sample fictionalized asset and encumbrance investigation report

ALL PERSONALLY IDENTIFIABLE INFORMATION (INCLUDING ALL FILING/CASE NUMBERS) HAS BEEN FICTIONALIZED.

OTHERWISE, THIS IS AN ACTUAL CASE

October 22, 2014 Fictionalized Sample Asset and Encumbrance Investigation Report

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Seattle Insurance & Legal Investigations

Serving the Seattle Insurance & Legal Communities since 1991

RE: King County Superior Court Case 14-2-06014-9 SEA

October 22, 2014

Report of Investigation

Assignment: On October 7, 2014, attorney John Q. Lawyer, WSBA #99874, requested assistance in conducting an asset and encumbrance investigation regarding judgment debtor Jerry DEBTOR, aka John Gerald DEBTOR and his spouse, in connection with the above referenced case. Investigation Summary: This report covers Mr. DEBTOR. A separate report is pending regarding his wife. Mr. DEBTOR is not listed as a governing person of Subject-Company.com, (note that this is the actual registered legal name of the business), which is a sole proprietorship. This suggests that he may not have owned the business which he sold to your client. Mr. DEBTOR is listed as the governing person of another business, Another Business, which is listed as being “open” by the WA Department of Revenue. (Whether or not it is actually an operational business and/or has any attachable assets is not known.) Mr. DEBTOR purchased 3 homes between October 2005 and July 2006, which he still owns today, although one of them is in foreclosure. The total purchase price of these three properties was $1,082,000.00. The lender required Mr. DEBTOR to make a total down payment of only $400.00 for all three of the properties combined.

P.O. Box 1327 Mukilteo, WA 98275 Email: [email protected]

WA PI Agency Lic 602010799 Web site: www.seattle-investigations.com

Office: (206) 992-1555 Facsimile: (425) 514-0615




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Regarding each of the three properties owned by Mr. DEBTOR:

123 HomeA, Kent, WA: Mr. DEBTOR is known to not have made any payments in the past four years on this property. He is $151,203.50 in arrears (plus accruing interest/penalties) on his property. It is in foreclosure. He has approximately $103,817.67 worth of negative net equity in this property. There are no liens on this property.

123 HomeB, Covington, WA: Mr. DEBTOR has accumulated a total of $6111.80

worth of unpaid liens on this property since April 2013. Under a “best case scenario,” (which is not probable), Mr. DEBTOR could have approximately $62,943.03 worth of positive attachable net equity in this property.

123 HomeC, Kent, WA: Mr. DEBTOR has accumulated a total of $3275.81 worth of unpaid liens on this property since August 2008. Under a “best case scenario,” (which is not probable), Mr. DEBTOR would have at least $49,211.33 in negative net equity in this property. Not including the extant/predicating case, Mr. DEBTOR has 18 unsatisfied judgments/liens and 14 outstanding court fines totaling at more than $95,752.72 (without applying the accruing interest). Some of the fines/judgments are probably outside the statute of limitations. Mr. DEBTOR has a history of almost never paying fines or judgments. Mr. DEBTOR also has at least two outstanding felony criminal warrants for three counts of felony organized retail theft. Mr. DEBTOR is eligible to file a bankruptcy petition. Caveats: I am not a mortgage expert. Before relying on my calculations regarding the net amount owed on each property, I would recommend having a mortgage expert review my report. Complicating Factors: This investigation was necessarily made more complex due to the fact that Mr. DEBTOR goes by two different first names. Filings were found both under his name of “Jerry,” and also under his legal name of “John.” He also owns three pieces of real property, and nearly 60 different relevant recorded documents had to be researched, analyzed and reported on.




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Investigation Methodology re: Recorded Documents: Checks were run of the King County Assessor’s Office, and the King County Recorder’s Office and the Washington State Digital Archives. On October 12, 2014, I travelled to the King County Archives in Seattle, and researched recorded documents which were not available online for this case. The Recorder’s Office search included searches of Excise Tax Affidavits searched by parcel number; searches of recorded documents by parcel number; and searches of recorded documents by the names of both John, “Jerry,” and Jane DEBTOR. All lists of documents were cross-referenced against each other, to ensure that each relevant recorded document was retrieved, analyzed and included in this report. Investigation Details: Identity: Mr. DEBTOR is identified as:

Surname of record

First Name of record

Middle Name/ Initial

Social Security Number Associated

with this Name

Date of Birth/ Age

Notes

DEBTOR John Gerald

123-45-6789 4/1/1967 47 years of age

This is apparently Mr. DEBTOR’s legal

name. 5’7”, 230 lbs

Photo embedded below.

DEBTOR Jerry Gerald “ “ This is the name that Mr. DEBTOR

apparently is commonly known by. Multiple legal documents were also found under

this name.

Source: http://www.findmydouble.com/3393839/jerry_debtor.html




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Address History: Record was found of Mr. DEBTOR being associated with the following address (es) during the following periods. Note that this information was developed from non-FCRA credit reporting records. It reflects the date(s) the addresses were reported for credit reporting purposes. It may, but does not necessarily reflect the date(s) that the individual lived at these address(es.) All addresses of record for Mr. DEBTOR going back to 2005 were in King County, Washington.

Address City, State, Zip Code

County Dates Reported

Notes

123 HomeB Covington, WA 12345-6789

King Nov 2006 to Current

123 HomeC Kent, WA 98765-4321

King Oct 2005 to Nov 2008

123 HomeD Kent, WA 54321-6789

King Jun 1994 to Jun 2005

Contact Information: The below contact information has not been verified as current/working.

