Filing # 23275828 E-Filed 02/03/2015 01:25:45 AM

THIS IS NOT A COMMERCIAL FORCLOSURE

IN THE CIRCUIT COURT OF THE

FIFTH JUDICIAL CIRCUIT FLORIDA
IN AND FOR MARION COUNTY

REVERSE MORTGAGE SOLUTIONS, INC.,

Plaintiff,
vs.

CASE NO.: 2013-CA-000115

42-2013-CA-000115-AXXX-XX
Residential Home Foreclosure Case
Florida Homestead of Neil J. Gillespie

NEIL J. GILLESPIE AND MARK GILLESPIE

AS CO-TRUSTEES OF THE GILLESPIE
FAMILY LIVING TRUST AGREEMENT
DATED FEBRUARY 10, 1997, ET AL.
Defendants.
________________________________________/
DEFENDANTS ANSWER TO VERIFIED COMPLAINT TO FORECLOSE
HOME EQUITY CONVERSION MORTGAGE (HECM); DEFENSES AND CLAIMS IN
RECOUPMENT; OTHER DEFENSES; COUNTER-CLAIMS; AND CROSS-CLAIMS
Defendants Neil J. Gillespie, individually, and as former Trustee (F.S. Ch. 736 Part III)
of the terminated Gillespie Family Living Trust Agreement Dated February 10, 1997
(Terminated Trust), a person with disabilities, indigent, denied counsel appointment, and
reluctantly appearing pro se, answers the Plaintiffs Verified Complaint To Foreclose Home
Equity Conversion Mortgage (HECM) (Verified Complaint, HECM, and/or reverse
mortgage), demand trial by jury, and allege:
1.
As to paragraph 1 of the Verified Complaint, Defendants deny the allegations. A HECM
reverse mortgage is a non-recourse loan and the lender has no further means to collect the debt.
2.
As to paragraph 2 of the Verified Complaint, Defendants deny the allegations. A HECM
reverse mortgage is a non-recourse loan and the lender has no further means to collect the debt.
There nothing is attached to the Verified Complaint as Exhibits "A" and "B," respectively.
Previously I notified HUD and RMS that the mortgage alleged to be recorded in the public
records of Marion County was void for interlineation, a hand-written material alteration, not
initialed and not dated. See Bland v. Fidelity Trust Co., 71 Fla. 499, 71 So. 630 (1916). Under
Florida law a material alteration voids the instrument and destroys the identity of the contract
rendering it unenforceable. The interlineation is evidence of fraud by the lender and/or lenderaffiliated parties.

DEFENDANTS ANSWER TO VERIFIED COMPLAINT TO FORECLOSE

HOME EQUITY CONVERSION MORTGAGE (HECM); DEFENSES AND CLAIMS IN RECOUPMENT;
OTHER DEFENSES; COUNTER-CLAIMS; AND CROSS-CLAIMS

3.
As to paragraph 3 of the Verified Complaint, Defendants deny the allegations. Nothing
is attached to the Verified Complaint as Composite Exhibit "C." A HECM reverse mortgage is a
non-recourse loan and the lender has no further means to collect the debt.
4.
As to paragraph 4 of the Verified Complaint, Defendants deny the allegations. A HECM
reverse mortgage is a non-recourse loan and the lender has no further means to collect the debt.
5.
As to paragraph 5 of the Verified Complaint, Defendants admit the allegation. Each
month the Plaintiff sends a monthly statement to Penelope Gillespie, see attached. The Plaintiff
sued the wrong party. A HECM foreclosure must commence within 6 months. 24 C.F.R.
206.125(d)(1). Bank of America gave notice October 5, 2009 the mortgage was due and payable.
The Plaintiff did not foreclose until January 9, 2013. The time has expired, even under Fla. law.
A HECM reverse mortgage is a non-recourse loan and the lender has no further means to collect
the debt.
6.
As to paragraph 6 of the Verified Complaint, Defendants deny the allegations. A HECM
reverse mortgage is a non-recourse loan and the lender has no further means to collect the debt.
The property is the principal residence of me, Neil J. Gillespie, my homestead property, which is
exempt from levy and execution under Section 4, Article X of the Florida State Constitution.
7.
As to paragraph 7 of the Verified Complaint, Defendants deny the allegations. A HECM
reverse mortgage is a non-recourse loan and the lender has no further means to collect the debt.
The Plaintiff filed notice of lis pendens on or about January 9, 2013. Validity of a notice of lis
pendens is one year from filing. 48.23(2), Fla. Stat. (2013). The Plaintiff failed to renew the lis
pendens and it is not valid. Pursuant to my authority as Trustee of the Trust, and acting in that
capacity, I transferred the property to the beneficiary, myself, on January 14, 2015. Pursuant to
my authority as Trustee of the Trust, and acting in that capacity, I terminated the Trust as
provided by Fla. Stat. 736.0414, and Article V, the Trust.
8.

As to paragraph 8 of the Verified Complaint, Defendants deny the allegations.

9.
As to paragraph 9 of the Verified Complaint, Defendants deny the allegations. A HECM
reverse mortgage is a non-recourse loan and the lender has no further means to collect the debt.
10.
As to paragraph 10 of the Verified Complaint, Defendants deny the allegations. A HECM
reverse mortgage is a non-recourse loan and the lender has no further means to collect the debt.
11.
As to paragraph 11 of the Verified Complaint, Defendants are without knowledge and
therefore deny the allegations. A HECM reverse mortgage is a non-recourse loan and the lender
has no further means to collect the debt.
12.
As to paragraph 12 of the Verified Complaint, Defendant denies the allegations. The
Plaintiff failed to perfect service on me personally and as Trustee. A HECM reverse mortgage is
a non-recourse loan and the lender has no further means to collect the debt.

DEFENDANTS ANSWER TO VERIFIED COMPLAINT TO FORECLOSE

HOME EQUITY CONVERSION MORTGAGE (HECM); DEFENSES AND CLAIMS IN RECOUPMENT;
OTHER DEFENSES; COUNTER-CLAIMS; AND CROSS-CLAIMS

13.
As to paragraph 13 of the Verified Complaint, Defendants are without knowledge and
therefore deny the allegations. A HECM reverse mortgage is a non-recourse loan and the lender
has no further means to collect the debt.
14.
As to paragraph 14 of the Verified Complaint, Defendants deny the allegations. The
record shows the Plaintiff failed to effectuate service of process on Defendant, NEIL J.
GILLESPIE AND MARK GILLESPIE AS CO-TRUSTEES OF THE GILLESPIE FAMILY
LIVING TRUST AGREEMENT DATED FEBRUARY 10,1997, which is not a proper party.
Pursuant to my authority as Trustee of the Trust, and acting in that capacity, I terminated the
Trust as provided by Fla. Stat. 736.0414, and Article V, the Trust. A HECM reverse mortgage
is a non-recourse loan and the lender has no further means to collect the debt.
15.

