L. DOUGLAS PROUDFIT, hereby declare under penalty of perjury, under the law of the State of Nevada that the following assertions are true.
- I am an adult duly competent to testify as to the matters contained herein.
- I reside with my wife Linda at 2574 Forest City Drive, Henderson, NV 89052, in Sun City Anthem.
- We have been members in good standing of Sun City Anthem since July, 2000.
- I was a real estate broker licensed to practice in the State of Nevada.
- My wife Linda Proudfit, and I owned Proudfit Realty, that became Windermere Real Estate/Proudfit Realty now that we are retired.
- I was the listing broker/salesperson with an Exclusive Right to Sell (listing agreement) 2763 White Sage Drive, from mid-February 2012 through July, 2013.
- I make this sworn declaration in lieu of providing testimony at the trial I have been told in scheduled in June because we will be out of state until October and unavailable.
- All of the 311 files and 9 folders provided to Nona Tobin that we had in our possession related to the client “The Gordon B. Hansen Trust, Dated August 22, 2008, Nona Tobin, Successor Trustee” were certified by Linda Proudfit on June 14, 2016 as “a true, correct and a complete copy of any and all documents”.
- I have reviewed the pertinent documents from the certified file and have used them, as well as some emails exchanged with Nona Tobin after the listing agreement ended, as the basis for my statements in this sworn declaration.
- On August 8, 2012, a purchase offer of $310,000 was received from the Sparkmans.
- On August 10, 2012, Nona Tobin signed a counter offer accepting the price, subject to lender approval, and making the statement “Buyer understands the term ‘seller’ in the RPA (Residential Purchase Agreement) refers to ‘lender’…” when referring to seller’s costs.
- On August 13, 2012, an assignment of the Western Thrift Deed of Trust, to Bank of America, recorded on April 12, 2012 was added to our files.
- On October 29, 2012 Ticor Title notified me that the short sale had been approved and attached a HUD-1 Settlement Statement, dated 10/22/12, that estimated approximately $3,400 would be paid out of escrow to the HOA for assessments and various fees and charges.
- On November 4, 2012, Nona Tobin faxed to our office a notice that had been sent to the estate of Gordon Hansen, 2664 Olivia Heights Ave., with notice that the mortgage was in default and that Wells Fargo had standing to foreclose.
- According to our records and the records of the Clark County Recorder’s Office I reviewed, neither Bank of America nor Wells Fargo ever initiated foreclosure by serving or recording a notice of default.
- On January 5, 2013, Linda Chain sent me an email with the subject “White Sage Counter and Transaction History” which listed the many unreasonable counter-offers made by by B of A in response to:
Aug 8, 2012-A successful Purchase Agreement was entered in to between buyer and seller of record for a price of $310,000
Nov 12, 2012 B of A (1st) countered the purchase price at $395,000 with a COE of 12/12/12
- Linda Chain described the realities of the market
Doug, as you know, the market value for the house has currently gone down, as sales over the last 3 months in Sun City Anthem without views are closing at an average $118 psf, (per square foot) converting this home to $290,280. The buyer is willing to purchase the home for the appraised value of $310,000, and not anymore, as he does not want to be underwater from the day of ownership.
- On January 9, 2013, Bank of America sent me notice that the short sale was rejected.
- On January 27, 2013 I wrote an update on this difficult sale that documented the problems we had in getting the Sparkman escrow closed, which stated, in part,
We all should understand that the rejections we have experienced on this sale were not coming from B of A as the ‘servicer’ but from the investors who own the loan and want more money from the sale. Last week, Fidelity chose this White Sage sale as the FIRST file to be forwarded to the B of A resolution review team due to the totally unreasonable treatment we (and they) have received from investors. Agreeing to a price, then demanding more, etc. Also, our B of A ‘negotiator’ is in reality simply one who forwards information but in fact does no ‘negotiating’.
- On April 3, 2013 the Sparkmans cancelled their offer and their earnest money deposit was refunded.
- In our files, there is a May 7, 2013 letter from Nona Tobin to Bank of America Home Loan Assumptions Department wherein she transmitted documents B of A.
- She made a mistake in listing the first attachment as the “Deed of Trust transferring the property title into the name of the Gordon B. Hansen Trust, dated August 22, 2008”.
- The Grant, Sale Bargain Deed she provided to B of A was not the Deed of Trust that B of A had requested.
Ms. Murillo informed me that B of A had not accepted the short sale because they are missing a copy of a court approved document that indicated I was the appropriate representative for them to speak to on behalf of the estate. After some discussion, it became clear that the document the bank was requesting was the Deed of Trust, dated August 22, 2008, which transferred the property into the name of the Gordon B. Hansen Trust….
- This May 7 2013 letter was faxed to B of A from the Proudfit Realty office at Nona’s request as during this time period B of A used faxes instead of email for the volumes of documents that were demanded.
- Nona Tobin warned B of A of the Red Rock notice of default that she was finished paying to protect the bank’s investment.
Additionally, there are two other entities with whom I have communicated whose actions may have some impact on B of A’s decisions about how to proceed.
