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"You can't fix stupid..."
-Ron White
http://www.tatersalad.com
-Ron White
http://www.tatersalad.com
My encounter with
Destiny 98 TD
Destiny 98 TD
Revised: 03-08-08
This page documents my experience with the tax lien purchasing
operation I know as Destiny 98 TD:
Destiny 98 has several other corporate names: REO America, TransAm Tax Certificate
Corporation, TransAm Tax Certificate LLC, TansAm Financial Services Inc., Destiny 98
and Advantage 99, etc, all in an association whose nature is unclear.
Douglas Q. Gale is a consistent figure in all.
This account as of now is incomplete and developing but, to the best of my
knowledge, factually correct. It's point of view is my own unless otherwise noted. I
welcome corrections or additional materials.
Although I understand how the operations of law can result in just causes being lost,
I am astounded how, in the face of a lack of conclusive, significant supporting case
law or precedent, the courts have to date repeatedly ruled in favour of a claimant
whose only investment has been a few thousand dollars and (almost) all the correct
legal maneuvers, against my own which represents nearly 30 years of restoration
and improvement in a property that would have slid into ruin if left to one who hadn't
cared so persistently for it.
This has been lesson in the adage that Procedure, sidestepping the probable intent
of a statute, rather than Justice - as judged by one's peers - can determine the
outcomes of the Law.
operation I know as Destiny 98 TD:
Destiny 98 has several other corporate names: REO America, TransAm Tax Certificate
Corporation, TransAm Tax Certificate LLC, TansAm Financial Services Inc., Destiny 98
and Advantage 99, etc, all in an association whose nature is unclear.
Douglas Q. Gale is a consistent figure in all.
This account as of now is incomplete and developing but, to the best of my
knowledge, factually correct. It's point of view is my own unless otherwise noted. I
welcome corrections or additional materials.
Although I understand how the operations of law can result in just causes being lost,
I am astounded how, in the face of a lack of conclusive, significant supporting case
law or precedent, the courts have to date repeatedly ruled in favour of a claimant
whose only investment has been a few thousand dollars and (almost) all the correct
legal maneuvers, against my own which represents nearly 30 years of restoration
and improvement in a property that would have slid into ruin if left to one who hadn't
cared so persistently for it.
This has been lesson in the adage that Procedure, sidestepping the probable intent
of a statute, rather than Justice - as judged by one's peers - can determine the
outcomes of the Law.
The old "garage" being
demolished...
demolished...
These links are to other sites with various materials involving D-98's activities:
An initial find when web searching D-98:
http://myfloridalegal.com/newsrel.nsf/newsreleases/EB601C4A8CBD11F685256BC20056C1EA
Other sites brought up in similar searches:
http://asp2.rollins.edu/crummer/directory/Index.asp?Type=5&Catid=37
(This link's URL address may need to be copied directly into your web browser address line)
Although this link appears to be live, no direct, on-line resource has lead to an unmasked
link to any Destiny 98 sites:
http://www.reo-america.com
http://www.judicial.state.sc.us/opinions/displayOpinion.cfm?caseNo=3857
http://www.nebar.com/resources/nelawexpress/scjournals/2005sc/scmar11.htm
(THE LINK THIS REFERRED TO IS NO LONGER ONLINE...see portion of text referred to as
"Tax Foreclosure, Notice Homestead Exemption")
Links to the following line of yachts has repeatedly come up. Given the location of the
yacht company and the home base of D-98, a presumptive connection, although unproven,
is hard to avoid:
http://www.showboats.com/Articles/ShowBoats-Awards/Previous-Award-Winners.asp
(Perhaps just Doug Gale's wishful thinking, or a reality?)
Links below are to copies of legal briefs in the court proceedings:
-Michigan Court of Appeals ruling (jpg's of scans)
-Case evaluation statement in Washtenaw Circuit Crt (jpg's of scans)
-Michigan Court of Appeals ruling (jpg's of scans)
-Case evaluation statement in Washtenaw Circuit Crt (jpg's of scans)
Brief history:
This history will necessarily develop and change as I have the time and occasion to
reference details and add them to the narrative...
The essential facts of the matter are as described in the Case Evaluation Statement. At
first, I couldn't understand how I had failed to respond to the served papers
appropriately; I believed briefly that I had actually, literally, gone insane that I could fail to
act quickly when faced with foreclosure. Much later while searching my papers for other
materials I found the statements, issued by the Washtenaw County Treasurer's office,
that I had been using to track and pay my then due taxes to the County.
