Question regarding quitclaim assignment

jwa81

LoanSafe Member
Jun 23, 2014
91
13
8
38
We are currently in a huge battle against our mortgage servicer, Carrington Mortgage, who, unbeknownst to us, dual tracked us into foreclosure behind our backs right while we were in the midst of being reviewed for a loan modification (that's an entirely separate issue from my current question). All of this came to light just under a month ago when we called Carrington to follow up on our modification application and were told that our property and been foreclosed upon and then sold to Carrington themselves. Lovely.

We have just started working with an attorney (we had to get an out of state attorney as we could not find anyone more local to take our case) and our state's Attorney General's office has an active investigation going on this matter as we firmly believe that this was an illegal foreclosure, not only because of the dual tracking, but also because Carrington did NOT own our loan and we do not believe they had the original note. About a year ago (well before this foreclosure occurred), the HUD counselor we were working with had a very well-known foreclosure defense attorney (Tom Cox) look up our mortgage in the MERS system. He asked him to do this because our mortgage was originated by Taylor, Bean & Whitaker using MERS, who went bankrupt back in 2009 and hasn't existed in 10 years. Thus, he suspected that there would be some pretty major title issues that would create a significant roadblock for Carrington. Tom Cox was kind enough to take a look at this and, sure enough, he confirmed this to be the case. He informed us that Carrington would have a major problem if they ever tried to foreclose as there had been insufficient/improper assignments in MERS, leaving Carrington with no legal standing to foreclose. So, you can only imagine how surprised we were to find out at the end of last month that not only had they foreclosed, but also purchased our home at auction.

Fast forward to today, the attorney we are working with asked me to look up the foreclosure documents and email them to him, which we were able to find on our county's website. While I was doing this, I found a "quitclaim assignment" document that Carrington had filed a while back. In this quitclaim, it states that Taylor, Bean & Whitaker hereby ASSIGNS AND QUIT CLAIMS to Carrington Mortgage Services. It then says that someone named Elizabeth Gonzales, Default Document Team Lead for Carrington Mortgage, authorized and executed this instrument.

I am so confused. If TB&W dissolved and ceased to exist an entire decade ago, how can they assign or quit claims to anything??? They are LONG gone! And how can Carrington authorize this alleged transfer to themselves, which it appears they have done as the person who authorized and executed this quitclaim works for Carrington as their "document team lead" (please correct me if I'm wrong - this is all new to me). I have just sent an email to our attorney and asked if he thinks we should challenge this quitclaim when we file our rule 60 motion, but I was wondering if anyone on here could offer some insight as well. While I am downright furious about what is happening to us and all that we are having to go through to fight this to get the foreclosure reversed and our mortgage reinstated, I am also finding all of this extremely fascinating and have taken quite an interest in foreclosure fraud. From what I have been reading online this evening, quitclaims are frequently utilized by scammers and fraudsters because they require no title examination, which would make perfect sense in our situation, because we already knew that they would run into title issues if they ever tried to foreclose. We've spent the past several weeks trying to figure out how in the world they were ever able to get this foreclosure through the court with all of the ownership and title issues that existed. It's like all of the pieces to the puzzle are suddenly coming together!
 

Jzone

LoanSafe Member
Jun 20, 2017
166
20
18
69
We are currently in a huge battle against our mortgage servicer, Carrington Mortgage, who, unbeknownst to us, dual tracked us into foreclosure behind our backs right while we were in the midst of being reviewed for a loan modification (that's an entirely separate issue from my current question). All of this came to light just under a month ago when we called Carrington to follow up on our modification application and were told that our property and been foreclosed upon and then sold to Carrington themselves. Lovely.