Notice of Default and Election to Sell
While there were still funds in the Gordon B. Hansen Trust, I paid on behalf of the trust several quarters of HOA dues, Once the house was in escrow for a short sale, I stopped paying HOA dues. On March 7, 2013, on behalf of Sun city Anthem HOA, Red Rock Financial Services has filed a Notice of Default and Election to Sell after previously recording a lien against the property for said unpaid HOA dues. Those documents have apparently been sent to B of A previously, but they are attached here for your reference and as further documentation that B of A needs to take action to protect its financial interests because Gordon Hansen is deceased and I am no longer willing to attempt to facilitate the banks efforts to reduce its losses.
- She also informed B of A that Wells Fargo had issued a 1099-c cancellation of debt for $15,000 in 2012 and that she wanted B of A to take responsibility.
Wells Fargo Withdrawal from Short Sale
Wells Fargo sent me a letter (attached) saying that they were withdrawing from a short sale because they could not reached Mr. Hansen or his representatives. I contacted Wells Fargo and gave them the information that Mr. Hansen is deceased and that B of A had rejected the short sale. It is not clear to me what Wells Fargo’s role is in this since the $15,000 second on the property that was due Wells Fargo had been written off in 2012 and a 1099-c for cancellation of debt was issued. I submit this information to B of A in the interest of fully disclosing communications I’ve had with other institutions who appear to share a stake in this property with B of A and to provide their contact information. This is also a final bit of documentation to show that that neither the Gordon B. Hansen Trust or I personally have any financial stake in this property, and that the preservation of the property’s value is solely the responsibility of the financial institutions who do have a financial interest.
- On May 10, 2013, the Mazzeo made a purchase offer of $395,000 which was accepted pending lender approval.
- On May 29, 2013, Red Rock Financial Services responded to a payoff demand claiming $3,055.47 was due to the HOA, and this figure was provided to Ticor Title for payment out of escrow.
- No one at Proudfit Realty evaluated whether the amount demanded for the HOA was accurate or authorized, but simply forwarded what Red Rock sent to Ticor Title.
- Ticor Title modified the HUD-1 Settlement Statement on June 5, 2013, to reflect that $3,055.47 would be paid out of the Mazzeo escrow.
- On June 24, 2013 after many B of A’s document demands and rejection of the buyers’ pre-qualification, the Mazzeos withdrew their offer.
- On July 10, 2013 Nona withdrew the listing.
- Nona told me that Bank of America’s causing the $395,000 offer to be withdrawn when only $389,000 balance remained on the loan was ridiculous and that B of A had never even responded to her May 7, 2013 letter.
- On July 10, 2013, Nona asked Proudfit Realty to help her do a deed in lieu when she withdrew the listing.
Sent: Wednesday, July 10, 2013 12:27 PM
To: Doug Proudfit; Lee Cedola
Cc: Steve Hansen
Subject: Request to set up Deed-In-Lieu through Ticor for 2763 White Sage Dr.
I spoke with Gary Victory. the B of A Short Sale negotiating Team manager that contacted Linda to try to re-open the latest sale the bank botched. I informed him that the water had been turned off Monday and the electricity is going to be turned off today and that the bank’s financial interest would be immediately at considerable risk unless they put the utilities into the bank’s name. Gary informed me that the bank’s policy was to never do anything to a vacant property other than to secure it with a lock box even though he has frequently seen significant deterioration in many properties while the bank went through its processes to take ownership or approve a sale.
I told him that I had only committed my personal funds to maintain the property during the last short sale attempt so that Proudfit Realty could complete the short sale and get their commission and reimburse me, but given the extreme nature of the bank’s lack of cooperation of the last two bank-rejected sales, I am unwilling to go any further. I asked him if Proudfit Realty had a potential buyer and they wanted to pay the utilities until the sale was complete should they contact him (Gary Victory) directly in order to expedite the process in the 15 days he mentioned to Linda that he could get a deal closed.
Gary said that Linda misunderstood what he was referring to when he said his team could complete the process in 15 days. What would actually happen is a a new offer would be submitted and whatever negotiating team was assigned would get 15 days, then it would go to a review team, then to investors and some other steps before the bank’s allowed up to 45 days escrow process would begin.
Basically, the whole thing would start over.
Since this is obviously such an undesirable option, I can’t imagine you would really want to consider it. Of course, if you did because you felt it would be worth it to finally get a commission, i will hang in there to sign documents to that end, but I will not continue to pay anything out of pocket.
Gary gave me a number at B of A to call (866)880-1232 when I told him it was my intention to give the bank the deed in lieu of foreclosure. However, he described the response I would get from them at that number as providing me with information about the loan modification or other programs the Trust might qualify for. This is of no interest to me so I did not call that number. At this stage, I have no further patience for the bank’s Byzantine procedures and simply want to extricate myself and the Trust from any future dealings with them.
My request is for you to assist me in ending this tortuous process and to have you via Ticor do whatever is legally required to have the Trust give the property deed to the bank in lieu of foreclosure.
I am here though the end of the month and can sign any
documents that are required, but I believe you have all the documents that I
have had representing the Trust so I don’t need to supply anything additional
at this point.
