All Things Real Estate: You can’t evict your mother from house she bought and paid for

By Tim Jones

All Things Real Estate: Tim Jones

Q: My widowed mother and I live in the same house. This is the house I grew up in and when I became an adult I moved out for almost 20 years. My father passed away two years ago and I moved back in to help take care of my mom. We both agreed it would be best if we put the house in both of our names so it would make it easier to manage it. We are both on title as joint tenants.

Throughout this year my mom’s health and mental stability has been getting worse and worse to the point where she is impossible to live with. She throws and breaks stuff, she tries to lock me out of the house, and last night she threatened me with a butcher knife. I want to put her in a nursing facility that can take better care of her and I told her that was what I intended to do. But she still thinks this is her house and she says she’s going to throw me out. She won’t listen when I explain things to her but it’s at the point where she has to go.

Obviously I have a big problem but I don’t know what to do. I hate to evict mom but that’s what it’s come down to.

A: Well, there’s a lot going on here which has nothing to do with real estate, but some of it does and because your problem isn’t as unique as you might think, I chose your email to answer this week.

First of all, Mom is right. It is her house. It may be yours, too, but she owns as much of it as you do. So from an ownership perspective, she has every right to live there.

The bad news for you is you can’t evict Mom. The good news is she can’t evict you, either.

Your email didn’t say anything about your mom having an estate plan, other than putting you on title to the house. As a joint tenant, when Mom dies, you will own the entire house.

But if Mom had an estate plan, it might include a medical power of attorney which would give you the right, probably after going to court, to become your mom’s conservator. As her conservator, you could place her in a nursing home.

But that presumes your mom is no longer able to take care of herself. Throwing things and trying to lock you out doesn’t necessarily mean she can’t take care of herself. And now that I think about it, neither does threatening you with a butcher knife. For all I know you may not be all that likable since you’re considering evicting your own mother from her own house.

Anyway, assuming there is no power of attorney, if you really believe your mother’s best interest is served by a conservatorship, you can go to court to ask to be appointed as her conservator.

This process is technical, and you will need the help of an attorney who specializes in conservatorships.

If your mother fights the conservatorship, or your appointment, she will have her own attorney who will attempt to convince the court she is able to take care of herself, both physically and financially.

Ultimately, there will be a hearing. Both sides will put on doctors to testify as to your mother’s state of mind.

The court also has a number of investigators who will interview Mom, do a little research and make recommendations to the judge.

In the end, you will either be appointed conservator of your mom and her estate or you won’t.

If you win, your problem is all but solved. If not, you’re left with three possible choices.

You can live in the home and make the best of it. You can move out. Or you can sue Mom to partition the property.

Partition actions are real estate lawsuits between co-owners of property in which one owner wants to cash out. It’s a real estate divorce.

Ultimately the court will order the sale of the property and decide how the proceeds are split.

While this is a legal remedy available to any co-owners of real estate, it seems pretty heartless in your case, considering Mom bought and paid for the house and you only got on title in order to “take care of my mom.”

Full Article & Source:
All Things Real Estate: You can’t evict your mother from house she bought and paid for

The Jason Hanson - Jared E. Shafer Story: "Special Administrator" Jared E. Shafer takes house and inheritance from 24-year-old man with cerebral palsy

The word sociopath is a noun meaning: Someone whose social behavior is extremely abnormal. Sociopaths are interested only in their personal needs and desires, without concern for the effects of their behavior on others.

This is the story of how Jason Hanson lost his inheritance, and hopefully its telling will lead to the prosecution of the sociopaths who profited from Jason's suffering.  In 2008, Jason's father Gerhard Hanson died without a will, but before his death told his only child, then-18 year old Jason who was born with cerebral palsy, that he would someday inherit his 1257 square foot three bedroom, two bath single story ADA compliant town house, built in 1992 in a gated community in Southwest Las Vegas, along with approximately $50,000 in savings.  Six years after his father's death, Jason is almost penniless, lives at taxpayer's expense in a group home with four other special needs residents, and is a client at *Opportunity Village.  This week, Jason told INSIDE VEGAS that Jared Shafer of Professional Fiduciary Services of Nevada, Inc. never gave him his inheritance.  Sadly, this was not the first time such a heinous accusation was made by an heir of one of Shafer's scandal plagued Clark County Family Court appointed wards or special needs trustees.