As to paragraph 15 of the Verified Complaint, Defendants deny the allegations.

16.
As to paragraph 16 of the Verified Complaint, Defendants deny the allegations. On
information and belief, the Plaintiff failed to follow the procedure for constructive service of
process, and appointment of guardian ad litem for UNKNOWN SPOUSE OF ELIZABETH
BAUERLE. A HECM reverse mortgage is a non-recourse loan and the lender has no further
means to collect the debt.
17.
As to paragraph 17 of the Verified Complaint, Defendants are without knowledge and
therefore deny the allegations. A HECM reverse mortgage is a non-recourse loan and the lender
has no further means to collect the debt.
18.
As to paragraph 18 of the Verified Complaint, Defendants deny the allegations. The
record shows the Plaintiff failed to effectuate service of process on UNKNOWN TENANT IN
POSSESSION 1 and UNKNOWN TENANT IN POSSESSION 2. A HECM reverse mortgage is
a non-recourse loan and the lender has no further means to collect the debt.
19.
As to paragraph 19 of the Verified Complaint, Defendants deny the allegations. ORHA is
an improper party. A HECM reverse mortgage is a non-recourse loan and the lender has no
further means to collect the debt.
20.
As to paragraph 20 of the Verified Complaint, Defendants deny the allegations. A HECM
reverse mortgage is a non-recourse loan and the lender has no further means to collect the debt.
21.
As to paragraph 21 of the Verified Complaint, Defendants deny the allegations. A HECM
reverse mortgage is a non-recourse loan and the lender has no further means to collect the debt.
22.
As to paragraph 22 of the Verified Complaint, Defendants deny the allegations. Plaintiff
failed to make service of process on THE UNKNOWN TRUSTEES, SETTLERS AND
BENEFICIARIES or other parties claiming an interest in the subject property by, through, under,
or against UNKNOWN SETTLERS/BENEFICIARIES OF THE GILLESPIE FAMILY LIVING
TRUST AGREEMENT DATED FEBRUARY 10, 1997. The Plaintiff failed to follow the
procedure for constructive service of process, and appointment of guardian ad litem for THE

DEFENDANTS ANSWER TO VERIFIED COMPLAINT TO FORECLOSE

HOME EQUITY CONVERSION MORTGAGE (HECM); DEFENSES AND CLAIMS IN RECOUPMENT;
OTHER DEFENSES; COUNTER-CLAIMS; AND CROSS-CLAIMS

UNKNOWN TRUSTEES, SETTLERS AND BENEFICIARIES OF UNKNOWN

SETTLERS/BENEFICIARIES OF THE GILLESPIE FAMILY LIVING TRUST AGREEMENT
DATED FEBRUARY 10, 1997. Pursuant to my authority as Trustee of the Trust, and acting in
that capacity, I terminated the Trust as provided by Fla. Stat. 736.0414, and Article V, the
Trust. A HECM reverse mortgage is a non-recourse loan and the lender has no further means to
collect the debt.
23.
As to paragraph 23 of the Verified Complaint, Defendants deny the allegations. A HECM
reverse mortgage is a non-recourse loan and the lender has no further means to collect the debt.
The Plaintiff filed notice of lis pendens on or about January 9, 2013. Validity of a notice of lis
pendens is one year from filing. 48.23(2), Fla. Stat. (2013). The Plaintiff failed to renew the lis
pendens and it is not valid. Pursuant to my authority as Trustee of the Trust, and acting in that
capacity, I transferred the property to the beneficiary, myself, on January 14, 2015. Pursuant to
my authority as Trustee of the Trust, and acting in that capacity, I terminated the Trust as
provided by Fla. Stat. 736.0414, and Article V, the Trust.
DEFENDANTS DEFENSES AND CLAIMS IN RECOUPMENT, Sec. 673.3051 Fla. Stat.
See the AFFIDAVIT OF NEIL J. GILLESPIE - DEFENSES AND CLAIMS IN
RECOUPMENT, Section 673.4051(1)(a), Fla. Stat. lack of legal capacity of the borrower
Section 673.3051, Florida Statutes, provides for defenses and claims in recoupment.
Subpart (1)(a)2. provides a defense for "lack of legal capacity, or illegality of the
transaction which, under other law, nullifies the obligation of the obligor;"
3. Fraud that induced the obligor to sign the instrument with neither knowledge nor
reasonable opportunity to learn of its character or its essential terms; or
Defendants hereby assert under Fla. Stat. 673.3051 all Defenses and claims in recoupment.
DEFENDANTS OTHER DEFENSES
A HECM reverse mortgage is a non-recourse loan and the lender has no further means to collect
the debt. The Plaintiff filed notice of lis pendens on or about January 9, 2013. Validity of a
notice of lis pendens is one year from filing. 48.23(2), Fla. Stat. (2013). The Plaintiff failed to
renew the lis pendens and it is not valid. Pursuant to my authority as Trustee of the Trust, and
acting in that capacity, I transferred the property to the beneficiary, myself, on January 14, 2015.
Pursuant to my authority as Trustee of the Trust, and acting in that capacity, I terminated the
Trust as provided by Fla. Stat. 736.0414, and Article V, the Trust.
The Plaintiff failed to effectuate service on the Defendants, therefore this Court does not have
lawful jurisdiction over the Defendants
Plaintiff sued the wrong party. Each month the Plaintiff sends a monthly statement to Penelope
Gillespie, see attached. The Plaintiff sued the wrong party. A HECM foreclosure must

DEFENDANTS ANSWER TO VERIFIED COMPLAINT TO FORECLOSE

HOME EQUITY CONVERSION MORTGAGE (HECM); DEFENSES AND CLAIMS IN RECOUPMENT;
OTHER DEFENSES; COUNTER-CLAIMS; AND CROSS-CLAIMS

commence within 6 months. 24 C.F.R. 206.125(d)(1). Bank of America gave notice October 5,
2009 the mortgage was due and payable. The Plaintiff did not foreclose until January 9, 2013.
The time has expired, even under Fla. law. A HECM reverse mortgage is a non-recourse loan
and the lender has no further means to collect the debt.
Statute of Limitations. A HECM foreclosure must commence within 6 months. 24 C.F.R.
206.125(d)(1). Bank of America gave notice October 5, 2009 the mortgage was due and payable.
The Plaintiff did not foreclose until January 9, 2013. The time has expired, even under Fla. law.
A HECM reverse mortgage is a non-recourse loan and the lender has no further means to collect
the debt.
DEFENDANTS COUNTER-CLAIMS
The Plaintiff failed to effectuate service on the Defendants, therefore this Court does not have
lawful jurisdiction over the Defendants, thus the Defendants counter-claims against the Plaintiff
will be brought by a separate action.
DEFENDANTS CROSS-CLAIMS
The Plaintiff failed to effectuate service on the Defendants, therefore this Court does not have
lawful jurisdiction over the Defendants, thus the Defendants cross-claims will be brought
against Counter Parties by a separate action.
RESPECTFULLY SUBMITTED February 2, 2015. CORRECTED Feb-03-2015

