HOOD v. NATIONSTAR MORTGAGE, LLC

CourtDistrict Court, D. New Jersey
DecidedAugust 16, 2021
Docket1:20-cv-15948
StatusUnknown

This text of HOOD v. NATIONSTAR MORTGAGE, LLC (HOOD v. NATIONSTAR MORTGAGE, LLC) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
HOOD v. NATIONSTAR MORTGAGE, LLC, (D.N.J. 2021).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEW JERSEY CAMDEN VICINAGE __________________________________ : Lisa Hood; and David Hood; : : Plaintiffs, : : Civil No. 20-15948 (RBK/KMW) v. : : OPINION Nationstar Mortgage, LLC dba Mr. Cooper; : Milstead & Associates, LLC; Michael: Milstead; Roger Fay; Nelson Diaz; Mary L.: Harbert-Bell; MTGLQ Investors, L.P.; and : New Penn Financial, LLC dba Shellpoint Mortgage Servicing;

Defendants. __________________________________

KUGLER, United States District Judge: This case arises out of a foreclosure action on a property leased by Plaintiffs Lisa and David Hood (hereinafter, “Plaintiffs”) at 108 Pine Knoll Circle in Mays Landing, New Jersey (hereinafter “the Property”). Plaintiffs filed suit against Defendants Nationstar Mortgage, LLC dba Mr. Cooper (hereinafter “Nationstar”); Milstead & Associates LLC, Michael Milstead, Roger Fay, Nelson Diaz, Mary L. Harbert-Bell (hereinafter collectively “Milstead Defendants”); MTGLQ Investors, L.P. (hereinafter “MTGLQ”); and New Penn Financial, LLC dba Shellpoint Mortgage Servicing (hereinafter “Shellpoint”). (Doc. No. 1). Plaintiffs allege, inter alia, that Defendants defrauded them by misrepresenting the true owner of the Property in the course of a state court eviction action and by seeking rent payments.

Presently before the court are Milstead Defendants’ Motion to Dismiss (Doc. No. 6); Nationstar’s Motion to Dismiss and Enjoin Future Filings (Doc. No. 15); MTGLQ and Shellpoint’s Motion to Dismiss (Doc. No. 17); Plaintiffs’ Motion for Order Granting Plaintiffs’ Request for extension of time to answer (Doc. No. 19); and Plaintiffs’ Omnibus Cross-Motion for an Order Denying the Pending Motions to Dismiss (Doc. No. 20). For the reasons detailed herein, Defendants’ motions are GRANTED. Plaintiffs’ motions are denied as moot.

I. BACKGROUND A. Procedural background The preliminary procedural background is taken from a prior case concerning the Plaintiffs, the Property, and the same factual allegations, in which this court dismissed the complaint with prejudice: In 2007, Luz Ramirez executed a promissory note, payable to Countrywide Home Loans and secured by a mortgage, for the Property. In March 2014, the mortgage was assigned to Defendant Nationstar.

In July 2014, Ramirez transferred the Property to Defendant Victoria Crossing through a quitclaim deed to the text of the note as part of Ramirez's bankruptcy proceedings. In August 2014, Plaintiffs entered into a written lease agreement with Defendant Victoria Crossing and began occupying the Property the following month.

On September 2, 2014, Defendant Nationstar filed a foreclosure action against Ramirez in the Superior Court of Atlantic County, Chancery Division.

