Marietta Cheeks

CourtUnited States Bankruptcy Court, E.D. Virginia
DecidedAugust 13, 2019
Docket19-10516
StatusUnknown

This text of Marietta Cheeks (Marietta Cheeks) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, E.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Marietta Cheeks, (Va. 2019).

Opinion

EASTERN DISTRICT OF VIRGINIA Alexandria Division In re: ) ) MARIETTA CHEEKS, ) Case No.19-10516-BFK ) Chapter 13 Debtor. ) MEMORANDUM OPINION AND ORDER GRANTING: (A) U.S. BANK NATIONAL ASSOCIATION’S MOTION TO CONFIRM ABSENCE OF THE AUTOMATIC STAY (DOCKET NO. 13); AND (B) CLEAR SKY PROPERTIES, LLC’S MOTION FOR RELIEF FROM THE AUTOMATIC STAY (DOCKET NO. 32) This matter came before theCourt on the Motion of U.S. Bank National Association (“U.S. Bank”) to Confirm Absence of the Automatic Stay, and ontheMotion of Clear Sky Properties, LLC (“Clear Sky”) for Relief from the Automatic Stay. Docket Nos. 13, 32. The Motions essentially seek thesame relief-U.S. Bank, the formerbeneficiary ofthe Deed of Trust at issue in this case, and Clear Sky, the successful bidder at theforeclosure sale of real property located at 17160 Belle Isle Drive,Dumfries, VA (hereinafter, the “Property”), assert that the Property was always titledin the name of the Debtor’s husband and that the Debtor had no legal or equitable interest in the Property at the time she filed her bankruptcy petition. U.S. Bank requests, in thealternative, that the Court grant relief from theautomatic stay,nunc pro tunc. Clear Sky argues, also inthe alternative, that if the automatic stayapplied to the Property,Clear Skyis entitled to be treated as a bona fide purchaser for value. See11 U.S.C. §§549(c), 550(b)(1). The Debtor opposes both Motions, acknowledging that legal title was in thename of her husband but arguing that she possessedan equitable interest in the Propertyat the time she filed her bankruptcy petition. She argues that the Deed can and should be reformed under applicable 37. The Court heard the evidence and the parties’arguments onJune14and24, 2019. The

Court finds that the Debtor’s evidence falls short of establishinga claim for equitable title and that reformationof the Deed is not available in this case. The automatic stay, therefore, did not come into effect with respect to theProperty whenthe case was filed. The Court further finds, in light of the foregoing, that: (a) U.S. Bank’s alternative request for nunc pro tuncrelief is moot; and (b)the Court need not address Clear Sky’s argument that it is a good faith purchaser for value. TheCourt will grant U.S. Bank’s and Clear Sky’s Motions. Findings of Fact The Court, having heard the evidence, makes the following findings of fact: 1. The Debtor, Marietta Cheeks, is an individual residingthe town of Dumfries, in Prince William County, Virginia.

2. Ms. Cheeks and her husband, Frederick Cheeks, have been married for 43 years. They have two children, who are adults, and two grandchildren. 3. The Property is the Cheeks’principal residence. 4. Mr. Cheeks worked as a lineman for Dominion Power for 45 years. He is now retired. 5. Ms. Cheeks operates a daycare business, though she testified that she does not bring any children into the Property and that her activities are largely confined to picking up and dropping off the children from school and from after-school activities. 6. Ms. Cheeks generally handles the family’s finances. She pays the bills,handles the bank accounts and prepares the tax returns. (a) Prior to the foreclosure sale of the property known as 17160 Belle Isle Drive, Dumfries, VA 22026 (the property), Robert Butler contacted Brock & Scott, PLLC and advised the representative for the firm, that Marietta Cheeks has filed bankruptcy and that the sale should be placed on hold. (b) Robert Butler is not an attorney licensed to practice law and is not an employee of, or affiliated with Debtor’s counsel, Nathan Fisher, or his law firm. (c) Brock & Scott, PLLC received notice of Marietta Cheeks’bankruptcy filing from Robert Butler only. (d) The Note attached to the Joint Stipulation is a true and exact copyof the original signed Note. (e) The Deed of Trust, Deed, & Corrected Deed all attached to the Joint Stipulationare true and exact copies of documents on file in the Prince William Circuit Court Clerk’s Office, among the land records for that county. (f) The Note and Deed of Trust are signed by Frederick Cheeks. Joint Stipulationof Facts, Docket No. 55. A. The Contract of Sale. 8. Mr. and Ms. Cheeks began searching for a home in 2013. They employed a realtor recommended by their daughter,who brought them to the Potomac Shores neighborhood in Dumfries. 9. NVHomes is one of thehome builders in the PotomacShores development. 10. Mr. and Ms. Cheeks visited and viewedmodel homes. Theypicked out a lot, and chose the Portsmouthmodel fortheirhome. 11. On May 17, 2015, Frederick Cheeks individually entered intoaPurchase Agreement for thepurchase of a homewith NVHomes. CSP Ex. 22.1 12. The original purchase price was $753,475.00. Id., ¶ 2.