Neil J. Gillespie, individually, and former Trustee, F.S. Ch. 736 Part III, of the Terminated Trust
8092 SW 115th Loop
Ocala, Florida 34481
Phone: 352-854-7807
Email: neilgillespie@mfi.net

Amended Certificate of Service

CORRECTED Feb-03-2015
I Hereby Certify that I provided February 2, 2015 CORRECTED Feb-03-2015
DEFENDANTS ANSWER TO VERIFIED COMPLAINT TO FORECLOSE HOME EQUITY
CONVERSION MORTGAGE (HECM); DEFENSES AND CLAIMS IN RECOUPMENT;
OTHER DEFENSES; COUNTER-CLAIMS; AND CROSS-CLAIMS through the Florida EFiling Portal to names on the service list.
Mr. Curtis Wilson, Esq.
McCalla Raymer, LLC
225 E. Robinson Street, Ste. 660
Orlando, FL 32801
Email: MRService@mccallaraymer.com

Oak Run Homeowners Association, Inc.

Registered Agent Paul Pike
11665 SW 72ND CIRCLE
OCALA, FL 34476
c/o ORHA President
Email: orha.ocala@gmail.com

Ms. Colleen Murphy Davis, AUSA

400 N. Tampa Street, Suite 3200
Tampa, FL 33602
Email: USAFLM.State.Foreclosures@usdoj.gov
Michalene.YRowells@hud.gov
USAFLM.HUD.Disclaimers@usdoj.gov
Development & Construction Corporation of America,
c/o Carol Olson, Vice President of Administration,
and Secretary-Treasurer, for RA Priya Ghumman
10983 SW 89 Avenue
Ocala, FL 34481
Email: colson@deccahomes.com

Neil J. Gillespie and Mark Gillespie as Co-Trustees of the Gillespie Family Living Trust
Agreement dated February 10, 1997
8092 SW 115th Loop
Ocala, FL 34481
Email: neilgillespie@mfi.net
Email: mark.gillespie@att.net
Neil J. Gillespie
8092 SW 115th Loop
Ocala, FL 34481
Email: neilgillespie@mfi.net

Mark Gillespie
7504 Summer Meadows Drive
Ft. Worth, TX 76123
Email: mark.gillespie@att.net

Unknown spouse of Mark Gillespie n/k/a Joetta Gillespie

7504 Summer Meadows Drive
Ft. Worth, TX 76123
Email: mark.gillespie@att.net
Unknown Settlors/Beneficiaries of The Gillespie Family Living Trust Agreement dated
February 10, 1997
8092 SW 115th Loop
Ocala, FL 34481
Email: neilgillespie@mfi.net

Elizabeth Bauerle n/k/a Elizabeth Bidwood

7504 Summer Meadow Drive
Ft. Worth, TX 76123
Email: mark.gillespie@att.net

Unknown spouse of Elizabeth Bauerle

6356 SW 106th Place
Ocala, FL 34476
Email: mark.gillespie@att.net

NOTE: Plaintiffs Counsel,

Danielle Nicole Parsons (FL Bar ID 29364),
Curtis Allen Wislon (FL Bar ID 77669), and,
McCalla Raymer, LLC, a Foreign Limited Liability Company (Georgia)
(collectively McCalla Raymer)
failed to follow the procedure for constructive service of process for Unknown Settlors
/Beneficiaries of The Gillespie Family Living Trust Agreement dated February 10, 1997, and
other unknown parties, and failed to move the Court for appointment of a representative for
unknown parties. Judge Stancil stated in open court December 18, 2014 that only a lawyer can
represent a trust, but no lawyer was appointed to represent the unknown parties, or other parties.
RESPECTFULLY SUBMITTED February 2, 2015. CORRECTED Feb-03-2015

NEIL J. GILLESPIE, individually, and as former trustee, F.S. Ch. 736 Part III
8092 SW 115th Loop
Ocala, Florida 34481
Phone: 352-854-7807
Email: neilgillespie@mfi.net

~:.!'.~

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RMS'"

Reverse Mortgage Solutions, Inc.

Statement Date: January 01, 2015

Year Ending: December 31, 2014

5010 Unbar Drive, Suite 100

Nashville, TN 37211

Monthly Statement
05618

PENELOPE M GILLESPIE
8092 SW 115TH LOOP
OCALA, FL 34481

*** THIS IS NOT A BILL ***

r--

Account Information - - - - - - - - - - - - -

r-

Credit Line Set Aside Information

*.

Line of Credit

Original Credit Line:

$0.00

Funded Date:

06/16/2008

Current Gross Credit Line:

$0.00

Loan #:

68011002615899

Unsch. Credit Line Disb. Bal. (-):

Borrower:

PENELOPE M GILLESPIE

Property:

8092 SW 115TH LOOP

Pay Plan Type:

Net Credit Line Set Aside (=):

OCALA, FL 34481

,-

Interest Rates

Monthly (1-Yr CMT)

Month

Index

Margin

Int. Rate

December:
January:

0.110A>
0.140A>

1.500A>
1.500A>

1.610A>
1.640A>

1.500%

1.770A>

February

(**) 0.270A>

$0.00

* Modified Term or Modified Tenure only

- - - - - - - - - - - - - - r--

Interest Rate Type:

$0.00

(Index+Margin)

Your Reverse Mortgage loan has a variable-rate feature; the monthly and
daily periodic rates may vary as a result. Please refer to important
informatIon found on the back of this monthly statement and on the
additional page.

Principal Limit Information

Original Principal Limit

$100,056.00

Current Principal Limit:

$117,213.44

Loan Balance (-):

$114,824.06

Servicing Fee Set Aside (-):

$3,638.23

Repair Set Aside (-):

$0.00

First Year Set Aside (-):

$0.00

Credit Line Set Aside (-):

$0.00

Net Principal Limit (=):

Interest Rate Information:

Loan Periodic Rates:

ANNUAL PERCENTAGE RATE (APR):

2.424,'c

Mortgage Insurance Premium (MIP) Periodic Rates:

IMonthly Periodic Rate on

IAPPlicable Principal Balance:

MIP Monthly Periodic Rate on Applicable

0.1340A>! Principal Balance:

Daily Periodic Rate on

Applicable Advances or

MIP Daily Periodic Rate on Applicable

0.004 0A> Advances or Payments:

($1,248.85)

Interest (Finance Charge):

Periodic

Finance Charge:

$153.75

~~yments:

Corresponding APR:

1.610A> Corresponding APR:

Notice of Changes in your Interest Rate on your Adjustable Rate Reverse Mortgage
On February 01, 2015, the interest rate on your adjustable-rate Reverse Mortgage will increase from 1.640A> to 1.770% . Your present
interest rate was based on an index value of 0.140A>. To determine your new interest rate, we added the current index value of 0.270A> as
of December 29,2014 as published by the Federal Reserve Bank, to the agreed upon margin of 1.500% for a total of 1.770%. This new
rate has not been rounded to the nearest 1/8th percent. The initial interest rate on your mortgage was 3.660A>, which may not be increased
beyond 13.660% during the life of the mortgage.