Several years before Gerhard Hanson's death, his son  - then a minor - became a special needs ward of the State of Nevada because his father's acute alcoholism kept him from adequately caring for his son's needs. For several years Jason, who is very intelligent, was shuffled between Child Haven, foster care, and group homes. Today, Jason, a part time college student, is just learning what happened to his father's estate including his childhood home that he had every legal right to inherit and live in.  Instead, according to Jason, his father's $50,000 life's savings is missing, and Shafer sold Jason's house for fifty cents on the dollar without his knowledge or consent, and kept the sale proceeds saying they were used to make the house salable.

Full Article and Source:
The Jason Hanson - Jared E. Shafer Story

Video Source:
Guardian Jared E. Shafer Exploits Special Needs Trust - Part One

Disbarred NY Lawyer, Robert Fontanelli, Indicted in $1 Mil Escrow Theft

A former attorney arrested last week by state police after an upstate traffic stop has been indicted for stealing the proceeds of a $1 million real estate transaction in Brooklyn from a client. Robert Fontanelli, 48, was charged by a grand jury with first-degree and second-degree grand larceny, both felonies, and faces up to 81/3 to 25 years in prison if convicted, according to the Brooklyn District Attorney's office.

Fontanelli is accused of draining the funds from the escrow account in which he deposited the proceeds of the sale of the mixed residential and commercial property at 798 St. John's Place in Crown Heights.

Authorities in Brooklyn said Fontanelli's client, Jean Apolon, never received any money from the December 2012 transaction.

"A lawyer's escrow account represents a sacred trust between himself and his client," Brooklyn District Attorney Kenneth Thompson said in a statement. "Stealing from that account violates that trust and is a stain on the profession."

Financial crime investigators in the Brooklyn D.A.'s office said Fontanelli, who had been a solo practitioner, used the money from the escrow account to pay the rent on an office at 32 Court St. in Brooklyn and to operate his business.

Full Article and Source:
Disbarred Lawyer is Indicted in $1 Million Escrow Theft

ABC Action News I-Team: Experts Say Court-Approved Sale Was Below Market Value

INDIAN ROCKS BEACH, Fla. -  The I-Team has uncovered a real estate transaction, done with the court’s approval, potentially benefiting an officer of the court.

The purchase involved an attorney hired to represent a woman who had been incapacitated and placed in Florida’s guardianship system.

 Experts say the attorney didn't pay a fair price for the property and walked away with a big real estate bargain.

 Jacqueline Harwood, now 77-years-old,  lived in the home from the time it was built in the 1940's until last June.

 “This is a good lot here. It's deep and it has water access to the Inland Waterway,” said Arthur Goetz, describing his neighbor’s home. “It’s a nice piece of property.”

 Filled with a lifetime of belongings, it needs updating, but it meets the number one rule in real estate.... location.

 “It's a quiet little street, tucked away in its own private oasis where you can put your boat dock, mangrove lined canals, and when you look out, you can see the Gulf of Mexico. It's something unique,” said Jeff Beggins, a broker for Century 21 who oversees 300 agents in 11 offices.

 The sale of the home was approved by a Pinellas County Probate judge in December for $165,000.

 “I just think that’s way under market value,” said Goetz.

 Harwood was declared incapacitated by a court in June of 2013 after showing signs of dementia, like repeatedly locking herself out of her home and walking down the street in her bathrobe during the day.

Patricia Johnson was appointed as her professional guardian after she told us she was contacted about the case by the Florida Department of Children and Families.

 The I-Team has referred to some of Johnson’s other cases as part of our series of reports on Florida’s guardianship system.

 Johnson moved Harwood into an assisted living center and hired attorney Gary Fernald to serve as Harwood’s guardianship attorney.

 “Typically the lawyer has a relationship with the guardian, but they're both paid out of the assets of the ward,” said retired Hillsborough County Judge Susan Sexton, who has overseen thousands of guardianship cases.

 Sexton says part of the attorney's role is to make sure every transaction involving the ward's assets is done by the book.

 “Absolutely, that is the attorney's role,” she said.

 The sale of Harwood's home would help pay for her future care, but the house was never put on the market by a realtor.

 Court records show, however, that a company called Rebecca Jane and Associates, LLC., which is not a registered company in Florida, offered to buy the home in November.