Telephone Numbers in Descending

Order of Likely Relevance

Notes

(253) 555-1234 (253) 555-4321 (253) 555-9876 Landline (253) 555-6789 Landline

Email addresses: Email: [email protected] ; [email protected] Litigation Check: Checks were conducted of both proprietary and fee-based public court records systems. I checked the two premier national investigative databases, which link derogatory public financial filings such as bankruptcies, tax liens, judgments, notices of default records nationwide to individual persons through use of a combination of personally identifying information such as dates of birth, full names, addresses and SSN’s. Checks also included “live” nationwide federal district courts for civil, criminal and bankruptcy filings, and all Washington municipal, district, superior and appellate and the state supreme court(s) in Washington.




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These checks were run primarily to determine if Mr. DEBTOR might have filed bankruptcy, be a plaintiff pending a possible award for damages in a civil matter and/or if he is named as a Defendant in any judgment filings, has outstanding court fines or child support obligations, or if he was named as a party to a pending or recent probate case. Disclaimer required by WA Administrator of Courts: http://dw.courts.wa.gov/ :

The Administrative Office of the Courts, the Washington State Courts, and the Washington State County Clerks: 1) Do not warrant that the information is accurate or complete; 2) Do not guarantee that information is in its most current form; 3) Make no representations regarding the identity of any person whose name appears on these pages; and 4) Do not assume any liability resulting from the release or use of the information. Please consult official case records from the court of record to verify all provided information.

Note that I checked statewide in Washington for court filings under the Subject’s true legal name, “John Gerald DEBTOR,” as well as the name he is commonly known by, “Jerry Gerald DEBTOR.” There are/have been at least two persons in Washington named “John DEBTOR.” (Source: WA JIS) All 33 court records under this name were checked and are reported below.

Record was found of a total of 21 persons with names similar to “Jerry” DEBTOR in Washington. A total of 20 cases were found statewide in Washington for a person named only “Jerry (no middle initial or name) DEBTOR.” I checked all “Jerry (no middle initial or name) DEBTOR” court cases in King County. Record was found of only one person named “Jerry G. DEBTOR.” All Washington court records for Jerry G. DEBTOR were checked.

The following is a summary of relevant filings found.

Status/ Name

Court Case Number Dated Filed(Descending

Order)

Case Type/Cause of Action

Case Status/ Disposition

Notes:

Defendant: DEBTOR, John Gerald Co‐Defendants: DEBTOR, Jane JONES, Michael Wade

King Co Superior Ct 14‐1‐04123‐2

Related cases for co‐

Defendants:

14‐1‐04124‐1 14‐1‐04125‐4

8/21/2014 Criminal –

Organized Retail Theft 2nd Degree

(Two counts)

Bench warrant

issued 9/4/14. Still active.

Bond set at $5000.00.

Each count is a Class C felony.

On 2/20/14,

Defendants are alleged to have stolen two X‐Box systems from the BigBox Mart in Federal Way.

On 1/29/14, the Defendants are alleged to have

stolen merchandise valued at more

than $750.00 from the BigBox Mart in

Tukwila, WA




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Status/ Name


Order)



Notes:

Plaintiff: Happy

Housecleaning Defendant:

DEBTOR, Jerry dba Subject‐Company

King Co Superior Ct 14‐2‐12126‐2 KNT

5/1/2014 Civil‐

Commercial

Default Judgment issued

8/6/2014

Judgment # 14‐9‐18128‐6 $52,923.00 with interest accruing at 12% per annum

Extant Case

Judgment remains unsatisfied.

Plaintiffs: Nguyen, Van

Central International Corporation

King County District 138‐10127 11/12/2013 Small Claims

Other

Default judgment against

Defendant for $2110.00, plus interest at 12% per annum

Judgment still outstanding.

Writ of

garnishment filed 9/15/2014.

Subject‐Company and Herbie (sic) DEBTOR also linked as garnishee Defendant.

Defendant: DEBTOR, John Gerald Co‐Defendant: JONES, Mike

Pierce Co Superior 13‐1‐022129‐0 5/31/2013 Criminal –Organized Retail Theft 2nd Degree

Bench warrant issued 6/19/13, Still active.

Warrant is “no bail.”

As charged, this is a Class C felony. Defendants are alleged to have stolen groceries valued at a total of $1078.05 on three different occasions,

between March 9 and April 15, 2013

from Retail Company in Puyallup, WA.

Defendant: DEBTOR, John Gerald

King County District 3Z0287130 4/4/2013 Traffic Infraction

Speeding in a school or

playground, 1‐5 mph over

limit.

Failed to appear.

Finding of committed.

Fined $241.00

Sent to

collections on 2/4/14

Fine still outstanding.

Defendant: DEBTOR, Jerry

Lake Forest Park Municipal

2131 3/20/2013 Parking Finding of Committed. Fined $65.00





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Status/ Name


Order)



Notes:

Plaintiff: Automobile Insurance Company Defendant: DEBTOR, John G, dba Subject‐Company.com

King Co Superior Ct 13‐2‐05132‐4 2/15/2013 Civil –

Tort‐ Motor Vehicle

Default judgment # 13‐9‐25133‐6, issued 8/8/13 in the amount of $3,118.24 against Defendant, with interest accruing at 12% per annum.


Plaintiffs: TROUT, Sheila CALLOW, Julie Defendants: (1) Another Business; (2) DEBTOR, Herman (sic) dba: Yet Another Business dba: SUBJECT‐COMPANY.COM (3) DEBTOR, Jerry

King Co Superior Ct 12‐2‐34134‐0 SEA

10/23/2012 Civil –

Miscellaneous

Default judgment

#12‐9‐32135‐4 issued

11/27/2012 against

Defendants in amount of $20,848.58 with interest accruing at

12%.