[Side comment:
Several times I have been asked questions that assume the foreclosure was prompted
by my default on a loan, a mortgage or home equity loan of some kind. It was none of
these, as the land contract on which the house was purchased had been paid off many
years ago and I owed nothing on the property itself.
The foreclosure was part of the process, now extensively and positively re-worked, that
permitted the county to sell a tax deed to a property where the property taxes were
delinquent. The process did allow for grace and redemption periods, in which time both
parties were required to fulfill statutory requirements of notification etc, leading either to
foreclosure by the tax deed purchaser or redemption by the owner. It was one of the
requirements that, to my knowledge, has only twice been previously invoked, that
Destiny-98 failed to fulfill.
The current default resolution process is superior, from the point of view of my situation,
in two major ways:
First, the notifications and foreclosure are handled by the local Michigan county which
has a vested interest in seeing it's citizens kept in their homes if possible. In contrast,
the old system, by way of unintended consequences, created a form of legal extortion by
a third - often out of state - party, unaccountable to local interests, and having no
concern or liability in creating homeless or destitute former home owners out of their
victims.
The second important change is that the final disposition of the home or property is now
through an open auction, administered by the County, at which point, as a last resort, a
defaulted homeowner with the means to do so, could re-purchase their home at a fairly
determined market price. In the prior system, the tax deed buyer, once they had
foreclosed, could name whatever re-purchase terms they wanted, with complete
disregard for the property's actual market value; another unintended extortionary
opportunity ]
The first was a statement, issued in '03, summarizing the taxes due on the property (link
to scan of statement) which I used as my main guide to raising money and paying the
taxes, of which I paid approximately $14,000 while Destiny-98 was waiting to complete
foreclosure*. The statement shows no taxes due for '95: my error in interpreting the
statement was, I realized, too stupid. The taxes due were from the point of view of the
County and, of course, no longer due. From the County's position, the taxes were paid
when the tax deed was purchased at the sale of the '95 delinquencies.
(*Here is a scan of the letter notifying TransAm Tax Certificate, LLC (a clone of Destiny-98)
that I had paid the above taxes: it's very unlikely Destiny-98/Douglas Gale did not know
they were taking advantage of my paying taxes the on a property they were about to
claim in two months.)
The other, more disturbing statement, was also issued by the Washtenaw County
Treasurer's office. It was a single year statement, issued in '04, showing the '95 taxes as
simply unpaid, implying that they hadn't been sold at tax auction (link to scan of
statement)...There is a second, similar summary statement also indicating that the '95
taxes were still due.
With these contradictory papers in hand, preoccupied with paying the taxes the County
itself was bringing to my attention, plus a certain amount of wishful thinking, I failed to
address Destiny 98's claim until the critical redemption period passed. Even then, I
remained un panicked since I had good reason to believe that Destiny 98 would, on
closer inspection, realise that 1960 S Maple, as a property, was not a good investment
opportunity.
Only when it became clear that Destiny 98 apparently hadn't truly researched the
property, and insisted that the property was worth "$300,000" - implying more - did I
begin legal proceedings to defend my claim: it appeared that they had no interest but to
take the property, motivated simply by their belief that they had clear title, while
disregarding or being unaware of the facts of the matter that would indicate an inflated
idea of the worth or potential of the property.
This history will necessarily develop and change as I have the time and occasion to
reference details and add them to the narrative...
The essential facts of the matter are as described in the Case Evaluation Statement. At
first, I couldn't understand how I had failed to respond to the served papers
appropriately; I believed briefly that I had actually, literally, gone insane that I could fail to
act quickly when faced with foreclosure. Much later while searching my papers for other
materials I found the statements, issued by the Washtenaw County Treasurer's office,
that I had been using to track and pay my then due taxes to the County.
[Side comment:
Several times I have been asked questions that assume the foreclosure was prompted
by my default on a loan, a mortgage or home equity loan of some kind. It was none of
these, as the land contract on which the house was purchased had been paid off many
years ago and I owed nothing on the property itself.
