OUR STORY Part 17: A GET OUT OF FRAUD FREE CARD

Millstone drops again!

There was the matter against our Realtor, and then the matter that had to be refiled against the sellers' Realtors due to an attorney's health issues which forced us to dismiss and refile; separating out the one big case into two separate cases.

As quoted by our own attorney:

 On September 17, 2010, a jury found that our Realtor committed negligence, violated the Texas Deceptive Trade Practices Act and did so knowingly and most importantly, they found she committed STATUTORY REAL ESTATE FRAUD!

The jurors awarded us $125,000 in punitive damages and an additional $43,000 in legal reimbursement costs to our attorney; the full amount requested by him during testimony of legal fees.

However, we were never able to collect these damages; being told that there was a problem with the manner in which the jury verdict form was completed. This nightmare forced us to have to file a motion to either have the judge plug in the correct number in the correct place, or alternatively, to grant us a new trial.  The judge denied both motions; and we were forced to take the only remaining step, filing with the appellate courts.

Our case was taken on contingency; but we have found along the way that contingency does not necessarily apply to everything; and most importantly an appeal process. 

Today as I ventured on to the county judicial website to check up on the status of our cases, I found that this would have severe implications for our matter against our Realtor. The court website had this posted:

Events and Orders of the Court 

01/28/2011 JUDGMENT

01/28/2011 JUDGMENT

& MEMORANDUM COA DISMISSED FOR WANT OF PAYMENT

01/12/2011 INFORMATION

BILL OF COST FAXED TO & MAILED TO (Plaintiffs’ Attorney Info Redacted)

I contacted our attorney and he confirmed that; as a result of our not being able to come up with approximately $7,000 in appellate legal filing and hearing costs; our Realtor has now escaped any and all repercussions and/or consequences for her actions. 

Apparently, the lesson to be learned here is that even with a guilty verdict issued by a civil court jury; you can perpetrate Statutory Fraud, Negligence and violate the Texas Deceptive Trade Practices Act (DTPA) without so much as a "time out", while the victims of fraud pay severely.

OUR STORY Part 16 (continued): GOOD BYE HUMBLE ACRES

Today we received a response from the rescue:

Annette,

I am so sorry to say I cannot help right now.  I am taking in 10 Mules and an older Percheron from a huge seizure done at Christmas time.  I am also working with a donkey breeder that is surrendering 10 donkeys....Can you call the Humane Society?  They will probably take them.  Tell them you know me.  Ask to speak to Sandy Grambort.

Prince and Bear are great!  Bear lives in San Antonio now and Prince is getting ready to leave and move to Dallas.  Both homes are amazing!  I love them both!  Prince has a little girl who dotes on him.  Bear has a middle aged woman that thinks he walks on water... so both great homes.....

Deb

GOD HELP ME!!!

OUR STORY Part 16: GOOD BYE HUMBLE ACRES

Had to send out an email that I guess I have been avoiding for weeks now. Time is running out and although we put our trust in Abba, there are things we must do in the natural as economic circumstances bear down on us even more.  That's the hardest part sometimes; knowing when to act and when not to react. You don't want to react in fear, but you also don't want to curl up in a ball of emotional denial. Make sense? 


We ask each other "Are we missing something?" We don't believe so, and yet seek God each day trying to understand it all, and His will for our lives.

But for now it becomes about putting the best interests of our animals before our own.  So, it is time to say good bye.

Hi Debra,

As you can imagine, I can hardly breathe while writing you this email.  It’s like the last kick in the gut.  Nonetheless, I need to know if you are still interested in the donkeys.  We have tried holding on as long as possible but now it is a matter of veterinary care and a foal due in March.  Our case just drags on.  We were awarded a Default Judgment of $1,117,500 on January 7^th   related to the second half of this nightmare; but defense has filed a motion opposing it and are trying to get it thrown out and a new trial put on calendar.  We can not survive another delay.  My husband and I are about a month away from being homeless.  Please let me know.

Also, we have a John Deer tractor and attachments that we need to sell.  They were purchased brand new in April/May of 2008 and have about $1,500 balance left on the loan.  There is a box blade, bush hog, rake and manure spreader.  If you know anyone, please let me know.

God bless,

Annette

It was very difficult saying good bye to the horses when they went to rescue; but our little donkeys are a whole other story. We weren't going to get the donkeys after our horses.  We had looked around a bit and spoken to a woman in the area.  One day we received a call out of the blue from this same women we had spoken to about miniature donkeys; she was a widow who was closing down her donkey farm and looking to find good homes for her donkey family.  It just wasn't the same since the passing of her husband and she believed God was moving her into a new season in her life.  We agreed to take a few of the donkeys and named our little adventure "Humble Acres Miniature Donkey Farm".


The donkeys first arrived in April 2008; just a week before the first flash flooding on our property; and consequently, just before all hell would break loose and we would find that we were living in a flood zone.


