United States District Court, N.D. Texas, Dallas Division
FINDINGS, CONCLUSIONS, AND RECOMMENDATION OF THE
UNITED STATES MAGISTRATE JUDGE
L. HORAN, UNITED STATES MAGISTRATE JUDGE
case has been referred to the undersigned United States
magistrate judge for pretrial management under 28 U.S.C.
§ 636(b) and a standing order of reference from Chief
Judge Barbara M. G. Lynn. See Dkt. No. 4.
Brett Stacy has filed an Emergency Motion for Temporary
Restraining Order (the “TRO Motion”) seeking a
show cause hearing at which Defendant JPMorgan Chase Bank,
N.A. (“JPMC”) must appear and show why it should
not be temporarily enjoined during the pendency of this
action from proceeding with foreclosure until such time as
the Court has had an opportunity to consider the merits of
Plaintiff's claims and an order to enjoin JPMC from
foreclosing in a foreclosure sale scheduled for tomorrow,
January 7, 2020. See Dkt. No. 50.
reasons explained below, the Court should deny the TRO
purchased property located at 3209 Cornell Avenue in Dallas,
Texas, (the “Property”), on October 11, 2007.
See Dkt. No. 51-1 at 1-2, 6-7. To finance the
purchase, Plaintiff executed two notes, secured by two
separate deeds of trust, both payable to Washington Mutual
Bank, F.A. The first note was in the amount of $1, 320, 000
and was secured by a deed of trust. The second note was in
the amount of $165, 000 and was secured by a second deed of
trust. Plaintiff borrowed a total amount of $1, 485, 000 to
finance his purchase of the property. See Id. at 8-
27. Both loans were transferred to JPMC, which obtained
rights as the mortgagee on Plaintiff's first and second
mortgages. See Dkt. No. 1-1 at 10.
defaulted on his loan payment in April 2018. See Id.
at 2. Plaintiff cured the default on June 25, 2018, but he
again defaulted on his payments.. See Id. Plaintiff
most recently made a payment on the loan on July 31, 2018.
See Dkt. No. 44 at 53.
submitted a loss mitigation application to JPMC for the
request for mortgage assistance form on October 23, 2018.
See Dkt. No. 1-5. at 2, 38-49.
October 29, 2018, JPMC sent Plaintiff a letter regarding the
application. The letter identified several deficiencies with
the application, including that the form was not dated, the
profit and loss statement did not indicate the period of time
that it covered or did not cover the required three-month
minimum period, and the profit and loss statement was not
clear or complete or had been altered. JPMC requested that
Plaintiff “send an updated copy of the most recent
quarterly or year to date Profit and Loss Statement, signed
and dated, showing revenue, expenses, company name and period
of time covered” and enclosed the forms to be
completed. See Dkt. No. 1-1 at 11; Dkt. No. 44 at
92-11. The letter stated that JPMC needed to receive the
information by November 28, 2018 and cautioned Plaintiff that
a request for mortgage assistance may not stop foreclosure of
the property. See Id. Plaintiff did not provide the
information requested by JPMC by November 28, 2018. See
Id. at 239.
January 8, 2019, JPMC noticed the Property for foreclosure.
The foreclosure sale was set for February 5, 2019. See
Id. at 54-55.
January 24, 2019, JPMC sent Plaintiff a letter notifying him
that JPMC had canceled its review of the application
“because we didn't receive all the documents we
need.” Dkt. No. 44 at 113-14.
submitted another application for mortgage assistance on
January 29, 2019. See Dkt. No. 1-1 at 12.
January 31, 2019, Plaintiff filed suit in state court to stop
the foreclosure. See Brett Stacy v. JPMorgan Chase Bank,
N.A.. No. CC-19-707-C (the “Petition”).
Plaintiff asserted claims for violations of the Real Estate
Settlement Procedures Act (“RESPA”) and the Texas
Debt Collection Act (“TDCA”). Plaintiff also
sought injunctive relief under the TDCA. See Id. at
February 1, 2019, the state court entered an ex parte
temporary restraining order enjoining JPMC from foreclosing
on February 5, 2019 and setting a show cause hearing for
February 15, 2019. See Id. at 61-62. On February 11,
2019, the parties entered a Rule 11 Agreement that the state