The foreclosure was part of the process, now extensively and positively re-worked, that
permitted the county to sell a tax deed to a property where the property taxes were
delinquent. The process did allow for grace and redemption periods, in which time both
parties were required to fulfill statutory requirements of notification etc, leading either to
foreclosure by the tax deed purchaser or redemption by the owner. It was one of the
requirements that, to my knowledge, has only twice been previously invoked, that
Destiny-98 failed to fulfill.
The current default resolution process is superior, from the point of view of my situation,
in two major ways:
First, the notifications and foreclosure are handled by the local Michigan county which
has a vested interest in seeing it's citizens kept in their homes if possible. In contrast,
the old system, by way of unintended consequences, created a form of legal extortion by
a third - often out of state - party, unaccountable to local interests, and having no
concern or liability in creating homeless or destitute former home owners out of their
victims.
The second important change is that the final disposition of the home or property is now
through an open auction, administered by the County, at which point, as a last resort, a
defaulted homeowner with the means to do so, could re-purchase their home at a fairly
determined market price. In the prior system, the tax deed buyer, once they had
foreclosed, could name whatever re-purchase terms they wanted, with complete
disregard for the property's actual market value; another unintended extortionary
opportunity ]
The first was a statement, issued in '03, summarizing the taxes due on the property (link
to scan of statement) which I used as my main guide to raising money and paying the
taxes, of which I paid approximately $14,000 while Destiny-98 was waiting to complete
foreclosure*. The statement shows no taxes due for '95: my error in interpreting the
statement was, I realized, too stupid. The taxes due were from the point of view of the
County and, of course, no longer due. From the County's position, the taxes were paid
when the tax deed was purchased at the sale of the '95 delinquencies.
(*Here is a scan of the letter notifying TransAm Tax Certificate, LLC (a clone of Destiny-98)
that I had paid the above taxes: it's very unlikely Destiny-98/Douglas Gale did not know
they were taking advantage of my paying taxes the on a property they were about to
claim in two months.)
The other, more disturbing statement, was also issued by the Washtenaw County
Treasurer's office. It was a single year statement, issued in '04, showing the '95 taxes as
simply unpaid, implying that they hadn't been sold at tax auction (link to scan of
statement)...There is a second, similar summary statement also indicating that the '95
taxes were still due.
With these contradictory papers in hand, preoccupied with paying the taxes the County
itself was bringing to my attention, plus a certain amount of wishful thinking, I failed to
address Destiny 98's claim until the critical redemption period passed. Even then, I
remained un panicked since I had good reason to believe that Destiny 98 would, on
closer inspection, realise that 1960 S Maple, as a property, was not a good investment
opportunity.
Only when it became clear that Destiny 98 apparently hadn't truly researched the
property, and insisted that the property was worth "$300,000" - implying more - did I
begin legal proceedings to defend my claim: it appeared that they had no interest but to
take the property, motivated simply by their belief that they had clear title, while
disregarding or being unaware of the facts of the matter that would indicate an inflated
idea of the worth or potential of the property.
Questions of intent:
Although it is irrelevant from a legal point of view, I have always been puzzled by the
intent of Destiny-98. All documented plans, current and projected, on the public record,
and the practicalities of the location of 1960 S Maple, indicate that it, and it's immediate
neighbors, will remain as R-1 residential properties for the foreseeable future. There are
no plans on record for this area of the Township to be developed commercially.
The main impediment to any use other that R-1, limited to 1 1/2 baths per household, is
the fact that the cluster of older properties of which 1960 is part, have become cut off
and isolated from city services, in addition to being on land on which conventional septic
fields cannot be built (link to map showing location of 1960 and surrounding properties
and their relation to sources for sewer and water service). Washtenaw County, in
recognition of this, has allowed, on a per case basis, construction of engineered fields
on these otherwise non-complying properties (essentially too small to meet the normal
lot size requirement for an engineered field).
Without going into detail, it can simply be asserted that the actual house on 1960 could
not be rendered marketable (since it's been and is in various stages of restoration since
I moved in) at a cost that would allow anything but the slimmest profit, if any, at resale
given it's location (immediately on I-94, the most intensely traveled connector between
Chicago and Detroit), it's age (over 125 yrs), or size (approx 1100 sq ft of habitable
space), and (very) eccentric interior layout and condition, without even considering the
current (May '07) real estate market in the Ann Arbor area.
