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IN THE UNITED STATES DISTRICT COURT
DISRICT OF RHODE ISLAND
MARTHA BRUNZOS
Plaintiff,
lO!b FEB -2
CASE
JUDGE WILLIAM E.
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Ms. Brunzos has owned her home since 2001 and made 319
timely payments until she ran into trouble.
She got herself solvent and applied for HAMP and then the shit) show started, with Nationstar flat out lying t wice and every
Defendant.
The facts presented in this case have taken on qualities of a mythical story
whereby an innocent homeowner stands to lose her home and source of income
for the past fourteen years to the mortgage servicer on her loan who initially
offered help for her to stay there.
2.
3.
Plaintiff dutifully made 319 timely payments on her home from the original
purchase date in June 2001 to December 2014, including the refinanced period
beginning in February 2010. This was noted in her correspondence with
Nationstar when applying for a mortgage modification. In the required
Hardship Letter she states, "According to my calculations, I have reliably made
319 on-time payments throughout the soon to be 14 years since the original
1 There
can be no material dispute as to these facts presented. Plaintiff has omitted some of her
factual allegations as alleged in her Complaint so that the Defendants cannot raise those arguments.
Plaintiff applied for HAMP modification in the midst of a financial hardship from
losing her job, which was brought on by funding cuts to the human services
agency where she worked for ten years. Immediately afterward, she opened
her private practice as a licensed mental health counselor with 25 years
experience specializing in services for children and families. During this time,
she got behind on 6 of her mortgage payments. She was informed by
Nationstar that she had to issue her initial Trial Period Payment for her loan
modification on or before September 30, 2015. See Appendix A
5.
Plaintiff made such payment to Defendant on September 30, 2015 and has
continued to make all payments in a timely fashion since that time. Although the
Trial Period Plan consists of 3 payments, Plaintiff continues to send payments as
a sign of good faith towards maintaining the Agreement. See a record of 4
payments processed by Nationstar. All of Plan tiff's payments in the amount of
$1826.21 have been deducted from her checking account at Bank of America.
See Appendix A
6.
bought it back" by neighbors who were present for the foreclosure auction held
in front of her home that day and that Fannie Mae was the alleged purchaser.
7.
8.
The Deed was transferred to Fannie Mae on October 26, 2015 according to City
of Providence land records.
After the sale and prior to the transfer, Plaintiff immediately contacted one
George Babcock, who supposedly specialized in home foreclosure and mortgage
matters, in order to gain representation. She entered into an agreement to
represent her on September 17, 2015, the day after the illegal foreclosure sale.
After several meetings with his associate who recommended Plan tiff call Fannie
Mae and "beg or cry" to get them to accept the Trial Period Payment, she met
with Attorney Babcock on November 30, 2015 to voice her dissatisfaction. At
the end of their meeting, he returned the entire $2,000.00 retainer fee to her.
10.
Along the way he had promised to have a friend set up a buy-back of the home.
11.
12.
On information and belief Attorney Babcock had taken her Retainer when he
lacked the authority to even fully represent her, as he had been excused from
any active Court duty by a licensed physician and could only execute "routine
matters in the office, but nothing beyond this."
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Next, former Rhode Island State Senator Bethany Moura, in her capacity as a
principal of the "Home Preservation Group, LLC" contacted a friend of Plaintiff
and encouraged him to have Plaintiff speak with the Home Preservation Group's
Attorney Mindy Montecalvo immediately. She added that Plaintiff is presently at
risk of losing her home through eviction proceedings but Mindy would need a
retainer in order to speak with Plantiff.
14.
Plaintiff did so right away. She met with Ms. Moura and Attorney Montecalvo on
December 12, 2015 and paid a retainer fee of$3,000.00 to Attorney Montecalvo
to represent her. Plaintifflogically presumed that as Attorney Babcock had done
after she gave him his retainer, that Attorney Montecalvo would also follow
through in contacting Nationstar or its Counsel to issue a Notice of Appearance
or Letter of Representation.
15.
Given the lack of due diligence with Attorney Babcock, Plaintiff was
understandably guarded. She worried about a lack of follow through by the
Home Preservation Group, LLC and so at Plantiffs request, she and her friend
professionally and politely notified Attorney Montecalvo and Ms. Moura about
their concerns with the matter of notification of representation.
16.
Apparently, no such letter was issued and Plaintiff eventually asked for her
entire correspondence file back from Attorney Montecalvo because she knew
that her case had been removed to Federal Court on December 31, 2015.
Plaintiff had received court documents at her home, as well as a phone call
directly to her from Nationstar Attorney McDonald on January 12, 2015.
17.