*Total Funds Available

Net Credit Line Set Aside + Net Principal Limit =

$0.00

*IN ORDER TO MAKE FUTURE WITHDRAWALS, YOU SHOULD MAINTAIN A MINIMUM $50.00 BALANCE IN YOUR LINE OF CREDIT

If you have any questions or would like further information on your reverse mortgage, please call our Customer Service Department.

Loan Skey: 69977

Rep.Skey: 92

2727 Spring Creek Drive, Spring, TX 77373

Phone (866) 503-5559 - Fax (866) 790-3451 - TTY/TOD (888) 827-6697

Page 1 of 4

.:fI!.

RMS'"

Reverse Mortgage Solutions, Inc.

Statement Date: January 01, 2015

5010 Unbar Drive, Suite 100

Nashville, TN 37211

,-

Year Ending: December 31,2014

Loan Balance Activity

Current Month

$114,592.56

Previous Loan Balance

$112,069.08

Loan Advance I Scheduled Payment (if applicable):

$0.00

$0.00

Loan Advance / Unscheduled Disbursements (if applicable):

$0.00

$0.00

Repair Set Aside Disbursements:

$0.00

$0.00

Taxes Paid:

$0.00

$0.00

$0.00
$0.00
$153.75

$0.00
$0.00
$1,828.33
$566.65

Insurance Paid:
Other Property Charges:

Interest (Finance Charge):

MIP (Finance Charge): paid to HUD:
Monthly Servicing Fee (Finance Charge):
Change of Plan Fee/Misc. (Finance Charge):
'""'"
(:
Transaction Intll'c>rmatic>n):
Total Balance

Year To Date

$47.75
$30.00
$0.00

$360.00
$0.00

$0.00

$0.00

754.98

'ity:

Closing Loan Balance as of December 31,2014

$114,824.06

$114,824.06

* Corporate Advance (not part of Loan Balance):

$197.50

$1,945.40

Transaction Information
MIP

Servicing
Fee

Cumulative * Corporate
Loan Advance (not
Advances this part of Loan
Month' Balance)

Principa.1
Advances

Interest

12/31/2014 12/31/2014 Monthly Interest, MIP Accrual & SF

$0.00

$153.75

$47.75

$30.00

$231.50 '

$0.00
$157.50

Transaction Effective
Date
Date

Transaction Description

12/29/2014 12/29/2014 Corp Adv - S306 - Other

$0.00

$0.00

$0.00

$0.00

$231.50 :

12/19/2014 12/19/2014 Corp Adv - Prop Preserve - Prop

Inspect

$0.00

$0.00

$0.00

$0.00

$231.50

$20.00

12/05/2014 12/05/2014 Corp Adv - Prop Preserve - Prop

Inspect

$0.00

$0.00

$0.00

$0.00

$231.50

$20.00

Grand Total:

$0.00

$153.75

$47.75

$30.00

$231.50 :

$197.50

(/nt) Interest - (MIP) Mortgage Insurance Premium - (SF) Servicing Fee - (Disb) Advance Disbursement - (Part Repay) Partial Repayment

Loan Skey: 69977

Rep.Skey: 92

2727 Spring Creek Drive, Spring, TX 77373

Phone (866) 503-5559 - Fax (866) 790-3451 - TIY/TDD (888) 827-6697

Page 2 of 4

..~

R1Ct5'"

. .
I

Reverse Mortgage Solutions, Inc.

Statement Date: January 01, 2015

5010 Linbar Drive, Suite 100

Nashville, TN 37211

Year Ending: December 31, 2014

A. ANNUAL PERCENTAGE RATE (APR)

The ANNUAL PERCENTAGE RATE for the interest portion of your FINANCE CHARGE may increase or decrease annually based upon changes in the
("Index"). Therefore, the monthly and daily periodic rates relating to the interest portion of your FINANCE CHARGE may vary. To detern1ine the ANNUAL
PERCENTAGE RATE that will apply to your Account, we add a margin to the value of the Index, subject to certain rate limitations as provided in your
Reverse Mortgage Note.
The corresponding annual percentage rate for the interest portion of the FINANCE CHARGE does not include costs other than interest. The historical
ANNUAL PERCENTAGE RATE includes interest and all other FINANCE CHARGES that relate to your loan.
B. FINANCE CHARGES
Each advance or payment made to you or on your behalf under your Reverse Mortgage will be subject to a FINANCE CHARGE beginning on the day after
each advance or payment is made. A FINANCE CHARGE will continue to be assessed on your Reverse Mortgage until the entire outstanding balance and
all fees due under the Notes, Security Instruments and Loan Agreement are paid.
C.INTEREST
The interest portion of the FINANCE CHARGE on your Account is computed by (i) calculating the FINANCE CHARGE on the balance existing at the
beginning of each month, which includes any payments or credits applied to your loan during the previous month, (ii) calculating the FINANCE CHARGE on
each advance, payment or credit made to you or on your behalf during the month, and then (iii) adding all of these sums together, as follows:
We start with the outstanding principal balance on your Account at the beginning of each month, which includes FINANCE CHARGES from the previous
month (the "Previous Loan Balance"). At the end of each month, we multiply the Previous Loan Balance by the then-current ANNUAL PERCENTAGE RATE
divided by 12 (the "Monthly Periodic Rate").
At the end of each month in which any advances (also known as disbursements and labeled as "Disb" on this statement) or payments have been made to
you or on your behalf, we multiply the amount of the advance or payment by the number of days remaining in the month after that advance or payment was
made (not including the day the advance was made) and then multiply this amount by the then-current ANNUAL PERCENTAGE RATE divided by 365 (the
"Daily Periodic Rate"). This calculation is repeated for each advance or payment made to you or on your behalf during the month.
The sum of the final result of these calculations equals the interest portion of your FINANCE CHARGE for the month.
D. MORTGAGE INSURANCE PREMIUMS (MIP)

In addition, mortgage insurance premiums ("MIP"), which are a FINANCE CHARGE, are computed by as follows:

