Circle of Angels working to keep people in their homes

Mutual Aid Housing project spreads awareness

Wednesday, May 18, 2011

More and more foreclosure cases began to rise to the forefront of media attention starting last fall when it became apparent that some loan companies have not been following proper procedures in executing civil foreclosures on homeowners who defaulted on their mortgage loans due to non-payment.

Suddenly new terms like "illegal foreclosures" and "robo signers" were cropping up in news headlines, and more policy and advocacy groups have taken notice. Faith-based organization Circle of Angels Initiative, based in Friendship, recently developed a public policy initiative called Mutual Aid Housing to help with this growing problem.

While Mutual Aid Housing has other focuses to help people work their way out of poverty, one of its main objectives is advocating for legislation in foreclosure defense, according to the group's website, www.circleofangels.org. With 11 million foreclosures in the works and 44 million anticipated, the Circle is taking a nationwide approach to bring all the involved parties to the table and work together on a solution.

"We've managed to keep four women in their homes despite eviction orders; one of them a widow with cerebral palsy," Circle of Angels Director Roseanna Vogt wrote in an email. "Don't get us wrong. We believe in the no pay, no stay policy; however, we also believe that people, like these good people who have worked all their lives, deserve a chance."

Focused on helping "vulnerable" homeowners, such as disabled and senior citizens, the Circle has compiled a team of lawyers, concerned citizens and organizations across the U.S. to bring attention to the new issue involving robo signers, or loan company employees who sign hundreds of documents each day to keep the process moving during the economic recession. However, many critics now believe there is no way these employees can have personal knowledge of every document they sign off on, and some of them end up forged.

"One of the reasons we're involved is because we're seeing a lot of affidavits signed illegally," Vogt said. "You can't possibly have personal knowledge when you're signing over 350 an hour."

Vogt said she knows three local individuals who have fallen victims to robo-signing, and she is disgusted with it. "Our Constitution makes it so that we have to have due process of law to take away life, liberty and property. These banks have been given a pass in the very recent past."

With World War II Day this past Saturday, which the Circle hosted, Vogt said she is reminded now more than ever of how similar this situation is to forged foreclosure documents in Nazi Germany. "It's been scary to me to watch this happen," she said. "The worst part to me is to see the document is not complete, that it's forged. If it can happen in Germany, it can happen anywhere. If banks are allowed to not follow the rules, it can happen to anyone."

"It's legal theft of your home, but it's only legal because the banks are doing it. Banks are getting money to make up the difference between the market value and the outstanding loan," said attorney Christine Axsmith, who is championing public awareness of the issue for the Circle. "I'm one of the rough angels," she said. "I want people to know you've got an option. If you've already been evicted, you can sue. It's never too late for justice."

Banks have been quick to defend themselves in recent months, however. Citibank dropped its foreclosure counsel last fall in connection to illegal foreclosure accusations, JP Morgan Chase withdrew from Mortgage Electronic Registration Systems Inc. because of its association with illegal foreclosures and Bank of America announced a comprehensive review of its foreclosure process nationwide before declaring that it does not see any major problems with the way foreclosures are conducted.

"Our ongoing assessment shows the basis for our past foreclosure decisions is accurate," the bank announced last year in a prepared statement. Alluding to that review, Bank of America Home Loans President Barbara Desoer said, "We are committed to making the improvements that will give our customers, mortgage investors and other stakeholders the confidence that we are delivering a foreclosure process that conforms to best practices."

Earlier this month, the bank announced that it will be tripling its customer assistance centers for distressed homeowners for a total of 40 in 22 states by early summer.

But one of the reasons illegal foreclosures are being sped through the process, Axsmith believes, is because many people who have defaulted on their loan payments have valuable real estate that Realtors like, but that does not make it right, she said.

"These are people who, for 40, 50 and 60 years, have paid their taxes in Maryland, sent their children to schools in Maryland and volunteered in Maryland," Axsmith said. "We insist that forged documents are not used to take away their homes."

Although this is not a trend in Calvert County and there are no state criminal charges associated with the failure of banks to follow the proper foreclosure procedures, according to a county official, the remedy is to rescind the Writ of Possession to the new owner, allowing the old homeowner to remain in the home until the foreclosure is properly executed. The official did not wish to be quoted on the matter since a county woman is currently wrapped up in a complex illegal foreclosure case in which involved county attorneys and judges cannot comment.

Jean Michaud, a 60-year-old Dowell resident, lives on waterfront property zoned both commercial and residential, "very valuable real estate," Axsmith said. About a year after the foreclosure sale on her property, the court ruled that the foreclosing trustee may not have complied with Maryland Rule and a stay of eviction was issued. The new owner, real estate agent Paul Monger, has a valid Writ of Possession, so once the appropriate foreclosure paperwork is filed the eviction will resume unless the court rules otherwise.

Events got heated along the way, however, as Michaud attempted to fight the illegal foreclosure by declaring bankruptcy, Axsmith said. While under bankruptcy protection, a Calvert County Sheriff's Office SWAT Team descended on the property and arrested Michaud after she allegedly threatened to commit arson, among other alleged threats, in a desperate attempt to fight the law. While a quick phone call to Monger's attorney revealed that there was no legal basis to evict Michaud, she still went to trial for the arson charges, which she claims are false.

"I've had no due process, my constitutional rights have been violated," Michaud said. "I had eight SWAT guys down here with bullet-proof vests and helmets."

Michaud said she plans to bring about a lawsuit for the wrongful eviction after her trial. "I've got lawyers across the U.S. working on my case," she said. "I'm going after them big time. They have literally tried to destroy my life."

Patti Scroggins, a clerk with the sheriff's office who handles civil cases, said Michaud's case is one she has had to follow closely. She doesn't feel a lawsuit against the sheriff's office would be very effective, however. "The position of the sheriff's office is to carry out court orders," she said. "The sheriff's office is only carrying out the Writ of Possession. Have we literally thrown her out? No."

The original eviction occurred in November of last year, Scroggins said, but when Michaud made alleged threats to try and prevent the eviction, the SWAT team had to be called in to assist until they were informed that the eviction was off. Monger then legally acquired full ownership of the property in March, but since then Michaud has continued to fight it in court by declaring bankruptcy.

Her criminal case was put on the STET docket May 12, although the foreclosure case continues. "Obviously there's been some glitches along the way," Scroggins said.

"She's basically kind of played her cards with the legal system to get it held up," 1st Sgt. Tim Buckmaster said. "Every time we move forward with an eviction she'll try to trump things up in court."

Buckmaster said he understands Circle of Angels' complaints regarding the SWAT raid, but "we just erred on the side of caution" because of Michaud's statements and threats. "I understand. I mean, she doesn't want to leave a house that she cares about," he said.

"A lesser woman would have given up her waterfront property by now," Axsmith said.

But for the moment, Michaud remains in her home, since her co-homeowner William Gottlied also filed for bankruptcy to further delay the official eviction. "So Mr. Monger's attorneys are just waiting for that to play out," Buckmaster said.

mrussell@somdnews.com