The Clusterfuck Is Complete: Meet Those Most Hurt By The Earls' Squatting: Conejo Capital Partners... And Soon Millions Of Other "Soon To Be Ex" Home-Buyers

Tyler Durden's picture

By now the 30 minutes of media fame of the Simi Valley's most (in)famous squatters - the Earls is running out. Yet the consequences of the their actions will resound for a long, long time. The victims: all those may have bought a house in a foreclosure auction, or any other form of existing property sale, without a "lis pendens" or other form of pre-existing legal action, will suddenly think twice about purchasing a home from a bank, or any other owner who may have had a mortgage on the property (now in MERS limbo), and simply end up unwinding the sale. The reason, as Conejo Capital Partners notes, is that nobody will now know when some other set of squatters, who may have owed as much as the Earls (almost a million), and did not contest their loan in good standing with a bank, decide to take the law into their own hands and move right back in. "The most innocent of all victims in this situation
are the new buyers who had signed a contract to purchase the Mustang
property. They are a family of 4 who are adopting their first child this
month.  They had already funded their loan, spent money on appraisals,
given notice at their current residence and were scheduled to take
possession of 5893 Mustang Drive on Tuesday the 12th.  They
have now cancelled the transaction and are scrambling to find a place to
live as they will be homeless at the end of the month.  They are scared
.... We
especially feel for the children who are being subjected to this, and the
new buyers who will be temporarily homeless as a result of these events. In all likelihood, there is no way for us to recover the damages we have
suffered, this is no longer about winning; it is about what is right." And the tragedy in all of this, is that there is no clear guily party, as everyone is to blame: the banks, for rushing on the original sale to rake up the NINJA fees, the foreclosure "experts" for robosigning to accumulate the lowest possible cost basis on the subsequent MBS resale for the mortgage servicer, and the squatters, for deciding to take the law into their own hands, when suddenly there is no law. One thing is certain, this incident will propagate and will make existing home sale next to impossible. And yes, inventory will accumulate, but demand will plunge, resulting in a total collapse of the supply-demand equilibrium point, better known to those idiots a/k/a economic Ph.Ds, as price. But that is precisely what happens when in the pursut of material gains, by everyone, the rule of law is now completely trampled in the USA.

The following from Conejo Capital Partners is a must read, for a full perspective on the other side of the Earls' story. Because there always is an alterantive point of view.

OFFICIAL STATEMENT FROM CONEJO CAPITAL PARTNERS LLC REGARDING THE PROPERTY LOCATED AT 5893 MUSTANG DRIVE, SIMI VALLEY CA:

October 15, 2010

Given the extraordinary and illegal events orchestrated by the former homeowners and their attorney, we now feel compelled to share the facts regarding 5893 Mustang Drive.

On January 28, 2010 the property was sold thru a public auction at the trustee sale held at the Ventura County Court House.  Each month this same process occurs thousands of times across the nation as a method for banks to take back or dispose of the property that is not being paid for.  Conejo Capital was the “successful” bidder.   Shortly thereafter the former bank issued the title and it was legally recorded with Conejo Capital Partners LLC as the new owner of the property.   At the time all we knew about the property was that the former homeowners purchased it in 2001 for $539,000, and that they later refinanced it, pulling equity out, resulting in debt of roughly $1,000,000.  No “lis pendens” had been recorded indicating any disagreement or legal action pending regarding the property.  Had they done so before the auction, we would not have purchased this property.

After purchasing the property we found it to be occupied by the former home owners, Jim & Danielle Earl.  We were able to make contact with them and tried to understand their situation.  They expressed their opinion that they had been unlawfully foreclosed on by the bank.  Yet to our knowledge, the Earls had not initiated a lawsuit against any bank at that time, and as far as we know even today there is no pending lawsuit against any bank.  Any grievance they had would have been with their bank, not Conejo Capital Partners.  We tried to amicably discuss terms of a possible agreement which would have helped them make a comfortable transition but they were unwilling.  They gave us no choice other than having to start an action against them to gain physical possession of the property.