Now we are having to say goodbye to a couple of little ones that we helped usher into the world with our very own hands. Late nights out at the barn waiting for mommies to going into labor. Precious memories.


We almost lost Sarah when she birthed Sophie, but Mike was a true hero.  I was blessed to be able to help with Beauty's little foal, Bella.  Such a miracle of God's creation. 

OUR STORY Part 15: COMPOUND FRACTURES

Over these past few years there have been trials within trials.  The increased and unexpected expenditures of mandated flood insurance and a tractor payment hit us about the same time we started experiencing the backlash of our declining economy.  Along with the failing economy came the slow collapse of our media consulting and advertising business, specializing in the hotel and travel industry; a business that had been quite successful for over twenty-five (25) years. 

Mike and I have been very resourceful entrepreneurs over the years and lead a very simplified life.  We would have survived this "compound fracture" except for the fact that we have not been able to, like most homeowners, access our equity. Our equity in the property was substantial being that we made an $80,000 cash down payment when we purchased.

The property has become a financial sink hole into which we are now forced to pay more than we were qualified for, and agreed to, in monthly mortgage payments; the mandated flood insurance policy premium now increasing our monthly mortgage by an averaged of twenty-five percent (25%).  And this is all occurring even though the property value is reappraised as having a fair market value of ZERO ($0)!

Despite the representations made during escrow; the dirty little secrets about this property have now been discovered, and the horrid facts confirm that the house indeed sits on a designated drainage easement; the entire property determined as being located in the "Special Flood Hazard Zone".

A Blessing and a Compound Fracture

When God called us out of Southern California, there was much prayerful seeking as to where we would be moving; and after several months we both agreed on the state of Texas. Mike was born in Dallas County, Texas, and later moved back to the Dallas area for a period of about five years

At a very young age Mike's mother had taken him out of the state, refusing to allow his father to know where they resided. Never having any support or encouragement to pursue finding his father, Mike didn't act on his curiosities until his early fifties. There was brief communication at one point, but nothing became of it. I knew Mike's father lived in southern Texas, around the San Antonio area, along with two half brothers; one brother already having passed away.

We had discussed contacting Mike's father (Walter) once we were situated in our new place, but it wasn't shortly after we moved in when things began to hit the fan. It was late October and I felt an urgency to contact Walter.  I called him and we had a lovely conversation while Mike was out taking care of the property.  During our conversation Walter and I set up a surprise visit between he and Mike. I didn't tell Mike until a couple of days before in order to reduce the period of stress.

One afternoon we were out back and I sat him down on the side in the back yard and let him know that his father was coming up from San Antonio to meet him.  I watched a fifty-seven year old man revert to a young boy in countenance.  He sat there silently just repeating "I'm going to meet my father." We spent a few days preparing for Walter's visit.  When I had spoken with him on the phone I tried to talk Walter into spending the night in our room. He kindly refused stating that he wasn't one for sleeping at other people's homes. So we just planned for a nice meal.

Then the day arrived and Walter drove up in his big pick-up truck wearing a ten gallon hat.  I'll never forget him getting out of the truck and looking up into Mike's eyes. I still get so weepy thinking about it.  I took photos and put this video together as a memorial to that special time.

Walter arrived with old shopping bags full of photo memorabilia and a small suitcase, and asked if it was okay to spend the night. We were absolutely elated that he had changed his mind about staying with us!

Mike made homemade chili for dinner with corn bread.  We visited and Walter spent the evening sharing his life with us.  He even showed us his tattoo "Ruby"; Ruby being Mike's mother's name. It was a special time for Mike as he was able to share his faith with Walter and to pray with him.

Then next morning Mike made breakfast and coffee for Walter and they shared hugs and said their sweet goodbyes.  We discussed plans on getting together again,  but that was not to happen.

A short time later, I received a phone call from Walter's step-daughter telling me that Walter had passed. I remember the crushing force as I looked out the living room window to see Mike in the pool enjoying a nice warm spring afternoon. How do I tell my husband, my best friend, that his father is dead after one visit; and on Father's Day!

When he came to visit us, Walter informed me that he had not told his other two sons he was coming meet Mike. What Walter didn't tell us was that he was dying of liver cancer. I don't know the story, but Mike was not invited to his father's memorial; and a subsequent phone call to the oldest brother was painful.  I found the other brother on Facebook and put in a friend request.  Still no reply.

But Mike did have "24 Hours With My Father" and for that we are forever grateful.

OUR STORY Part 14: PIN THE TAIL ON THE FLOOD ZONE!

Short blog to educate you on what I deem to be one of the biggest forms of fraud in the real estate industry today; online flood determinations generated by Internet agencies.  It goes without saying that our two-story home and the five (5) acres it sits upon have never been moved.  So how do you explain this scenario?

