Bank of America, N.A. v. Thomas

Connecticut Appellate Court·Decided July 29, 2014·No. AC35850, AC35851·Published

Opinion

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BANK OF AMERICA, N.A. v. DEBORA M. THOMAS (AC 35850) (AC 35851)

DiPentima, C. J., and Alvord and Mintz, Js. Argued April 8—officially released July 29, 2014

(Appeal from Superior Court, judicial district of Middlesex, Domnarski, J. [foreclosure judgment];

Aurigemma, J. [motions to open].)

Daniel Thomas, for the appellant (defendant). Elizabeth T. Timkovich, with whom, on the brief, was Pierre-Yves Kolakowski, for the appellee (plaintiff).

Opinion

MINTZ, J. In this residential mortgage foreclosure action, the defendant, Debora M. Thomas, has filed consolidated appeals from the trial court’s denial of two motions to open the judgment of strict foreclosure rendered in favor of the plaintiff, Bank of America, N.A.1 The defendant claims that the court improperly denied the first motion to open because it reached its decision before hearing the parties’ oral argument in violation of her right to due process, and because it refused to hear her claim, raised for the first time at oral argument, that the plaintiff had filed a fraudulent affidavit of debt as evidenced by a consent order between the plaintiff and the Office of the Comptroller of the Currency of the United States (comptroller). With respect to the second motion to open, the defendant claims that the court improperly failed to open the foreclosure judgment to allow her to present ‘‘new evidence regarding the fraudulent actions of the plaintiff in obtaining the initial [foreclosure] judgment.’’ We disagree and, accordingly, affirm the judgments of the trial court.

The following facts and procedural history are relevant to our resolution of the claims raised by the defendant in her appeals. The plaintiff commenced the present action in July, 2007. In its complaint, the plaintiff alleged that the defendant had executed a note in the principal amount of $275,000, that she had secured the note by executing a mortgage on property located at 57 Fawn Hill Road in Killingworth, that the plaintiff was the current holder of the note and mortgage, and that the note was in default because of the defendant’s failure to make requisite installment payments. The defendant did not file a response to the complaint. She was defaulted for failure to plead on August 8, 2007.

On August 13, 2007, the court rendered a judgment of foreclosure by sale. In accordance with the affidavit of debt and the appraisal report filed by the plaintiff, the court found that the total debt owed by the defendant was $276,220.26, and that the fair market value of the property was $455,000. The court later granted two postjudgment requests from the defendant to extend the sale date—the last to March 15, 2008—on the basis of the defendant’s assurances that she intended to pay off the debt owed to the plaintiff. The defendant, however , never exercised her right of redemption.

On three subsequent occasions, the court opened the judgment to extend the sale date as a result of the defendant having filed for federal bankruptcy protection . On August 6, 2012, following the dismissal of a fourth bankruptcy action, the court modified the judgment from a judgment of foreclosure by sale to a judgment of strict foreclosure, setting law days to commence on September 10, 2012.

On September 5, 2012, the defendant filed her fifth bankruptcy petition, which was dismissed with prejudice on November 5, 2012. On May 20, 2013, the court reset the law days to commence on June 24, 2013. At that time, the court found that the updated debt had risen to $455,539.41 and that the fair market value of the property had decreased to $370,000.

The defendant filed her first motion to open the foreclosure judgment on May 30, 2013. The defendant argued in her motion that she had ‘‘reached an accommodation with the plaintiff in regard to the default interest ’’ accruing on the debt and that she wanted to enter into the Federal Home Affordable Modification Program , or, alternatively, to mediate a settlement with the plaintiff. The plaintiff filed an objection to the motion to open, in which it argued that the foreclosure action had been pending for more than six years, that the defendant had engaged in numerous dilatory procedural tactics, including filing multiple bankruptcy actions, that the defendant had had ample time and opportunities to raise any applicable defenses to the foreclosure complaint or to enter into negotiations with the plaintiff, and that it would be inequitable to the plaintiff to provide the defendant with yet another opportunity for delay.

The parties appeared on June 18, 2013, to argue the motion to open. When the court called the case for argument, counsel for the plaintiff asked the court to pass on the matter because he realized that he did not have the case file and needed to contact his office. The court agreed to pass the case, remarking to the parties that ‘‘given the age of the case, not likely it’s going to be granted, but I’ll let you argue.’’2 The court later returned to the present action. In response to the court’s question of why it should open the foreclosure judgment , the defendant indicated that she wanted to keep her home, that she had overcome serious financial troubles brought on by significant medical issues and ensuing bills, and that she now had sufficient income to pay down the debt owed on a monthly basis, provided that she could negotiate with the plaintiff regarding the high default interest accruing on the debt. She asked the court to open the judgment and to order the plaintiff to enter into negotiations with her. The court stated that it was not going to force the plaintiff to negotiate with the defendant, noting that, after six years of proceedings , the debt owed exceeded the value of the property by nearly $100,000, and that, thus far, the plaintiff had ‘‘been very understanding.’’

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Bank of America, N.A. v. Thomas, (Colo. Ct. App. 2014).

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