The unlawful detainer action (eviction trial) is something that normally takes roughly a month to complete, but they stretched it out to almost 6 months by filing two bankruptcies.  The first one was dismissed due to their failure to file the proper paper work and the second was probably dismissed as well.  At the unlawful detainer trial, the judge thoroughly reviewed all of the facts of the case and ruled in favor of Conejo Capital Partners LLC and ordered the Earl’s to vacate the property.  We were also awarded a monetary judgment in the amount of just over $27,000 (fair market rental value for the time they illegally occupied the property).  The Earls appealed the decision but their appeal was dismissed by the court because they failed to pay the court its required appellate costs.    The Earls’ attorney sent us threatening correspondence and amazingly described his plan to a federal court judge in San Francisco that he planned to undertake “self help” to retake possession of the Mustang property illegally.  The federal judge denied their motion for an injunction and ruled that the "Plaintiffs have offered no authority in support of this extraordinary concept (of “self help" seizure of the Mustang property).

On July 2, 2010 the Ventura County Sheriff and an agent of ours went to the property to complete the court-ordered eviction.  There, they found that the Earls had departed but  (based upon their attorney’s advice), the Earls left all of the personal belongings, in the Mustang house including all of their furniture, cars and the family dog.  This extraordinary tactic caused us another 2 week delay because we were forced to follow the legal guidelines in dealing with the situation.  The Earls contacted us at the very last minute before we would have had legal right to dispose of the property and we allowed them to retrieve it at no additional cost to them.

Once we had gained possession of the Mustang Property, we spent a considerable amount of money remodeling it.  When the remodeling was complete, we put it on the market for sale.  We secured a buyer and were scheduled to close escrow on Monday October 11th.  On Saturday October 9th the Earls and their attorney followed thru with their previous threats and took the law into their own hands.  They hired a locksmith to break into the Mustang home.  They had arranged to have t.v. news cameras filming their actions, and then proceeded to hold a press conference stating that they were within their rights and that we (Conejo Capital Partners) had somehow violated the law.  All along the Simi Valley Police Department sat idle and refused to get involved no matter how much proof was offered supporting our legal rights and position.  We were told that we needed to resolve it in front of a judge even though it had already been decided.   In the days immediately following, the same attorney has done this again in Escondido and Newport Beach (the latter time both the attorney and his clients were arrested).  It is amazing that this can happen in a nation founded on and based upon law.  It is truly sad that all across America so many people claim to be the “victim” rather than taking personal responsibility for their actions.

It needs to be noted that Conejo Capital Partners LLC did not take the home from the Earls, their bank did.  We simply purchased the home from the bank in a legal manner and then had to deal with the situation that had been created.  Conejo Capital Parnters LLC is not a large Wall Street bank, we represent a group of regular people who are hard working citizens that pay their bills and abide by the law.   We have approached the Earls on many occasions in an attempt to see if we could find an amicable resolution but in each case have been denied.   We offered to waive our monetary judgment in simple exchange for confidence that we wouldn’t find ourselves wrapped up in litigation that ultimately results in everyone losing.   Although the former homeowner had roughly $1,000,000 in debt against the home, both they and their attorney have said in recent interviews that they feel like they don’t owe anything and in fact are owed damages as well.

The Earls’ attorney announced proudly that he “chose” the Earls because he needed to protect the new buyers from being defrauded by us.  It is extremely unfortunate that he is putting others in jeopardy as a way to create notoriety for himself.   The facts about Mr. Pines life are well documented and we urge you to do your homework on him and decide about his motives for yourself.

The most innocent of all victims in this situation are the new buyers who had signed a contract to purchase the Mustang property.  They are a family of 4 who are adopting their first child this month.  They had already funded their loan, spent money on appraisals, given notice at their current residence and were scheduled to take possession of 5893 Mustang Drive on Tuesday the 12th.  They have now cancelled the transaction and are scrambling to find a place to live as they will be homeless at the end of the month.  They are scared.

