Reveals Serious Flaws By Lawyers,Peters & Freedman

April 09, 2004

By AHRC News Services
Copyright AHRC News Services

The law firm of Peters and Freedman with offices in Encinitas and Palm Desert, California, claim to represent several hundred homeowner associations. A number of homeowners have been investigating some of the practices of this law firm, especially when they conducted foreclosure sales on behalf of homeowner associations. The following information is preliminary and AHRC will bring additional information as it becomes available.

The investigating homeowners have so far focused on 5 foreclosures:

• Carlos Sosa vs Carmen Lomardo
• Carlos Sosa vs William Morris
• Carlos Sosa vs John Leslie Hockley
• Carlos Sosa vs George Harder
• Melissa Colburn vs Carlos Sosa,Peters and Freedman et al.

The first 4 cases were quiet title cases brought by Sosa after he acquired the properties in foreclosures conducted by Peters and Freedman. The fifth case deals with a homeowner who sued to get her home back after she discovered that it had been bought by Carlos Sosa in a foreclosure handled by Peters and Freedman.

Each foreclosure has the following in common.

1. The foreclosure sale was handled by David Peters of Peters and Freedman.

2. The notice of foreclosure sale was posted in a publication called Uptown Examiner. It has a circulation of approximately 165.

3. Each home was sold to the same attorney, Carlos Sosa.

4. The homes were sold at foreclosure for amounts ranging from $1400 to $7,000. The equity in each home was estimated to be between $150,000 to $300,000.

The homeowners who are investigating these cases claim that there were both improprieties and outright violations of the law.

1. They claim that it is at least improper for the homeowner association lawyers to handle the foreclosure sale on behalf of the association. The entity conducting the foreclosure sale is supposed to be a neutral third party.

2. The investigation showed in these 5 cases that the publication of the notice of sale violated Civil Code Sec. 2924(f). That section requires "publishing a copy once a week for 3 consecutive calendar weeks". The investigators claim that the notice of sale may have been published 3 times, but not for "3 consecutive calendar weeks". Foreclosure provisions are interpreted strictly in the law.

3. The Rules of Professional Conduct of the California State Bar prohibit a member lawyer from purchasing a property from a lawyer with whom he has a "personal, business or professional relationship". The rule states:

" Rule 4-300. Purchasing Property at a Foreclosure or a Sale Subject to Judicial Review.

(A) A member shall not directly or indirectly purchase a property at a probate, foreclosure, receiver's, trustee's, or judicial sale in an action or proceeding in which such member or any lawyer affiliated by reason of personal, business, or professional relationship with that member or with that member's law firm is acting as a lawyer for a party or as executor, receiver, trustee, administrator, guardian, or conservator."

A homeowner claims to have evidence that Peters and Sosa had a business relationship. AHRC will publish more information if it becomes available.

George Harder from the Carlos Sosa v George Harder case claims that there is a connection between Sosa and the law firm of Peters and Freedman. Harder says that the property tax bill for his property did not go to Sosa but to Peters and Freedman. Harder says that all his personal property was moved out of his home by a moving company, and the moving bill went to Peters and Freedman. Harder alleges that his home was rented out by Peters and Freedman.

At a deposition of Carlos Sosa, Sosa stated that he never kept his bank statements beyond one month, and therefore had no recollection of whether any payments were made to or from Peters and Freedman. The investigating homeowners found a refund payment from Peters and Freedman to Sosa after one foreclosure sale.

Court documents in the Colburn v Carlos Sosa, Peters and Freedman et al. case, show that Sosa admitted bidding $6,500 for Melissa Colburn's home at the foreclosure sale. Sosa then stated that Peters and Freedman told him that he had paid too much, and sent him a refund check of $1,349.85. Sosa thus paid only $5,150.15 for the house.

4. The investigating homeowners have unearthed from public records a list of 57 homeowner associations in San Diego County alone, for whom Peters and Freedman have filed Notices of Trustee Sale for homes in these associations. The homeowners claim that the list of homeowner associations are ones in which Peters and Freedman had not met the publishing statute. If this is true, the affected homeowners may be entitled to restitution from their homeowner associations.

Alga Hills Homeowner Association
Aspire Encore at Rancho Del Rey Homeowner Association
Aspire Encore at Scripps Ranch Village Association
Briarwood Bonita Homeowner Association
Broadmoor Hills Homeowner Association
Brock Homes at Shadowridge
Cabo Homeowner Association
California Brisas Homeowner Association
Cameowood Condominium Association
Capri at Lomas Verde Homeowner Association
Cardiff Cove Homeowner Association
Cardiff Park Owners Association
Carefree East Homeowner Association
Carroll Canyon Owners Association
Casa de Oro Homeowner Association
Coronado Cays Homeowner Association
El Camino Estates Homeowner Association
Grove Unit Owners Association
Hacienda De La Playa Homeowner Association
Hampton Place at Stonecrest Village Homeowner Association
La Jolla Mesa Estates Homeowner Association
Las Mananitas Homeowner Association
LaVida at Eastlake Greens Homeowner Association
Marina Park Condominium Association
Mesa Village Homeowner Association
MLP Homeowner Association
Orange Glen Estates Homeowner Association
Pacific Ranch Homeowner Association
Palmilla Del Oro Homeowner Association
Park III Condominium Association
Park Place Estates Homeowners Association
Paseo De La Costa Homeowner Association
Ranchowood Park Property Owners Association
Ranchwood Park Property Owners Association
Renaissance La Jolla Homeowner Association
Riderwood Square Homeowner Association
Rio Del Oro Homeowner Association
Ryan Manor Owners Association
Scripps Ranch Estates Homeowner Association
Scripps Ranch Villages Master Association
Shadowridge Glen Homeowner Association
Sienna at Mission Santa Fe Homeowner Association
Sunrise Point Property Owners Association
The Harbor Club Homeowner Association
The Harbor Club Master Homeowner Association
The Knolls Condominium Association
The Missions at Ivey Ranch Homeowner Association
The Village by Robinhood Homeowner Association
The Villages of Rancho Del Oro Association
The Villas at Eastlake Shores Owners Association
Villages of Rancho de Oro Association
Villages of Rancho Del Oro Association
Villas at Eastlake Shores Owners Association
Vista Capri Homeowner Association
Vista Knolls Homeowner Association
Vista Townhomes Homeowner Association
West Chase Homeowner Association

5. The investigating homeowners claim that they have found evidence of 1000's of liens filed by Peters and Freedman in at least San Diego, Orange and Riverside counties. Industry sources state that the typical attorney fee for filing a lien is about $300, and another couple of hundred dollars to take the lien off. Recording and filing fees are extra. A 100 such transactions in one month would produce a revenue of $50,000 a month in legal fees for a law firm. David Peters is reported to live in a home in Rancho Santa Fe, worth approximately $4,500,000.

6. If the results of the above investigation are upheld, this could spell further legal trouble for David Peters as he is currently on a three year probation for which he was sentenced in 2001.

RELATED LINK: Investigation on Homeowner Association Foreclosure Filings - Part 2 - The Hockleys Seek Restitution Of Their Home From Peters & Freedman