 Attorney Gretchen-Elizabeth filed that petition to sell the home on Johnson’s behalf.

 When the I-team questioned the transaction, both Gretchen-Elizabeth and Johnson resigned.

 “Shortly after the hearing was set, Mrs. Johnson made the decision to resign as Mrs. Harwood’s guardian,” said Fernald, in an e-mail sent to the I-Team. “At that point Gretchen-Elizabeth canceled the hearing and withdrew her appearance.  Judge St. Arnold signed the first order approving the sale on November 20, 2013.   Mrs. Johnson filed her petition for discharge on November 27, 2013.”

 It turns out the original buyer was actually Gary Fernald, the attorney who asked for Harwood to be incapacitated.

In December, Judge Jack St. Arnold signed an order allowing Fernald to buy his former client's home for $165,000.

Full Article, Video and Source:
I-Team:  Experts Say Court-Appointed Sale Was Below Market Value


Source:
Real Estate Deal Questioned

See Also:
Jeff Brandes:  Bill Would Help Keep Unscrupulous Guardians in CheckABC Action News I-Team:  Al Katz Center Educates and Fights Against Abusive Professional Guardianships

ABC I-Team Investigation: Family Members Raise New Questions About Guardianship Program in Florida

In September, the I-Team introduced you to Patricia Johnson, a Pinellas Park City Council woman who serves as a professional guardian for 50 wards.

Now, there are new questions about how she handles her cases.

Family members of other wards are now speaking out about their experiences with the professional guardianship program.

“Birthday parties, Christmases, everything. My grandmother raised me for a good section of my life,” said Amy Eldridge.

[In] 2008, Amy's grandmother Rita was declared incapacitated by the court.

Amy says she doesn't know why.

Rita was removed from her house and Patricia Johnson became her court-appointed professional guardian.

Amy's father James took care of his mother in her house at the time.

“There was no family that they knew of when they were going through the process,” Amy said, describing how it was reported to the judge that Rita Eldridge had no one to care for her, even though her father was living in the house with his mother at that time.

Johnson evicted James on Rita's behalf and obtained a nearly $5,000 judgment to pay the legal bill.
Rita Eldridge was moved to a nursing home.

Her own home was sold for less than half its appraised value.

“We were told that, basically, we were stealing if we took anything from the house,” said Amy Eldridge.

As for the sentimental things left in the home, “They were all taken from the house and thrown away. There was no ‘hey, we've gotten everything of value out of this house, if you would like to come rummage through this, you can get what's left. It was ‘everything in the house needs to stay, you just need to go and everything's ours now.’"

Everything was sold for $295 to the same man court records show bought several wards' possessions, including those of Rebie Jimenez for $100.

“I was never allowed into the house to go through any of my mom's belongings or even our items as we were growing up as kids,” said Cindy Lee, Jimenez’s daughter.

Before being incapacitated, Jimenez lived with her husband Fernando, who Patricia Johnson also evicted immediately.

Lee said that her mother’s husband Fernando, who lived in the home for 25 years, was locked out of his residence by Johnson.

He died several days after his wife was taken away.

“I was like wow, how can this have happened? They removed her, then a total stranger came in and took over and then next thing I know, immediately, there was a for sale sign up,” said Lee.

The home sold for $85,000 to an investor, who resold it for $170,000 four months later.

Rebie Jimenez is now in the memory unit at Grand Villa.

Rita Eldridge passed away last November.

“I felt like my grandmother was in prison. I had to go to her warden to make sure everything was ok. So that I could see her,” said Amy Eldridge.

Johnson refused multiple requests for an interview.

Full Article, Video and Source:
Family members raise new questions about guardianship program in Florida

See Also:
ABC Action News:  Questionable Guardianship Real Estate Transactions

FL: ABC Action News I-Team: "Incapacitated: Florida's Guardianship Program"

The ABC Action News I-Team first started looking into Florida’s Guardianship Program after we learned 99-year-old William Berchau had been placed in an Alzheimer’s unit by his guardian, despite strong evidence from those who know him best that he didn’t belong there.

We soon began looking at more than 50 other cases involving his guardian, Patricia Johnson, and Florida’s guardianship system.

The I-Team discovered a system that claims to look after wards’ best interests, but has very little oversight outside of the courtroom.