This is a terribly unfortunate situation to be involved in, one that we wouldn’t wish for anyone to experience.  We especially feel for the children who are being subjected to this, and the new buyers who will be temporarily homeless as a result of these events.   In all likelihood, there is no way for us to recover the damages we have suffered, this is no longer about winning; it is about what is right.  We didn’t ask for a fight; it was brought to us.  Now with no other options, we feel compelled to do everything in our power without regard to cost or time to protect ourselves  and insure this does not happen to others.

Conejo Capital Partners LLC

h/t Robert

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Nolsgrad's picture

clusterfuck gonna go boom! SOON

flacon's picture

The Keynesian solution to this mess is to BURN THE HOUSES DOWN. It would "save or create jobs" and would "rescue the banks". BURN, AMERICA, BURN! Who knew prosperity was so much fun!

 

 

66Sexy's picture

"All along the Simi Valley Police Department sat idle and refused to get involved no matter how much proof was offered supporting our legal rights and position."

 

Sounds like bullshit; we're not getting the full story here.

 

 "It is amazing that this can happen in a nation founded on and based upon law. "

 

oh, you mean the fictitious, self serving laws created everyday by corrupt politicians to enable the banks to 'back-door' fuck over the american homeowners and taxpayers?

Al Gorerhythm's picture

After purchasing the property, we found it to be occupied by the previous owners".

After purchasing the new car, we found it to be occupied by homeless people, jacked up on blocks with hubcaps, wheels, tires, doors and hood missing. I call bullshit.

This blame game perpetrated on the Earls is a little overdone. These guys sound like they knew that the Earls had a complaint, knew that they were in the house, yet went ahead and screwed them over anyway. 

The Earls would not have had any idea of the robo-signing expose` and having verbalized their complaint earlier to them, would have felt jilted and justified in shoving a big pot of fuck you up their collective asses, once it was exposed.

If the new home owners have anyone to aim their Exocet at, it should be at the fuckers who sold them the home.

They were illegally ousted from their home.

Yes, this is a clusterfuck but it isn't of the Earl's making.

Fuck the banks. This is where the anger should be directed.

Amazing that this should happen? It's amazing that Americans have left it go on for so long. End the Fed. End fiat.

Those who don't drag their savings out of these zombie thief's clutches, yesterday, will probably blame the Earls for their loss.

economicmorphine's picture

You're an idiot.  These deadbeats took all of their equity out of the house in the form of cash.  Now they want back in?  Give it a rest, troll.  I suspect you're the same kind of "gimme something for nothing" dirtbag.

chopper read's picture

+1

 It is truly sad that all across America so many people claim to be the “victim” rather than taking personal responsibility for their actions.

Kaiser Sousa's picture

spoken like a true banker brainwashed servant...u should b proud of urself...

rocker's picture

Who gains the most from this ?  How did they do it ?  Hmmm  

Careless Whisper's picture

and now the bottom feeders are the victims?

66Sexy's picture

tyler durden was a squatter in fight club. we're getting off character here; its about bringing all this bullshit down.

 

fuck middle aged white bread foreclosure buying speculators... they deserve what they get: clouded title and dead money.

BS Footprint's picture

"its all about bringing all this bullshit down" -- While I understand (and can sympathize) with that sentiment, it might be good to consider what will happen after it all comes down.

Given the political ignorance of the masses, I'm betting on a quasi-socialist state of epic proportions. You think it's bad now? When the propaganda peddlers and demagogues rewrite the rule books to eliminate the few remaining restraints, do you think we'll really be better off?

jm's picture

Seven junks for telling the truth about these losers.  God, what a bunch of pathetic fucks people have become.

This is a page out of the Great Depression.  Then it was family farms in Nebraska and such getting foreclosed. Now the epicenter is the Golden State.  Seldom has the United States needed a leader more and we have a president who acts like he's content to put blow up his nose and a dick in his ass.

Let's hope the Supreme Court upholds property rights and the rule of law.  That's pretty much the last line of defense before the descent, I should think.

Gromit's picture

Maybe the government must step in and create an RTC to take possession and liquidate properties where clearly the squatter is not paying  but the beneficial owner has no legal standing to foreclose, then figure out where the proceeds go later.

jm's picture

This sounds like a reasonable alternative to deadbeat squatters and banks physically removing them without recourse to the law. And this is what will happen without some government intervention: a true mafia state.

