ton i a Cas ti l l o ( h er ei n af

t er col l ecti v el y “ D ef

en dan ts ”)

. D ef

en dan t s f i l ed a m oti on

to d is m is s J P M or g an ’ s com pl ai n t

, ar g u i n g th at J P Mor g an di d n ot com pl y wi th t h e

r equ i r em en

ts of 10 D el. C. § 5062A

. 1 P u r su an t to th at s ecti o n

, a ban

k i n a f or ecl os u r e

1 Sub s ect i o n ( b )

, o f s ect i o n 5062A

, pr o v i d es t h at

( b ) No j udgm e n

t m ay b e en t er ed i n an y mo r t gage f

o recl o s ur e act i o n

. . . un l es s t h e pl ai

n t i f f h as f i l ed a f u l l y ex e cut ed af

f i dav i t a s s er t i n g :

( 1) T h at t h e def

en dan t h a s b een p r o vi d e d w i t h t h e o ppo r t un i t y t o

appl y f o r r el i ef u n der an

y l o s s m i t i g at i o n pr o gr am f

o r wh i ch t h e

def en dan t m ay b e el i g i

b l e

. . . , an dacti on m

u s t f i l e a l os s m

i ti g ati on af

f i dav i t cer t if

yin g th at th e ban

k h as adv i s ed t

h e

h om eown er of av ai l abl e pr og r am s f or m odi f i cati on or m

i ti g ati on of th e l oan s at i s s u e. 2

T h at s ecti on al s o pr ov i des th at i f cer tai n r epr es en tati on s i n th e s tatu

tor i l y r equ i r ed l os s

m i ti g ati o n a f

f id a vi t ar e f

al s e, th en “ th e f

or ecl os u r e acti on s h al l be di s m

i s sed by t h e

cou r t wi th ou t pr eju di ce

. . . . ” 3

Def en dan t s f i l ed th e p r es en

t m oti on t o di s m

i s s an d at or al ar g

u m en t on t h e

m oti on al l eg ed th at th e af

f i dav i t f i l ed by J P M o r g an w as f

al s e. J P Mor g an den i ed th at

th e r epr es en

tati on s i n i ts a f

f i dav i t wer e f

al s e. A ccor di n g l y

, t

h e Cou r t h el d an

ev i den t i ar y h ear i n g to deter

m i n e wh eth er th e af

f i dav i t at i ss u e i n cl

u ded f al s e statem en

ts

r e f e r e nc i n g th e r equ i r em en

ts of par ag r aph s ( b ) ( 1) an d ( b ) ( 2) o f secti o n 5062A

. T he

af f i d av i t at i s s u e, f

i l ed by JP Mor g an

, tr acked th e s ecti on ’ s s tatu tor y l an g u ag e. I n t h e

af f i d av i t, P etr aq S tef

a n l la r i, a V i ce P r es i d en

t at J P Mor g an

, attes ted t o th e f act th at

Def en dan ts wer e “ i n el i gib le f

o r an y appl i cabl e l os s m

i ti g ati on p r og r am du e to t h e

B or r ower ’ s f a ilur e t o appl y

, o r f

ai l u r e to pr ov i de r equ i r ed i n f or m ati on

, or f ai l u r e to

com pl ete th e r equ i r em en

ts of th e pr og r am

. ” 4

At t h e h ear i n g

, Def

en dan ts i n tr odu ced J P M or g an ’ s May 5, 2016 l ette r t o

P l ai n ti f f con f i r m i n g th at J P M o r g an can cel l ed i t s r ev i ew of poten ti al m or tg ag e an d l oan

m odi f i cati on s. T h e r eas on s ci ted i n th e l etter i n cl u ded th at Def en dan ts “ tol d u s th at y ou

( 2) Th at t h e l o an s e cur ed b y t h e mo r t gage f o r t h e pl ai

nt i f f s eeks

f o r ecl o s ur e i s :

a. No t s ub

j ect t o a l o s s m

i t i gat i o n pr o gr am ; o r

b

. I s i n el i gi b l e f o r an y appl i cab l e l o s s m

i t i gat i o n pr o gr am due t o t h e

def en dan t ’ s f ai l u r e t o appl

y

, o r f ai l ur e t o pr o v i de r equi

r ed i n f o rm at i o n

,

o r f ai l ur e t o co m

pl et e t h e r equi

r em en t s o f t h e pr o gr am ; o r

c. I s det er m

i n ed b y t he pl ai

n t i f f t o b e o t h er wi s e i

n e l i g i b l e f o r an y

appl i cab l e l o s s m

i t i gat i o n pr o gr am

.

2 I d. at § 5062A ( a)

.

3 I d. at § 5062A (c)

.

4 Pl

. E x

. N o

. 3.

