Land Trusts
Office of the Attorney General
March 13, 2014
New Clerk Academy
Land Trusts
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The Fidelity Land Trust Company, LLC ("Fidelity")
solicited Florida homeowners by representing that
it could work with property owners to cancel their
current mortgage.
Using Fidelity's program, the homeowner was
required to deed his/her home to Fidelity which
then would file a quiet title lawsuit that claimed
the existing mortgage was not valid.
These lawsuits were often brought against the
mortgage originator or record lender to cancel the
mortgage for alleged improprieties, such as not
recording the assignment of the mortgage or
violations of pooling and servicing agreements.
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Often, the lender that was served was the last to
file an assignment of mortgage but was no longer
the holder of the note and mortgage, and
consequently did not bother to respond to the
lawsuit. Fidelity then would obtain a default
judgment and ask the court to invalidate the
mortgage.
These quiet title actions were held to be frivolous
and without merit by decisions in Florida state and
federal courts on a case by case basis.
Fidelity illegally charged homeowners thousands of
dollars in upfront fees to enter their program.
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On December 17, 2013, Broward Circuit
Judge Michael Gates issued Final Judgment
against The Fidelity Land Trust Company,
LLC in the lawsuit brought by the Attorney
General for violation of the Florida Deceptive
and Unfair Trade Practices Act ("FDUTPA").
Judge Gates entered Final Judgment
declaring, adjudging and ordering:
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1) Fidelity's acts and practices are unfair and/or
deceptive in violation of the Florida Deceptive and
Unfair Trade Practices Act;
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2) all quitclaim deeds or warranty deeds
executed and/or recorded subsequent to
January 1, 2010 in the State of Florida
transferring title to The Fidelity Land Trust
Company, LLC as grantee in fee simple or as
trustee or in other fiduciary capacity are
rescinded and deemed null and void ab initio;
and
3) a permanent injunction barring Fidelity
from rendering services that claim to cancel
previously recorded mortgages.
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The Final Judgment entered by Judge Gates on
December 17, 2013 is significant because of the
effect on title to real estate that was deeded to
Fidelity.
Titles to homeowners' residences that were
deeded to Fidelity may be clouded.
The Final Judgment establishes that deeds to
Fidelity were void ab initio and thus have no legal
force or effect.
A copy of the Final Judgment is currently being
recorded in all 67 County Clerk's Offices in the
State of Florida.
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Suits are in various stages of litigation
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Whitestone Capital Trust
Become the Bank LLC
Cambridge Land Trust Company LLC
Hartford Land Trust Company LLC