Wells Fargo Can Proceed With This Florida Foreclosure, But Will It Stop Amid Pandemic?
The decision comes as Wells Fargo has separately advised the public that it would pause foreclosures amid the coronavirus pandemic.
March 30, 2020 at 03:37 PM
4 minute read
A federal bankruptcy court in Florida has given Wells Fargo Bank permission to enforce its rights and remedies in state court to foreclose on a Monroe County couple's home. The decision comes as the bank has separately advised the public that it would pause foreclosures amid the coronavirus pandemic.
On Monday, the bankruptcy court entered an order granting Wells Fargo stay relief but directed Wells Fargo to "not seek entry of an ex parte order resetting the sale while the current COVID-19 emergency procedures are in effect."
Instead, the bankruptcy court only authorized Wells Fargo to file a motion on notice to defendants Susan and Lee Rohe, requesting a hearing on a motion to reset the foreclosure sale.
But the Florida couple involved in the litigation says it worries about what could follow.
"By getting the stay removed, Wells Fargo believes that it is now free to seek an order from the trial court in the Keys to sell our home as soon as possible," Susan Rohes said, "regardless of the courthouse being closed and that we've all been told to self-quarantine in our homes."
Michael Winston, the Carlton Fields attorney who represents Wells Fargo, declined to comment on the pending litigation.
In a statement to the Daily Business Review, Senior Vice President of Consumer Lending Communications Tom Goyda, said after publication: "During the ongoing COVID-19 situation, Wells Fargo has temporarily stopped all foreclosure sales and evictions, and that would apply to the Rohe's property."
The case dates back years. In May 2016, Monroe Circuit Judge James Barton II issued a final judgment in favor of the defendants. The judgment was entered against Wells Fargo in the foreclosure action on a property along the 2000 block of Palm Beach Road in Big Pine Key. The basis for the judgment was that Wells Fargo did not have standing to pursue the foreclosure action.
In a second foreclosure case brought by Wells Fargo, Barton entered an ex parte order in December 2018 in favor of Wells Fargo resetting the foreclosure sale of the defendants' home in three months.
A month later, the Rohes filed an appeal of the second foreclosure judgment with the Third District Court of Appeal in Miami. However, the appellate court did not vacate the order of sale.
Soon after, in February 2019, Susan Rohe filed for bankruptcy, intending to have the bankruptcy court stop the impending sale. Based upon her filing in the bankruptcy case, the Monroe Circuit Court canceled the foreclosure sale for a second time. Then, in September 2019, Lee Rohe filed his own bankruptcy case.
In both the Rohes' bankruptcy cases, Wells Fargo filed motions for relief from the automatic stay so that it could proceed to a foreclosure sale of the Rohes' residence in Big Pine Key.
Lee Rohe filed a motion in his bankruptcy case responding to Wells Fargo's efforts to continue to a foreclosure sale. He requested that the bankruptcy court continue the automatic stay against Wells Fargo foreclosing, based in part on his difficulty in finding another residence amid the coronavirus pandemic.
In his motion, Mr. Rohe pointed out that on March 18, Ben Carson, the secretary of the U.S. Department of Housing and Urban Development, imposed a moratorium on foreclosure and evictions for on properties with Federal Housing Administration-insured single-family mortgages for 60 days.
Two days later, Wells Fargo, in a press release, said it would suspend residential property foreclosure sales, evictions and involuntary auto repossessions in response to the impact the coronavirus is having on customers, communities and employees.
Now, the defendants plan to ask for attorney fees, court costs, and "any other damages the court can afford" for what they say is an ordeal from Carlton Fields and Wells Fargo.
"We don't even have any other debts," Susan Rohes said. "We have no credit card debt, no medical bills. Nothing,"
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