Also, on 1/23/2013 an

order on contempt against Defendant issued in amount of $632.00.

Judgment remains

unsatisfied.

Plaintiff: National Contractors Defendants: DEBTOR, John DEBTOR, Jane

King Co Superior Ct 12‐2‐33136‐5 10/10/2012 Commercial Default judgment #

12‐9‐27137‐5, issued

10/11/12 in amount of $19,137.00 against

Defendants, accruing interest at 12% per annum


Judgment was also recorded at the King County Recorder’s Office as recording #

20121129000137, (listed below)


Sno Co‐south Div 2Z0531138 7/9/2012 Traffic Infraction

Speeding 15 mph over

limit

Failed to appear.


Fined $196.00

Sent to

collections on 5/14/13.





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Status/ Name


Order)



Notes:


King County District 2Z0037139 1/11/2012 Traffic Infraction


limit

Operating a motor vehicle

without insurance

Operating a motor vehicle with no valid

license

Finding of committed for all three charges.

Failed to

report (FTR).

Fined $1347.00

Sent to

collections 7/31/12.



King County District IU0054140 10/6/2011 Traffic Infraction

Passing in a No‐Passing

Zone, Operating a Motor Vehicle

Without Insurance

Finding of committed on both counts.

Fined $726.00.

Sent to

collections 7/10/12



Kent Municipal Court

K00584141 10/3/2011 Traffic Infraction

Failure to stop at stop

sign.

No operator’s license.

Operating a motor vehicle

without insurance.

Failed to appear.

Finding of committed for all three violations.

Fined $850.00

Sent to

collections 5/14/13


Plaintiffs: SINGER, Andrew BEAR, Jasmine Defendant: DEBTOR, John G.


Breach of Contract

Case dismissed without prejudice 12/31/02

Defendant: DEBTOR, John

King County District Southern Division (Auburn Municipal)

AS0020143 6/25/2010 Traffic

School Zone Photo

Enforcement


Fined $124.00

Sent to

collections 11/2/10.





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Status/ Name


Order)



Notes:

Claimant: Washington State Department of Labor and Industries Defendant: JOHN, Gerald Debtor (sic), dba: AAA Construction

King County Superior

09‐2‐22044‐0 6/10/09 Tax Warrant for unpaid L&I

Taxes

Judgment 09‐9‐22145‐1

issued6/10/09 against

Defendant et ux in amount of $4,200.00, accruing interest at 12% per annum

Judgment is still outstanding

Note that L&I transposed the

Defendant’s name on this. This was caught through close cross‐

referencing of records.

Plaintiff: Utility Company Defendants: DEBTOR, John & Jane


Property Damage

Matter resolved by

parties 4/1/09

Plaintiff: HARPER, Iris M. . Defendant: DEBTOR, Jerry


Other

Judgment against

Defendant for $1373.00. Writ of

Garnishment obtained.

Assigned to Progressive Services

Collections

Judgment fully satisfied through garnishment 3/18/2010.


Pierce Co District 8YT091148 11/19/2008 Failure to pay toll/

photo ticket

Fined $25.00 Fine remains outstanding.



photo ticket




photo ticket




photo ticket


Plaintiff: State Farm Fire and Casualty Defendant: DEBTOR, John, dba: ABC Construction

King Co Superior Ct 08‐2‐24152‐6 7/21/2008 Civil

Default Judgment 12/17/08

Affidavit of Garnishment issued on US Bank 4/20/09

Judgment # 08‐9‐37153‐5 In amount of $8,906.17 against

Defendant, with interest accruing at 3.08% per annum.

Judgment still outstanding.




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Status/ Name


Order)



Notes:

Plaintiff: Lake Land Enterprises Inc., dba: Lake Land Collision Center Defendants: DEBTOR, John Gerald and DEBTOR, Jane dba “Jane’s Child Care DEBTOR, Amy

King Co Superior Ct 08‐2‐14154‐6 4/30/2008 Commercial

Court decision issued

10/9/08 after trial.

Judgment # 08‐9‐32155‐5

issued against

Defendants in the amount of $15,553.22, accruing interest at 12% per annum.


Judgment also filed in King

County Recorder’s Office, recording #20081118000156

(listed below)


King County District 8Y5023155 4/9/2008 Traffic Infraction


limit

No driver’s license.

Failed to report (FTR)

Finding of committed for both offenses.

Fined $320.00

Paid in full as of 4/21/09.

Claimant: Washington State Department of Labor & Industries Taxpayers: DEBTOR, Jerry Gerald DEBTOR, Jane dba: AAA Construction

King Co Superior Ct 08‐2‐05156‐0 KNT

2/11/2008 Tax Warrant ‐

Transfer of Judgment

Judgment # 08‐9‐04157‐0 Issued for unpaid L&I taxes in the amount of $917.47 plus

interest accruing at 12% per annum

Judgment still outstanding

Defendant: DEBTOR, John G


photo ticket





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Status/ Name


Order)



Notes:

Plaintiff: MARTIN, Sean Defendant: DEBTOR, John G dba: AAA Construction

King Co Superior Ct 07‐2‐33159‐0 10/12/2007 Commercial

Closed by court after a hearing on 11/20/09

Judgment # 09‐9‐37160‐1

Issued 11/2009

In amount of $11,800.00 in

favor of GRAY, Judith, accruing interest at 12% per annum.