At the end of each month, we multiply the lesser of the Previous Loan Balance or the maximum balance on which HUD requires MIP to be paid to it by your
MIP rate divided by 12 (the "MIP Monthly Period Rate"). At the end of each month in which any advances (also known as disbursements and labeled as
"Disb" on this statement) or payments have been made to you or on your behalf, we multiply the amount of the advance or payment (other than any advance
or payment that exceeds the maximum advances or payments on which HUD requires MIP to be paid) by the number of days remaining in the n10nth after
that advance or payment was made (not including the day the advance was made),and then multiply this amount by your MIP rate divided by 365 (the "MIP
Daily Periodic Rate"). This calculation is repeated for each advance or payment made to you or on your behalf during the month.
The sum of the final result of these calculations equals the mortgage insurance portion of your FINANCE CHARGE for the month.
E. CALCULATION OF BALANCES
The "Principal Limit Information" section on the front of the monthly statement shows your "Original Principal Limit" and your "Net Principal Limit" which
includes any "Set Asides". The "Loan Balance" section on page 2 of this monthly statement shows your prior month's Previous Loan Balance and your
current month's Closing Loan Balance, which includes the current month's activity. If you would like to determine your payoff balance or if you have any
questions on this monthly statement, please call the telephone number listed on the bottom of this monthly statement.
F. OTHER INFORMATION
We compute the interest and other fees assessed on your loan monthly. This information is available on page 2 of this monthly statement each month. Thls
monthly statement indicates both the current month and year to date interest and other fees. If you repay all or a portion of your loan balance and the annual
interest paid due to a repayment exceeds $600, a separate IRS Form 1098 will be mailed to you by January 31 st. Interest accrued on this loan, other than
repayments, will not be reported to the IRS until the loan is paid in full.
G. BILLING RIGHTS SUMMARY

In case of errors or questions about your loan monthly statement, you will need to contact us as follows:

If you think your monthly statement is wrong or you need more information about a transaction on your monthly statement, write us at Reverse Mortgage
Service Center, Attn: Billing Department, 2727 Spring Creek Drive, Spring, TX 77373. Write to us as soon as possible. We must hear from you no later than
60 days after we send you the FIRST monthly statement on which the error or problem appeared. You can telephone us, but doing so will not preserve your
rights.
In
1.
2.
3.

your letter, give us the following information:

Your name and loan number
The dollar amount of the suspected error
Describe the suspected error and explain, if you can, why you believe there is an error.

Loan Skey: 69977

Rep.Skey: 92

2727 Spring Creek Drive, Spring, TX 77373

Phone (866) 503-5559 - Fax (866) 790-3451 - DY/TDO (888) 827-6697

Page 3 of 4

At "
R,nS'

Reverse Mortgage Solutions, Inc.

Statement Date: January 01, 2015

5010 Unbar Drive, Suite 100

Nashville, TN 37211

Year EndinQ: December 31,2014

We will acknowledge your letter within 30 days. Within 90 days, we will either correct the error or explain why we believe the monthly statement was correct.
If we determine the monthly statement was not correct, we will credit the disputed amount along with any associated interest charges. While under
investigation, you will continue to see the disputed amount on your monthly statement; however, you do not have to pay any disputed amount or the interest
charges that apply to it. Even though payments are not required on a reverse mortgage, by law, you are still required to meet all obligations as outlined in
your Notes, Security Instruments and Loan Agreement. This includes paying your property taxes and insurance premiums.
H. CREDIT INFORMATION
Regular monthly installment payments are not required on this loan unless you have a repayment plan for a delinquent account. However, you have the
obligation to pay your property taxes and insurance premiums. The loan must be repaid in full in one payment if your loan has been called "Due and
Payable". Payments may be made by check, money order or wired funds, payable in U.S. Dollars. Do not send cash. Payments must be mailed to the
address listed on the bottom of this monthly statement. Payments are allocated as described in your Note.

Loan Skey: 69977

Rep.Skey: 92

2727 SprinQ Creek Drive, SprinQ, TX 77373

Phone (866) 503-5559 - Fax (866) 790-3451 - TTY/TDD (888) 827-6697

Page 4 of 4

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Termination of the Gillespie Family Living Trust Agreement Dated February 10,1997
STATE OF FLORIDA
COUNTY OF MARION

)
) SS.:
)
AFFIDAVIT

BEFORE ME, this day personally appeared NEIL J. GILLESPIE, who upon being duly
sworn deposed upon oath as follows:
1.

My name is Neil J. Gillespie. I am over eighteen years of age. This affidavit is given on

personal knowledge unless otherwise expressly stated.

2.

I am sole Trustee of the Gillespie Family Living Trust Agreement Dated February 10,

1997 (hereinafter "Trust").

3.

My Florida residential homestead property is the sole asset of the Trust, property address

8092 SW 115th Loop, Ocala, Florida 34481, Marion County, Florida, (the "property") where I
have lived in the property continuously and uninterruptedly since February 9, 2005, Tax ID No.
7013-007-001, legal description:
Lot(s) 1, Block G, OAK RUN WOODSIDE TRACT, according to the Plat thereof as
recorded in Plat Book 2 at Page(s) 106 through 112, inclusive of the Public Records of
Marion County, Florida.
4.

Pursuant to my authority as Trustee of the Trust, and acting in that capacity, I transferred

the remaining trust property to the beneficiary, myself, on January 14,2015.

5.

Pursuant to my authority as Trustee of the Trust, and acting in that capacity, I hereby

terminate the Trust as provided by Fla. Stat. 736.0414, and Article V, the Trust. The total fair
market value of the assets of the Trust is zero. The Trust served its intended purpose of
transferring the property to the beneficiary without going through probate.
6.

Pursuant to Fla. Stat. 736.0414 Modification or termination of uneconomic trust. (1)

After notice to the qualified beneficiaries, the trustee of a trust consisting of trust property

having a total value less than $50,000 may terminate the trust if the trustee concludes that the
value of the trust property is insufficient to justify the cost of administration.
FURTHER AFFIANT SAYETH NOT,

The foregoing instrument was acknowledged before me, this 2nd day of February, 2015,
'FL-bL

~""U tI~O SlO U\~ 0

by Neil J. Gillespie, who is personally known to me, or who has produced .

as

identification and states that he is the person who made this affidavit and that its contents are
truthful to the best of his knowledge, information and belief.

(SEAL)

Notary Public State of Florida

Angelica Cruz
My Commission EE067986
Expires 02127/2015

of Notary Public
My Commission Expires: ----.2J_'2,_:.r~,_)S

THIS IS NOT A COMMERCIAL FORCLOSURE

IN THE CIRCUIT COURT OF THE

FIFTH JUDICIAL CIRCUIT FLORIDA
IN AND FOR MARION COUNTY

REVERSE MORTGAGE SOLUTIONS, INC.,

CASE NO.: 2013-CA-000115
42-2013-CA-000115-AXXX-XX

Plaintiff,
vs.

Residential Home Foreclosure Case

Florida Homestead of Neil J. Gillespie

NEIL J. GILLESPIE AND MARK GILLESPIE

AS CO-TRUSTEES OF THE GILLESPIE
FAMILY LIVING TRUST AGREEMENT
DATED FEBRUARY 10,1997, ET AL.
Defendants.

- - - - - - - - - - - - - - - -/
AFFIDAVIT OF NEIL J. GILLESPIE - DEFENSES AND CLAIMS IN RECOUPMENT
Section 673.4051(1)(a), Fla. Stat. lack of legal capacity of the borrower
STATE OF FLORIDA
COUNTY OF MARION

)
) SS.:
)

AFFIDAVIT
BEFORE ME, this day personally appeared NEIL J. GILLESPIE, who upon being duly
sworn deposed upon oath as follows:
1.