In Florida, guardians are not required to get appraisals before selling wards’ homes, leading to homes often selling far below their actual values (meaning less money is available for wards’ care). Guardians also aren’t required to be accompanied while doing initial inventories of personal possessions. Often, relatives aren’t allowed to review what reportedly came out of their loved ones’ homes.

Guardians use the “honor system” when submitting bills.

Judges, in some cases, have disregarded signed legal documents that delegated powers-of-attorney, medical decision-making and other legal authorities to their relatives before wards were incapacitated.

The I-Team interviewed friends and family members of wards, experts in the guardian field and others to get a deeper sense of what’s going on within this system that remains invisible to most members of the public.

Source:
Incapacitated:  Florida's Guardianship Program

ABC Action News: Who is William Bercheau?

William Bercheau started our investigation into the professional guardian program in Florida when the ABC Action News I-Team discovered he was placed in an Alzheimer's unit, even though there was strong evidence he didn't belong there. 

 Since then, we've been digging deeper... preparing to reveal what we discovered in a series of stories starting Monday.

 William Berchau was born in Lithuania in 1914.

He fled to Germany during Joseph Stalin's rise to power, then immigrated from Germany to the United States to escape Adolph Hitler's regime.

Berchau had a long career as an employee of the Illinois Central Railroad.  He and his wife retired in Clearwater, Fla.

Shortly after her death in 2010, he attempted to sell his house and was soon taken into the Florida Guardian Program.

Patricia Johnson was appointed his professional guardian late that year. He has tried to have her removed on several occasions, to no avail.

Watch the video of William Berchau telling his story in his own words.

See also:
ABC Action News:  Questionable Guardianship Real Estate Transactions

ABC Action News: Questionable Guardianship Real Estate Transactions

When we started looking at real estate transactions in guardianship cases in Pinellas County, FL, we found some disturbing trends.

We discovered that judges routinely approved the sale of wards' homes (in most cases, their largest asset) without obtaining appraisals from a certified appraiser.

Guardian Patricia Johnson has used fellow Pinellas Park City Council member Richard Butler (who was her campaign manager) to conduct nearly all of the sales of ward's homes since 2010.
Records show Butler has sold 14 of Johnson's ward's homes for a total of $1,252,500.

On Sept. 13, 2013, Richard Butler listed Jennie Shabych's home located at 2863 26th Ave N., St. Petersburg and got a contract on it the same day. Shabych, however, was not incapacitated by the judge's order until September 16th, 2013.

Claudette Batton's home 216 54th St. N., St. Petersburg sold twice on Nov. 8, 2012. The first time, it sold for $52,500, then again for $58,500.

Rebie Jimenez's home at 5965 15th St N., St. Petersburg sold for $85,100 on Oct. 5, 2012 and was resold on Feb. 28, 2013 for $170,000.

Ronald Till's home at 6141 26th Ave N., St. Petersburg sold for $69,000 on Sept. 27, 2012. It was resold for $132,000 on Mar. 22, 2013.

Source:
Questionable Guardianship Real Estate Transactions

Dan Harkey Trial in Progress

[Feb. 18, 2009: Orange County Real Estate Lender Dan Harkey is accused of bilking investors,alleging he "exaggerated the value of properties used as collateral by borrowers," bilking dozens of investors out of more than $15 million. Harkey denied wrongdoing, blaming the downturn in the real estate and financial markets.

Many victims of this scheme were elderly.]

Investor Losses Caused by "Catastrophic Change in Market"
Point Center Financial continued collecting millions of dollars in fees on foreclosed loans while refusing to let investors withdraw their money, founder Dan Harkey admitted on the witness stand this week.

Harkey blamed a "catastrophic change in the market" for massive losses that landed him in court.

Investors are suing Harkey, his wife, Assemblywoman Diane Harkey, R-Dana Point, and his Aliso Viejo company, Point Center Financial, for $43 million in Orange County Superior Court.

The fraud trial, now in its fourth week, is expected to last into June.

Full Article and Source:
Investor Losses Caused by "Catastrophic Change in Market"

For more information:
PointCenterInvestigation.com

READ the complaint

Fateful Week for the Harkeys of Dana Point

Assemblywoman Diane Harkey's Civil Trial Delayed