From $2 Million To Foreclosure On An Ameriquest Subprime Mortgage

Frances Joy Taylor had had about $2 million in assets, which she intended to leave to her church, before she met a businessman named Tyrone Dash. Dash took over her affairs and “methodically liquidated or leveraged almost everything she owned: her bank accounts and securities, her insurance policies, her credit cards, her two apartment buildings and, ultimately, her home,” says the Seattle Times. Frances suffers from Alzheimer’s.

The entire story is horrific, but the most relevant part for our purposes comes at the end, when Frances’ finances have been so wrecked that Dash can only borrow from now-defunct subprime lender Ameriquest:

A year later, Frances paid the prepayment penalty of $4,350 to refinance her home again, this time with Ameriquest Mortgage, then the nation’s largest private subprime lender. A 26-year-old salesman in Tukwila collected Frances’ information and set up the loan. He then sent it to the company’s underwriting department for approval.

The salesman, Laughton Dean Fisher, had a technical-school degree in electronics. He earned a monthly salary of $2,000 but made most of his income in commissions.

In a handwritten application, Frances’ age is listed correctly, but the Ameriquest records repeatedly showed her as 30 years younger — at 62 years old. Fisher, who no longer works for Ameriquest, couldn’t explain the error. He said, however, that the company forbade selling adjustable loans to anyone older than 65.

The company listed Frances’ income for the previous year at $32,000 a month — treating transfers between her accounts as income.

Frances paid Ameriquest $18,000 in fees for the loan, a $297,500 adjustable-rate mortgage, in July 2003.

Nine months later, Frances applied for another refinance from Ameriquest. The timing violated a rule Ameriquest had adopted in 2000 to stop a Federal Trade Commission investigation into allegations of predatory lending. That rule required Ameriquest to wait at least two years before refinancing one of its customers’ loans.

By then, Frances no longer owned any rental property, was behind on eight credit-card bills, had been late on several mortgage payments and had monthly income from Social Security of $761.

But in its paperwork, Ameriquest listed her occupation as landlord. It also used altered tax returns that whited out her business losses. Ameriquest lent her $324,000. It charged her more than $19,000 in fees and added an $8,424 penalty if she paid off the adjustable note within three years.

Diane Haugsvar of Seattle notarized the loan papers. She said she still can see Frances sitting at her dining-room table, nodding and saying “OK, OK,” in a singsong voice as she signed the documents. She remembered Frances, and her house, because the situation seemed chaotic.

Haugsvar noticed clutter everywhere, and much of it seemed to belong to Dash. She remembers thinking: He’s supposed to be taking care of her, yet he’s making it worse.

She didn’t think the situation rose to the level of a 911 call, but she now wishes she had called someone to investigate.

Frances’ new mortgage payment was $2,047, nearly three times her monthly Social Security check.

She missed the first five payments, and Ameriquest filed to foreclose. Dash said he broke the news to her.

She replied, “Not my house, not my house.”

Now Frances is bankrupt and lives in a nursing home. Her bankruptcy lawyer is trying to argue that she was not mentally sound when she signed the mortgage papers. 12 days ago, says the Seattle Times, a federal bankruptcy court judge approved a settlement: Frances’ home will be sold for $420,000 and non-defunct Ameriquest will get half.

The Times says Frances, whose illness has progressed so far that she isn’t even aware that she’s in debt, has ” a mailbox full of offers for new mortgages and credit cards.”

The fleecing of Frances Taylor [Seattle Times](Thanks, jp!)

PREVIOUSLY: Ameriquest Is Dead
$325 Million Amerquest Settlement Payout Might Average $812.15 Per Person
Ameriquest Employees Confess: Lying To Customers, Forging Papers

Comments

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  1. trollkiller says:

    The only blessing here is the woman’s mind is so far gone she does not know she has been screwed over.

  2. nutrigm says:

    Where does this ‘Dash’ guy live? I wouldn’t mind dashing to kick him in the you-know-where!

  3. PICKLES_IN_MY_TUNA says:

    This is by far the saddest thing I have read about in a long time. Is Tyrone Dash going to be prosecuted for this?

  4. kellsbells says:

    I read this article yesterday in the Times (seattle dweller here). The man not only ruined her financially, he had access to her bank accounts and paid himself out of them. What a sleaze. She obviously knew how to make smart investments (hello, creating $2 Million in assets is no small feat). Dash should be hung out to dry.

  5. azntg says:

    I have absolutely no sympathy with people pulling this BS.

    Taking advantage of an elderly lady and hanging her out to dry, the arsehole better be ashamed of himself! From what I read, if the lady was much younger and back in her proper state of mind, I’m sure she would done something about the sleazebag defrauding her in front of her face.

    If they don’t apprehend and convict Dash, then I think vigilante justice is justified in his case.

  6. Juliekins says:

    This is a clear case of elder abuse, imho. I hope this sleazeball Dash can be prosecuted for something, or at least wrung out by a civil judgment.