Plaintiff: Credit Company Defendant: DEBTOR, John aka “Jerry”


Services Rendered

Case dismissed without

prejudice on 2/21/07

Plaintiff: Collections, Inc Defendants: DEBTOR, John G DEBTOR, Jane


Services Rendered

Default judgment issued

1/25/07 in amount of $2,447.34 against

Defendants.

Judgment is unsatisfied. Judgment

recorded in King County Recorder’s

Office, #20070316001163

Plaintiff: GOLDEN, Destiny Defendants: Jane’s Child Care; DEBTOR, Jane; DEBTOR, Jerry

King County District Y00002164 1/3/2001 Small Claims

Other

Default judgment against

Defendant: $325.60

Judgment is unsatisfied.


King County District Court, South Division

(former Federal Way

Division)

CA10165FW 12/7/1998 Criminal ‐Theft in the Third Degree

Dismissed 5/10/99




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Status/ Name


Order)



Notes:


Renton Municipal CR0012166 10/2/1997 Criminal Traffic

Driving

without a license, 3

rd

degree

Found guilty on 10/13/97

Fined $1000, with $800 suspended.

Failed to appear on 4/3/98, was fined $325.00

Failed to appear on 9/17/98, Bench warrant issued.

Bail set at $375.00

Warrant expired 9/23/01


Othello District IN0001167 7/14/1997 Criminal Traffic

Operating a vehicle

without a license.

Failure to wear safety

belt.

Failed to appear, finding of

committed on both counts.

Fined $588.00

Sent to

collections 8/1/03


Othello District CR0001168 7/14/1997 Criminal Traffic

No valid operator’s license

Bench warrant

issued 8/4/97

Case dismissed due

to age 4/2/02.

Plaintiff: Mountain Collections Defendants: DEBTOR, John G. DEBTOR, Jane E.

King County District Southern Division

(Aukeen)

99169 3/17/1997 Small Claims

Services Rendered

Default judgment

issued 5/6/97 in amount of $429.10 against

Defendants. Writ of

garnishment filed 5/28/97.


King County District Southern Division (Renton Municipal)

C00115170 4/29/1996 Criminal Traffic

No valid operator’s license.

Found not guilty 8/2/96




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Status/ Name


Order)



Notes:

Petitioners: State of Washington DEBTOR, Harry DEBTOR, Amanda DEBTOR, Eric Respondents: DEBTOR, John G DEBTOR, Jane

King Co Superior Ct 95‐3‐005180‐5 2/16/1995 Modification of Child Support

Dismissed 3/7/95


King County District Southern Division (Auburn Municipal)

41181 11/16/1993 Criminal Non‐Traffic

Injury to Property

Fined $155.00 Charge

dismissed 7/17/94



(Aukeen)

7216182 12/9/1992 Criminal Traffic‐ Failure to Comply

Case dismissed 1/25/93

Defendant failed to appear for arraignment.



(Aukeen)

K00140183 2/20/1991 Criminal, Non‐Traffic Failure to

Return Rental Property

Fined $148.00, ordered to pay $50.00 restitution to Movie Mall

Bench warrant was issued on 11/15/91.

Fine was paid in full on 1/31/92.




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Assets:

Professional Licensing: A check with the Washington Department of Licensing did not reveal any record of Mr. DEBTOR being licensed in any profession regulated by the WA DOL.

Business Registration and Licensing: A check with the Washington Department of Revenue, the Washington Department of Licensing, and the Washington Secretary of State’s office revealed the following records:

UBI Business Name

Trade Name(s)

Bus. Type

Date Opened

(Descending)

Date Closed

Governing Persons

Address Notes

601943184

WA Contractor Lic #:

AAACAAA185CW

Jerry Gerald Debtor

AAA-American Ace Construction

Sole Proprietorship

12/21/06 --------------- Contractor

license issued 2/16/07 Expired 2/16/09

4/10/08

------------

Suspended 8/8/07

Jerry Gerald

DEBTOR

123 HomeC, Kent, WA

98042

No bond or

insurance in last 6 years

602512186 Everyday Learning Academy Inc.

Everyday Learning Academy

Corporation 6/15/05 12/31/08 John Gerald

DEBTOR

Jane DEBTOR

123 HomeE, Kent, WA

98030-4966

Child Daycare Services

602209187 Another Cleaning Business

Another Cleaning Business

Partnership 5/1/02 Open Ariana VENUS

John

Gerald DEBTOR

123 HomeD, Kent, WA

98031

Janitorial Service

See note below.

602011188 Debtor & Short

Mushy Freeze

Partnership 2/8/00 4/1/00 John G. DEBTOR

Emerald SHORT

Jane

DEBTOR

Oscar SHORT

123 HomeD, Kent, WA

98031

Mobile Food

Services




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UBI Business Name

Trade Name(s)

Bus. Type

Date Opened

(Descending)

Date Closed

Governing Persons

Address Notes

601943189 Jerry Gerald Debtor

Jane’s Loving Child Care

Sole Proprietorship

3/30/99 On 11-19-14,

I contacted the WA

DOL. They related that the

tax registration

for this business

shows it to be closed. Effective date was

not available online or through WA DOL.

Jerry Gerald Debtor

123 HomeD, Kent, WA

98031

Child Daycare Services

601943190 Jerry Gerald Debtor

Express Delivery

Sole Proprietorship

3/1/99 4/10/08 Jerry Gerald Debtor

123 HomeF, Kent, WA

98030-4966

Local Messenger & Delivery

Note re: Advance Cleaning: Ms. Anita VILLANURA is named as a partner of Mr. DEBTOR’s in one of his businesses, “Another Business.” A nationwide search using multiple sources revealed only four persons nationwide with that surname, and none of them were named “Anita.” Subject-Company.com: Note that John (aka: Jerry) DEBTOR is not listed as a governing person of Subject-Company.com. Since this report is about Mr. DEBTOR, I have included the company’s information below. This suggests that Mr. DEBTOR may not have/ever had any legal ownership interest in the company that he sold to your client.

