Foreclosure Madness! Plantiff bids excess funds of $376,200.50 - Homeowners take money and run!

[Capt. Jack]

This is hilarious! Greed Gone Bad! From http://4closurefraud.org

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HA!

Check this out…

Not only is this the most comical case ever, it enlightens us all on the internal procedures and the secret contracts with the banks…

Many thanks to Foreclosure Hamlet for taking the time to go down to Broward county and pull these most anticipated case files…

SOVEREIGN BANK,

Plaintiff,

vs.

FLORIDA DEFAULT LAW GROUP, P.L., d/b/a ECHEVARRIA, CODILIS & STAWARSKI

Defendants

From the complaint…

The within action arises from legal services provided by Defendants to Plaintiff in Broward County, Florida.

On or about February 2, 2007, Plaintiff engaged Defendants to bid on a foreclosure sale in Broward County, Florida.

Specifically, Plaintiff was the holder of a second mortgage,/home equity line of credit…

On or about August 17, 2006 the Brandts were sued by the homeowners association…

Plaintiffs nominee, Mortgage Electronic Registration Systems, Inc., was named as a defendant…

The HOA lawsuit proceeded to final judgment in the County Court in Broward County, Florida, and the foreclosure sale was scheduled for February 9, 2007…

A copy of the final judgment in the amount of $4,294.68, is attached…

Pursuant to the February 2,2001 engagement letter, Composite Exhibit “B” the approved bid amount was $383,700, since Plaintiff at the time believed that in order to protect its interest it had to pay off the first mortgage on the Real Property in addition to the HOA judgment amount, and that the approved bid amount would be sufficient to pay off the first mortgage and the home owner’s judgment and acquire a first lien on the Real Property.

Thus, Defendants knew from the moment they received the facsimile transmission on February 2, 2007, that the amount of the Final Judgment was only $4,294.68 although the approved bid amount was $383,700.

Defendants failed to give Plaintiff proper legal advice that a bid amount of $383,700 was completely unnecessary to satisfy the HOA judgment and that all that had to be paid to obtain a certificate of sale and certificate of title, subject to the first mortgage, was $4,294.68

Additionally, apparently believing that $383,700 was an insufficient sum to satisfy a$4,294.68 judgment, on or about February 6, 2007, Defendants requested Plaintiff wire monies in the total amount of $392,148.90, or $8,448.90 additional, in order to bid at the February 9, 2007 sale and to pay for court costs and documentary stamps.

Although the Real Property could have been purchased at the February 9, 2007 foreclosure sale for $4,294.68, subject to the first mortgage, Defendants failed to advise Plaintiff of this fact and proceeded to bid and pay $392,148.90 at the sale on behalf of Plaintiff.

Since Defendants bid $392,148.9A at a foreclosure sale when the Final Judgment was $4,292.68, excess funds of $376,200.50 were placed into the court registry.

Defendants compounded their errors and failed to timely and properly advise Plaintiff of the steps to take to reclaim the excess funds

Instead, the Brandts, the parties in default, petitioned for and received the $376,200.50 in excess funds…

And you know what?

The homeowners took the money and ran…

Hahahahhahahhha

Read the whole story below (With links to the actual complaints)

http://4closurefraud.org/2010/07/20/foreclosure-fail-the-case-to-follow-in-fl-sovereign-bank-plaintiff-vs-florida-default-law-group-p-l-dba-echevarria-codilis-stawarski-defendants/