Which government is best suited?  Local? State? National?

chopper read's picture

LOCAL!!!!!!

...they are your neighbors and have to see you at the grocery store.  IT MAKES A DIFFERENCE!!!!

Dburn's picture

There is a compelling opinion that there is no way that the law will be allowed to take down the major banks. The bill that passed via voice vote and vetoed by Obama that enabled banks to break the law with impunity and thereby claim property rights with no proof , will be back and signed during the lame duck session of congress.

For a hint, look at JPM's earnings; they lowered loan loss reserves on credit cards, added 2 billion to their reserves for litigation and loss related to this. That would be about 1/1000th of their total "assets". Dimon and others who site on the Fed have to know what's coming and there is very little concern shown. In fact the most repetitious line I heard was "sometime in November, all of this will be resolved".

A short term bet on fear is fine, but never bet against the lawmakers, particularly the lawmakers who have nothing left to lose. The banks own them. They always have and they always will until  we say we have had enough. 

Bearster's picture

Why do you suppose that, with all of the houses on the market, Conjeco Capital decided to buy this one, knowing it would cost them a big loss of money, just to "fuck over" the Earls?

I call BS.  They are an investor group looking to make money.  They did not deliberately create a problem for themselves or anyone else.

greyghost's picture

conejo capital llc....revenue of aprox. $120,000 and a total of 2 employees.......lol. one clusterfuck following in the foot steps of another clusterfuck....winner the BANK!!!!!!!

edit: mom and pop popcorn stand run out of their home......earls are brain dead...conejo capital brain dead......WINNER AGAIN 'BANK'

A Nanny Moose's picture

Wrong. Winner: The Lawyers.

66Sexy's picture

yup, a ding bat shell greed infested start up, out to profit from the pain of others.

 

fuck them.

Sean7k's picture

This is high comedy. The justice system is incapable of functioning when the serfs start using the law for their own means against the banks whom created the law to serve their interests exclusively. 

I am rather enjoying the mayhem and hope it reaches the level of absurdity it deserves. People discuss "law" as if it is the paradigm of civilization. The reality: it is a system subject to the whims of it's creators. If those whims are immoral- the results will be immoral as well.

While it is fun to watch people point fingers, one needs to examine the source of the problem. Fiat currency and the creation of credit for the enrichment of a single class. As this class attempts to distill itself into a new pyramid of wealth and power, we get to witness predator vs predator behavior. 

It is the construction and use of governments that lies at the base of this problem. If you eliminate government and empower individual liberty exercised in free markets with private property protection, these problems remain small and easily resolved. 

Unfortunately, people are incapable of thinking in these terms as they have been brainwashed to believe no such alternatives are practical. Terms like anarchy and chaos are tossed into the discussion as if this is the only possible result. 

America is on the threshold of a whole new reality: a substandard standard of living that best reflects our level of production of wanted goods and services. Capital with connections will flee to new international opportunities. Other capital will be revalued and wealth lost. Unemployment and hardship will increase until the system fails and a new one emerges. The most stable and productive pockets of the nation will succeed. Hint: these are not located in urban areas. 

We will change, adjust and create new opportunities. The question is: under what authority? We may be able to choose one based on individual liberty and sound money, but not if it is determined by the same parasites operating our financial and political system.

 

RockyRacoon's picture

People discuss "law" as if it is the paradigm of civilization. The reality: it is a system subject to the whims of it's creators. If those whims are immoral- the results will be immoral as well.

You are correct in the broad sense, of course.  Real estate law, on the other hand, has been well established and it works -- for a reason.  It works for the rich and the poor.  Short circuiting this process simply allows for the unscrupulous to gain at the expense of the lesser monetarily endowed.   I'm not addressing the Earls.  They are minor players, as are the house flippers cited.  It's about the actual, valuable, and viable law of property transfer -- which has been thwarted.  All laws are not bad, especially in the real estate area.

