How a Trust Lost Over $10 Million on Just One Loan

July 7, 2014

Here is yet another case with a Lost Note count, DocX Assignments showing the trust acquired the loan after it filed for foreclosure and years after the trust closed.  The Lost Note was found (of course) and the found version was endorsed (of course) but the case is still noteworthy because of the amount of loss to the trust – over $10 million and still growing.  Now how many retirees really wanted to invest in a $12 million dollar oceanfront spec home?

3621 S. Ocean Blvd.
Highlands Beach, FL  33487

13,244 sq ft., 5 beds, 7 baths
Oceanfront Mansion

 

Mortgage History

2-17-2004 Eastern Savings Bank

7-13-2004 Countrywide $999,999
7-13-2004 Countrywide $6 million

1-11-2005 (private lender) $600,000
1-11-2005 (private lender) $500,001

9-15-2005 American Home Mortgage Acceptance  $11,860,000

 

Events

Purchased in April, 2001 for $5,500,000
New Home Constructed

U.S. Bank, NA, as Trustee for
American Home Mortgage Investment Trust 2005-4
Filed for foreclosure on November 3, 2008

Final judgment entered for U.S. Bank on 9-26-2013 for $17,833,673

Listed for sale 7-4-2014 for $8,500,000

 

Comments

This foreclosure was filed with a Lost Note Count.  Two assignments were also filed, but these were prepared by DocX and showed that the mortgage was not assigned to the trust until April, 2009 – after the foreclosure was filed and after the trust closing date.

This delayed the foreclosure which took over 5 years to complete.

Tour the home on Zillow or Trulia.