The only remaining explanation for Destiny 98 wanting to take such a property in lieu of a
cash settlement is an intent to hold the property as long as necessary until it can be
developed. Local opinion projects the holding period in decades...In the meantime, the
likely fate of the property would be to become derelict, since even the investment
necessary to make it a rental on the open market could hardly be justified.
I've wondered what Byzantine plot may be afoot in Scio Township that a high powered
property development company like Destiny 98- as Mr Gale represented it to me in
personal conversation, "We have what it takes to make difficult properties work" - would
be so interested in a property that those familiar with it's details, would only judge to be
slightly better than marginal even if marketable.
Mr Gale's plans for, and attitude towards, 1960 S Maple recalls the story recounted by
Cervantes in his introduction to the second part of Don Quixote, regarding the talents of
the rival author who tried to usurp the character of Quixote to his own ends. Does one
think it easy to inflate the value of a piece of property?...
Although it is irrelevant from a legal point of view, I have always been puzzled by the
intent of Destiny-98. All documented plans, current and projected, on the public record,
and the practicalities of the location of 1960 S Maple, indicate that it, and it's immediate
neighbors, will remain as R-1 residential properties for the foreseeable future. There are
no plans on record for this area of the Township to be developed commercially.
The main impediment to any use other that R-1, limited to 1 1/2 baths per household, is
the fact that the cluster of older properties of which 1960 is part, have become cut off
and isolated from city services, in addition to being on land on which conventional septic
fields cannot be built (link to map showing location of 1960 and surrounding properties
and their relation to sources for sewer and water service). Washtenaw County, in
recognition of this, has allowed, on a per case basis, construction of engineered fields
on these otherwise non-complying properties (essentially too small to meet the normal
lot size requirement for an engineered field).
Without going into detail, it can simply be asserted that the actual house on 1960 could
not be rendered marketable (since it's been and is in various stages of restoration since
I moved in) at a cost that would allow anything but the slimmest profit, if any, at resale
given it's location (immediately on I-94, the most intensely traveled connector between
Chicago and Detroit), it's age (over 125 yrs), or size (approx 1100 sq ft of habitable
space), and (very) eccentric interior layout and condition, without even considering the
current (May '07) real estate market in the Ann Arbor area.
The only remaining explanation for Destiny 98 wanting to take such a property in lieu of a
cash settlement is an intent to hold the property as long as necessary until it can be
developed. Local opinion projects the holding period in decades...In the meantime, the
likely fate of the property would be to become derelict, since even the investment
necessary to make it a rental on the open market could hardly be justified.
I've wondered what Byzantine plot may be afoot in Scio Township that a high powered
property development company like Destiny 98- as Mr Gale represented it to me in
personal conversation, "We have what it takes to make difficult properties work" - would
be so interested in a property that those familiar with it's details, would only judge to be
slightly better than marginal even if marketable.
Mr Gale's plans for, and attitude towards, 1960 S Maple recalls the story recounted by
Cervantes in his introduction to the second part of Don Quixote, regarding the talents of
the rival author who tried to usurp the character of Quixote to his own ends. Does one
think it easy to inflate the value of a piece of property?...
This link to a memo describing concisely the core paradox of
1960 S Maple and why Destiny-98 should know they are wasting
their time....
1960 S Maple and why Destiny-98 should know they are wasting
their time....
Douglas Q Gale, Destiny-98, Reo America can be reached at:
Voice: 407-339-1108
Fax: 407-339-1128
E-mail: dgale@reo-america.com
Voice: 407-339-1108
Fax: 407-339-1128
E-mail: dgale@reo-america.com
An open letter to Douglas Gale and Destiny-98 has
appeared for supporting signatures at the following
locations:
Stadium Hardware
Fingerle Lumber
The Earle
Arbor Farms
Shamen Drum
Downtown Home and Garden
The essential message of the letter, taking up on Doug Gale's quote in the Ann
Arbor News, is that this (Gale's attempt to foreclose on 1960 S Maple) is "not the
sort of 'good things' we want for our community."
Read it and, if you agree with it, sign it. And encourage others.
I have seen the one at Stadium Hardware...the others are by report.
I have since been told that the letter was written by Heidi Kraepel-Griffith...I
first found out about the letter when I saw it at Stadium Hardware, 04-22-07.
appeared for supporting signatures at the following
locations:
Stadium Hardware
Fingerle Lumber
The Earle
Arbor Farms
Shamen Drum
Downtown Home and Garden
The essential message of the letter, taking up on Doug Gale's quote in the Ann
Arbor News, is that this (Gale's attempt to foreclose on 1960 S Maple) is "not the
sort of 'good things' we want for our community."