My name is Neil J. Gillespie. I am over eighteen years of age. This affidavit is given on

personal knowledge unless otherwise expressly stated.

2.

I have resided at 8092 SW 115th Loop, Ocala, Marion County, Florida ("the property")

continuously and uninterruptedly since February 9, 2005. On November 17, 2009 I applied for
and received the homestead tax exemption as to the property, that 7013-007-001 is the tax
identification parcel number of this property, which is exempt from levy and execution under
Section 4, Article X of the Florida State Constitution, for the following described property:
Lot(s) 1, Block G, OAK RUN WOODSIDE TRACT, according to the Plat thereof as
recorded in Plat Book 2 at Page(s) 106 through 112, inclusive of the Public Records of
Marion County, Florida.

AFFIDAVIT OF NEIL J. GILLESPIE - DEFENSES AND CLAIMS IN RECOUPMENT

Section 673.4051(1)(a), Fla. Stat. lack of legal capacity of the borrower

3.

The Plaintiffs Verified Complaint To Foreclose Home Equity Conversion Mortgage

alleges at paragraph 4:
Plaintiff is entitled to enforce the Note and Mortgage, pursuant to F.S. 673.3011, as the
owner and holder of an instrument.
4.

Section 673.3051, Florida Statutes, provides for defenses and claims in recoupment.

Subpart (1)(a)2. provides a defense for "lack of legal capacity, or illegality of the transaction
which, under other law, nullifies the obligation of the obligor;"
Section 673.3051, Florida Statutes, defenses and claims in recoupment.
(1) Except as stated in subsection (2), the right to enforce the obligation of a party to pay
an instrument is subject to:
(a) A defense of the obligor based on:
2. Duress, lack of legal capacity, or illegality of the transaction which, under other law,
nullifies the obligation of the obligor;
5.

I am the eldest son of Penelope Marie Gillespie who died September 16, 2009.

6.

The death certificate for Ms. G-illespie issued September 23, 2009 for the state of Texas

shows dementia was the immediate cause of death. No other cause of death is shown.
7.

Ms. Gillespie lacked capacity individually on June 5, 2008 to make any financial

decisions due to Alzheimer's disease and/or dementia.

8.

Ms. Gillespie lacked capacity as Grantor Trustee on June 5, 2008 to manage or bind in

contract the Gillespie Family Living Trust Agreement Dated February 10, 1997, due to
Alzheimer's disease and/or dementia.
9.

Guardianship in Florida is governed by Chapter 744 Florida Statutes. No guardian was

appointed for Ms. Gillespie.

10.

I was Ms. G'illespie's primary caregiver. I was power of attorney for Ms. Gillespie,

healthcare surrogate, living will proxy, personal representative (alternative) in the Last Will and
Testament of Ms. Gillespie, and personal representative under Fla. Stat. 198.01(2).

AFFIDAVIT OF NEIL J. GILLESPIE - DEFENSES AND CLAIMS IN RECOUPMENT

Section 673.4051 (1)(a), Fla. Stat. lack of legal capacity of the borrower

11.

Ms. Gillespie was a patient of Dr. Gregory J. Howell, M.D., Neurologist, Ocala

Neurodiagnostic Center, Windsor Oaks Medical Park, Bldg 400, 1901 S.E. 18th Avenue, Ocala,
Florida 34471, Noverrlber 1,2005 through the close of his practice December 12,2006.
12.

On May 8, 2006 Dr. Howell wrote to Dr. Christopher Grainger, Ms. Gillespie's primary

care doctor, that she was being treated for Alzheimer's dementia, and she was not competent to
make any financial decisions:
"I have been treating the patient for Alzheimer's dementia..." and "It is my impression
that the patient has moderate Alzheimer's and is not competent to give things away or
make any financial decisions..."
The letter of Dr. Howell dated May 8, 2006 is attached.
13.

On September 4, 2008 Dr. Jay J. Rubin, M.D wrote to Dr. Granger about Ms. Gillespie's

participation in a research study. Dr. Rubin diagnosed Ms. Gillespie with moderate dementia
consistent with Alzheimer's disease, currently treated with Aricept and Namenda. Dr. Rubin noted in
his Neurological Examination that "She is disoriented and certainly confused." The letter is attached.
14.

A Home Equity Conversion Mortgage, or HECM, is a Federal Housing Administration

(FHA) "reverse" mortgage program administered by the Secretary, United States Department of
Housing and Urban Development (Secretary or HUD) to enable home owners over 62 years old
access the subject home's equity. A HECM reverse mortgage is governed by federal law:
12 U.S.C. 1715z-20 - Insurance of home equity conversion mortgages for elderly
homeowners; and 24 CFR Part 206 - Home Equity Conversion Mortgage Insurance
15.

A HECM reverse mortgage is a non-recourse loan, and the lender has no further means to

collect the debt beyond the terms of the original documents. The accounts in this case include:
Federal Housing Authority (FHA) Case Number: 091-4405741

Bank of America, N.A. (BofA) Account No.: 68011002615899

Reverse Mortgage Solutions, Inc. (RMS) Loan Number: 68011002615899

AFFIDAVIT OF NEIL J. GILLESPIE - DEFENSES AND CLAIMS IN RECOUPMENT

Section 673.4051(1)(a), Fla. Stat. lack of legal capacity of the borrower

16.

On April 22, 2008 I attended a telephonic HECM counseling session with Ms. Gillespie,

and Susan Gray, a HUD approved HECM counselor. The counseling session did not comply
with HECM rules. Ms. Gillespie was not able to answer questions showing she understood a
reverse mortgage. A transcript of the counseling session shows Ms. Gillespie did not actively
participate in the call or the counseling. Ms. Gray did not ask Ms. Gillespie to "successfully
answer five of the ten review questions" or make other effort to determine if she understood
basic information about reverse mortgages, which was impossible due to Alzheimer's disease,
but required under 12 USC 1715z-20(f) Counseling services and information for mortgagors.
Therefore Ms. Gray should not have issued the certificate to Ms. Gillespie, but she did anyway.
17.

Ms. Gillespie had Alzheimer's disease and dementia and lacked capacity at the time of

the HECM counseling session April 22, 2008. Ms. Gillespie lacked capacity at the time of the
HECM loan closing June 5, 2008. Elizabeth "Liz" Baize of the Ocala office of The Park Avenue
Bank was the HECM loan originator. I told Ms. Baize that Penelope Gillespie had Alzheimer's
disease early in the origination process. Ms. Baize's only concern was whether a guardianship
was in place for Ms. Gillespie. There was no guardianship.
18.

