The US Gov. Foreclosure Scam Squad Protection Scheme Keeps Homeowners Rent Free For Another Year

Afer failing to pay their mortgage, taxes and insurance since at least 2016, the Victors’ entered into their FIRST loan mod in December of 2023 (some 7 years later), agreeing to pay over $4.6k per month starting afresh in 2024. They didn’t pay a dime over the whole year. Nor did they pay taxes.

The property was listed for Jan 3, 2025 foreclosure.

However, after LIT published this foreclosure update, a rapid SECOND loan mod was agreed by Jan 13, 2025, consolidating the $54,252 in mortgage arrears for 2024 plus the $8,747 in arrears per the HOA lawsuit below, and which is clearly several years accumulated HOA fee debt.

Together, that amounts to $62,989.

The SECOND loan mod added $61,402, so its pretty much 100% default for 2024 by the Victors, mimicking 2023’s entire year’s default.

The Victor’s have a lot to thank LIT for, because it would appear that they have enjoyed rent free living for 9 years, assisted by two loan mods in the last two years that will keep them safe in their rent-free home until 2026.

Remember, Sandra Forsythe of Millennia filed a $64k lien for improvements on real property records, so not only have they enjoyed two loan mods when they had been denied previously, they have a new refurbished home as well.

Additionally, with their renewed perfect credit score when applying for government assistance, there is still equity in the home at today’s market value to allow further loan mods for the foreseeable future.

See also; Bridges v. Bank of N.Y. Mellon, CIVIL ACTION No. H-17-1429, at *13 n.19 (S.D. Tex. Feb. 12, 2018) (“See Transcript of Initial Conference, June 16, 2017, Docket Entry No. 15, p. 3, ll. 1-2

(“Court: Are the plaintiffs still in the home? [Plaintiffs’ attorney]: That is correct, Your Honor.”).”)

SUMMARY

Upon revisiting the 2017 stop foreclosure case filed by legally sanctioned bandit lawyer Clay Vilt, wherein he named the plaintiffs as the Victors, joined by fraudster Brian Brewer as Trustee, the Victors purchased this home in 2013 and by 2016 were delinquent.

2017 STOP FORECLOSURE SUIT BY VILT, ET AL

In their first suit naming Nesly Victor as plaintiff along with Brewer as Trustee, as filed by legal bandit Clay Vilt – it was given short shrift by Judge Rosenthal, no opinion necessary it was that frivolous.

2018 STOP FORECLOSURE SUIT BY VILT, ET AL

In their second suit naming Marie Victor as plaintiff along with Brewer as Trustee, as filed by Erick Delarue in Harris County District Court and removed to Federal Court- retired US District Judge Vanessa Gilmore would issue a short opinion, wherein she confirms that the Victor’s loan modification application at the end of 2016 had been DENIED, and dismissing their claims.

How the Victors’ Fortunes Changed

As a result of the government protection program afforded to Clay Vilt, his associates and clients, the Victors have not made any substantial repayments on the loan since 2016, a period of 9 years.

All of this effort in an attempt to cover up LIT’s irrefutable expose of judicial malfeasance, real estate fraud, abuse of distressed homeowners, including legal and judicial fraud by the courts and by sanctioned lawyer Clay Vilt, together with his many legal and non-legal associates.

Victor v. First Guar. Mortg. Corp.
CIVIL ACTION No. H-17-2190, at *1 (S.D. Tex. Dec. 12, 2017)

Lee H. Rosenthal Chief United States District Judge

FINAL JUDGMENT

The parties appeared for a motion hearing on December 11, 2017. Counsel for plaintiffs (Vilt and Delarue) acknowledged the pleading deficiencies and the futility of amendment under current law. For the reasons stated in detail on the record, this case is dismissed, with prejudice.

BRIDGES

In Judge Sim Lake’s opinion, he does discuss standing, and finds that Vilt’s argument is meritless. The “Trustee” does not have standing.

Bridges v. Bank of N.Y. Mellon, CIVIL ACTION No. H-17-1429, at *11 (S.D. Tex. Feb. 12, 2018) (“Burtzlaff lacks standing to sue BONY for breach of contract; and her claim will be dismissed. Unlike Burtzlaff, Bridges has standing to sue BONY for breach of contract because he was a party to the loan and to the promise the SLS representative allegedly made.”)

BURKE

At no point in the much later adopted opinion (Aug. 2023) in Burke – by Magistrate Judge Yvonne Ho – does she discuss standing of the “Trustee”, conflicting with US District Judges as shown herein.

As LIT predicted herein, the annual tax lawsuit has triggered the panic listing of foreclosure for January 7, 2025 at the instruction of the US Gov. The fact the notice is datestamped in October 2024 is irrelevant, that can never be trusted as we’ve highlighted since the 2008 financial crisis, which is now confirmed as the greatest theft of citizens homes in American history.

Sandy Forsythe, the owner of New Millennia Properties, was furious when LIT’s investigative blog exposed the shady dealings behind the Victors’ case.

The judiciary found themselves in a tight spot after LIT’s investigation revealed how Forsythe and her associates, including Brian Brewer (of Momentum Title), Clay Vilt, and other legal rogues, had orchestrated a fraudulent title transfer to Forsythe via a special warranty deed for just $10—a textbook “straw buyer” scheme designed to delay the foreclosure and profit off the Victors’ misfortune.

The US Government would ultimately arrange a loan modification, adding the mortgage arrears and other liens, fees and costs to the loan.

Once the US government stepped in, they sternly told New Millennia and the involved parties to reverse the fraudulent deed or face serious consequences.

They would comply, but Forsythe wasn’t backing down without documenting her rage. She made it clear that she wouldn’t tolerate the government’s interference with her theft of the Victor’s homestead.

Shortly thereafter, Forsythe filed a $65k mechanics lien, sending a sharp signal to everyone involved.

Meanwhile, the HOA, as predictable as ever, has once more filed its annual suit for unpaid fees, continuing the ongoing legal saga surrounding the property.

This case (which is one of many) — rife with foreclosure, fraud, and courtroom drama—continues to stir frustration among the government, outlaws, rogues, and bandits.

As always, LIT is keeping the flames of accountability burning by documenting this insidious legal scheme to steal citizens’ homesteads for profit and greed.