Therefore, on December 30, 2015 and January 13, 2016 Plaintiff inquired of
Attorney Montecalvo whether she had initiated contact with Nationstar or their
Counsel:
***************
*************
January 13
IMPT call today from Nationstar attorney!
7,
Hi Mindy,
I received a call today from Sally McDonald who identified herself as an attorney
from Nationstar. Her message said that she sent me a letter asking me to call her
and she's following up. She repeated her request for me to call her.
What's going on? Why is she contacting me by mail and phone? I'm very concerned
and confused. I'm hoping you can please tell me they know that you are
representing me as my attorney. We've had over a month since we signed our
attorney /client agreement on December 12th. Now it's January 13th.
I've received mail at my home from Nationstar in the form of court filings as ifl'm
still pro se. Today I received the call instead of your office.
Her number is 401-824-5148. Please call her back ASAP on mv behalf.
I thought our meeting went very well last week. I'm glad you said the evidence I
have is some of the best you've seen for dual tracking. Please let me know what's
happening with my case.
Thanks!
Martha
18.
Plaintiff also left phone messages for Attorney Montecalvo without any reply for
days until she requested her complete correspondence file back from Attorney
Montecalvo on or about January 23, 2016. On receipt of the hard copy files she
inquired on January 25, 2016:
I need this information immediately as I'm moving forward with trying to stay in my
home. Please send this to me right away, no later than 9:00am on 1/27/16. If there
is any reason why this cannot happen, please notifY me right away.
Thank you,
Martha Brunzos
********
While all this was going on, just last week a Plaintiff in the Ninth Circuit was awarded
$214,000.00 after a servicer broke the law to her detriment and lied in Lucero v. Cenlar,
2016 U.S. Dist. LEXIS 10430 (Washington WD Jan 28 2016):
**********
When plaintiff requested information regarding the charges, she was ignored for months.
Eventually various contract provisions were identified, and Cenlar asserted that it was
simply keeping track of charges it might eventually seek to recover from plaintiff. z
Regardless of whether Cenlar was demanding immediate payment or was simply
threatening to collect them in the future, the message was clear: continue this litigation and
we will take your home. Such conduct is beyond the bounds of decency and is utterly
intolerable.
Damages caused by Cenlar's outrageous conduct include:
$26,724 in charges to her account with NationStar
$1,950 in attorney's fees for drafting and sending requests for information to Cenlar
$208 time spent reviewing documents regarding charges imposed on her mortgage account
$30 in gas traveling to and from attorney's office
$12 in copying and postage expenses related to the requests for information
$2,700 in counseling expenses
$21.504 in lost wages from November 2014 to February 2015
$13,760 in reduced wages from March 2015 to December 2015
$55,000 in emotional distress damages from December 4, 2013, to March 24, 2014
$42.500 in emotional distress damages from March 25.2014. to June 18.2014
$49,500 in emotional distress damages from June 19,2014, to October 27, 2015 for a total
of $213,888.
MEMORANDUM OF DECISION Case 2:13-cv-00602-RSL
Document 294 Filed 01/28/16
For all of the foregoing reasons, the Clerk of Court is directed to enter judgment in favor
plaintiff and against defendant in the amount of $213,888.
To the extent plaintiff has a contractual or statutory right to attorney's fees, she may file a
motion pursuant to Fed. R. Civ. P. 54(d)(2).
Dated this 28th day ofJanuary, 2016.
RobertS. Lasnik United States District Judge
*********
This particular contention is contradicted by the documents plaintiff was receiving from Cenlar on a
regular basis which indicated that the fees and charges were part of the "Amount Due."
As noted, Plaintiff received a telephone call on January 19, 2015 from Nationstar
Attorney Shannon P. McDonald, an attorney with Pannone, Lopes eta!.
20.
In response to this call Plaintiff of course wrote Attorney McDonald not once,
but twice .... Receiving absolutely no response to these professional and
courteous emails:
On Fri, Jan 22, 2016 at 8:38AM, Martha Brunzos
wrote:
That being said, Attorney Montecalvo did prepare an amended complaint for me to
continue on course with this matter. I just need to know what Nationstar's intentions
are in this matter. I respectfully suggest we put in a joint request for mediation before a
Magistrate.
Please let me know if that is something vou and vour client are agreeable to, or whether
I need to seek out yet another attorney (for the third time) to continue with my
complaint. My income has stabilized as my private practice as a licensed mental health
counselor has erown. More imnortantlv, as a homeowner. I am solvent now. Everv
month since September, I've been continuing to make monthly payments as a show of
good faith. Every month these payments have been processed through my bank account
by Nationstar. I would verv much like to resolve this matter. Please talk to your client
and let's work this out
As you can imagine, this has been quite an ordeal for me and though I don't wish to
pressure vou. I'm honing to hear back from vou before the close of business todav even
if it's just to confirm a plan for us to speak to each other early next week. That way
I'm not left in suspense over yet another weekend. I thank you in advance for your
consideration in this matter and I look forward to sneakine with vou.
