Senator John Carona and his company Principle Management Group are involved in our homeowner association foreclosure nightmare

March 23, 2007

By Jerry Flores

My name is Jerry and on January 7, 2003, My then fiance and I purchase what was to be our martial homestead from then sheriff of Denton County Texas, Weldon Lucas. We received a statuary deed to the property free of any liens or encumbrances.

The house in question had sat empty for two years and was foreclosed on by Oakmont Property Owners Association, which is managed by Principle Management Group, which is owned by Senator John Carona of Dallas. You may remember Principle Management and Senator Carona from the Case of Winona Blevins, an elderly woman in Houston who was wrongfully evicted from her home by Principle Management Group. We have endured a four plus year long legal nightmare.

A branch of the former owners mortgage company, Pledged Property II L. L. C., claims, through their lawyers, Barrett, Burke, Wilson, Castle, Daffin and Frappier, L. L. P., that they own the property because they purchased it the same day we did, just an hour and a half later. We are being threatened with the loss of our home and the possibility of actually having to pay for mistakes made by Denton County, Principle Management Group and their attorneys, the law firm of Riddle and Williams.

Background: The house was a foreclosure. On October 1, 2002 Oakmont Property Owners Association was awarded a Judicial Foreclosure by the 16th District Court of Denton County, Texas against Mike Lewis, the builder of the neighborhood were the house is located and the former owner. The Denton County Texas Sheriff seized the property on November 27, 2002 and public notice of the sale was given in three editions of the Denton Record Chronicle, December 18, 2002, December 25, 2002 and January 1, 2003, as well as being advertised on the County Website.

Oakmont Property Owners Association is managed by Principle Management Group, which is owned by Senator John Carona. You may remember Senator Carona and Principle Management Group, which is one of the largest management companies in the nation, from the Winona Blevins case in Houston, TX, which was profiled on ABC's 20/20 on April 19, 2002. Mrs. Blevins was wrongfully foreclosed on and evicted from her home by Principle Management. This case compelled Senator Carona to author chapter 209 of the Texas Property Code which governs the sale of property foreclosed by a Property Owners Association.

On January 7, 2003 my wife and I purchased our home from the State of Texas, Denton County at the Sheriff's sale. We received a Statutory Deed from the State of Texas County Of Denton conveying the property to us. The deed did not state any liens nor did the sheriff, so according to Section 5.023 of the Texas Property Code the property was sold to us free of any encumbrances or liens.

We knew that under Texas Property Code Section 209 anyone who owned the property prior to the foreclosure sale had 180 days in which they could redeem the property. In order to do this all the previous owner would have to do is reimburse us for what we paid for the home plus twenty five percent.

On January 16, 2003 while in the process of cleaning up the house and property, because it had sat empty and had not been maintained for two years prior to our purchasing it, we arrived to find that all the locks on the house had been changed. After some research we were informed by a local realtor that he had been authorized to do so by Pledged Property II L. L. C., a branch of the former owner's mortgage company. My wife and I contacted Pledged Property and advised them of their mistake and explained to them that we were the new owners and of their right to redeem the property.

However, on February 14. 2003, we arrived home to find a Forcible Entry and Detainer Citation affixed to our front door. The citation was against Mike Lewis and all other occupants. Pledged Property was trying to evict the former owner. Not so coincidentally the law firm filing the Forcible Entry and Detainer is the same one that alleges to have sold the property to Pledged Property on the same day that we purchased it, Barrett, Burke, Wilson, Castle, Daffin and Frapphier, L. L. P.

We immediately retained Tom Jester of Minor and Jester to answer and appear on our behalf. Mr. Jester failed to appear or answer in a timely fashion which resulted in a default judgment in favor of Pledged Property II L.L.C. Mr. Jester filed an appeal to have the case moved to County Court at Law #2. Although we were not named as defendants we were required to appear. Since this was not just an issue of possession but one of title the County Court Lacked the jurisdiction to make a ruling and should have dismissed the case. Instead Judge Margaret Barnes required us to file a Title Suite in District court within 21 days or she would award possession to Pledged Property II L.L.C.

On May 5, 2003, having no other choice, we filed a Title suite in the 211th District court of Denton County. Shortly after filing suite, we contacted Senator Carona's Office. We spoke with Wendy Wilson an attorney in Senator Carona's Austin office. Ms. Wilson stated that according to Chapter 209 of the Texas Property Code, we owned the property free of any liens and encumbrances and stated that the property was only subject to the 180 day redemption period and nothing else. When asked if Senator Carona would help us, Ms. Wilson replied that would be a conflict of interest since Senator Carona owns Principle Management Group. However, this "conflict of interest" has not stopped Senator Carona from continuing to make laws concerning property owners associations.

Even though, according to the deed we received and Texas Property Code we own the property free and clear, over the past four plus years we have offered several options to Pledged Property II. We advised them of their right to redeem the property which they did not do, we have asked them to simply pay us for the purchase price, maintenance and repairs we have made to the property, but they have refused. We tried to sell the property but any interested buyers are quickly scared off by the ongoing litigation. Finally, recently, someone did make an offer on the home. We brought this offer to Pledged Property II, as a possible option, but they refused to stop litigation so we could sell.

The fact is the only thing Pledged Property II L.L.C. has done is file a Forcible Entry and Detainer against the former owner, Mike Lewis.

Now that the statute of limitation is up on their alleged lien per Section 16.035 of the Texas Civil Practice and Remedies Code which states that a lien holder has four years to collect on that lien or it is void. Pledged Property II L.L.C., wants us out of our home, they want to give us for less than the amount of taxes we have paid, threatening that if we do not take their offer and give them possession of the home, they will sue us and file a claim alleging that we actually owe them over $100,000 for staying in a house that we own.

Principle Management instructed Oakmont Property Owners Association not to speak with us. Principle Management Group, their law firm Riddle and Williams, Denton County, nor Senator Carona's office will speak with us about helping to resolve our problem.

My wife and I want what we originally purchased, our home. We are being made to pay for someone else's mistakes and being victimized by the very system that is suppose to protect us. This ordeal has taken an unnecessary toll on us, physically, financially and emotionally. We need help because although the law is on our side it seems that the government is on the side of big business and willing to do anything it can to protect big business, including rail roading a couple who only want what the law guarantees is theirs.