2n o l on g er wan t to b e r ev i ewed f

or m or tg ag e as s i s tan ce

. . . [ an d y ou ] tol d u s y ou don ’ t

wan t to p ar ti ci pate i n t

h e pr og r am

. ” 5 Con s i s ten

tl y wi th th i s May 5 t h l etter

, J P M or g an

s u bm i tted a l etter f

r o m D e f e nd a nt Ri v er a t o JP M or g an s tati n g th at “ I h er eby or der

A L L acti on s to be stopped

. . . ” wh i ch r ef er r ed to th e r equ es t f

or r ev i ew f

or

m odi f i cati on u n der con s i der ati on at th e ti m e. 6 T h r ou g h J P M or g an ’ s wi tn es s

, F r an k

Dean

, i t al s o i n

tr odu ced a ph on e l og t

h at D e f en d an ts con ceded was accu

r ate. T h e

ph o n e l og con f

i r m ed th at M r

. Ri v er a c al l ed J P M or g an pr i or t o th e ex ecu ti on of t h e

af f i d av i t f or a “ v er bal opt ou t” of th e l o s s m

i ti g ati on pr og r am

. 7

Def en dan t Ri v er a t es ti f

i ed at th e h ear i n g th at h e adm i t s th at h e as ked JP M or g an

to pl ace con s i der ati on of “ RM A #8" ( th e r equ es t f or m o di f i cati on th at w as pen di n g

i m m edi atel y bef

o r e J P Mor g an f

i l ed th e af f i dav i t) on h ol d

. H e tes ti f

i ed, h owev er

, th at

pr i or to t el l i n g J P Mor g an to ceas e wor k on m odi f i cati on m atter s

, h e h ad s en t th em a

qu al i f i ed wr i tten r equ es t as pr o v i ded f or i n t h e Real E s tate S ettl em en

t P r ocedu r es A ct

( h er ei n af ter “ RE S P A ”)

. 8 Def

en dan t s al so of f er ed th e tes ti m

on y of Ch r i s toph er Yates

,

a r eal t or wh o Def

en dan ts s ou g h t th e h el p of du r i n g th e m

odi f i cati on p r o ces s

. M r

.

Yates tes ti f

i ed th at JP M or g an was n ot r es pon s i v e en o u g h to en able h i m to h el p t h e

Def en dan ts wi th m odi f i cati on ef f or ts

.

A t th e h ear i n g

, D ef

en dan ts s eem ed to no lo nge r con tes t th e accu

r acy of t h e

af f i d av i t at i s s u e. Rath er

, Def en dan ts ar g u ed th at becau s e t

h ey h ad i s s u ed a qu al i f

i ed

wr i tten r equ es t f

or i n f or m ati on pu

r s u an t to RE S P A

, ev er

y th i n g i n t h e m o r tg ag e

f or ecl os u r e pr oces s s h ou l d h av e been s tay ed. S peci f i cal l y

, Def

en dan ts r el i ed on

5 I d.

6 Def

. E x

. No

. 1.

7 Pl

. E x

. No

. 2

.

8 12 U. S. C

. § 2601 et s eq.

3S ecti on 6 of RE S P A 9

, wi th ou t ci ti n g a r em edy pr ov i s i on th at wou l d i m pa c t t he state

m or t g ag e f o r ecl os u r e pr o ces s at i s s u e.

H er e, th e s tatu

te r equ i r i n g th e f

i l i n g of a l o s s m

i t i g ati on af

f i dav i t pr ov i des f

or

poten ti al d i s m i s s al of t h e acti on wi th ou

t pr eju d i ce. S i n ce t

h e par ti es con tes ted th e t

r u t h

of th e statem en

ts i n th e af

f i dav i t, an ev i d en

ti ar y h ear i n g was n eces s ar

y r eg ar di n g th at

n ar r ow i s s u e. S i n ce t

h e s tatu te f r am es th e m atter

as a def en dan t’ s m oti on

to di s m i s s

,

th e bu r den i s on t

h e D ef en dan ts to es tabl i s h th e f

al s i t y of th e r el ev an

t s tatem en ts i n t h e

af f i d av i t by a pr epon der an ce of th e ev i den ce.

A f ter con s i d er i n g th e tes ti m on y an d ev i den ce at t

h e h ear i n g

, th e m atter bef or e

th e Cou r t i s es sen ti al l y u n con tes ted. Nam el y

, t

h e Cou r t f i n ds th at Def

en dan ts

, both i n

wr i ti n g an d or al l y

, r e q ue s t e d th at al l l os s m i ti g ati o n m

atter s ceas e. T h i s was

s u bs tan ti ated by a l etter f

r om Def en dan t Ri v er a an d a ph o n e l o g f r o m J P M or g an

con f i r m i n g a tel eph on e cal l by Def en dan ts opting ou

t of l o s s m

i ti g ati o n ef

f or ts

.

Def en dan ts di d n o t con

t es t th e accu

r acy of th es e d ocu

m en ts at th e h ear i n g

. T h at

Def en dan t becam e f r u s t r ated at wh at h e al l eg es was a l ack of r es pon s e f r om J P M or g an

does n o t es tabl i s h th e f

al s i ty of J P M o r g an ’ s Vi ce P r es i den t’ s r epr es en

t a t i on s i n h i s

af f i d av i t. B as ed on th e ev i den ce pr es en ted, th e Cou

r t f i n ds t h a t t he s tatem

en t i n t h e

af f i d av i t was tr

u th f u l

. A ccor di n g l y

, Def

en dan ts ’ m o ti on to di s m

i s s i s DE N I E D.

I T I S S O O RDERED

/s /J ef f r ey J Cl ar k

J u dg e

9 I d. at § 2605.

4