Empire Community Development LLC v. Walters

CourtDistrict Court, S.D. New York
DecidedMay 27, 2025
Docket7:25-cv-04192
StatusUnknown

This text of Empire Community Development LLC v. Walters (Empire Community Development LLC v. Walters) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Empire Community Development LLC v. Walters, (S.D.N.Y. 2025).

Opinion

DERRICK WALTERS This Motion for a Temporary Restraining Order (“TRO”) is denied % 3 Palomino Terrace without prejudice. First, Mr. Walters has failed to comply with Federal Rule of Civil Procedure 65(b)(1) in that he has not served, Newburgh,New York, near [12550] or otherwise given notice to, the opposing parties and has not certified that immediate or irreparable harm will occur if he had Appearing by Special Appearance Only served and/or provided them notice about this application. See Park v. Parker, No. 25-CV-00789, 2025 WL 1002011, at *1 Without Waiver of Any Rights, Remedies, or Defenses (S.D.N.Y. Apr. 3, 2025) (denying a TRO request for failure to comply with Rule 65(b)(1). Second, and relatedly, it is apparent from Mr. Walters’ papers, that he has been aware of the foreclosure for a long time and has elected to wait until now to file this TRO application. See Gen’ Mills, Inc. v. Champion Petfoods UNITED STATES DISTRICT COURT USA, Inc., No. 20-CV-181, 2020 WL 915824, at *11 (S.D.N.Y. Feb. 26, 2020) (explaining that delays in seeking injunctive relief may undercut claims of irreparable harm). SOUTHERN DISTRICT OF NEW YORK Again, this denial is without prejudice. Mr. Walters can revive this application by serving counsel for Empire and the other WHITE PLAINS DIVISION Defendants by 12 noon on 5/28/25. Email service is acceptable. Any opposition submission is due by 12 noon on 5/29/25. No extensions will be granted. $ dered. DERRICK WALTERS, Vy " Lf oo: 5/27/25 Plaintiffs V. Empire Community Development LLC & Fay Servicing, et al Defendant. Case No.:25CV4192 Judge: ARUN SUBRAMANIAN

VERIFIED EMERGENCY MOTION FOR TEMPORARY RESTRAINING ORDER, PRELIMINARY INJUNCTION, AND COMPLAINT FOR DECLARATORY & INJUNCTIVE RELIEF TITLE: Unmasking the Foreclosure Cartel: Disability Violations, Fraudulent Assignments, and a Pattern of Racketeering INTRODUCTION COMES NOW on May 21st, 2025 Plaintiff Derrick Walters, by and through undersigned pro se counsel, and respectfully moves this Court for an Emergency Temporary Restraining Order (“TRO”) to halt the scheduled foreclosure and auction of Plaintiff’s property located at 3 Palomino Terrace, Newburgh, NY

12550, based on grave constitutional violations, statutory violations, fraudulent filings, and a complete failure of the Plaintiff to establish an authentic prima facie foreclosure claim. Derrick Walters, respectfully moves this Court for the immediate issuance of a Temporary Restraining Order (TRO) and Preliminary Injunction, pursuant to Fed. R. Civ. P. 65, to prevent an imminent and unlawful foreclosure sale of his primary residence located at 3 Palomino Terrace, Newburgh, NY 12550, scheduled for May 29th 2025. The Defendant brings this motion on the grounds of fraud, due process violations, and discriminatory conduct in violation of the Americans with Disabilities Act (ADA) and the Fair Housing Act (FHA), among other statutory protections. This matter is not simply a dispute over default — it is a direct consequence of a longstanding pattern of fraudulent assignments, broken chains of title, fabricated evidence, and abuse of legal process, which has inflicted harm upon the Defendant, a known disabled individual. II. BACKGROUND & CHRONOLOGY ● In 2006, Plaintiff Derrick Walters entered into a mortgage contract with PlainsCapital Bank. ● No valid or lawful assignment has been shown transferring ownership to Empire Community Development LLC. ● Empire Community Development LLC relies on an assignment from MERS, a non-holder entity, executed by a known robo-signer and containing irregularities including the forged notation “WALTERS FDH” and blacked-out notarial acknowledgment. ● In 2012, Empire Community Development sought default judgment prior to any lawful assignment recorded in 2016 — invalidating their standing. ● Plaintiff, Derrick Walters disclosed his disability status in a federal bankruptcy case, and provided financing statements showing lack of capacity and protected status to all parties involved. ● Despite these disclosures, Defendants Council proceeded, in willful violation of the ADA (42 U.S.C. § 12101 et seq.) and the Fair Housing Act (42 U.S.C. § 3601 et seq.). THE FORECLOSURE ACTION IS TIME-BARRED UNDER NEW YORK CPLR § 213(4) A. The Six-Year Statute of Limitations Has Expired Under New York Civil Practice Law and Rules (CPLR) § 213(4), the statute of limitations for a mortgage foreclosure action is six (6) years from the date the debt is accelerated—that is, the date the “lender” declares the full amount of the loan immediately due and payable. In the instant case, the opposing parties—Empire Community Development LLC and Fay Servicing LLC, a known habitual offender recently sanctioned for misconduct by the CFPB—assert that a default occurred in or around 2012. Upon information and belief, the loan was accelerated at that time, thereby triggering the six-year statute of limitations applicable under New York law. Fay Servicing LLC has been repeatedly sanctioned by the Consumer Financial Protection Bureau (CFPB) for engaging in unlawful foreclosure practices, including: Violating a 2017 CFPB enforcement order by continuing to initiate foreclosures against borrowers who were actively seeking mortgage assistance. Failing to offer available mortgage relief options to struggling homeowners, depriving them of legally mandated protections. Overcharging borrowers for private mortgage insurance beyond the required period, resulting in financial harm. Ignoring federal housing protection laws by proceeding with foreclosures despite regulatory restrictions. These violations demonstrate a pattern of misconduct and systemic abuse, reinforcing the need for strict judicial scrutiny of their foreclosure claims. B. No Timely Foreclosure Action Was Initiated Despite accelerating the loan in or around 2012, Plaintiffs did not initiate a valid foreclosure action within the six-year statutory window. No action was properly commenced until years later, and even then, Plaintiffs lacked standing due to a broken chain of title and a fraudulent assignment. The alleged assignment from MERS to CAM Ventures NY LLC was not executed until December 3, 2019—more than seven years after acceleration—and is itself invalid due to irregularities including: ● A notary date preceding the execution date; ● Black-lined notary section, impairing verification; ● Use of a fabricated or robo-signature marked “WALTERS FDH.” As such, any foreclosure action brought now is time-barred and must be dismissed with prejudice. C. No Tolling Events Apply There are no applicable tolling events to revive the claim: ● The bankruptcy referenced by Plaintiffs was dismissed and has no tolling effect; ● No valid or enforceable loan modification was executed to restart the statute; ● The Original Creditor and Creator of the note, Derrick Walters, has filed UCC-1 Financing Statements, rescinded his original contract signature, and lawfully transferred his interest in the property into a private trust—The Dynamic Walters Trust—thereby extinguishing personal liability and invoking protections under trust law; ● No reinstatement or reaffirmation of the debt occurred. D. The Foreclosure Action Must Be Dismissed with Prejudice Because Empire Community Development LLC failed to commence a valid foreclosure action within the six-year statute of limitations and no tolling applies, this action is time-barred under CPLR § 213(4).

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Bluebook (online)
Empire Community Development LLC v. Walters, Counsel Stack Legal Research, https://law.counselstack.com/opinion/empire-community-development-llc-v-walters-nysd-2025.