UBI Business Name

Trade Name(s)

Bus. Type

Date Opened

Date Closed

Governing Persons

Address

603110191 Subject-Company.com

(1) BusinessA (2) BusinessB

Sole Proprietorship

5/1/2011 Still Active

Harry DEBTOR

(sic)

(This is probably John

DEBTOR’s son.)

123 HomeB,

Covington, WA

12345-6789

Note that the judgment in the extant case was against

“Subject-Company”, but the business

name listed at left is

Subject-Company.com




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On 10/31/14, I submitted a public disclosure request to the Washington Department of Revenue, requesting copies of “any/all business license applications for Subject-Company.com , a sole proprietorship, WA UBI 603110192, whose governing person is Harry Debtor.” On 11/3/14, I received a reply denying my request, citing RCW 19.01.115 (2), which states:

“ Licensing information is confidential and privileged, and except as authorized by this section, neither the department nor any other person may disclose any licensing information. Nothing in this chapter requires any person possessing licensing information made confidential and privileged by this section to delete information from such information so as to permit its disclosure.”

UCC Secured Party Filings: A check with the Washington Secretary of State’s office did not produce any record of Mr. DEBTOR being a secured party to any UCC filing in Washington. Real Property Ownership + Recorded Documents: Checks were run of the two premier national investigative databases, which link property records nationwide to individual persons through use of a combination of personally identifying information such as dates of birth, full names, addresses and SSN’s. These sources also aggregate recorded documents such as tax liens, judgments and notices of default, linking them to individuals through personal identifiers such as name, date of birth, social security number, address and other proprietary identifiers. Checks were also run of the Washington State Digital Archives, and the recorder’s and assessor’s office for King County. Mr. DEBTOR owns three properties. I have organized this report by property. Each of the three entries below describes the property owned, and all relevant recorded documents related to each property. 123 HomeA, Kent, WA 98031-3117:

Address Parcel # Owner/Taxpayer Assessed Value Remarks 123 HomeA,

Kent, WA 98031-3117

912194-0040

DEBTOR, JOHN $273,000

Abbreviated legal name: Lot 193 of Another

Addition to City of Kent

4 bedroom, 2 ¼ bath, 3040 square feet of living space, built 1987 in good condition.




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Recorded documents related to this property:

Filing # Document Recording Date

(Ascending Order)

Type Document Parties Notes

20060710001195

7/10/2006 Warranty Deed Grantors: HENESEE, Brenda E. fka: CONNOR,

Brenda E. Grantee: DEBTOR,

John

This transferred ownership of the property located at 123 HomeG to Mr. DEBTOR.

2220196 7/10/2006 Excise Tax Affidavit

Grantor: DEBTOR, Jane

Grantee: DEBTOR, John

This documents purchase price of this property. It was purchased for $450,000.00.

20060710001197

7/10/2006 Quit Claim Deed Grantor: DEBTOR, Jane

Grantee: DEBTOR, John

Jane DEBTOR relinquished all interest in the property to her husband as his property solely.

20060710001198 7/10/2006 Deed of Trust Grantor: DEBTOR, John

Grantees: Bank of New Amsterdam

This was the first Deed of Trust of two. Loan amount: $360,000

20060710001199 7/10/2006 Deed of Trust Grantor: DEBTOR, John

Grantee: Bank of New Amsterdam

This was the second deed of trust of two. Loan amount: $90,000 This meant that Mr. Debtor borrowed a total of $450,000 (two loans) to purchase this property for $450,000. This means that he had ZERO equity in this property and that he purchased it with “no money down.”

20111201000200 12/1/2011 Assignment of Deed of Trust

Grantor: John Debtor

Grantee: Bank of Lost River

Bank of New Amsterdam transferred ownership of the note (recording #20060710001198) to the Bank of New Lost River



Grantee: Bank National

Deed of Trust 20060710001199 transferred to Bank National

20121029002202 10/29/12 Appointment of Successor Trust

Grantors: John Debtor and Jane Debtor

Grantee: Company

Deed of Trust 20060710001199 is transferred to Company.

20121029002203 10/29/12 Full Reconveyance

Grantor: Company Grantees: John Debtor and Jane

Debtor

Deed of Trust 20060710001199 is fully reconveyed (paid off).



Grantee: Kim Green, PS

Bank of Mellon appointed attorney Kim Green PS as Successor Trustee




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(Ascending Order)


20141002001076 10/2/2014 Notice of Trustee’s Sale

Grantor: Karen L. Gibbon, PS

Grantee: John

Debtor

Mr. Debtor has been delinquent in his loan payments since December 1, 2010 through October 1, 2014. The total outstanding payments and late charges that were due as of the date of filing: $151,203.50. Sum owing on obligation secured by deed of trust: Principal: $376,817.67 plus interest. Last day to prevent sale: January 26, 2015. Date of scheduled sale: February 6, 2015.

Note that assuming that the market value of this home is the current assessed taxable value, $273,000.00 (source: King County assessor’s taxable value for year 2015), that there are no additional encumbrances on the property, this would indicate that Mr. DEBTOR has approximately $103,817.67 worth of negative net equity in this property, not including additional accruing interest, fees and penalties since 10/1/2014.