  7. gorckat says:

    Hmm…better drop #3 of my lsit the way people are posting today…

    Ways to score some quick cash:

    1. Flea market
    2. P/T job
    3. Screw a little old lady out of everything
    4. Sell drugs
    5. Become a bookie

  8. realjen01 says:

    omg…this is the saddest thing ever. i hope that dash guy goes to jail for a very long time.

  9. Murph1908 says:

    @realjen01:
    Agreed.
    Federal pound-you-in-the-ass prison.

  10. goller321 says:

    @realjen01: I hope someone goes medieval on has ass. Seriously, jail is too easy. Rendition to Syria seems appropriate though…

  11. Morgan says:

    From the article:
    “Dash also filed bankruptcy in 2005. He and his wife separated last July after he beat her unconscious, and he went to jail for 52 days on an assault conviction.”
    All-around great guy, that one. It’s hard to believe that there are people out there that are so lacking in humanity.

  12. Raignn says:

    That’s just terrible >:(

  13. humphrmi says:

    This is one of those few situations where you can’t blame the person who signed the mortgage / note. I can’t imagine what would happen if I got Alzheimer’s, and in a moment of un-lucidity went and signed off on a stupid mortgage. The main fault lies with this guy Dash, but there should be better protections in place for people with Alzheimer’s.

  14. Womblebug says:

    Agree with all the above, but does this woman have any family? No kids, but any nieces or nephews, or -someone- who could have looked out for her? If not, then yeah, it’s a blessing that she’s out of it, but these sleazemongers need to be put away before they do this to someone else.

    My parents are (thank god) very capable and competent, but should the day come when they are not any longer, I will do whatever I need to do to protect them and their interests.

    Bring back drawing and quartering for these wastes of oxygen.

  15. warf0x0r says:

    Quote from the end of the full article:

    “Dash (the man who destroyed this womans credit/life) also filed bankruptcy in 2005. He and his wife separated last July after he beat her unconscious, and he went to jail for 52 days on an assault conviction. Today, he lives in a one-bedroom apartment in White Center. He collects disability payments after losing sight in one eye. A King County prosecutor, in a letter, told Dash he would be criminally charged and offered him a plea bargain in October. Dash ignored him.”

  16. gingerCE says:

    I can see how this happened. Recently I had an elderly aunt start having memory problems. I went with her to her bank and it was recommended by the teller that I be added onto her account so I could be in charge of her finances. My aunt asked me to do it but I told her I didn’t want to be in charge of her money–that it should be her son and I made arrangements so her son would be added to her accounts.

    Two years later, she has no money, is in a home totally disabled due to an “accidental” fall. She should still be receiving a pension and have money saved but I have no clue where that money is and I don’t know where her son is now.

    This probably happens a lot. In this case it was a stranger, but in other cases it’s probably a relative.

    I regret to this day that I didn’t agree to be in charge of my aunt’s bank accounts.

  17. iMike says:

    Dante called it: the ninth circle of hell is reserved for the traitorous.

  18. ninabi says:

    The elderly are easy targets. My MIL, 5 states away, was told by a “very nice” person who was “so helpful” that she should put everything, cash out her stocks, etc and put it all in an annuity.

    Social security and the annuity payment are all she has, now. Cashing in her stocks forced her, a retiree, into paying 30K in taxes on a fixed income.

    Slimy people are out there. I’m sorry this poor woman lost everything- but not knowing what is happening to her does little to ease the injustice of the situation.

    Have somebody watch out for elderly relatives- they age faster than you think. Strong willed people also resent their kids taking a peek at their finances. I wish my mother in law had let us know. I don’t think she could get the house re-roofed or have major dental work done on what is left in the bank.

  19. SadSam says:

    How do we protect mom/dad or grandpa/grandma from stuff like this as they grow older? Put child’s name on the house title so it can’t be refinanced or sold or mortgaged without approval.

  20. rickhamilton620 says:

    I hope he rots!

  21. Elviswasntmyhero says:

    @SadSam:

    “How do we protect mom/dad or grandpa/grandma from stuff like this as they grow older?”

    Read “Keeping the bad guys from Mom & Dad” by Donna Rosato in the June 14, 2006 edition of MONEY magazine.

    Link: [money.cnn.com]

  22. forever_knight says:

    Dash, Tyrone
    10435 22nd Ave SW
    Seattle, WA 98146-1334
    (206) 248-8099

    Dash, Tyrone
    6635 Carleton Ave S
    Seattle, WA 98108-3549
    (206) 248-8099

    is this the guy?

  23. Ass_Cobra says:

    “How do we protect mom/dad or grandpa/grandma from stuff like this as they grow older? Put child’s name on the house title so it can’t be refinanced or sold or mortgaged without approval.”

    The kids are often times the ones pulling stunts. A lot of this can be handled by a trustee or family attorney. Basically people that are in the buseiness of selling their judgement and trust are not as likely to screw someone over as say some guy that’s into beating his wife unconcious. It’s really a lousy thing that it happens but I guess it’s nothing new, people have been screwing those with diminished mental faculties for eons.

