Harris County Case 2021-31205
Status: Arbitration Compelled by Defendants
On July 23, 2020, Eliason Fields, LLC executed a promissory note (“Note”) in the original sum of $491,800.00 payable to the order of Zeulending.com, for the property located at 3603 N. Braeswood Boulevard, Houston Texas 77025 (the “Property”).
Sara lived at the Property and intended to use the Property as her homestead. Because the Property needed remodeling and construction work, the Loan was structured so that $49,900.00 was held by Zeus in an escrow account reserved for repairs and renovations. As construction supplies or materials were needed, Sara was supposed to request a draw from the escrow account.
The Loan terms and communications between Zeus and Sara were shaky from the start. The Note called for the first payment to be due on September 1, 2020, however on September 1, 2020, Patricia Simon, a senior loan officer at Zeus, emailed Sara:
Ms. Eliason:
The ACH from August REI has been cancelled. As long as you can get the draw figured out by Friday, we will be able to take your payment out of that draw.
If it goes past that, you will need to make the payment to August REI online.
I apologize for any inconvenience my mistake caused for you. There was so much back and forth at the time of closing that I mistakenly put in your strategy session that your first payment was in October.
Patricia SimonZeus canceled the payment and immediately caused the Loan to be in default on day one. Later that same day, Sara was pre-approved for refinancing with Zeus and met with Ms. Simon and other Zeus loan servicing representatives. Neither Ms. Simon, nor any of the other representatives informed Sara that the first payment was due that day.
On September 15, 2020, Ms. Simon emailed Sara that according to the last appraisal, the Property was worth $850,000.00. Ms. Simon also noted that it was Sara’s primary residence.
On September 16, 2020, Sara received a call from August REI regarding the September 1, 2020 payment, and noticed that Zeus took it out of the draw, yet did not send it to August REI.
On October 2, 2020, Sara emailed Zeus asking if it had received her payment for October 1, 2020. Zeus responded that it was “in for approval”. Zeus then informed Sara that it would not release the draw funds to Sara for the September payment owed.
On October 6, 2020, Sara emailed Zeus asking why the draw has taken so long compared to the first draw.
On October 7, 2020, Zeus responded that it could not approve the draw funds and that the amounts due must be paid in order to receive the draw funds.
On October 8, 2020, Zeus informed Sara that the total amount due to be current was $9,735.51.
On October 12, 2020, Zeus emailed Sara that due to non-payment, the Loan is going to be sent to legal for collection and only then did Sara find out that Zeus refused to release the draw funds “due to the 1st month default”.
By October 20, 2020, Sara began receiving notice of foreclosure letters from Harmon on behalf of Zeus, stating that the Property was to be sold at a November 3, 2020 foreclosure auction. Sara requested a payoff amount which, according to Zeus, was now $544,159.20 – $52,359.20 more than originally borrowed just weeks before.
On April 2, 2021, Judge Hidalgo issued the same “Order By the County Judge of Harris County (Temporarily controlling the occupancy of a premises)” stating, in pertinent part,
NOW THEREFORE, I, COUNTY JUDGE FOR HARRIS COUNTY, TEXAS, PURSUANT TO THE AUTHORITY VESTED BY THE TEXAS GOVERNMENT CODE CHAPTER 418, HEREBY FIND AND ORDER:
. . .
That the sales described herein shall not proceed.
On April 6, 2021, Defendants disregarded the County Judge’s Order and conducted an unlawful foreclosure sale.
Dasigenis, as substitute trustee, sold fifteen (15) properties that day, four of which were sold to third parties. Plaintiff’s Property was sold to Steven Kaufman’s company, New York Mutual, LLC, for $400,000.00.
On April 7,2021, the following day, Sara returned to the Property during the day to find several men apparently from Zeus in her driveway and in her home. They informed Sara that the Property was sold, that she no longer owned the Property, and that if she did not leave, that they would have a constable forcibly remove her by the week’s end. At the time, Sara had about $50,000.00 worth of appliances, upgrades, personal items, and materials inside the Property—-none of which have been returned to Sara.
Source: Plaintiff’s Original Petition filed 5/25/2021 (emphasis added)