Liz Baize did not require anyone to act as power of attorney for Ms. Gillespie. Instead,

the bank had me and Mark Gillespie added to the quit-claim deed along with Ms. G-illespie, and
required us all to sign the HECM Notes and HECM Mortgages. When the HECM closed June 5,
2008, Penelope Gillespie age 77 was the only person age 62 or older qualified to be a HECM
borrower. I was age 52. Mark Gillespie was age 49.
19.

At all times pertinent to this HECM, Ms. Gillespie was not competent and suffered from

Alzheimer's disease and dementia.

AFFIDAVIT OF NEIL J. GILLESPIE - DEFENSES AND CLAIMS IN RECOUPMENT

Section 673.4051(1)(a), Fla. Stat. lack of legal capacity of the borrower

20.

At all times pertinent to this HECM, the lender and lender parties knew or should have

known Ms. Gillespie was not competent and suffered from Alzheimer's disease and dementia.
Charles J. Thomas, a New York Supreme Court Judge, voided a reverse mortgage and its

21.

subsequent refinancing on the grounds that the borrower's mental illness made her unable to
understand the reverse mortgage. The Order and a related news story are attached.
Matter of Doar (Brunson) 2009 NY Slip Op 29549 [28 Misc 3d 759] December 18, 2009
Thomas, J. Supreme Court, Queens County Published by New York State Law Reporting
Bureau pursuant to Judiciary Law 431. As corrected through Thursday, October 7,2010.
Appellate Division continued to require that a mortgagee have knowledge of the
mortgagor's incapacity before the contract which is otherwise voidable could be voided.
In order to void a contract which is voidable because of incapacity, the mortgagor must
establish that the mortgagee had knowledge of the "incapacity and were ... not bona fide
mortgagees for value." (See Weisberg v DeMeo, 254 AD2d 351, 351 [1998].)
Under these circumstances, the court finds that Hermina Brunson was incapable of
understanding the agreements that she signed on April 21, 2003 and that Financial
Freedom is charged with the responsibility to determine, and was in a position to know of
her incapacity. Therefore, the court finds the mortgages on June 20, 2003 void.
22.

Therefore this HECM is void or voidable because the mortgagee had knowledge of the

"incapacity and were ... not bona fide mortgagees for value."
FURTHER AFFIANT SAYETH NOT,

The foregoing instrument was acknowledged before me, this 2nd day of February, 2015,
by Neil J. Gillespie, who is personally known to me, or who has produced
as
identification and states that he is the person who made this affidavit and that its contents are
truthful to the best of his knowledge, information and belief.

