February 28, 2013 – See Attorney Wendy Alison Nora’s Comment below –
ATTENTION ALL NEW CENTURY MORTGAGE HOMEOWNERS AND FORECLOSURE DEFENSE ATTORNEYS:
NOTICE OF MOTION TO DESTROY NEW CENTURY MORTGAGE LOAN FILES
On February 14, 2013, New Century Mortgage Liquidating Trust Trustee, Alan M. Jacobs motioned the court to allow him to destroy and abandon “certain” Mortgage Loan and Business files (Order Authorizing the Immediate Abandonment and Destruction of Certain Mortgage Loan Files and Non-Mortgage Loan Business Files). It is so immediate that respondents have only until February 28, 2013 to answer! Click here for the Destruction of Files Motion.
Apparently, another ministerial act to eliminate evidence that New Century Mortgage failed to timely assign mortgage loans to securitized trusts. Thousands (if not millions) of New Century Mortgage loans have fraudulent assignments filed in state recordation
offices across the United States – and a lot of unknowing homeowners have clouded titles that with the destruction of their files – they may never be able to sort out the truth.
On April 2, 2007, New Century Financial Corporation and its related entities filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court, District of Delaware and is currently heard and administered by the Honorable Kevin J. Carey. With the filing of bankruptcy, New Century took down a list of affiliate / entities including New Century Mortgage Corporation, Home123 Corporation, New Century Mortgage Ventures, Midwest Home Mortgage, among a host of others. New Century was one of the largest subprime lenders in the boom times.
As we posted in Oh, New Century…What a wicked web you weave… (click for the link), the Court recognized that that securitized loans didn’t really belong to the estate and Judge Carey surely didn’t want millions of homeowners whining in his court about the frauds committed by New Century. Imagine endless days, turning into years, of motions for relief from automatic stay and adversary proceedings by homeowners who were duped by another fly-by-night mortgage company. A mortgage company where the SEC barred the three primary officers from serving as directors of public companies for five years, and levied fines and profit-disgorgement on the 3 officers…a pittance in comparison to the damage that they’ve done.
In any case, listening to millions of disgruntled homeowners would be a bankruptcy judge’s worse nightmare. Not to mention trying to sort through the securitization fiasco – that’s a lot of work, you know?
So, now after denying the alleged securitized loans a venue, the Liquidating Trust Trustee wants a bonfire of the records that might possible come back to haunt the estate or cause a great deal more work… because the issue of fraud still lingers and simmers as the next wave of foreclosures begins.
The Trustee’s Motion provides for responses – if you are lucky enough to even know about this… So, if you have a pen and piece of paper – take down this information and print a copy of the motion (click here):
“Responses, if any, to the relief requested in the Motion are to be filed with the United States Bankruptcy Court for the District of Delaware, 824 N. Market Street, 3’d Floor, Wilmington, Delaware 19801 on or before February 28, 2013 at 5:00 p.m. (prevailing Eastern Time).
At the same time, you must serve a copy of any response upon the following parties so as to be received no later than 4:00 p.m. (prevailing Eastern Time) on February 28, 2013.
1. Co-Counsel for the Trust, Hahn & Hessen, LLP, 488 Madison Avenue, 15th Floor, New York, New York 10022 (Attn: Mark S. Indelicato, Esq., Janine M. Figueiredo, Esq., and Christopher J. Hunker, Esq.).
2. Co-Counsel for the Trust, Blank Rome LLP, 1201 Market Street, Suite 800 Wilmington, Delaware 19801 (Attn: David W. Carickhoff, Esq. and Alan M. Root, Esq.)
3. The Office of the United States Trustee, J. Caleb Boggs Federal Building, 844 N. King Street, Room 2207, Lockbox 35, Wilmington, Delaware 19801 (Attn: Mark Kenney, Esq.)
In addition, if you have timely filed a written response and wish to oppose the Motion, you or your attorney must attend the hearing on the Motion scheduled to be held on March 7, 2013 at 10:00 a.m. (prevailing Eastern Time), in the courtroom of the Honorable Kevin J. Carey, United States Bankruptcy Judge for the District of Delaware, 824 N. Market Street, 5th Floor, Wilmington, Delaware 19801.”
Did ya get that? If you oppose this motion [click here for the Motion] and you live… say, in Hawaii… you have to make sure that you “serve” your objections by Feb. 28, 2013 5:00 pm to the Court in Delaware and to the Trustee’s attorneys in NY and Office of the US Trustee in Delaware by 4:00 pm (guess they don’t work as late as the Judge). AND if you object, you or your attorney MUST attend the hearing (wonder if they’ll allow for telephonic appearances?).
Now, it doesn’t appear that the Trustee is treating this like any other motion – boy, he must really want to get rid of those files! Let’s make this as hard as we can on homeowners who would just like to be able to get access to their files – and for all of the millions of homeowners who don’t know they need it yet.
You know who should be objecting the loudest? The INVESTORS. Because the crux of the fraud was dropped in their laps since most of these loans were never timely assigned to the trusts if at all. But the INVESTORS aren’t going to yell too loud – because there is nobody to pay the IRS since the lack of assignments has actually killed the REMICs. But, if the trustee gets rid of the files, no need to worry – the proof is in the bonfire.
The banks have duped this Judge before – an by doing so made it appear that he had given his authorization for them to fabricate assignment documents as a ministerial act. Now, the Trustee wants to destroy the files… we know this is a long and drawn out bankruptcy – but so is the economic force majeure and destroying documents is not going to speed up a recovery or keep the banks from eventually failing. It will however, eliminate due process.
There are only a few days left to effectuate a response. If you have or had a New Century Mortgage loan or any one of its subsidiaries (Home123 Corporation, New Century Mortgage Ventures, Midwest Home Mortgage, etc.) contact an attorney to draft a response and request your file. It may be the only way you can preserve the evidence of your loan.
Getting the response in on time is paramount and served to all parties necessary. Surely there will be attorneys in the NY, NJ and Delaware area willing to represent hundreds of homeowners wanting to make sure they can retrieve their files.
If you are a foreclosure defense attorney and are willing to represent several hundred homeowners who would like to obtain their files from the New Century Mortgage Estate, please post your information in the Comments section below.
Please pass this information along to all your friends and family so that New Century victims may be alerted.