New Century Mortgage Corporation Bankruptcy May “Restart” Because Residential Borrowers Were NOT Notified of the Bankruptcy
By Daniel Edstrom
DTC Systems, Inc.
New Century Financial Corporation and its related entities filed voluntary bankruptcy on April 2, 2007. Persistent Pro Se homeowners are holding the New Century Bankruptcy to task by insisting they, like thousands of other homeowners (if not tens of thousands) were never notified of the New Century bankruptcy. Homeowners with claims would be considered “creditors” in the New Century bankruptcy. If the judge resets the bar date, the bankruptcy would “start over”, or at least the claims period would be opened once more. If this occurs, it is possible New Century would have to notify homeowners with New Century loans that they may be potential creditors. Because of the fraudulent paperwork created by mortgage services and lenders, the number of claims by residential borrowers skyrocket.
The New Century Liquidating Trust insisted the Pro Se borrowers were wrong and everything was fine.
The next hearing on the matter is May 23 2012 in Judge Carey’s courtroom in Delaware. On April 25, 2012, this is briefly what happened at the Omnibus hearing according to “Abby”:
Judge Carey came out for the homeowners in today’s telephonic hearing. Hahn & Hessen, the appointed trustee’s counsels from NYC, wanted to do the substantive arguments TODAY..but Carey shot them down. They wanted to have only a cross examination of Atty. Uhland on May 23rd and Carey shot them down – he said no. He expected direct and cross. He is taking this as a WHOLE NEW evidentiary hearing. Atty. Uhland had been responsible for the bar date publication for one day each in the Wall Street Journal and the Orange County Register.
Homeowner/borrowers were never notified of the bankruptcy even though New Century had the contact data for each homeowner/borrower.
Also, the appointed bankruptcy trustee, Alan Jacobs was ordered back for the hearing on May 23, 2012 as well as Atty. Uhland. Pro se Homeowner/borrowers will have about a month to prepare their questions for testimony from Atty. Uhland and the bankruptcy trustee Alan Jacobs.
For a list of other loan originators who have imploded and declared bankruptcy, such Mortgage Lenders Network USA, Inc. and Accredited Home Lenders, Inc., go to the infamous “Implode-O-Meter” (TM) website (http://ml-implode.com/) from Martin Andelman, author of the Mandelman Matters Blog (http://mandelman.ml-implode.com/)
Omnibus Reply of the New Century Liquidating Trust to Objections to Motion for Entry of An Order to Determine That the Debtors Have Complied with the Order Establishing Bar Dates for Filing Proof of Claim and Approving Form, Manner and Sufficiency of Notice Thereof [D.I. 1721]: http://dtc-systems.net/wp-content/uploads/2012/04/NCLT_DI-10853_re_Bar_Date.pdf
Response of Molly S. White and Ralph N. White in Objection to the New Century Liquidating Trust Motion Requesting an Order That the Debtors Have Complied with the Bar Date Order for Filing Proofs of Claim and Approving Form, Manner and Sufficiency of Notice: http://dtc-systems.net/wp-content/uploads/2012/04/Pro_Se_objection_to_NCLT.pdf
New Century Liquidating Trust 1st Quarter 2012 financials: http://dtc-systems.net/wp-content/uploads/2012/04/1st_qtr_2012_financials.pdf
There are numerous other objections from other Pro Se’s, but this is the only one we currently have.