There are a total of five (5) flood determination companies involved.  Please note that two (2) of these companies show the property as located "IN" the "100 Year Flood Plain" also known as the "Special Flood Hazard Zone".  This determination is supported by the FEMA Firm Map Panels dating back as far as September 1991.

The other three (3) online flood determination companies determined that the property was located "OUTSIDE" of the "Special Flood Hazard Zone".  Note:  All three determinations pulling the property out of the flood zone were obtained by individuals involved in our escrow; individuals who profited off of the sales transaction of our property.

SUMMARY TIMELINE:

09/27/91: 

FEMA Firm Map Panel #4805201050-B

Property Located in “100 Year Flood Plain”

Special Flood Hazard Zone (Zone A)

09/11/07: 

Daniel’s Make Offer on Property

09/11/07: 

First Seller Disclosure - “100 Year Flood Plain” 

Box marked as:(NO)

09/13/07:  

Mortgage Broker - “LandSafe Flood Determination”

Property Located in “100 Year Flood Plain”

Special Flood Hazard Zone (Zone A)

 

09/15/07: 

Second Seller Disclosure - “100 Year Flood Plain” 

Box marked as:(Left Blank)

09/17/07: 

Seller’s Realtor Acquires “FIS Flood Services Determination” using sellers' mortgage account.

Determination: Not in a Special Flood Hazard Zone – Determination:  Zone X

9/18/07:

Mortgage Broker gets 2nd determination - "First American Flood Data Services"

Determination: Not in a Special Flood Hazard Zone – Determination:  Zone X

10/16/07: 

Performance Appraisal “Intra-Flood Inc. Determination”

Determination: Not in a Special Flood Hazard Zone – Determination:  Zone X

11/09/07: 

HUD Settlement Documents –“Flood Hazard Certification”  

As prepared by Title Company for Signature: 

09/26/08: 

FEMA Firm Map panel number 48367C0325E

Property Located in “100 Year Flood Plain”

Special Flood Hazard Zone (Zone A)

10/23/08: 

Chase Home Finance acquires:  “Quantrix LLC Determination”

Property Located in “100 Year Flood Plain”

Special Flood Hazard Zone (Zone A)

01/29/2009: 

Chase Home Finance: “Mandated Flood Insurance Enforced!”

*NOTE:
No flood determinations were ever provided to us during escrow.  The first time we would receive a flood determination, or know what one was; was approximately seven (7) months after the close of escrow on, May 8, 2008.  And this only occurred after we contacted our Realtor, quite upset, reporting that we had endured flash flooding on our property and were notified by the county that we were located in the "Special Hazard Flood Zone".

OUR STORY Part 13: THE DOG ATE MY HOMEWORK

Our case was filed in November 2008, one year to the month from the close of escrow.

Realtors, as are many other licensed professionals, are required to maintain business records for a number of years.  Prior to depositions being taken in this matter, all parties were required to turn over their evidence (files) about June / July of 2009.  In the case of the Realtors, that evidence would include contracts, emails, faxes etc. 

Our attorney had apparently forgotten to request the files from our Realtor in a timely manner which could have created a problem with her deposition already scheduled and rapidly approaching. You want to have the defendants' files available to you in advance so that you are able to review them prior to; and to use them during questioning at their deposition. 

Opposing counsel was accommodating and agreed to have our Realtor's file available at her deposition.  Moreover, he even sent a copy of the file over to our attorney a couple of days prior to her deposition.

To all of our astonishment, it turned out, our Realtor had no file; and indeed the documents submitted on her behalf were actually documents that Mike and I had provided during discovery.  They merely copied our numbered exhibits and placed their bates stamp on them, and returned a set of our very own documents back to us.

To give you an idea of the significance of this; during the civil trial against our Realtor, our attorney rolled into the courtroom boxes of hard copy print outs of our exhibits.  This collection of exhibits included a large legal box containing over two hundred (200) emails generated between us and others (mostly our realtor) during escrow.  Emails we had produced during discovery.

When asked where her files were; the Realtor explained that her computer had crashed, and she had no hard copy files on our transaction.  She had no copies of any contract agreements, disclosures, MLS listing, faxes, emails, etc.  Nada! 

However, when I initially contacted our Realtor back in April/May of 2008; confronting her with the fact that we had just experienced a flash flooding, and were advised by the county that our property was in a flood zone; the Realtor panicked asking if she could call me back.  She then called from her office and immediately faxed us over several documents, including a flood determination we had never seen before. 

After faxing over the documents she nervously exclaimed "you're not in a flood zone"; and went on to state that the sellers' Realtor had taken care of things "R-- said he'd take care of it!  That's why he wanted to use his Title company!!!"

Apparently the computer crash occurred after this incident in May.  Perhaps it was the a result of a civil suit being filed?  Pure speculation . . .but . . .!

Coincidentally, during the deposition of our mortgage broker, our attorney was informed that all of the emails generated through escrow to and from her happened to disappear as well.  Hmmm . . .