(SEAL)

~~~

,~~~,;~ CECIUA ROSENBERGER

~ Comnission # EE 191610
~
:. Expires JtIle 6. 2016

j.:

.,,,t ..

NOTARY PUBLIC

....1InTftJrflln. . . . . . . .701t

Print Name of Notary Public

My Commission Expires:

OCALA NEURODIAGNOSTIC CENTER

Windsor Oaks Medical Park
1901 S.E. 18th Avenue Bldg 400
Ocala, Florida 34471
Tel (352) 732-7095

Fax (352) 732-0477

Jose Gaudier, M.D.

Wnliam GaY't M.D.
Ken NS, M.D.
Gregory Howell, M.D.

Diplomate A
lean Board af
Psychla1 & Neurology

May 8 2006
1

Chri~topher Grainger. M.D.

4600 SW 46th Court. 8te. 310
Ocala. FL 34474

RE: Penelope Gillespie

73008
Dear Dr. Grainger:
I last saw Ms. Gillespie in February. I have since received notffication from her son who takes ca e of her and
lives with her that she had contributed $40,000 towards a mortgage to purchase a share in a rests rant and the
money was gone and the restaurant closed. This involved one of the patient's children, a daughter. The patient
also apparently gave several paintings to the daughter and they were not famny portraits or heirl ms, but they
were worth around $20.000. The patient herself didn't know how she got the paintings and wasn't certain as to
whether the paintings were on loan to the daughter or whether she is going to return them. The pat ent also was
riding in a car with a friend who would drink and drjve.
At this point the son now lives with her and has Power of Attorney..

I have been treating the patient for Alzheimer's dementia, which Is moderate. She is on both AricepJ1 Omg a day
and Namenda 10mg b.i.d. along with her other medications, which include Dlovan for hYPertenslorl. Digoxin for
her heart. Nitroglycerine, Nu-iron for anemia, va,rjous vitamins, and Aspirin.
I,
It is my Impression that the patient has moderate AlzheJmers and Is not competent to give things a ay or make
any financial decisions and needs Power of Attorney or legaJ guardian to look after her bills and- t8k care of her
and make sure that she doesn't give away items or her money to inappropriate people.

The patient's other medications right now include Metoprolol, Oynacirc, Coumadin, Lasix. Spiron actone, Nu
iron, centrum SHver. 812. and some prn Nitroglycerine.
The patient's blood pressure today was 110/64 in the right arm and 82/50 in the left arm. 'She as no focal
deficits.
She is to come back and see me for follow up In six months.

SincerelYt

l'L~'?

Gregory J. Howell, M.D.

GJH/Jcm

NEUROLOGICAL ASSOCIATES

Jay J. RUbin, M,D.. , P.A.. Anette V. Nieves, M.D. Anna Y. Khanna, M.. D.
Specializing in Neurological, Neuromuscular, Movement, Sleep, and Cerebrovascular Disorders
Florida Professional Park
2685 SW 32~d Place
Ocala, Fl34474

(352) 732-9643
(352) 732-2243 fax
NeuroHealthinc.com

Del Webb Spruce Creek

14031 Del Webb Blvd.
Summerfield, Fl34491

September 4, 2008

Christopher Grainger, M.D.

th
4600 SW 46 Court, #310
Ocala. Florida 34474
NEUROLOGICAL CONSULTATION

Re:

Chart #: 56021

Penelope M. Gillespie

Dear Christopher:
Thank you for requesting a neurological consu1tation regarding this 77-year-old female with Alzheimer's disease.
Mrs. Gillespie is accompanied by her son who is a very good historian. He also provided a nicely printed list
regarding her current medications.

History of Present Illness: Mrs. Gillespie has a history of progressive short-term memory impairment culminating
with a diagnosis of Alzheimer's disease made by Dr. A. Singh in 2004. She was placed on Namenda and then
evaluated neurologically by Dr. Howell and treated with Aricepl In 2007, Aricept was stopped for eighteen days
whereupon her memory worsened. Mrs. GiJJespie stopped driving in 2004. Her son cooks and manages her
medications. She generally eats and sleeps well, sleeping about eight to ten hours a day on the average, and she
infrequently awakens during the night. She wears Depends for incontinence and for occasional diarrhea. She has
some episodes of increased confusion but no hallucinations. Generally, her disposition is very good and she is
quite cooperative.

More recently. she has been under the care of Dr. Gaya, but her son expressed an interest in the Alzheimer's
Investigational Study. Her son indicates that Mrs. Gillespie has had more confusion this year. For example, she
often does not seem to realize that her son Jives with her.
Your evaluation inclUded a head CT scan in 12/07 at Advanced Imaging Center that showed an old appearing right
frontoparietal cortical stroke and atrophy. She had a normal TSH and 812 level in 06/08. Her creatinine has
gradually been elevated and was 1.98 in July.

Past Medical/Surgical History: Is noteworthy for atrial fibrillation mitral valve regurgitation, Alzheimer's disease,
TIA. hypertension and irritable bowel syndrome. She is sIp bilateral total knee arthroplasty (in 1998 and 2000).
1

Current Medications: Namenda 10 mg bid (began in 2004), Aricept 10 mg q a.m. (began in 2005). Furosemide
20 mg qd, Spironolactone 25 mg qd, Coumadin. Ni1roglycerin 0.4 mg pm, multivitamins, vitamins 86 & 812,
Imodium AD pm, and Tylenol pm. She is not to take Advil Aleve. Motrin or Ibuprofen.
1

Allergies: Rythmol, Methotrexate, or fresh, frozen or canned corn.

Social History: Mrs. Gillespie is widowed and has three children. She is a high school graduate. She smoked
minimally in the past. No history of any alcohol consumption. She is retired from retail work. She enjoys watching
television and reading newspaper and maga~ines.
(Page 1 of 2)

C1

'.

Penelope M. Gillespie

09/04/08 - Neurological Consultation

(Page 2 of 2)

Family History: Her mother died at 83 years of age from a stroke. Her father died at 60 years of age with
myocardial infarction. Her brother is age 82 and her sister is age 79, both with heart disease. Her maternal

grandmother also had dementia.

Review of Systems: Is noteworthy for weakness, fatigue. hypertension, occasional chest pains, irregular
heartbeat, daytime sleepiness, nocturia, back pain, pain with walking about half a block. confusion, and chronic
anxiety, but there is no history of depression according to Mrs. Gillespie or her son. Complete ROS is available in
the chart and I reviewed this with Mrs. Gillespie.
NEUROLOGICAL EXAMINATION: Blood pressure is 120/80. Pulse 80 with slight irregularity. Height 5'5". Weight
157 Ibs. She is right-handed. Mrs. Gillespie appears short-stature, pleasant, cooperative, comfortable, and with a
somewhat flattened affectf and with mild bradykinesia. Chest is clear. Heart rate is frequently irregular. No heart
murmur or carotid bruits are present. She is disoriented and certainly confused. She recalled 0/3 objects in five
minutes with poor visual spatial skills. She scores 17/30 on the Mini-Mental Status Examination. HEENT: PERRL.
FuJI visual fields and extraocular movements but with decreased smooth pursuit. Normal grimace. hearing.
elevation of palate, shrug and tongue movements. There is mUd atrophy present in the distal lower extremities but
strength is normal throughout. Sensation is only decreased to vibration in the toes. Normal coordination and gait.
Deep tendon reflexes are diminished throughout but symmetrical. Babinski sign is present bilaterally but no
spasticity is present.
DIAGNOSES:

1..

2.

Moderate dementia consistent with Alzheimer's disease, currently treated with Aricept and Namenda.
History of right frontoparietal cortical stroke probably occurring two years ago by history and by head CT

scan.
3.

Chronic renal insufficiency.

RECOMMENDATIONS/PLAN: I revIewed the findings, diagnoses and treatment options with Mrs. Gillespie's son.
He is very intelligent. supportive and provides many documents including a detailed list of all of her tests and
procedures between 10/05 and 07/08. Her son expresses much interest in helping his mother participate in a ~'
research study. Therefore, this is being discussed. If she is a candidate, she will be screened for the study and if
her son is interested, then we will pursue appropriate treatment. Otherwise, I am going to recommend continued
current medications. We will also schedule a return appointment for Mrs. Gillespie and I look forward to follOWing
her along.
V"'"
It was a pleasure seeing this delightful lady today and I also appreciate the helpful records you prOVided.

JJRlwltv

http://reversemortgagedaily.com/2010/01/14/judge-voids-reverse-mortgage-says-counseling-fails-to-prove-competency/print/

- Reverse Mortgage Daily - http://reversemortgagedaily.com -

Judge Voids Reverse Mortgage, Says Counseling Fails to Prove

Competency
Posted By Reva On January 14, 2010 @ 9:50 am In Counseling,Legislation,News,Reverse Mortgage | 105
Comments

Own Your Home? Over 62? Learn More! Free Reverse Mortgage
Cl l t

In a ruling last month, Charles J. Thomas, a New York Supreme Court Judge voided a reverse
mortgage and its subsequent refinancing on the grounds that the borrowers mental illness made her
unable to understand the reverse mortgage.
In the case, Matter of Doar, 31393/07 [1], the borrower, Ms. Hermina Brunson, took out a reverse
mortgage with Financial Freedom on her home in Queens for $300,000 in December of 2001,
refinancing for $375,000 in June of 2003.
However, at the time, Ms. Brunson was being treated for chronic paranoid schizophrenia. By the end
of 2001, her psychiatrist testified that Ms. Brunson was hearing voices, believed her neighbor was
trying to take her home away from her, and claimed that she no longer had the deed to the home.
Despite the counseling session lasting 45 minutes over the phone, the judge wrote that it was not
meant to be perfunctory or a mere rubber stamp of the banking or mortgage industry. It was
intended to secure that the rights of elderly homeowners were protected. The mortgagee is
entrusted with the responsibility of conducting an inquiry of the applicants understanding of the
mortgage agreement.
Judge Thomas continued, There is no evidence that Ms. Brunson understood the terms of the
mortgage or the Counseling Certificate that she signed on June 20, 2003. He faulted the counselor
for not unearthing the borrowers mental illness and her delusions regarding her home. Most
significantly for the industry, Judge Thomas ruled:
While the Certificate of Counseling is an indication that information was given to the
homeowners it is not dispositive of the issue of the mortgagors knowledge and
understanding of the implications of a reverse mortgage or that the National Housing
Act has been satisfied. That determination rests ultimately with the court.
As a result, the responsibility is on the lender to prove that the borrower understood the reverse
mortgage, regardless of whether or not they received a counseling certificate.
The judge further faulted the counseling process, noting that there was no evidence as to the
qualifications of the counselor, whether the counselor spoke to Ms. Brunson or only to her brother, if
Ms. Bunsons questions were answered, and what information the counselor provided.
While recent counseling reforms such as the qualification of the counselor addresses some of these
issues, this is still a situation that could be repeated today.
In the ruling, Financial Freedom was ordered to void the mortgage, but the Guardian of the borrower
is directed to reimburse Financial Freedom for monies paid out at the closing which includes taxes,
water charges, and the New York City Department of Social Services liens. It is unclear whether
Financial Freedom will appeal.
Matter of Doar, 31393/07 [1]
Write to Reva Minkoff [2]

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URLs in this post:
[1] Matter of Doar, 31393/07: http://reversemortgagedaily.com/img-112161623-0001.pdf
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