123 HomeB, Covington, WA 12345-6789: Address Parcel

# Owner/Taxpayer Assessed Value Remarks

123 HomeB,

Covington, WA

12345-6789

184206-0050

Jane and John DEBTOR $318,000.00

Abbreviated legal name: Lot 9 of Babson Heights

4 bedroom, 2.25 baths, 2040 square foot single family residence, built 1990 in average

condition




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Filing # Document Recording

Date (Ascending

Order)


20050225001207 2/25/05 Warranty Deed Grantors: Mark & Patricia

DEAL, husband and wife

Grantees: John and Jane DEBTOR,

husband and wife

This document transferred ownership of the property to : John and Jane DEBTOR. Sale date: 2/22/05.


Grantors: Mark & Patricia



husband and wife

This documents the purchase price of this property, $293,000.00.

20050225001209 2/25/05 Deed of Trust Grantors: John and Jane DEBTOR

Grantee: Another Bank

First Loan/Deed of Trust Amount: $234,000



Second Loan/Deed of Trust Amount: $58,600 Note that between the two loans used to purchase this property, this means that Mr. DEBTOR made a down payment of only $400.00 when he purchased this home for $293,000.

20050324000211 3/24/05 Statutory Warranty Deed

Grantors: Mark & Patricia



husband and wife

Sale re-recorded to correct minor admin error in previous statutory warranty deed #20050225008900



First Deed of Trust Loan amount: $234,400. This is a 30 year conventional note, at 6.4% interest.



Second Deed of Trust Loan amount: $58,600. This is a 30 year adjustable rate loan.


Grantors: John and Jane DEBTOR

Grantee: Another Mortgage Co

Another Bank transferred the deed of trust #20050411000213 to the Another Mortgage Company



Grantee: Another Mortgage Co

Another Bank transferred the deed of trust #20050411000212 to the Another Mortgage Company




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Date (Ascending

Order)


20070208000216 2/28/07 Assignment Deed of

Trust/Mortgage

Grantors: Another Mortgage Company,

John and Jane DEBTOR Grantee:

Something, Inc

Deed of Trust, recording #20050411000213, transferred to Something, Inc.

20080118000217 1/18/08 Lien Grantors: John and Jane DEBTOR

Grantee: Homeowner’s Association

Homeowner’s association filed a lien in the amount of $1340.00 for unpaid assessments of common expenses. Lien remains unsatisfied.

20090902000218 9/2/09 Judgment Grantors: John DEBTOR/Jerry

DEBTOR Grantees: RECOVERY SERVICES

This judgment apparently placed a lien on this property. Refer to King County District Court Case 85-008147 (listed above). Judgment was in amount of $1373.00. A writ of garnishment was issued and the judgment was satisfied on 3/18/2010. Reference filing: 20100318000219

20100318000219 3/18/2010 Lien Grantor: Recovery Services

Grantee: John

DEBTOR/Jerry DEBTOR

Judgment satisfied through writ of garnishment on 3/18/2010. Reference filing: 20090902000218

20120322000220 3/2/12 Lien Grantors: John DEBTOR, dba:

Learning Tree Grantee:

Washington State Government

Department of Social and Health Services lien in the amount of $2803.70. A check of the WA Department of Licensing revealed that Learning Center was governed by Harry DEBTOR, Mr. and Mrs. DEBTOR’s son. The business was closed in 2010. Lien remains unsatisfied.



Grantee: Foreign Bank

Deed of Trust referenced in 20050225001209 assigned to Foreign Bank National Trust Company

20130425001222 4/25/2013 Lien Grantors: John and Jane DEBTOR

Grantee Grantee: Sewer

District

Lien for sewer charges in amount of $438.36. Lien is still outstanding.

20131030001223 10/30/13 Sewer Lien Grantors: John and Jane DEBTOR

Grantee: Water & Sewer District

Lien on this property for unpaid water & sewer fees in the amount of $536.14. Lien is still outstanding.




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Date (Ascending

Order)




Sewer lien in amount of $536.47 Lien is still outstanding.



Sewer lien in amount of $457.13 Lien is still outstanding.

Note: The total value of outstanding liens which have been accruing since January 2008 on this property is $6111.80, not including any fees/penalties or interest that may be accruing. Best Case Scenario For This Property: Assuming that: (1) The market value of this property is the current assessed taxable value, $318,000 (Source: King County Assessor’s taxable value for year 2015), and (2) that there are no additional unknown encumbrances on this property, and (3) that Mr. DEBTOR has been current in his loan payments throughout the 117 months since the date of purchase of the home (2/25/2005) to today, (improbable) and (4) that the interest rate on both loans is 6.4% (this is probably optimistic) and (5) that Mr. DEBTOR borrowed a total of $292,600 over 30 years to purchase this property (Source: Deeds of Trust) Using an amortization table generator found at: http://www.myamortizationchart.com , and inputting the following information:




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It reveals that the amount still owing on the outstanding loans on this property after 117 months (time from date of purchase to today) would be $248,945.17.

By subtracting the amount assumed still owed on this property ($248,945.17) from the assumed current market value of the home ($318,000.00), less the total amount of outstanding liens against this property, ($6111.80) this would indicate that under the best case scenario, Mr. DEBTOR could have a positive total net attachable $62,943.03 worth of equity in this property. This is probably overly optimistic. I suspect that Mr. DEBTOR’s financial position in this property is worse than the above “best case” scenario. I suspect: (1) The home may have been allowed to deteriorate and is therefore not worth the current tax appraisal value. (2) Mr. DEBTOR could have defaulted on his payments long ago, and could owe far more on the loans than is indicated above. (3) This could be a “zombie” mortgage that the lender has simply not bothered to foreclose upon. I base my suspicions on Mr. DEBTOR’s documented character, the multiple liens on the property for non-payment of water/sewer, Mr. DEBTOR’s lack of any credible source of income, the fact that he “owns” three properties which are all distressed.




