Who is Dyck-O'Neal, and why are they suing 10,000 Floridians for $1Billion?

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Who is Dyck-O’Neal, and why are they suing 10,000 Floridians for $1Billion?

Who is Dyck-O’Neal, and why are they suing 10,000 Floridians for $1Billion?

In a nutshell, on July 1, 2013, The Florida Legislature passed the Fair Foreclosure Act (or some other nonsense name) which gutted consumer rights in foreclosure cases, but it actually did one positive thing – it reduced the time period for filing a deficiency lawsuit from 5 years to one year after foreclosure sale.  A deficiency lawsuit seeks a money judgment for the difference between the money owed to the bank in the final judgment minus the fair market value of the collateral (house) at the time of the foreclosure sale.
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Anyway, for judgments entered prior to the enactment of the new law, the deadline for filing a deficiency was July 1, 2014.  
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Well, Dyck-O’Neal, Inc. approached Fannie Mae and bought up tens of thousands of stale foreclosure judgments for cheap since the statute of limitations was about to expire – The source I know estimates $1B worth of Florida deficiencies.  The deal probably took place last summer, just after the Act passed, and the portfolio consists primarily of the oldest possible judgments – late 2009 and early 2010.  
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This year (primarily April through June), D.O. has filed thousands lawsuits throughout Florida seeking enormous money judgments against consumers who thought the foreclosure crisis was in their rear view mirror.  There was an enormous volume just prior to July 1st deadline.  So thousands of these lawsuits are starting their journey through the pipeline.  I’ll bet 90+% of these consumers will be defaulted.
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It gets better.  D.O. is bringing these lawsuits in the county in which the foreclosure occurred.  They are choosing the foreclosure county because (I assume) they surmise the lawsuit is based upon the original mortgage and note which relate to real property in that county.  However, its clear that a deficiency judgment is merely a general unsecured debt, meaning that the only proper place to sue the former homeowner is in the county where they now reside.  THOUSANDS of these defendants reside outside the state of Florida – My source even represents someone who lives in Japan.  Currently, their firm represents dozens of these defendants.
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On Monday, Parker & Dufresne filed the attached class action lawsuit against The Law Offices of Daniel Consuegra and Dyck-O’Neal, Inc. (Copy attached).  Attached to our complaint, you will find a sample Dyck-O’Neal complaint.
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There are a few of angles here:
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1)  D.O. purchased the stalest of debts from Fannie.  Why?  Because (a) those are the people who have had the longest period to recover, and (b) this is when Florida home values were at their lowest, creating the greatest deficiency gap.  Imagine these people who have already taken the credit hit and have moved on, only to be sued 8 years after they walked away from their underwater home.
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2)  D.O. and its lawyers are knowingly violating the Federal Fair Debt Collections Practices Act by suing hundreds of out-of-state consumers on a purely unsecured debt.
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3)  Every one of these lawsuits attach two assignments – One from the original plaintiff to FNMA and another from FNMA to Dyck-O’Neal.  The FNMA to Dyck-O’Neal assignment is executed by an officer of Dyck-O’Neal “as attorney in fact for FNMA.”  See the attached POA which purportedly gave D.O. the power to do this back in October of 2008 pursuant to a separate “Deficiency Pursuit Agreement” from 2008.  I think this agreement raises all sorts of questions.  This is right after it was placed into conservatorship by the U.S. Treasury in September 2008.
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4)  Homeowners are getting it on both ends – Foreclosure courts, run by retired Senior Judges, rammed all of these foreclosures through the system with the justification of getting the collateral back to the banks.  In order to do this, these senior judges routinely rule in favor of the banks with watered-down evidence because the banks have such a hard time proving ownership of the loans.  I believe that these retired judges never thought FNMA would be showing up in court again to get these deficiency judgments. 
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5)  In addition to D.O., Mortgage Guaranty Insurance Corporation – a mortgage protection insurance company who paid out claims to servicers also filed a bunch of suits just under the deadline.  These suits were also filed by the same D.O. lawyers.  Many of these suits also violate the FDCPA by suing out of state defendants on unsecured claims.
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Huthsing v Dyck-O’Neal and Consuegra COMPLAINT

Dyck-O’Neal Power of Attorney

Attorney Chip Parker, www.jaxlawcenter.com

 

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4 Responses to “Who is Dyck-O’Neal, and why are they suing 10,000 Floridians for $1Billion?”

  1. Vicki says:

    I too am being sued by the DO crook. And yes, he got in right under the deadline. I live in Georgia. Have an lawyer in Florida but would like to know what the class action suit is about and how to join in.

    Thank you,
    Vicki couch

  2. Keith says:

    1DCA ruled this year that if the trial court retained jurisdiction over the foreclosure judgement including but not limited to deficiency judgement, the plaintif cannot file a separate suit. They must file a motion in the original suit. So if they have filed a separate suit, which they did in my case, they are in violation of florida statutes. Also look at the final judgement and read it closely. Mine stated, ” this complaint against………….is in REM only. A judgement in REM is against the property and not the defendant” as such DO purchased only a judgement for fireclosure with NO recourse to the borrower.

  3. dani says:

    Oh great well I am dying because of my home and they tore the first one up so if they show up well Ill just say I stood my ground enuf said. Let me know about the class act ill sign up

  4. Carole says:

    My foreclosure was in 2008 and dropped off my credit report in 2015. DO filed his claim against me a day late. He is more crooked than one might think. 12 American Dream Financial Corporation is in bed with him. When I bought my home, ADFC held the original mortgage then immediately sold it. My foreclosure sale was a sham. How does the Mortgage Forgiveness Act figure into this madness. The act is a federal act and was in place from 2006-2014. It forgave paying taxes on any money shortfall on a foreclosure loan. Now, this bozo comes along and says you owe me money on the shortfall. He is in violation of the law and I for one won’t give him a penny. If you have funds that are not protected, send him $5.00 a month so he cannot levy a garnishment against you. He cannot touch any retirement funds, social security, IRA’s, 401K’s etc.Let’s stand together and send all our elected officials a note of how pissed and violated we are.

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