OUR STORY Part 12: NO WONDER THERE IS REAL ESTATE FRAUD!

On February 4, 2011, after more than two (2) years of excuses and administrative delays; we received a letter from the "Texas Real Estate Commission" (TREC) relating their erroneous haphazard investigative findings on our matter.

More than two (2) years and four (4) investigators; three (3) of which never communicated with my husband or me.  Moreover, the one investigator that did communicate with us spent most of his time delaying our investigation due to the case overload and lack of investigators available in their offices. The first investigator stated that he was going to be attending the trial slated for June 2010 as part of his investigation.  The trial was delayed, and TREC failed and/or refused to have the investigator on file attend the trial when it went forward in September.

Still, on September 17, 2010 a jury verdict was rendered against our Realtor / Broker; finding them guilty of statutory fraud, negligence and the Texas "Deceptive Trade and Practices Act" (DTPA).  A guilty verdict!  And yet TREC has cleared her of all wrong-doing.

Frustrated and disgusted with TREC's two (2) years of failing to investigate this matter; On October 4, 2010, our attorney contacts TREC and sends an email to the investigator on file at that time:

S----: 

The case against the real estate agents has half of an answer.  The case against the sellers’ agents, P----- and A-----, was dismissed and refiled because their attorney tried three times to escape trial with a continuance and showed up on the date of trial and acted very strange and ill like and rather than wait another 60 -90 days, we decided to try the case against the buyer’s agent, Deboroah M----.  The jury found she committed negligence, violated the Texas Deceptive Trade Practices Act and did so knowingly and most importantly, they found she committed STATUTORY REAL ESTATE FRAUD!    

At this point, what else is necessary?  A verdict of her peers, her fellow ------ County citizens found she committed REAL ESTATE FRAUD!!!!!!

I have attached the jury verdict for your review.  You should also note that I called her as a hostile witness during my prosecution of the case.  Her attorney did not offer any rebuttal or rehabilitation of her cross-examination.  I assumed he would call her during his defense.  He did not.  He did not offer a single witness to controvert anything presented at trial.  She, Deborah M----, never tried to defend herself.  ‘

I have been told since the beginning to wait for the outcome.  I am sure the expected response was that the case would settle.  It  did not.  Your real estate agent, licensed by you, committed fraud in a real estate transaction.  At this point, I am hopeful, but not confident, something will be done by TREC.  I have done everything I can but if TREC can not or will not act, I will have no choice but to go to the press with this matter.  I will wait for your response before I do anything.  Let me know.   You can and should call my cell: --- --- ----

It appears that as a result of neglecting the investigation of our case for over two years; and the subsequent threat of our attorney to take this information to the media; TREC has chosen to neglect the facts in this case, including facts presented in a civil court of law supported by witness testimony given under sworn oath before a judge and jury.

The bottom line:

1. TREC's last three investigators have never spoken to my husband or me.
2. TREC admittedly did not read and consider all of the "voluminous" evidence.  I guess two (2) years wasn't long enough.
3. TREC didn't take into consideration the evidence presented and testimony of witnesses given under oath during a civil trial.

Again, the TREC investigator assigned during the on-set of this case stated that he was going to be attending the trial. This was before the trial was continued from a June date to a September date. He retired and a new investigator was assigned.

Why didn't the new investigator assigned to our case attend the trial, observe the and documents as they were presented as well as the testimony given under sworn oath before a judge and jury?  Moreover, how can TREC totally disregard these facts and testimony that was presented in a court of law while their investigation was still active?

I really can't write more at this time.  I feel like I am having a heart attack.

OUR STORY Part 11: A PROPHETIC EMAIL FROM MARTHA

We put an offer on this property on September 11, 2007.  Little did we know that just six (6) days prior to our offer; an email had been sent to the sellers' Realtor(s); the contents of which would prove to be prophetic in nature. 


Apparently another agent had a client who was very interested in the property.  The prospective buyer, being a civil engineer had questions following a visit to the property.  A list of questions were then submitted in an email from the prospective buyer's agent to the sellers' Realtor.  Long story short;  as a result of non disclosure concerns, the prospective buyer walked away from the property. 


The email sent to the sellers' Realtor(s) included a prophetic warning, which has since been fulfilled.  The prophetic warning?  Gotta love the politically correct sign off. "You were great to work with!" 

P----,
Thank you for the answers to the questions from my client. They have decided to keep looking due to the water problems with this property. You stated that water had gotten into the house once but the seller did not state that when answering the questions and it is not disclosed in the seller's disclosure. I would be very afraid of a law suit from the next buyer if it is not disclosed. You were great to work with ... .thanks for all of your time.       Martha

There are some very pertinent details within the contents of this email that were never disclosed to us during our escrow on the property, only six (6) days later.  In fact, only six (6) days later we were provided a sellers' disclosure that stated the property was "NOT LOCATED IN 100 YEAR FLOOD PLAIN."

