Consumer complaint received 2022-03-18
Product: Mortgage — Conventional home mortgage
Issue: Closing on a mortgage — 
Company: Ready Capital Corporation (LA)

COMPLAINT DIRECTED TO GMFS MORTGAGE XXXX, ITS PRESIDENT AND CEO, XXXX " XXXX  '' XXXX, XXXX AND ANY OF ITS EMPLOYEES, AGENTS, AFFILIATES, SUBSIDIARIES, OR ASSIGNS IN CONNECTION WITH THE DEBT OF XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX OF XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX AND ANY GUARANTOR, XXXX OR XXXX ON BEHALF OF XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX INTRODUCTION : My name is XXXX XXXX I XXXX XXXX XXXX XXXX. In XXXX I was deemed permanently XXXX as a result of injuries sustained from domestic abuse. Prior to becoming XXXX, I was a XXXX XXXX for XXXX  years. In XXXX, I started my own business and operated it until XXXX. As a result of the intentional misappropriation of my real estate sale proceeds, which is the subject of this complaint, I am now homeless, literally. I am certain that this will delight the participants in the scheme that caused my circumstance. 

While there are multiple participants that colluded to take my proceeds and pay off the debt of the joint owner, XXXX XXXX XXXX, GMFS is the participant that received my monies. Seperate claims will be filed against the other participants. 

There is quite a paper trail and supporting documentation for this complaint. 

The participants will undoubtedly try to rely on a Stipulated Judgment rendered from Division " XXXX '' XXXX XXXX XXXX XXXX XXXX XXXX, bearing suit number XXXX, for allocation of sale proceeds. However, as provided in a motion to nullify, citing XXXX solid reasons for nullification, there was not a sale in place at the time the allocation was being forced upon me. 

This was one of the missteps of the participants. The title attorney, who had in direct conflict of interest, assumed representation of the handpicked buyers, in collusion with XXXX XXXX, had withdrawn the purchase agreement and it was off the table at the time of the forced signing. 

The next day, the title attorney sent me an email stating that the buyers had signed a " clean copy '' of a purchase agreement " dated the day before. '' There was no due process, or hearing on my motion. In fact it was not scheduled for hearing until after the closing. Of course, with the presiding judge having been in receipt of things of value and cash payments by the participant who spearheaded the scheme, it is unlikely at best that there would be a fair or impartial outcome. 

XXXX IS NAMED XXXX IN THIS COMPLAINT This claim is against GMFS Mortgage XXXX, it's CEO and President, XXXX " XXXX  '' XXXX, XXXX, including any of its employees, agents, subsidiaries, affiliates, successors or assigns and it's attorneys, whether in-house or practicing in the private sector. This specifically includes XXXX XXXX  XXXX XXXX and any of its agents, employees and assigns in connection with the obligation of XXXX XXXX XXXX including any Guarantor, Security, or XXXX on behalf of XXXX XXXX to GMFS, secured by the property described as Lot XXXX, XXXX XXXX, XXXX XXXX XXXX, XXXX XXXX, Louisiana XXXX ( the " Property '' ). This specifically includes XXXX XXXX XXXX, The XXXX XXXX XXXX XXXX XXXX, through its Executor, XXXX XXXX XXXX, the XXXX XXXX XXXX, through its Trustee, XXXX XXXX XXXX and XXXX of Attorney for XXXX XXXX XXXX, XXXX XXXX XXXX. 

The close, personal friendship between the President and CEO of GMFS Mortgage XXXX, XXXX XXXX, and XXXX XXXX was instrumental in the scheme to take my proceeds. In fact, XXXX XXXX, XXXX XXXX and employees of GMFS and XXXX have not complied with orders of the court and have taken non-disclosure to a point of fraudulent concealment. 

The events surrounding the scheme to use my money to pay back XXXX XXXX 's separate debt to GMFS included the covering up of the guarantor, security or surety for XXXX XXXX, offering of bribes to potential witnesses and counsel and the gifting of things of value and cash to a public official. Once these gifts were on the table, justice was unattainable. 

The parties who colluded to deprive me of my sale proceeds worked hand in hand with counsel for XXXX XXXX and my former counsel. Said counsel defied judgments of the Court with no fear of repercussion. 

STATEMENT OF FACTS : 1. GMFS was the recipient of my lawfully due sale proceeds.

2. GMFS and XXXX XXXX are close personal friends. 

3. Employees of GMFS were instructed to not inform me of the further encumbrance of the property by XXXX XXXX against court order and in violation of XXXX XXXX XXXX XXXX. 

4. GMFS encumbered the property in violation of injunction of the Court and beyond the 50 % ownership interest of XXXX XXXX. 

5. GMFS did not provide notification to me of further encumbrance by XXXX XXXX. 

6. GMFS has concealed the existence of a guarantor on behalf of XXXX XXXX. 

7. Despite repeated requests, and the production of court orders to release records, GMFS has not produced documentation and audio tapes requested. In light of the many deceptive acts of GMFS, XXXX XXXX and XXXX XXXX, XXXX and XXXX of Preferred Title ( a separate complaint is being filed against XXXX XXXX ) it is believed that documentation and tapes presented after the filing of this complaint would not be authentic. 