  24. Ass_Cobra says:

    @forever_knight:

    Totally ridiculous that you can’t read the article, google where white center is and make your own conclusion. If you are going to post people’s info maybe have the brainpower to do a little filtering first. I’d guess that it’s the first guy based on where they said he is now residing and the fact that the address appears to be in White Center but I’d encourage people to do their own research. As for the second guy, it’s probably his old address before he became separated from his wife, unless there are two Tyrone Dash’s in Seattle. Of course if there are two I’m guessing the other one is changing his name like now to avoid this kind of crap.

  25. bjourdan says:

    @forever_knight:

    I believe it’s the first one. Zaba Search has the ‘Tyrone Dash’ at that address with a birth date in 1949, which would make him 58 as the article claims.

  26. econobiker says:

    Was Dash one of the vancouver, wa car salemen who sold the a 69 year old man 18 cars in 14 months?

    This guy rot should in hell.

  27. Glaven says:

    While this is sad, I would say that Frances Taylor got something out of it, too. Otherwise, how could it all have happened? Tyrone Dash spent time with her, and probably he was quite charming and nice to her as he stole everything. I think she was lonely – aside from her church, she had no family and few friends, and as time went on, she saw Dash more and her church people less. So another way to prevent this from happening to elderly relatives might be: spend time with them.

  28. JustRunTheDamnBallBillick. says:

    @forever_knight: Really wrong to post random personal information here.

  29. edwardso says:

    @JustRunTheDamnBallBillick.:anyone with google could get this information, those who aren’t interested don’t need to take note of it

  30. SarcasticDwarf says:

    I am really not sure how I feel about this type of situation. On the one hand what Dash did is clearly wrong, but does Taylor bear no responsibility? It is an individual’s responsibility to take care of themselves. It is like saying that older people whose driving is severely impaired are not at fault for causing an accident simply because of their age or a disease…they certainly had multiple opportunities to put the keys down. How many chances did Taylor have to hand over control of her finances to a relative or lawyer?

  31. Timbojones says:

    @econobiker: Doubtful. 150 miles separate Vancouver from Seattle.

    Nearly 6.5 million people live here in Washington.

  32. MrEvil says:

    This sounds strangely like an episode of Boston Legal. Did the old lady hire Mr Douche…ermm, Dash, of her own accord or was he court appointed? What that guy did was borderline criminal and should be in jail.

    I guess that’s one incentive to have children and raise them right. At least they won’t screw you out of a pretty swank retirement.

  33. CumaeanSibyl says:

    @womblebug, @Glaven: Oh, now let’s not be putting the guilt trip on the family — they’re probably kicking themselves hard enough as it is. And there’s no guarantee that spending time with her and “watching out” for her would have stopped this. Older people are vulnerable to this kind of abuse in part because they don’t discuss money matters with the younger generation, and they don’t like admitting they might need help (“if they know what a mess I’ve made of things, they’ll put me in a home”).

  34. MickeyMoo says:

    My mom (82 – cancer widow – speaks English as a 6th language) was set up in a trust by her attorney (a former mayor of a small nearby town – yes Larry L. I’m talking about you!) in which he failed to disclose almost $25,000.00 dollars a year in management fees. He provided no verbal or written information regarding fees until after my father’s death at which point the trust could not be changed. She lives on Social Security, my dad’s $80.00 a month pension, and a modest rental property income. It’s not just some fly by night “businessman” that can screw you over. It can happen just as easily by an allegedly reputable attorney with an AB LexisNexis Martindale-Hubbell rating.

  35. Namilia says:

    I read this story earlier when I was at work and it made me ill to my stomach to fathom that such horrendous people exist. I know they exist, but still to hear stories like this is terrible. I hope Dash gets put away for a very long time and ends up some guy’s bitch.

    I’ve worked with plenty of elderly people who are losing their memory, and I hate to think that anyone try to swindle any of them. No doubt Ms. Taylor and her late husband worked their whole lives to amass such a nest egg (the article says as much) and to have decades’ of work torn out from under her while she isn’t lucid enough to know what is going on…just…wow.

  36. Namilia says:

    @Namilia: Apologies in advance if my comment about him being someone’s bitch offended anyone, more accurately I hope he has an exceedingly unpleasant experienced serving time. I hope that they make his life hell.

  37. Ass_Cobra says:

    @MickeyMoo:

    That’s a shame and I am sorry to hear it. Depending on what state you are you can file a complaint with the bar and they will aggressively pursue it. For example in North Carolina they take legal ethics seriously and an attorney that sets himself up to take $25,000 per year in trust administration fees from as small asset base would have a hard time defending himself.

  38. ZitosGhost says:

    Ok, this is very common. My Father has senile dementia which makes you just as diminished as Alzheimers does. Anyway TELEMARKETERS scammed him to the tune of $2 Million dollars. He literally gave everything away to these jerks. It starts with a phone call selling junk but then you get promoted to more an more expensive scams, till the next thing you know your investing in speculative oil well companies etc. He is now in a nursing home with a few thousand dollars to his name. Most of this happened in a span of 8 months when I was overseas. I am now his legal guardian, but there is virtually no hope of getting any money back.