Both of the sellers' Realtors were copied on this email communication.  One of them being the county's top producing Broker.  I guess the Realtors didn't feel that full disclosure meant "FULL DISCLOSURE."  

We redacted names and email addresses from the documents provided on this blog.  But this document we found very interesting for a couple of reasons.  The obvious one being the matter of non-disclosure and a warning from another agent.  But what I found to be most telling about this document was that the full un-redacted version provided during legal discovery came in a batch from the Brokerage Firm.  The header of the bates stamped exhibit shows that the listing agent/Realtor forwarded this document in an email to her husband the day the documents were being produced. Nervous perhaps? Honey, I got my hand caught in the cookie jar!?

The real kicker here is that all of these Realtors still assert that the house is not in a flood zone. Accusations have been flung at us that we should have "seen" the property had issues; yet each of them were familiar with the property and, again; even their sellers who lived on this property for nine years noted on their seller's discloser that the property was "NOT LOCATED IN 100 YEAR FLOOD PLAIN.'

OUR STORY Part 10: "SURVEYOR RATS OUT THE REALTOR!"

On September 13, 2007, we were sent an email from our Realtor that read:
 

"Annette & Mike,

Heard back from the surveyor last evening and he couldn't find the recording information for the proposed easement. I have contacted the agent and they are working on clearing this up. It needs to be recorded to assure that the drainage easement has been done as proposed! Anyway, will keep you posted.....Also, the agent does have the offer to the seller's and hasn't heard back as of about 9:30 this morning....Thanks, Deb"

Attached to her email was a copy of a 1998 survey of our property showing a dotted line referencing a proposed easement going around the eastern side of the house. No copy of the 2003 survey was provided at that time. Our realtor assured us that this was simply a matter of making sure that an easement had been recorded with the county; and that "they (sellers' Realtors) are working on clearing this up."


We trusted our Realtor's words and professional ethics, and relied on the three (3) Realtors to do their job.  We had no reason to lack confidence in our Realtor to properly represent our interests; and, in fact, were subsequently emailed a document represented as being a notarized proof of recording of the "Release of Easement."  We never heard anything more about the matter.  Funding could not be approved, and escrow could not close without the matter being handled properly, right? 

Little did we know that our trust was being violated through corroborated "behind the scenes" actions of our Realtor and the seller's Realtors.  The three (3) Realtors were actively engaging in real estate fraud, tampering with our mortgage lending process. 

As I explained in a previous blog; the signature on the "Release of Easement" document that was provided by the seller's Realtors, to our Realtor and on to our mortgage lender during escrow, was signed by the County Flood Plain Administrator.  This gentleman testified under oath during our first civil trial to the following:

1. The "Release of Easement" was not relevant to our property.
2. The document had never been recorded by the county.
3. The house still sits on a designated drainage easement (unknown tributary).
4. His office would not be involved in a release of easement on a residential lot such as ours.

Getting back to the story of the surveyor. Because of the mandated flood insurance we were under pressure to obtain a valid Elevation Certificate. Part 9 of our blog explains this in greater detail. As a result of our need for an Elevation Certificate; we took the advice of the County Flood Plain Administrator and attempted to track down the original engineer, who was still working locally. Interestingly, we were unsuccessful in reaching the engineer with phone calls and email; but we were able to locate the original surveyor of the property.

In October 2008, we called the surveying company and spoke with the original surveyor of the property.  Again, we were merely trying to obtain a valid certificate for insurance; being that the only available certificate was the one received back in May 2008 from the County Flood Plain Administrator.  As stated earlier, the certificate was rejected by our insurance company because it had erroneous elevations and was incomplete.

During our initial telephone conversation with the surveyor, he asked if he could go look at his files and call us back.  Within just a short period of time the surveyor called us back and eventually spoke to both Michael and me. He stated that he remembered the property and his conversation with our Realtor during escrow. When asked how it was he could recall a conversation with a Realtor just over a year ago, he referred to a note on the document referencing the name "Deb":

“I remember this because Deb is a long time friend of mine. We grew up together. She married my best friend.”

He then went on to state . . .

"I warned Deb about this property. I told her Deb you got two strikes against you with this house…it’s in flood zone A and it’s got a drainage easement running right through the house.”

In our realtor’s email to us on September 13, 2007, she never mentioned any of the concerns expressed to her on the phone by the surveyor; and more specifically the "two strikes" comment. She also failed to mention that he was an old friend of hers. She also never mentioned anything about the property being in a flood zone, or that the house was sitting in a drainage easement which, in this case meant, an "unknown tributary".

