Two Possibilities for the Missing Bank of Ann Arbor Sheriff's Sale Funds
To sum up there are unaccounted funds from the Sheriff’s sale that the Bank of Ann Arbor is refusing to tell us where the funds went.
There are two possibilities:
1. The bank “bought” the Sheriff’s sale properties and falsely told the Sheriff that it did a credit bid for $1.4M as that amount is not reflected on the bank’s ledger sheet for the mortgage. Once again the Feb 26 2018 $1.15M payment against the loan was AFTER the six month redemption period ended AFTER the bank owned 620/630 Geddes Ridge outright. The bank refused to tell us what the source of the $1.15M was. This would mean the bank obtained the Sheriff's deeds without spending a penny.
OR
2. The bank paid a secret (fraudulent) superseding lien/financial encumbrance in the amounts of $1.4M which would have to predate the January 2013 Bank of Ann America mortgage for 1745 Brian Court which was recorded at the Washtenaw County Register of Deeds as having first lien position on the mortgage given that 1745 Brian Court was used as collatoral for the 2015 Bank of Ann Arbor mortage loan. The Bank of America mortgage was not paid by the Bank of Ann Arbor
- This would mean that the bank was out the $1.4M from the balance of the mortgage owed (per the bank ledger) and then the bank paid out another $1.4M to the secret superseding lien/financial encumbrance. If you subtract the $1.15M principal payment against the loan then the bank was out $1.65M. The fact that the 1099C tax form only wrote off $280K of debt means the bank was hiding this/covering it up.
-Perhaps this explains why the various parties we paid through court settlements would not provide us with W-9 forms so we could issue 1099s for the court settlements (which are required by the IRS)? If you add up the money we paid through the court settlements and to Paul Cronin and Aine Kelly for their promissory note the amount matches $1.4M. We wrote Prosecutor Savit and AG Nessel about this (email attached) but never heard back. Was this a recycling scheme in which funds were collected via the court settlements and the Cronin/Kelly promissory note with the various parties then paying off the outstanding debt?
Clearly the bank is hiding something here.