Sincerely,
Martha Brunzos
(401) 559-3907
************
1/28/16
Re: Update and Request-Nationstar case
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Attorney Montecalvo did prepare an amended Compiaint for me to continue on course with
my case. I just need to know what Nationstar's intentions are in this matter. I
acspcc.:fuiiy suggest we put in a joint request for mediation before a Magistrate.
What is your client's response to this proposal?
The other matter at hand invoives your communication with Attorney Iviomecaivo on
1/15/16. I know you and she spoke because she has referenced it in her itemized billing,
listing it as .5 hours for her phone call to you.
It is my understanding that Attorney Montecalvo did not send you a letter of
representation which is why you contacted me directly on 1/12/16. It also would
explain why the Response and Removal notices from my Complaint were mailed to mv
home instead of Attorney Montecalvo's office.
10
As you know, there are rules regarding the proper functioning of the legal system that
protect a person/client who has chosen to be represented by an attorney. On 12/12/15, I
retained Attorney Montecalvo's representation in this matter which can be supported by
my signed agreement and processed check in the amount of $3000.00 which served as the
retainer.
My unanswered question posed to both you and Attorney Montecalvo remains. Did
you receive a letter of representation from Attorney Montecalvo prior to calling me on
1/12/16? Please be aware that earlier this week I sooke with Mr. David Curtin from the RI
Bar Association Disciplinary Counsel as I'm considering filing a complaint in this matter.
There seem to be serious ethical questions still unanswered regarding the communication
between vou and Attornev Montecalvo in the absence of a letter of reoresentation as well as
your phone call made directly to me on 1/12/16.
Once aeain, let me emphasize, I would prefer to settle this matter with Nat:ionstar bv
means of a joint request for mediation before a Magistrate. Is your client is
agreeable to this?
Please contact me via email or phone tomorrow in response to the questions put forth.
Sincerelv.
Martha Brunzos
(401) 559-3907
11
they denied her the HAiviP Iviociiiicarion aiJ micio: She checi<eci cite upioaci screen ami aii ui
the dots were cleared/lined up as showing COMPLETE when she finished her Application;
Defendants are lying as they are wont to do: It is Nationstar and Harmon Law's modus
operandi.
See by way of comparison Brickett v. HSBC Bank USA, N.A., 607 Fed. Appx. 5 (1st
Cr. Ct. App 2015)(No Application tendered) and see Figueroa v. Fannie Mae, 2013 U.S. Dist.
LEXIS 70960 (D-Mass 2013)
12
Instead, Figueroa must allege facts showing that the violation was unfair or
deceptive. See
That she has certainly failed to do. The
mere allegation that defendants [*14] foreclosed while her loan modification
was pending is not enough to show unfairness or deception.
In this case, Plaintiff had more than applied ..... she had applied, was accepted, was given a
final due date of September 30, 2015 in which to complete her payment, and yet was sold
down the river two (2) weeks shy of such date.
2.
3.
4.
5.
13
DEMAND3
PRAYER FOR RELIEF WHEREFORE, Plaintiff Homeowner prays this Honorable Court:
(1) Set aside the foreclosure sale conducted by Defendants;
(2) Order that title of Plaintiffs properly be cleared and placed in the name of plaintiff with
the full right to possess and enjoy the property;
NOTA y PUBLIC
My Commission Expires
I ;{.
/Ofl
YfJ;(f
89 Courtland Street
Providence, RI 02909
to Damages vis a vis the Lucero v. Cenlar case and other conceptual frameworks of Justice,
Plaintiff has been mentally distraught by all of this, has lost thousands of dollars because of all of this,
she has been emotionally damaged and all of this will be proved in the Damages phase of Trial. Sadly,
Plaintiff's Counsel told her not to expect any good Court decisions here in Rhode Island because "It
doesn't work that way out here." Well perhaps it is high time that changed: While Plaintiff initially
told Defenants she would settle for a walkaway and rescission of Sale, that is not fair at this point as
the case has dragged on.