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Note that even in the “best case scenario,” Mr. DEBTOR may not have enough net attachable equity to force a sale of this property due to the Washington Homestead Exemption (see below). Washington Homestead Exemption: RCW 6.13.030 Homestead exemption limited. A homestead may consist of lands, as described in RCW 6.13.010, regardless of area, but the homestead exemption amount shall not exceed the lesser of (1) the total net value of the lands, manufactured homes, mobile home, improvements, and other personal property, as described in RCW 6.13.010, or (2) the sum of one hundred twenty-five thousand dollars in the case of lands, manufactured homes, mobile home, and improvements, or the sum of fifteen thousand dollars in the case of other personal property described in RCW 6.13.010, except where the homestead is subject to execution, attachment, or seizure by or under any legal process whatever to satisfy a judgment in favor of any state for failure to pay that state's income tax on benefits received while a resident of the state of Washington from a pension or other retirement plan, in which event there shall be no dollar limit on the value of the exemption. Note that there could be an exception to the above exemption in the case of fraud. Recommend you consider checking RCW Chapter 9a.82, Criminal Profiteering Act. ____________________________________________________________________ 123 HomeC, Kent, WA 98765-4321: Address Parcel # Owner/Taxpayer Assessed Value Remarks

123 HomeC,

Kent, WA 98765-4321

340230-0095

John DEBTOR $249,000.00

Abbreviated legal description:

Lot 1, Addition A to Home Town Single family residence, built 1966, 3

bedrooms, 2.5 baths, 2230 square feet of living space, good condition.




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Date (Ascending

Order)


20051003003231 10/3/05 Statutory Warranty Deed

Grantor: Carlita BUCCINI Grantee:

John DEBTOR

This documents the purchase of this property. Date of purchase: 9/28/05.


Grantor: Carlita BUCCINI Grantee:

John DEBTOR

Purchase price: $339,000.00


Grantor: Jane DEBTOR

Grantee: John DEBTOR

Ms. DEBTOR quit claimed all interest in this property to her husband.

Date of document: 9/28/05

20051003003234 10/3/05 Quit Claim Deed Grantor: Jane DEBTOR


This is the document referenced in Excise Tax Affidavit 2159233

20051003003235 10/3/05 Deed of Trust Grantor: John DEBTOR


First Loan/Deed of Trust: Amount: $271,200, adjustable rate

30 year mortgage with stated rate of 6.7%.

20051003003236 10/3/05 Deed of Trust Grantor: John

DEBTOR Grantee: Another

Bank

Second Loan/Deed of Trust $67,800. Terms unknown.

Note: This means that Mr. DEBTOR had ZERO equity in this property when he purchased it with “no

money down.” 20060202002237 2/2/06 Assignment of

Deed of Trust Grantor: John

DEBTOR Grantee: Mortgage

Electronic Registration Systems Inc.

Another Bank transferred the loan to Land American Transnation


Grantor: John DEBTOR

Grantee: Recontrust Company

Land American Transnation transferred the loan to Recontrust

Company

20080708000239 7/8/08 Notice of Trustee Sale

Grantor: Recontrust Company


The loan (recording #20051003003235) went into

foreclosure. Total arrears and fees due as of 7/8/08: $15,367.01. Deadline for correction of the

default: 9/29/2008.

20080808001240 8/8/08 Lien Grantor: John DEBTOR

Grantee: City of Kent, WA

Lien for water, sewerage and drainage in amount of $144.04. Lien is still outstanding.




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Date (Ascending

Order)


20081104000241 11/4/08 Lien Grantor: Seattle Granite & Marble

Inc Grantee: John

DEBTOR, Advantage Construction

Contractor’s lien in the amount of $1945.65. Lien is still outstanding.

20100412001242 4/12/10 Appointment of Successor Trustee


Grantee: Recontrust Company

The loan (recording #20051003003235) was transferred from Landamerican Transnation to

Recontrust Company NA. 20100826001243 8/26/10 Assignment Deed

of Trust/Mortgage


Grantee: Bank of New York Mellon

The loan (recording #20051003003235) was transferred

to the Bank of New York Mellon.

20110928000244 9/28/2011 Discontinuance of Trustee Sale

Grantor: Recontrust Company


Notice of Trustee Sale documented in filing 20080708000239, recorded

7/8/08 was discontinued.

See discussion below as to the possible interpretations of the

meaning of this. 20111110000245 11/10/11 Assignment Deed

of Trust/Mortgage


Grantee: Bank of New York Mellon

The loan (recording #20051003003235) was transferred from Land American Transnation to

The Bank of New York Mellon. 20130204000246 2/4/13 Lien Grantor: John

DEBTOR Grantee: City of

Kent, WA

Utility lien for water, sewerage and drainage in amount of $189.04.

Lien is still outstanding.

20140127000247 1/27/14 Lien- Real Estate Related



Utility lien in amount of $417.12.


20140708000248 7/8/14 Government Liens



Utility lien in amount of $579.96.