At the end of our conversation the surveyor invited us to meet with him at his office and review his file on the property. During our visit he provided us with documents he had sent to our Realtor which included both the 1998 and the 2003 surveys.  Our Realtor never provided us with the 2003 survey provided to her by the surveyor. She only provided us with a copy of the 1998 attached to her email stating:

"I have contacted the agent and they are working on clearing this up."

The day after we met with the surveyor we went back to his office where we were provided a letter signed by him confirming the fact that he had indeed related serious concerns to our Realtor about this property, warning her that it had two strikes.

At our meeting with the surveyor we told him that, during escrow three (3) flood determinations had been completed on the property. The first one placing the property in Flood Hazard Zone A, and all subsequent flood determinations pulling the property out of Flood Hazard Zone A, and re-designating it as situated in Zone X. We also showed him that the Title company had, as a result of these other determinations, generated a Flood Certification noting that the property was "NOT WITHIN ANY" flood hazard zone.

The surveyor responded shaking his head:

“No, you can’t get a flood certification on that property. It’s got problems. It’s in a flood zone and has a designated drainage running right through the house.”

We then showed the surveyor and his associate the flood determination documents and certification, to which he grinned and replied:

“You might be able to get it out of the flood zone on paper…at least until the next storm hits.”

The end result of this story is that the surveyor and his associate communicated with the original engineer on this property and informed us that they could not help us with an elevation certificate because neither they nor the engineer (who had filled out the initial bogus Elevation Certificate) had the necessary data.

Furthermore, the surveyor, his associate, a third surveyor and two engineering firms; all informed us that there were no benchmarks (reference points) within the area from which they could pull data in order to determine the BFE (Base Flood Elevations) on our property. In order to determine the BFE they would need to go to the nearest benchmarks which were a significant distance away; and this alone was going to cost us thousands of dollars. Moreover, that would just be the beginning since we would then need the property itself resurveyed to determine the variable between the finished floor and the acquired BFE.

Bottom line is this; the surveyor relayed to the Realtor(s) that the house was indeed still located in the drainage easement and the flood zone...and had two (2) strikes against it.  Yet despite this fact the Realtors went ahead and tampered with the flood zone designation and fraudulently submitted an invalid and unrecorded document that had nothing to do with this property to the mortgage company in order to obtain loan approval.

The more information that surfaced in this case the more we realized how vile and sinister were the acts of licensed professionals. There's a lot at stake here with the potential consequences; one of those mentioned by our attorney as being potential criminal charges. 

We feel violated.  On top of the fraud perpetrated against us we have also endured many months of numerous drive-bys; some pulling up and stopping at our front gate for an unusual extended period of time only to back out again and drive slowly away.  One morning I went out and found my horse's winter blanket was clipped to the mesh fencing.  He had been standing there for some time stressing, unable to move or get to water.  There are other things that I won't get into.  We don't want to have a mindset of paranoia; but what we do know is that there is a lot at stake with some powerful people in the county.  Top ranking Realtor / Brokers who face losing their licenses (livelihood/ income), potential criminal charges and public humiliation. 

CRY TO ABBA FATHER!

Dear Abba Father,

I need you so right now.  So many nights I go to sleep wondering if my husband will awake in the morning.  I wake up in the middle of the night listening to see if I can hear him still breathing.  This stress is causing him sleepless night upon night.  He pours himself out to You and is doing all he knows.  Oh God, please, please give us more grace to make it through this trial without failing you.  We are so very weary.  We do not want to fail You or those around us who are watching.  We don't want to complain or to grieve your Spirit.  But we are so exhausted and we need Your strength to carry us through this.  We are nothing with out you and have failed you for many years.  We deserve nothing from you and know that it is only by the blood of Jesus that we are able to approach You.  Forgive us for weaknesses Father.  Help us.  We need Your wisdom at this time like never before.  Show us how to proceed.  We need help to settle down our weary flesh and be able to hear Your still small voice clearly.  We call for Your mercy at this time Father.  We ask that You visit our attorney in the night hours and the day hours and that he would not have rest until he has done what is right on our behalf.  We ask that you would expose those who have tampered with our case and held it motionless.  We ask that this mountain be cast into the sea once and for all.  Thy will be done oh LORD!  Let not our enemies triumph over us.  I pray this in the name of our Lord and Savior, Jesus.  Amen, Netty

Psalm 43

Prayer to God in Time of Trouble

 ¹ Vindicate me, O God,
         And plead my cause against an ungodly nation;
         Oh, deliver me from the deceitful and unjust man!
 ² For You are the God of my strength;
         Why do You cast me off?
         Why do I go mourning because of the oppression of the enemy?
  
 ³ Oh, send out Your light and Your truth!
         Let them lead me;
         Let them bring me to Your holy hill
         And to Your tabernacle.
 ⁴ Then I will go to the altar of God,
         To God my exceeding joy;
         And on the harp I will praise You,
         O God, my God.
  
 ⁵ Why are you cast down, O my soul?
         And why are you disquieted within me?
         Hope in God;
         For I shall yet praise Him,
         The help of my countenance and my God.