In February 2015, Plaintiffs filed a pro se complaint in the Superior Court of New Jersey, Atlantic County, Law Division against Nationstar, Victoria Crossing [Townhouse Association], Atlantic Realty, [Debra A.] Lafferty, and [Gail H.] Lusk. Plaintiffs subsequently filed an amended complaint in April 2015 against the same Defendants. On June 12, 2015, the Law Division dismissed the Plaintiffs' claims against Defendant Nationstar with prejudice for failure to state a claim upon which relief can be granted. On June 26, 2015, the Law Division further dismissed Plaintiffs' claims with prejudice against Defendants Victoria Crossing, Atlantic Realty, Lafferty, and Lusk after oral argument for failure to state a claim upon which relief can be granted. After oral argument, the Law Division held that Defendant Victoria Crossing was the legal owner of the Property at the time Plaintiffs entered into the lease agreement with Defendant Victoria Crossing, therefore all of Plaintiffs' claims based on the dispute of the ownership of the Property failed as a matter of law. The Superior Court also held that Plaintiffs' other claims [in that matter] were either insufficiently pled or barred by the parol evidence rule.

Defendant Nationstar's foreclosure complaint against Ramirez was initially dismissed in January 2016, but it was reinstated in October of the same year and final judgment in favor of Defendant Nationstar was entered on January 12, 2017. On January 24, 2017, Defendant Nationstar assigned the mortgage to Defendant MTGLQ. Defendant Nationstar sent a notice to Plaintiffs regarding the foreclosure and the upcoming sheriff's sale. On August 17, 2017, the Property was sold to Defendant MTGLQ at the sheriff's sale. On September 21, 2017, notice was sent to Plaintiffs regarding the change in ownership.

Five months after the Superior Court's final judgment in favor of Defendant Nationstar in the foreclosure action, Plaintiffs filed a pro se motion in the Superior Court of Atlantic County to vacate the final judgment in the foreclosure action, stay the scheduled sheriff's sale, and dismiss the foreclosure complaint. The Superior Court scheduled oral argument regarding the pro se motion for October 27, 2017, where Plaintiffs' motion was denied after they failed to appear. The Superior Court held that Plaintiffs did not have standing to bring forth any of their claims because they were not a party to the original loan and that they should seek remedies through the appropriate landlord dispute court in the state if they had issues with their tenancy.

On December 12, 2017, Defendant MTGLQ filed a complaint in the Superior Court of Atlantic County against Plaintiffs for non- payment of rent. On January 24, 2018, the Superior Court dismissed the action after the rent was paid in full by Plaintiffs to Defendant MTGLQ.

Hood v. Vict. Crossing Townhouse Ass'n, Civil Action No. 18-12259 (RBK/KMW), 2019 WL 3336132, at *1-3 (D.N.J. July 25, 2019) (record citations and footnotes omitted). In that action, Plaintiffs’ counsel was enjoined from filing any further complaint, lawsuit, or petition which pertains to any prior foreclosure in the U.S. District Court without prior authorization of the court. See Amended Order Enjoining, Hood v. Vict. Crossing Townhouse Ass’n, 2019 WL 3336132, Doc. No. 35.

Subsequently, on October 7, 2019, Milstead & Associates brought a landlord-tenant complaint

against Plaintiffs in the Superior Court of New Jersey, Law Division, Special Civil Part, Atlantic County. Complaint, Nationstar Mortgage LLC v. Hood, No. LT-4312-19 (N.J. Super. Ct. Law Div. Oct. 7, 2019). This complaint inadvertently listed Nationstar, not MTGLQ, as plaintiff, but that was summarily resolved by a state court order substituting MTGLQ as plaintiff. Order, Nationstar Mortgage LLC v. Hood, No. LT-4312-19 (N.J. Super. Ct. Law Div. Dec. 9, 2020).

Plaintiffs filed the present Complaint pro se on November 12, 2020. (Doc. No. 1). Plaintiffs seek compensatory damages, punitive damages for at least $12,500,000, treble damages where applicable, and equitable relief where applicable. (Id.). Plaintiffs limits the complaint to injuries attributable to conduct beginning July 26, 2019, the day after this Court’s dismissal of the

complaint in Hood v. Vict. Crossing Townhouse Ass’n, 2019 WL 3336132.

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HOOD v. NATIONSTAR MORTGAGE, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hood-v-nationstar-mortgage-llc-njd-2021.