Sean7k's picture

RR,

I agree wholeheartedly, but even real estate law doesn't work if it is abused. However, the author is attempting to create an argument over the emotional aspects of a single case while ignoring the greater problem i.e. the nature of law and how we have come to depend on its' execution without questioning its' purpose. 

As long as we accept mechanisms of rule without examining their purpose and ends, we will be abused and taken advantage of. As long as we accept ruling authority for the convenience and fairness it promises, we will be disappointed. 

There are no free lunches. There is a cost to everything we do. As soon as we accept the offers of others to manage our affairs, we will be stolen from. Why else would someone take on this work load? Because they are charitable? 

 

chopper read's picture

Capital with connections will flee to new international opportunities. Other capital will be revalued and wealth lost. Unemployment and hardship will increase until the system fails and a new one emerges. The most stable and productive pockets of the nation will succeed. Hint: these are not located in urban areas. 

 

PRECISELY.  Then what?  A return to our Constitutional Republic, empowerment of State and local government versus our current Federal terrorists?  

...sure would be nice to see those whom we've elected at the local farmers market.  It makes a difference!

66Sexy's picture

agree. the system needs dramatic change; starting with political contributions. limit 1,000 per corporate entity. lower salaries of these spoiled, out of touch morons; pay slightly over a living wage.

 

the motive to take high office should be on behaf of the electorate; not how much they'll get paid for speaking at seminars after they leave political office.

 

midtowng's picture

Exactly. The rule of law was trampled before the Earles. That's what the problem is. I don't know why so many people here don't get it. Why are so many people in such a rush to blame the smallest group, rather than the larger, wealthier group that created the situation?

66Sexy's picture

good. fuck housing, and the crooked economy. let the prices collapse! then regular workin' class folks can afford 'em. im surprised at the pro establishment stance by tyler.

 

fuck the banks, leave 'em for the mother lovin' rats.

jomama's picture

fairly certain you missed the sarcasm.

Crime of the Century's picture

Um, I 'd be willing to wager it is you who is missing something. Tyler appears to be quite serious with this, as am I. Banks eat their cooking, but no free houses. Sorry, if the juvenile class of spoon bangers wins, we all lose. I'll say it again - you want everyone to go Galt? Are you sure you're ready? ARE YOU SURE?

chopper read's picture

+1

 It is truly sad that all across America so many people claim to be the “victim” rather than taking personal responsibility for their actions.

RockyRacoon's picture

That's two.

If that is all it boils down to in your opinion, then you'll soon be on the losing end of some serious violations of law.  Perhaps then your views will be altered.

chopper read's picture

listen, Rocky.  I highly doubt the dipshit Earl family has been fighting the good fight to reduce the flow of power towards the District of Columbia.  In fact, if they do vote, it is probably for the politician who promises them the most.  of course, these are best guesses, so I do not claim to have a monopoly on the truth.

That said, as someone who has no mortgage, I take exception to house borrowers who could not exercise restraint before they placed their entire family in jeopardy by attempting to (obviously) live beyond their means.  

Our country is running out of culprits with so many victims.  This is not to excuse the allegedly fraudulent sale and packaging of mortgages.  

Amazingly, however, some of us managed to avoid this catastrophe by exercising patience, fiscal conservation, and good old fashioned common sense.  clearly, these folks possess none of these qualities.  

So now they are "victims".  How convenient.  

...suffice to say they would never make it in the country, and the USA is weaker for coddling these types in addition to allowing centralized money planning and all other assaults on liberty.   

 

RockyRacoon's picture

I guess I addressed that below, before the reply you just posted.

You are feeling pressured and you have every right to be, but there are a lot of people feeling the same way.  If it were not the now-famous Earl family it would be some other family.  Expect to see many more similar stories.  You can't lose your own composure because you have done the right thing.   ...as have I.  

chopper read's picture

fair enough.  

frankly, this has just created opportunity for savers as it relates to precious metals.  When a mob rules government comes for these, however, or our guns (doubtful with the strength of the NRA), then we may have an even more serious bone of contention.  Until then, we can swat these issues around from a somewhat comfortable distance and make adjustments accordingly. 