OUR STORY Part 9: "MANDATED FLOOD INSURANCE AND AN ILLEGAL ELEVATION CERTIFICATE!"

Before I get to the story of a retiring Texas Land Surveyor and our Realtor, I need to explain the purpose for our trying to locate this surveyor.

As a result of the FEMA Map Revision which was done in September 2008; and the subsequent letter from Chase Home Finance requiring flood insurance; we ventured on a quest to obtain a flood insurance policy.  We thought it would simply be a matter of locating the best available insurance premium rate; but we were very wrong!

We were determined to obtain a policy on our own, before Chase Home Finance had the opportunity to enforce one at some ridiculous rate. We had forty-five (45) days ticking away and when it became clear to us that we were not going to meet that deadline we went to Chase's legal department and explained our dilemma asking for an extension.  Denied!

During our search for a policy we found out a few things about flood insurance.

1. A flood insurance policy premium is an annual premium; payment due "upfront" and "in full".  There is no allowance for monthly premium payments.
2. Flood insurance premium rates are calculated based on the elevation variable between your finished floor elevation and the determined Base Flood Elevation (BFE).  The BFE can only be obtained through an engineering study called a LOMR, which is estimated at costing between $50,000 to $75,000.  This does not include any additional costs for engineering design work necessary to implement an elevation remedy to water flow problems. 
3. An Elevation Certificate is required during the flood insurance application process; and in order to obtain an Elevation Certificate you need the above referenced elevations; BFE and finished floor.

So the bottom line is this; if an engineering study (LOMR) has not been done then there are no Base Flood Elevations (BFE) determined; and if you have no Base Flood Elevations determined then there is now way to calculate the variable between the BFE and the finished floor.  Thus, you can not complete the necessary Elevation Certificate because it requires the signature and stamp of an engineer.  And, if you don't have an Elevation Certificate you are then forced to pay the highest rate for flood insurance. 

During communication with our insurance company we were told that the Elevation Certificate provided we had provided to them was no good; that it was not only incomplete but also missing the required engineering seal/stamp. So, I went back to the County Flood Plain Administrator who had provided us with the original Elevation Certificate. 

Back in May 2008 after the first flash flooding event on our property (April 17, 2008); the Flood Plain Administrator told us he believed our home was in the flood plain and that he would go search for the file on our lot.  He eventually faxed over some original documents to us, one of those being the Elevation Certificate. 

After receiving the bad news from the insurance company, I contacted the Flood Plain Administrator again.  He agreed to meet with us and came to our home on October 24, 2008.  During our meeting he explained to us that the elevation certificate was incomplete and the elevations noted were clearly incorrect. We took a walk in the backyard during which time my husband asked him "How did a flood permit get issued on this house without the proper engineering study and elevations?"  The response was a visual, rubbing forefinger and thumb together with a raised eyebrow.  My husband then asked "What a bribe?"  To which Mr. Flood Plain Administrator responded something to the effect; "Probably, stuff like that happens all the time."

A subsequent email from the Flood Plain Administrator stated, in part:

"The numbers he (engineer) came up with would qualify for a LOMR, which is a “Letter of Map Revision”. LOMR’s are used to eliminate an individual residence from the floodplain, thereby qualifying for the cheapest flood insurance rates allowable, or in some cases eliminating the need for flood insurance. His numbers indicate that your lowest floor is 5 feet higher than the BFE. I just can’t see that. It doesn’t appear that the residence is 5 feet higher than any adjacent grade."

No LOMR study was ever done; thus the BFE number that the engineer erroneously plugged into the incomplete Elevation Certificate apparently came from thin air.  More on that in the next blog.  It just gets more and more sinister. 

In short, the house was illegally built in a flood plain without the engineering study required by FEMA back in August 1998.  Somehow the county caught on and the homeowners eventually were asked to come into the county office; and on March 17,1999, the wife went and was issued a flood permit for $50.00 without providing the federally mandated engineering study as required by both the county and FEMA.

Not only is our finished floor NOT 5 feet above any adjacent grade; the finished floor elevation is estimated by the County Flood Plain Administrator, an engineer and is affirmed in topo maps as being approximately 3 to 5 feet below the perceived BFE.

The end result being that the insurance company could do no better on a premium quote than an annual cost of $6,127.00, due upfront.  As a result, Chase ended up enforcing a flood insurance policy on us; attaching an additional $500 per month to our mortgage payment.  Now it was certainly time to find an attorney and file a civil suit, and fast!

I apologize for typos or any confusion in these blogs.  This has been so exhausting; and the blogging has begun so that we have our story laid out in an emergency should we find ourselves without Internet, phone and a roof over our head. 