I do not have any keys to the property, and I have not been on it in over a year, but I know that the caretaking I have provided through you and others has left the property in pristine condition up to this point. I am concerned, however, that the bank’s policy to take no constructive action to protect this property during vacancy and ownership transition could be problematic if this deed transfer is not done swiftly.
I informed Gary Victory that the property is uninsured and that given the 110 degree temperatures now, the pool will turn green, the plants will turn brown, and the value of the bank’s financial interest will go into a precipitous decline. Just as he informed me that the bank’s policy of neglect was firm, I informed him that I have no legal liability personally, and further, on behalf of the Trust, I will take no further action to protect the bank’s financial interests.
Thank you for all your efforts. I am sorry that the bank’s obstructiveness rendered them fruitless.
Successor Trustee of the Gordon B. Hansen Trust
- In preparing this declaration, Nona Tobin asked me if Proudfit Realty had been given notice that B of A had tendered $825 for nine months of assessments or if I had ever heard of Miles Bauer.
- I told her I don’t recall either and would have to review our records which she then provided.
- After reviewing the file, neither Linda Proudfit nor I discovered any indication in the files or our memories that anyone at Proudfit Realty was notified that B of A tendered any amount directly to Red Rock Financial Services instead of going through us.
- Ticor Title handled both escrows and there are no files or notes to indicate that B of A, or any agent of B of A, offered to put any amount for assessments into escrow.
- Nona handled the deed in lieu process herself, and I didn’t hear any more about it until she sent me an email on September 14, 2013 telling me that it had been denied.
“B of A has just refused the deed in lieu on Bruce’s house because Wells Fargo still has a lien on the title for the $15000 second even though WF wrote that off and issued a 1099c on it in 2012 when the house sold the first time.
B of A’s contractor acted as if I should be able to fix this. Is there anything in your file or experience that could help me? Or should I just ignore them?”
- She emailed again on September 29, 2013
“I don’t know if i told you before i left for Mexico that the B of A vendor handling the deed in lieu notified me that they were closing the file and not accepting the deed. The reason was that Wells Fargo wrote off the $15,000 second when the house seemed to be sold in 2012, but then when the sale fell, they didn’t clear the title.
Anyway, i got a call from City of Henderson Code Enforcement while I was gone that they noticed that there was a lock box on the house now. I don’t know why they were out at the house since they drained the pol weeks ago, but anyway, my question is: is that your lock box? If not, does the bank have a right to secure the property away from me without going through foreclosure and otherwise getting completely off my back?
It doesn’t seem like they should be able to have their cake and eat it to.”
- I told her in an October 1, 2013 email,
“Nona, I’ve never heard of a lender securing the house before foreclosing.”
- Nona’s October 4, 2014 email was a request for a real estate attorney to make a claim on the proceeds from the sale:
“Could you recommend a good real estate attorney? I want to file a claim on Bruce’s house for the portion between the $63,000 foreclosure amount and the amount Red Rock financial collected for the $2,000 delinquent HOA fees plus their collection costs.”
- I gave her a recommendation, and after that I was no longer involved.
- Because neither Bank of America or the investor approved the property to be sold, neither I nor anyone at Proudfit Realty or Ticor Title ever received a penny in compensation for a year and a half of work.
I declare under penalty of perjury under the law of the State of Nevada that the foregoing is true and correct.
Exhibits to Proudfit DECL
|6/14/16 Sworn Declaration – Linda Proudfit –9 folders , 311 Pages “true, correct and complete” for listing of 2763|
|4/4/12 Assignment of Deed of Trust, recorded 4/12/12|
|8/8/12 Sparkman RPA & 8/10/12 Tobin counter offer on page 15|
|Short sale approved to 11/28/12|
|10/22/12 HUD-1 draft Settlement Statement|
|10/29/12 notice – BANA is servicer, Wells Fargo beneficiary|
|County Recorder property record search of liens NODs|
|11/12/12 transmit memo RRFS collection notice to Ticor Title and RRFS ledger, dated 11/5/12|
|1/5/13 email from buyers’ agent Linda Chain to Proudfit re BANA causing problems with sale|
|1/9/13 BANA notice to Hansen estate “Decline – Investor denied”|
|1/27/13 Proudfit email to buyer & seller regarding “rejections are not coming from B of A, the servicer, but from the investors”|
|5/7/13 Tobin transmittal letter and notice to BANA to protect its interest because “I am done doing so”|
|5/10/13 Mazzeo $395,000 RPA p. 1 of 11|
|5/29/13 RRFS gave payoff figure of $3,055.47 to Proudfit|
|5/29/13 IRS W-9 for RMI LLC dba Red Rock Financial Services (Page 6 of RRFS payoff demand)|
|6/7/13 short sale hardship letter|
|7/10/13 Tobin withdrew listing from MLS|
|9/14/13 Tobin email to Proudfit re BANA rejection of her offer of the deed in lieu of foreclosure|
|10/1/13 Proudfit email responding to Tobin’s 9/29/13 email regarding BANA putting a lock box on the property without foreclosing or accepting a deed in lieu|