We have just started working with an attorney (we had to get an out of state attorney as we could not find anyone more local to take our case) and our state's Attorney General's office has an active investigation going on this matter as we firmly believe that this was an illegal foreclosure, not only because of the dual tracking, but also because Carrington did NOT own our loan and we do not believe they had the original note. About a year ago (well before this foreclosure occurred), the HUD counselor we were working with had a very well-known foreclosure defense attorney (Tom Cox) look up our mortgage in the MERS system. He asked him to do this because our mortgage was originated by Taylor, Bean & Whitaker using MERS, who went bankrupt back in 2009 and hasn't existed in 10 years. Thus, he suspected that there would be some pretty major title issues that would create a significant roadblock for Carrington. Tom Cox was kind enough to take a look at this and, sure enough, he confirmed this to be the case. He informed us that Carrington would have a major problem if they ever tried to foreclose as there had been insufficient/improper assignments in MERS, leaving Carrington with no legal standing to foreclose. So, you can only imagine how surprised we were to find out at the end of last month that not only had they foreclosed, but also purchased our home at auction.

Fast forward to today, the attorney we are working with asked me to look up the foreclosure documents and email them to him, which we were able to find on our county's website. While I was doing this, I found a "quitclaim assignment" document that Carrington had filed a while back. In this quitclaim, it states that Taylor, Bean & Whitaker hereby ASSIGNS AND QUIT CLAIMS to Carrington Mortgage Services. It then says that someone named Elizabeth Gonzales, Default Document Team Lead for Carrington Mortgage, authorized and executed this instrument.

I am so confused. If TB&W dissolved and ceased to exist an entire decade ago, how can they assign or quit claims to anything??? They are LONG gone! And how can Carrington authorize this alleged transfer to themselves, which it appears they have done as the person who authorized and executed this quitclaim works for Carrington as their "document team lead" (please correct me if I'm wrong - this is all new to me). I have just sent an email to our attorney and asked if he thinks we should challenge this quitclaim when we file our rule 60 motion, but I was wondering if anyone on here could offer some insight as well. While I am downright furious about what is happening to us and all that we are having to go through to fight this to get the foreclosure reversed and our mortgage reinstated, I am also finding all of this extremely fascinating and have taken quite an interest in foreclosure fraud. From what I have been reading online this evening, quitclaims are frequently utilized by scammers and fraudsters because they require no title examination, which would make perfect sense in our situation, because we already knew that they would run into title issues if they ever tried to foreclose. We've spent the past several weeks trying to figure out how in the world they were ever able to get this foreclosure through the court with all of the ownership and title issues that existed. It's like all of the pieces to the puzzle are suddenly coming together!
What you need to remember is that a quit claim deed is not a warranty deed. I only have limited experience with a quit claim deeds, but it does not guarantee that the "grantor" even has a legal interest in the property.

Basically, when someone grants a quit claim deed they are saying: "I do not know what rights I have in this property, but whatever they are, I convey to you". And of course like liens, they can be assigned.

So when TB & W went bankrupt, they probably assigned any deeds and liens to Carrington. Perfectly legal and happens all the time.

I can quit claim the Brooklyn Bridge to you, but that doesnt mean I owned it and now you legally own it.

It does not hold up in court like a warranty deed does. Only after a complete title search will a warranty deed be issued.
 
  • Like
Reactions: jwa81

jwa81

LoanSafe Member
Jun 23, 2014
91
13
8
38
Actually, Carrington didn't even come into our picture until 2014. TB&W transferred all of their mortgages to Bank of America (ours included) in 2009 when they were shut down and then BOA sent our mortgage to Carrington in 2014. We now have an attorney and have just filed a rule 60 motion since there was so much fraud involved in our foreclosure. Our attorney put together an amazing 30-page motion, including several examples of lawsuits that been brought against Carrington and proof that they had legal right to foreclose. I am feeling VERY confident that this is going to turn out in our favor.

Another interesting thing that our attorney and I noticed is that when we look up our mortgage is MERS, it still shows BOA as being the servicer, yet they haven't had our mortgage in just over 5 years. We included this in our motion as well.