Last night we were up until 4:30am working on Part 8 of the blog. The days just meld together now; there is no real distinction between daytime or nighttime. I find myself rationing the use of shampoo, deodorant and lotion, but don't let my husband know.  Each day I find that I am losing more and more hair with the stresses.  Mike spends about 5 minutes removing hairs from my clothing before we run an errand.  I cried last time, and he told me I am beautiful and not to worry. 

Neither one of us have been to a doctor in four (4) years.  The money we were going to allocate for health insurance was robbed with a tractor payment; so we have mended broken bones and cuts the old fashion way.

Do you know what this flood insurance adds to the life of the loan, not considering increase in insurance premiums over the years? It adds approximately $180,000 to the loan. We would not have qualified for that during the escrow process!

We do love each other very much, at least no one can steal that from us!

OUR STORY Part 8: "NOT IN A FLOOD HAZARD ZONE"

During our escrow process we were provided two seller disclosures.  The first disclosure provided on 9/11/07 has a box checked noting that the property was “Not In 100 Year Flood Plain.”  The second revised disclosure received on 09/15/07 left this same box blank.  Neither we nor our professional Realtor ever picked up on this.

During the process of discovery on our civil case, were became aware of the fact that our mortgage company had requested a flood determination on the property on 9/13/2007 which stated that the property we were purchasing was in Flood Zone A.  No one told us of this information or provided us with the documentation.  Instead, the mortgage company and Realtors proceeded to take measures to have the property pulled out of the flood zone in subsequent flood determinations done by other companies.  Again, none of these flood determinations were ever brought to our attention or provided to us.

At the closing of escrow, November 9, 2007, my husband was given a packet HUD Settlement documents to sign; including page sixty-six (66), entitled "Flood Hazard Certification."  This is apparently a standard HUD document in the state of Texas, prepared before hand by the Title Company for signature by the buyer.  This document is generated reflecting information obtained from a flood determination requested by the mortgage lender. 

The document prepared for signature had three possible areas to "XX". The choices were "IS WITHIN", "IS WITHIN A MINIMAL" or "IS NOT WITHIN."  The paragraph section marked "XX" in our HUD packet was:

Had the results of the first flood determination being used, this document would have reflected that the property "IS WITHIN" a Flood Hazard Zone and we would not have purchased it.  Moreover, had we known that the escrow process was being peppered with flood determinations, and that mortgage fraud was taking place to approve financing on this property, we would not have merely walked away from escrow, we would have run!

In May 2008, following the flash flooding on our property; an engineering report confirmed what the professional Realtors, Brokers and Mortgage Lender already knew; that our property was located within a FEMA designated "Flood Hazard Zone" (Zone A).  Records show that this property has been designated as being in the flood zone since at least 1997.

In addition to our property being located in a Flood Hazard Zone; is the matter of it being illegally built on a designated drainage easement.  Documents and emails produced during the discover process confirm that Realtors and the mortgage company knew this, and proceeded to use an illegible unrecorded "Release of Drainage Easement" in order to have the lender approve our loan and close escrow. 

The interesting thing about this release document is that the signature on the document is that of the County Flood Plain Administrator.  It just so happened that; at the recommendation of a neighbor, we contacted this gentleman and had been in communication with him as a result of the flash flooding on our property.  Last September he testified to the following under oath during our first trial:

1. The "Release of Drainage Easement" used during our escrow was not even related to the drainage easement on our property.
2. The county department would not be involved in the issuance and release of a drainage easement on a residential property.
3. In order to move a drainage easement there would have to be a LOMR engineering study to determine the Base Flood Elevations (BFE), and engineering remedy in compliance with FEMA regulations.

Approximately mid September 2008 we were beginning to recover from the initial shock of our situation with the property, as well as the disruption of the natural gas well site behind our home.  The economy was taking a dive across our nation and business began to slow down in the hotel travel industry for which we brokered online radio and television advertising.  We were getting by like most hard working Americans but things were tight, and we now had the addition of a monthly tractor payment when things began to get even worse and the big hammer dropped square down on our already throbbing heads. 

On October 28, 2008, Chase Home Finance sent us a letter stating that a new FEMA Map Revision had been done on our area.  The map revision affirmed that our home and entire property were located in a Flood Hazard Zone (Flood Zone A).  The letter went on to inform us that we had forty-five (45) days to provide either proof of flood insurance or a LOMR (Letter of Map Revision) proving that we were not located in the flood zone. 

Please note that the cost of a LOMR is estimated at anywhere between $50,000 and $75,000.

So we set out to prove that our home was not in a flood zone as presented to us during escrow.  And what we would find out in this process was corruption within corruption . . .

If you are thinking to yourself "well, there is always two sides to a story", consider this; defense counsel for our Realtor rested during trial WITHOUT putting on a defense, because they had none!

OUR STORY Part 8: NOT IN A FLOOD ZONE



Clearer copy of "Release of Drainage Easement" provided during discovery.



HUD Document presented during escrow closing.