Note: The total value of outstanding liens on this property (which have been accruing since August 2008) is $3,275.81, not including any fees/penalties or interest that may be accruing. Best Case Scenario For This Property: Assuming that: (1) The market value of this property is the current assessed taxable value, $249,000.00, (Source: King County Assessor’s taxable value for year 2015), and (2) that there are no additional unknown encumbrances on this property, and




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(3) that Mr. DEBTOR has been current in his loan payments throughout the 109 months since the date of purchase of the home (10/3/2005) to today, (improbable) and (4) that the interest rate on both loans is 6.7% (this is probably optimistic) and (5) that Mr. DEBTOR borrowed a total of $339,000.00 over 30 years to purchase this property (Source: Deeds of Trust) Using an amortization table generator found at: http://www.myamortizationchart.com , and inputting the following information:

It reveals that the amount still owing on the outstanding loans on this property after 109 months (time from date of purchase to today) would be $294.935.52

By subtracting the amount assumed still owed on this property ($294.935.52) from the assumed current market value of the home ($249,000.00), less the total amount of outstanding liens against this property, ($3,275.81) this would indicate that under the best case scenario, Mr. DEBTOR would still have a total of ($49,211.33) worth of negative net equity in this property. This is probably overly optimistic. I suspect that Mr. DEBTOR’s financial position in this property is worse than the above “best case” scenario for the reasons listed previously.




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Additional Relevant Recorded Documents: The below listed recorded documents are from the King County Recorder’s Office, and are relevant to Mr. DEBTOR, but are not related to any single piece of real property. These represent additional encumbrances on Mr. DEBTOR.


(Ascending Order)


20121025000249 10/25/2012 Lien- Real Estate Related

Grantors: : John and Jane DEBTOR


Unpaid water/sewer. Amount owed as of filing date: $509.00

20121129000250 11/29/2012 Judgment Grantors: : John and Jane DEBTOR

Grantee: Contractors Indemnity Company

The predicating court case is listed in the litigation check above, King County Case #12-2-33136-5, filed 10/10/2012

Judgment #12-9-32135-4 issued against Defendants in the amount of $19,137.00, accruing interest at 12% per annum. Judgment is unsatisfied.


Grantee: Company Enterprises Inc.

Reference King County Superior Court Case 08-2-14154-6 listed above. Judgment #08-9-32155-5 issued

against Defendants in the amount of $15,553.22, accruing interest at 12% per annum. Judgment is unsatisfied.


Grantee: Collection Agency Inc.

Reference King County District Court Case 64-008161 (listed above)

Default judgment issued 1/25/07 in amount of $2,447.34. Judgment is

unsatisfied. Vehicles & Vessels: Note that each time an inquiry is made regarding an individual’s vehicles/vessels, the WA Department of Licensing is required to send a letter to the owner informing him/her that an inquiry was made regarding their motor vehicle(s). Listed below is a summary of vehicles & vessels owned by and registered to Mr. DEBTOR in Washington. RCW 46.12.635 Disclosure of names and addresses of individual vehicle owners. (Effective January 1, 2014.) (4)(a) Whenever the disclosing entity grants a request for information under this section by an attorney or private investigator, the disclosing entity shall provide notice to the vehicle owner, to whom the information applies, that the request has been granted. The notice must only include: (i) That the disclosing entity has disclosed the vehicle owner's name and address pursuant to a request made under this section; (ii) the date that the disclosure was made; and (iii) that the vehicle owner has five days from receipt of the notice to contact the disclosing entity to determine the occupation of the requesting party. (b) Except as provided in (c) of this subsection, the only information about the requesting party that the disclosing entity may disclose in response to a request made by a vehicle owner under (a) of this subsection is whether the requesting party was an attorney or private investigator. The request by the vehicle owner must be submitted to the disclosing entity within five days of receipt of the original notice. (c) In the case of a vehicle owner who submits to the disclosing entity a copy of a valid court order restricting another person from contacting the vehicle owner or his or her family or household member, the disclosing entity shall provide the vehicle owner with the name and address of the requesting party.

Searches were run under the names of both John and Jerry DEBTOR. .




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Color Year Make Model Registration VIN Remarks

Gold 2007 Nissan Versa 4 door

AQU1253 3N1BC11E87L421257

No lienholder. Registration valid through 7/21/15 Legal/registered owner: John G. DEBTOR

Maroon 1993 Ford Explorer ABK7254

1FMDU34X9PUD99258 No lienholder. Registration valid through 9/12/2015 Legal/registered owner: John G. DEBTOR

Green 1999 Dodge Dakota Pickup Truck

B878295 1B7FL26X1XS283259 No lienholder. Registration valid through 8/8/2015. Legal/registered owner: John G. DEBTOR

Not Listed 2003 Dodge Ram Pickup Truck

A265256 1D7HU18D93S326260 No lienholder. Registration expired 5/26/2005. Legal/registered owner: John G. DEBTOR

Bankruptcies: None found. This is significant, in that it means that Mr. DEBTOR still has this option and could still use it to discharge some of his outstanding debts. Child Support Obligations: None found. UCC Debtor Filings: None found This completes the assignment to date. The source documents from which this report was prepared will be uploaded to a secure OneDrive site in text-searchable PDF format. The documents will be available through a link to be sent under separate cover for 60 days from the date of this report. Please download the documents well before that. A separate investigation is pending for Mr. DEBTOR’s spouse. James A. Cronin, CFE

The material contained in this report is confidential. It is provided only as a tool to assist in discovery in anticipation of litigation. This report may include information received from various public and proprietary sources. Every attempt has been made to report the information accurately. Seattle Insurance and Legal Investigations cannot be held liable for inaccuracies contained in public or proprietary records. The user should consult the “official” records reposing at the document source. The client assumes full responsibility for any secondary release of information contained in this report.