1 Clear Sky’s Exhibits are referred to herein as “CSP No. __.”U.S. Bank’s Exhibits are referred to as “USB No. __.”TheDebtor’s Exhibits arereferredto as “DR Ex. __.” Cheeks, entered into a Purchase Agreement for the purchaseof the same property, with the same purchaseprice. CSP Ex. 23.

14. OnMay 28 and 29, 2015, Mr. Cheeks individually signed aChange Order Addendum and a Flooring Selection Sheet (together, the“Change Orders”) as addenda to the Purchase Agreements. DR Exs. C and D. 15. Ms. Cheeks was the primary point of contact for NVHomes forthe selection of finishes and upgrades to the Property. She testified that she was present and assisted her husband onthe computer in their home in affixing his electronic signatures to the Change Orders. 16. On October 6, 2015, VirginiaWahab (known to Ms.Cheeks as Ginnie) of NVR Settlement Services e-mailed a letter toMs. Cheeks. DR Ex. I. The letter enclosed a Tenancy form.Ms. Wahab requested that the form be signed and returned to the closing attorney. Id. 17. Mr. Cheeks returned two Tenancy forms to the closing attorney, Benjamin C.

Winn. The first (somewhat inconsistently) stated: “Frederick L. Cheeks, Tenants by the Entirety.”The second checked the box that stated: “Sole Owner (If you are buyingthe property alone then this will be your option.)”) DR Ex. U. 18. Mr. and Ms. Cheeks understood that Ms. Cheeks would not be a borrower on the mortgage loan becauseshe had student loan debt that would have made approval of the loan more difficult. This notwithstanding, Ms. Cheeks and Mr.Cheeks both testified convincingly that they have always owned their properties jointly during their 43-year marriage and that it was their intent to take title tothis Property jointly. B. The Applications for Financing. 19. Mr. andMs. Cheeks intended to use $400,000.00 of Mr. Cheeks’ retirement

savings (401(K)) for the downpayment, financing the rest of the purchase price with an FHA mortgage. Mortgage. DR Exs. O, P, Q. Each of these Applications indicatedthat Mr. Cheeks was to be the sole borrower, but that title would be taken jointly with Ms. Cheeks. SeeDR Exs. O(“Titleheld

jointly”), P (“Title held jointly”), Q (“Title held jointly”). 21. On October 13, 2015, Russell Turner of NVR Mortgagewrote an e-mail to Ms. Cheeks advising her that “we arerunninginto a little issue with regards to the debt to income [ratio] on our end.” DR Ex. K. He referred Mr. andMs. Cheeks to George Mason Mortgage.Id. 22. NVR Mortgagesent Mr. Cheeks a Notice of Action Taken, Statement of Reasons and Counterofferdenying loan approval on October 15, 2015. CSP Ex. 37.The stated reason for the denial was “DTI [Debt to Income] –Unreimbursed Exp.”2 23. Mr. Cheeks then submitted a Uniform Residential Loan Applicationto George Mason Mortgage. DR Ex. S. The section labeled “Manner in which Title will be held”was left blank. Id.

24. George Mason Mortgage approved the loan in the amount of $424,297.00, with an interest rate of 4.0% and a 30-year amortization,on November 25, 2015. CSP Ex. 66. 25. Mr.

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Marietta Cheeks, Counsel Stack Legal Research, https://law.counselstack.com/opinion/marietta-cheeks-vaeb-2019.