66Sexy's picture

so it's ok for bankers to get bailed out, but not real people? theres is a flaw in that logic somewhere.

 

law can and SHOULD work both ways. i hope more people strategic default and squat. its not that bad for the bankers either; let the squatters maintain the homes, after all, housing is a liability, it costs money to own even if you own it outright. the best thing for the condition of the home is to have people living there that actually still care a bit about the property. if they think they can keep it somehow, they'll take care of it.

66Sexy's picture

no, unfortunately, it sounds like whoever is writing as 'tyler durden' today may have bought a foreclosure or something, and is letting the attitude reflect in the article. BUT tyler durden WAS a squatter, so in effect, this is a violation of character.

trav7777's picture

the Ends do not justify the Means

Treason Season's picture

Jumping the queue here but Dylan Ratigan has done an excellent piece on this.

http://www.youtube.com/watch?v=9yhZBgi5NOg&feature=player_embedded

macholatte's picture

thanks for the link.

who is the fucking "they"  Mrs. Earl and her lawyer refer to?  She doesn't know the name of the company on the monthly statements where she was supposed to send her payments? 

she admits she got a "Notice of Default" which meant she had at least 90 days from then to cure the problem, get a lawyer, but chose not to. Who's the victim?

Once the process begins, the names and addresses of all the parties are included on the paperwork and hard dates are established for certain actions, like the sale date. So she is lying when she says it was a big surprise.

This is all TV reality show distort the facts bullshit.

I admire the Earls for having the balls to do what they did. However, they had plenty of time to take action prior to being evicted. They will eventually be thrown out and the losers will be the folks who bought the property at the foreclosure auction.

Simple question: Is anybody keeping the property taxes current?

 

the best part of this is Ratigan's statement beginnig at 11:10 wherein he lays out the bigger picture.

 "..... reform the banks that have been pretending to be solvent..." 

Well said IMHO.

 

 

Conrad Murray's picture

I hope some people come along with a better story, one that doesn't seem so dastardly, before this scumfest becomes the face of Fraudclosuregate.  There are not many people in this country that are going to feel sympathy for this batch of degenerates(the bank, attorneys, cops, lawyers, and deadbeats), and this could easily stain the entire situation.

 

Eh, why not.  One last posting of the Caturday Comedy Playlist:

http://www.youtube.com/view_play_list?p=8584FE99F413E42F

http://i8.photobucket.com/albums/a44/SpiderGirlie/Caturday.jpg

Fred Hayek's picture

Well, there was that guy named, IIRC, Gordensky, in Florida who was foreclosed upon by Bank of America.

Only he didn't even have a mortgage with BoA.

He didn't have a mortgage at all.  He paid cash for his house.

And BoA was somehow able to have a foreclosure processed against him. 

When the whole farcical thing was publicized, they backed off and apologized.   But Gordensky's a pretty good case of how out of control the process can be.

 

caconhma's picture

It is one more example we live in a lawless land.

Our Presidents, our Congress, our Supreme Court do not represent America and its people. They are puppets controlled by "chosen people" controlling this country ruling elite.

The police actions are very ominous: police is not sure how to act. They are about to call "neutrality". It is exactly what took place in Russia 100 years when Jews Bolshevik gangsters  overthrew the legitimate government and created a totalitarian evil state. Unfortunately for Russia and the rest of world, Russian army and police have called "neutrality" at that time.

 

Civil wars are usually very bloody since nobody can predict who will be on whose side. We are rapidly going there.

66Sexy's picture

21:12. the armed american libertarian movement is the last hope for the world. this is the last stand; the righteous fight, the cause of Jesus, Lincoln, and JFK. we know what the moneychangers did...

 

europe is conquered. these people are already under the microchip. they have no guns; no nationalist or soverign currency, no heroes... just pieces of paper with nice architechture on it. i wonder why that is?

 

 

chopper read's picture

"wreck'n da place".  funny.  that dude was whack. 

Crime of the Century's picture

Lincoln & JFK?? You'd go a lot further with Jefferson & Jackson, my man.