David Trott’s Lucrative Incentive To Kick People Out Of Their Homes By Any Means Necessary
The other day the campaign of Michigan Congressman Kerry Bentivolio issued a press release stating that his opponent, El Gringo Bandito and financial terrorist David Trott hates veterans because of Trott is representing a lender who is currently foreclosing on an ailing 82 year old Korean War veteran. Benivolio’s campaign also linked to a blog I wrote from December of 2012 about a former Green Beret and his autistic son in Northern Michigan that Trott & Trott attempted to illegally foreclose on. It was stopped after MFI-Miami started a firestorm with our contacts in financial media. The global media attention forced JPMorgan Chase to remove Trott from the because it became such an embarrassment to JPMorgan Chase CEO Jamie Dimon that he had no other choice but to replace Trott with one of JPMorgan’s corporate attorneys from their Maiden Lane headquarters.
This press release led to former Republican Michigan State Representative Chris Ward to comment about it on Facebook. Like most things Chris posts on Facebook, a thread developed with people debating the press release. However, unlike most Facebook threads that turn into name calling and the other vitriol comments, this thread turned into a great conversation between Chris and a handful of other people and me about how foreclosure mills, namely, Trott & Trott operate and David Trott’s business practices.
What most people fail to understand is that Trott’s firm like Orlans Associates and Democratic Lieutenant Gubernatorial Candidate Lisa Brown’s brother’s firm, Randall Miller & Associates is that they have more in common with a car dealership than they do an actual law firm. The business model of foreclosure mills is based on the amount of volume they push out the door rather than the cases they litigate.
Trott, unlike the rest of his Michigan competitors, has a near monopoly on everything foreclosure in Michigan. Trott’s vast foreclosure empire includes, the Detroit Legal News and it’s sister publications throughout Michigan that advertise 80% of the foreclosures in Michigan, Greco Title and Seaver Title which he merged with Lawyers Title several years ago and the Coldwell Banker Weir Manuel Real Estate offices through out southeast Michigan.
Having this vast empire gives Trott a serious financial incentive in kicking people out of their homes either legally or illegally. Trott’s firm gets paid roughly $5,000 to $7,500 to handle a foreclosure for a lender. If the homeowner successfully saves their home with loan modification or can show the lender and Trott’s client lacks standing, then Trott makes $5,000 to $7,500.
If the homeowner does not contest the foreclosure or is unsuccessful at stopping the foreclosure, which thanks to Trott’s political influence and a lazy judiciary in Michigan is 95% of the time, Trott hits the jackpot. After the homeowner is removed from the property, Trott’s title company clears any title issues and then hands it off to Coldwell Banker Weir Manuel Real Estate to sell on behalf of his lender client. Trott then receives roughly $2,000 to $2,500 for preparing the title work and doing the the post-foreclosure sale of the property.
The fees he receives for doing title work is paltry compared to the amount he makes selling the properties. The vast majority of these foreclosed homes are not sold individually as is popularly believed. They are sold in bulk to institutional investors with Trott’s real estate office receiving 6% of the sales price as a commission.
These are the numbers that Trott doesn’t want the public to know because it lends credibility to what his critics have been saying about his business practices since the housing crisis began.
When you break the numbers down, Trott through his various firms makes roughly $25,000-$30,000 for a typical $150,000 home in Michigan, he successfully forecloses on, takes possession of and sells for his clients.
So in other words, David Trott has no incentive to work with homeowners to keep them in their homes when he can make roughly four times more money ramming a foreclosure through by any means necessary even when his client lacks standing. Therefore, he has an incentive to commit perjury, having his employees file false documents on public records and everyone’s favorite crime, robo-signing.
As any foreclosure defense attorney knows that even when Trott’s lawyers were required to mediate under Michigan law his firm did everything they could to skirt mediation by keeping homeowners on hold for nearly an hour or two and filing false affidavits with the courts saying they complied with those mediation laws when they didn’t. They would also not show up for appointments and then sign affidavits saying the client never showed up for the mediation.
Trott & Trott purposely commits “Dual Tracking” which is nothing more than a bait and switch tactic and is violation of the Dodd-Frank Act.