3 As
14
CERTIFICATE OF SERVICE
I the undersigned swear that I served a copy of the foregoing Motion and Memorandum in
Support to Defendant via email and tracked USPS Priority Mail at:
Sally P. McDonald, Esq. (#8265)
PANNONE LOPES DEVEREAUX & WEST, LLC
317 Iron Horse Way
Suite 301
Providence, Rhode Island 02908
Telephone: (401) 824-5148
Facsimile: (401) 824-5123
SJvlc:Q_onaldGvpldw.com
Providence, RI 02909
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18
Display 1 25
: I records
Effective Date
12/09/2015
: 12109/2015
; 11101/2015
.: 11101/2015
; 11101/2015
; 11101/2015
j 11101/2015
10/30/2015
j
10/30/2015
109/3012015
j09/30/2015
j 09/30/2015
109/30/2015
!, 11/14/2014
j 11/14/2014
: 10/15/2014
110/15/2014
\09/15/2014
.: 09/15/2014
j 08115/2014
j 08/15/2014
:07/16/2014
; 07/16/2014
! 06/16/2014
j 06/16/2014
1 FirstPrcvious12NcxtLast
Type
Payment
Reversal
Payment
Fees
Payment
Reversal
Payment
Reversal
l'ees
Payment
Payment
Reversal
Payment
Payment
Reversal
Payment
Reversal
Fees
Payment
Fees
Payment
Fees
Payment
Fees
Payment
l'ees
Payment
Fees
Payment
Fees
Payment
Amount
Principal
Interest
Escrow
Fees
Wlow until
Balance
1,615.13
-365.99
-1,249.14
0.00
0.00
255,143.63
1,615.13
9.95
365.99
0.00
1,249.14
0.00
0.00
0.00
0.00
9.95
254,777.64
255,143.63
-1,615.13
-365.99
-1,249.14
0.00
0.00
255,143.63
-9.95
0.00
0.00
0.00
-9.95
254,777.64
9.95
1,615.13
0.00
365.99
0.00
1,249.14
0.00
0.00
9.95
0.00
254,777.64
254,777.64
-1,615.13
-365.99
-1,249.14
0.00
0.00
255,143.63
1,615.13
365.99
1,249.14
0.00
0.00
254,777.64
-1,615.13
-365.99
-1,249.14
0.00
0.00
255,143.63
-9.95
0.00
0.00
0.00
-9.95
254,777.64
9.95
1,615.13
9.95
1,615.13
9.95
1,615.13
9.95
1,615.13
9.95
1,615.13
9.95
1,615.13
9.95
1,615.13
0.00
365.99
0.00
364.21
0.00
362.43
0.00
360.67
0.00
358.91
0.00
357.16
0.00
355.42
0.00
1,249.14
0.00
1,250.92
0.00
1,252.70
0.00
1,254.46
0.00
1,256.22
0.00
1,257.97
0.00
1,259.71
0.00
0.00
0.00
0.00
0.00
0,00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
9.95
0.00
9.95
0.00
9.95
0.00
9.95
0.00
9.95
0.00
9.95
0.00
9.95
0.00
254,777.64
254,777.64
255,143.63
255,143.63
255,507.84
255,507.84
255,870.27
255,870.27
256,230.94
256,230.94
256,589.85
256,589.85
256,947.01
256,947.01
..
19
'\weeks ;qzo ni
AlVI
FromBeth M
And note that Cindy has an opportunity to secure financing for the client. And passes on it
because there is no kickback being offered. If they can't get a kickback their client loses their
home. George Babcock's clients' opportunities to keep their homes rest solely upon George
making a profit on it behind the scenes. It is not and never has been about anything other
than his greed. It's not about right and wrong. How is he any better than the banks?
FromBeth
And note that Cindy has an opportunity to secure financing for the client. And passes on it
because there is no kickback being offered. If they can't get a kickback their client loses their
home. George Babcock's clients' opportunities to keep their homes rest solely upon George
making a profit on it behind the
It is not and never has been about anything other
than his greed. It's not about right and wrong. How is he any better than the banks?
He guides clients in the direction that makes him the most money. Not the way that benefits
them the most.
He will argue that he's getting them the house back and reducing their principal balance on
a house they were severely underwater on. Ok.
$350,000 modified to 3% for 40 years. $1,253 /month paying principal and interest with 40
years of security to stay there (or short sale down the line on their own terms). He charges
the client $3,500.
George makes $3,500.
$150,000 new loan at 15% interest only (no principal paydown) for 12 months with a hard
money lender. Client pays: 5 points up front to lender $7,500 and $3,500 to George and
Cindy Faria. That's $11,000 and their payment is $1,896/month. George gets the $3,500
from the client, maybe another $2,000 from the bank for attorney fee for seller and maybe a
kickback of at least 20% from the investor he lined up.
George makes $7,700 without even getting a 20% kickback on the interest profit and profit
the investor makes on the profit he will make when (if) the homeowners buy the house
back
If they <::an't buy the house back (most will never be able to) the investor forecloses, flips it
and George gets a bigger kick back He will never help these people get new mortgages after
that one year is up. Never.
20