8. The motivation behind the scheme to defraud me of my lawful real estate sale proceeds is greed. The ringleader, XXXX XXXX, is married to XXXX XXXX XXXX, a XXXX beneficiary of the XXXX XXXX XXXX and XXXX XXXX XXXX XXXX who guaranteed XXXX note to XXXX and whose property secured it. This encumbrance occurred on or around XX/XX/XXXX. XXXX XXXX is XXXX XXXX brother-in-law. XXXX XXXX is the Trustee of the Trust and Executor of the Estate of his now deceased father-in-law, XXXX XXXX XXXX. XXXX XXXX was of significant wealth and was land rich. 

9. XXXX XXXX employed delay tactics during the final days of XXXX XXXX XXXX 's life in anticipation of his death so that assets would then become that of the irrevocable trust. 

10. GMFS was fully aware of the ownership designation of the property as it was set forth in a closing on a loan by XXXX XXXX in XXXX. The property became jointly owned by XXXX XXXX and XXXX XXXX each holding a 50 % interest in in- division. 

11. GMFS did not notify me of the further encumbrance of the property.

12. GMFS allowed play XXXX to extend his debt to them beyond his ownership interest. 

13. GMFS has ignored orders from the court and request to provide documentation. In fact, their non-disclosure has gone so far as to be perceived as fraudulent concealment.

14. GMFS has worked closely with XXXX XXXX XXXX, president and CEO of XXXX XXXX, and it is believed that the closing documents provided to the party who substituted for me at closing and the actual closing bottom line are completely different. 

15. GMFS communicated with XXXX XXXX and XXXX XXXX, ex parte, and referred to a refund on the " security agreemenr. '' Certainly, since my monies were used to pay this debt of XXXX XXXX 's guarantor, a refund would be due to me. 

16. GMFS has been completely uncooperative in providing any information. The friendship between XXXX XXXX and XXXX XXXX is very close. XXXX XXXX has communicated directly with employees for XXXX XXXX about withholding information from me. A couple of these communications were inadvertently copied to me. 

IV. FACTUAL ALLEGATIONS : 17. XXXX XXXX was the sole maker of a promissory note in the approximate amount of {$120000.00} in favor of GMFS dated in or around XX/XX/XXXX secured the property located at XXXX XXXX XXXX, XXXX XXXX, Louisiana. 

18. At the closing of XXXX XXXX 's loan, the property was determined to be jointly owned in in-division with XXXX XXXX and XXXX XXXX XXXX XXXX a 50 % equity interest. 

19. In or around XX/XX/XXXX, the property was appraised at {$450000.00}. 

20. In or around XX/XX/XXXX, XXXX XXXX was forced into early retirement in lieu of being fired from his job with XXXX. His income was only {$750.00} per month and full coverage insurance. 

21. In XX/XX/XXXX, payments on the property ceased. 

22. In XX/XX/XXXX, XXXX XXXX applied for a loan modification with GMFS and it was denied.

23. On or about XX/XX/XXXX, XXXX XXXX, my former counsel forwarded to counsel for GMFS a copy of a Stipulated Judgment dated XX/XX/XXXX, rendered from the XXXX XXXX XXXX XXXX XXXX XXXX XXXX, Division D and signed by the Honorable XXXX XXXX stating that neither co-owner of the Property was to further encumber the property, that XXXX XXXX was awarded exclusive use, and that XXXX XXXX was to bring his note current and maintain it in a current status. 

24. On XX/XX/XXXX, a hearing was held in the XXXX XXXX in XXXX XXXX XXXX XXXX wherein XXXX XXXX, under oath, stated that his family trust would pay the note as he, personally, did not have sufficient income to pay the note. 

25. In XXXX of XXXX, XXXX XXXX provided to counsel for GMFS another order Judgment from the court, retroactive to XX/XX/XXXX stating that XXXX XXXX was to bring his note on the property current and maintain it in that status. 

26. In XXXX, XXXX, with the anticipation of revoking my ownership in the property, XXXX XXXX and a XXXX further encumbered the property beyond his 50 % ownership and against court order. It is presumed that XXXX XXXX financed his attorney fees under this encumbrance. To boot, XXXX XXXX 's attorney served as a notary on the document. To date, I do not have a complete copy of this document despite multiple requests. 

27. GMFS did not notify me of the encumbrance nor of the Guarantor. 

28. In XX/XX/XXXX, XXXX XXXX deposition was conducted in connection with a revocation of ownership in the property action XXXX filed against XXXX. His deposition revealed that his revocation action, almost in its entirety, was false. 

29. In XX/XX/XXXX, I filed motion for summary judgment and exceptions and in XXXX, I prevailed on the exceptions. Immediately, XXXX XXXX ceased making payments on the property. GMFS did not notify me of this. XXXX XXXX relied on his friendship with XXXX XXXX in the pursuit of pushing the property to XXXX sale where he could pick it up for the amount of clays debt only. 

30. I was not provided a chance to remedy the deficiency - rather, in XX/XX/XXXX, I was served with notice of sheriff sale. 