Read it and, if you agree with it, sign it. And encourage others.
I have seen the one at Stadium Hardware...the others are by report.
I have since been told that the letter was written by Heidi Kraepel-Griffith...I
first found out about the letter when I saw it at Stadium Hardware, 04-22-07.
Regarding the presentation of our case to the Michigan Supreme
Court:
Although the Michigan Supreme Court does not ordinarily govern it's activities
based on public opinion, it can do no harm to share your thoughts and feelings
with the Court:
Michigan Supreme Court Justices
Michigan Supreme Court
Michigan Hall of Justice
PO Box 30052
Lansing, MI 48909
The individual Justices may be addressed, again, with consideration respecting
that they are not held accountable to public opinion, individually.
Their names and credentials may be accessed at:
http://www.courts.michigan.gov/supremecourt/AboutCourt/biography.htm
Court:
Although the Michigan Supreme Court does not ordinarily govern it's activities
based on public opinion, it can do no harm to share your thoughts and feelings
with the Court:
Michigan Supreme Court Justices
Michigan Supreme Court
Michigan Hall of Justice
PO Box 30052
Lansing, MI 48909
The individual Justices may be addressed, again, with consideration respecting
that they are not held accountable to public opinion, individually.
Their names and credentials may be accessed at:
http://www.courts.michigan.gov/supremecourt/AboutCourt/biography.htm
Since last reviewing and updating this site, the Michigan
Supreme Court declined on 07-03-07 to hear our case. This
ended all legal proceedings for now.
Supreme Court declined on 07-03-07 to hear our case. This
ended all legal proceedings for now.
Further research over the last few months has shown that most of my original
assumptions that guided what's written on these pages were essentially wrong
and should be taken mostly for their historical part in this story.
The tax lien/deed purchasing business has very little to do with actually
acquiring desirable property, and even less with real estate development, in
spite of Doug Gale's comments quoted below.
The business is primarily one of paper based manipulation of interest bearing
instruments (the liens/deeds).
It's simplest, basic evolution is the collection of the taxes due plus substantial
fees and interest.
Foreclosed properties, if the collection efforts go that far, are usually a liability
since they are most often of little real value. After the few that can be have been
sold, the remaining pool of liens then becomes fodder for tax write-offs.
The real profits in the system are at the front end in the redemption fees and
interest, and at the end, where the losses, inflated by "overly optimistic"
appraisals of the properties, will be gainfully passed on to parties needing a tax
loss on paper.
To learn more about this system and the abuses and
exploitation it gives rise to, go to SupportBeal.com
assumptions that guided what's written on these pages were essentially wrong
and should be taken mostly for their historical part in this story.
The tax lien/deed purchasing business has very little to do with actually
acquiring desirable property, and even less with real estate development, in
spite of Doug Gale's comments quoted below.
The business is primarily one of paper based manipulation of interest bearing
instruments (the liens/deeds).
It's simplest, basic evolution is the collection of the taxes due plus substantial
fees and interest.
Foreclosed properties, if the collection efforts go that far, are usually a liability
since they are most often of little real value. After the few that can be have been
sold, the remaining pool of liens then becomes fodder for tax write-offs.
The real profits in the system are at the front end in the redemption fees and
interest, and at the end, where the losses, inflated by "overly optimistic"
appraisals of the properties, will be gainfully passed on to parties needing a tax
loss on paper.
To learn more about this system and the abuses and
exploitation it gives rise to, go to SupportBeal.com
What follows are the original
entries to this site as of about
06-07:
entries to this site as of about
06-07:
| Destiny-98 paid less than $6000 for 1960 S. Maple. How much are they asking YOU to pay? |
E-mail at:
"beal_peter 'at' yahoo 'dot' com"
(Remove spambot frustraters before using e-mail
address:
Remove quotation marks, replace 'at' with @, replace
'dot' with a period then eliminate all spaces. Sorry for
the inconvenience)
"beal_peter 'at' yahoo 'dot' com"
(Remove spambot frustraters before using e-mail
address:
Remove quotation marks, replace 'at' with @, replace
'dot' with a period then eliminate all spaces. Sorry for
the inconvenience)