31. As a delay tactic, knowing they had rendered me homeless thus desperate, I was given exclusive use of the property to labor for free cleaning up XXXX 's mess as described in the affidavit and depicted in the report of XXXX XXXX, the real estate expert. This was a delay tactic as XXXX XXXX 's health declined. 

32. After shenanigans that will be described in the complaint against Preferred Title, and it's President and CEO, XXXX XXXX XXXX, there was a purchase agreement on the property and it was set for closing. 

33. I requested from XXXX XXXX copies of any and all documents associated with Clays indebtedness as provided in the XX/XX/XXXX order and subsequently in an order dated XX/XX/XXXX. 

34. XXXX XXXX sent an email to XXXX with GMFS and XXXX 's me. The email says " to give XXXX whatever she needs. Subsequently, XXXX responds to another email from XXXX XXXX and inadvertently ccs XXXX. The email from XXXX XXXX instructs XXXX to " only provide XXXX with Clays original Promissory Note from XX/XX/XXXX and the Collateral Mortgages signed by her and XXXX '' in connection with that note. XXXX replies to XXXX XXXX. and that is all XXXX provides. 

35. On XX/XX/XXXX, I am is given the contact information for XXXX XXXX, with GMFS and contacts her via email requesting all documentation in connection with XXXX XXXX loan with GMFS. XXXX also requests the voice recordings in connection with XXXX indebtedness. 

36. On XX/XX/XXXX, XXXX XXXX requests copies of the order stating that this information is to be provided to me. I sent the orders to XXXX. 

37. On XX/XX/XXXX, XXXX XXXX with XXXX sends me a XXXX page agreement signed by XXXX XXXX and Notarized by his attorney. The agreement is dated XX/XX/XXXX and references a trust '' The agreement seems incomplete. 

38. On XX/XX/XXXX and at least XXXX more occasions between XX/XX/XXXX and XX/XX/XXXX, I requested the loan information and voice recordings from XXXX XXXX. To date, these have not been provided. 

39. When the property closed, I was unable to attend and neither was the power of attorney I had in place. a former neighbor, XXXX XXXX XXXX XXXX went to sign on my behalf. Nearly {$160000.00} was withheld from my closing proceeds in repayment of XXXX XXXX 's debt to GMFS. This was supposedly half of XXXX 's indebtedness. Indebtedness occurring in disobedience of judgment from the court, without disclosure to me as a joint owner and now the financial obligation of the guarantor of XXXX 's note. This amount is significantly more than the entire amount of XXXX 's initial obligation to GMFS. The only obligation I was ever aware of. 

V. CONCLUSION 40. GMFS has disregarded Judgments from the court and further encumbered the XXXX or changed the fiduciary responsibility of repayment of XXXX XXXX debt. 

41. GMFS violated Truth in Lending laws and fiduciary duty to XXXX XXXX. Further, Louisiana XXXX XXXX XXXX XXXX provides that all owners approve the encumbrance of property held in in-division. 

42. GMFS concealed the XXXX XXXX XXXX loan by either his father or his XXXX XXXX in collusion with XXXX XXXX close friend of XXXX XXXX, XXXX and XXXX of XXXX, XXXX XXXX,, President and CEO of Preferred Title and others. 

43. In sum, GMFS has violated XXXX in XXXX, Concealed fiduciary responsibility on the indebtedness secured by my property, refused to provide requested documentation and ultimately is in receipt of my lawfullydue sale proceeds. These acts were committed intentionally and in collusion with others. 

VI. DAMAGES 44. As a result of the intentional acts of GMFS and they're willing participation in a mortgage fraud scheme, I I was deprived of my lawful proceeds from the sale of my property. The amount of my loss specifically paid to GFS was approximately {$160000.00}.

45. In addition to the amounts taken from me to pay the debt of XXXX XXXX, I have incurred significant expenses for storage, occasional temporary housing, fuel expenses, moving costs, including labor. 

46. I have suffered extreme embarrassment and humiliation. Things associated with homelessness like fixing meals in public parks, using public restrooms to bathe.

47. I have been separated from my beloved pets. Not mentioned herein were the XXXX pets that met their demise as a result of the shenanigans of some of the participants in the mortgage fraud scheme. 

48. The responsible party for the debt of XXXX XXXX, was the guarantor for his loan, or he himself. In light of the fact that he did not have a job anymore, had applied for a loan modification in XXXX of XXXX and was denied, it is likely that he had a guarantor. In fact, XXXX XXXX, my former counsel, advise me on a couple of occasions that XXXX 's Daddy had guaranteed his loan. 

49. XXXX XXXX and he XXXX, president and CEO of gmfs, are great friends. It is only reasonable to believe. XXXX XXXX is aware of the assets in the estate of XXXX XXXX XXXX, play XXXX 's Daddy, as well as the XXXX XXXX XXXX. He should have no issue collecting the monies owed for the debt from them as it is their obligation. 

50. I will pursue XXXX For This fraud that has been bestowed upon me. I am elderly and XXXX and do not deserve to be a muse in a game of power.