Chapter 17 - THE LENDER SETTLEMENT THAT FAILED
Harbor Crest and title insurer nearly settled.
Proposed:
Title insurer pays $350,000.
Aster Blue bankruptcy recovery around $70,000.
Greg consent judgment $120,000 payable over time.
Chloe restitution $40,000 equivalent from available assets/earnings.
Harbor Crest absorbs remainder.
Release my deed of trust immediately.
In exchange:
I dismiss negligence claims against lender/closing company.
I said yes in principle.
Then title insurer balked.
Why?
False notary exclusion.
Policy exception if lender failed required direct verification.
They offered $180,000.
Harbor Crest refused.
Settlement collapsed.
I wanted to scream.
Arthur said:
“We go to title trial.”
“How long?”
“Months.”
“I hate everyone.”
“Reasonable.”
Then Harbor Crest filed motion arguing equitable subrogation to my original mortgage extent.
That frightened me.
What?
They had not paid off my original mortgage directly.
So weak.
But part of loan indirectly? No.
They argued some proceeds benefited marital household? Also weak.
Still legal theories.
Arthur said:
“They are preserving arguments.”
The court denied immediate expansion but allowed issue reserved.
More paper.
Then Greg’s plea deadline.
He rejected.
Trial.
Why?
He believed prosecutor wanted too much custody and restitution.
He thought Chloe’s testimony could be impeached.
He thought lender negligence created reasonable doubt about fraud intent? No, lender negligence doesn't erase fraud.
But people gamble.
Arthur said:
“Do not confuse bad plea choice with innocence.”
I didn’t.
Then criminal trial set before civil title trial due scheduling.
Good.
Potential conviction could simplify.
Not determinative for lender if different elements.
Then Greg made a parenting mistake.
He told children:
“Dad might have to go away because Aunt Chloe blamed me.”
My son reported.
Family therapist furious.
I was furious.
Greg apologized.
But the sentence showed he had not fully changed.
He still externalized.
Court ordered parents not discuss criminal blame with children.
No sanction beyond warning due first documented violation.
Then I did something imperfect too.
At dinner with my sister, I called Greg “a liar” within earshot.
My daughter heard.
She said:
“He is.”
I stopped.
“Adults can be truthful about actions without making one word the whole person.”
She looked at me.
“You just did.”
“Yes.”
I apologized.
Parenting during litigation required impossible discipline.
We kept trying.
Then the court ruled my diversion complete.
Battery charge dismissed.
No triumphant exoneration.
I completed obligations.
I explained to children:
“The court matter about me hitting Aunt Chloe is finished because I did the program.”
My son:
“So you’re innocent?”
“No.”
He groaned.
“Mom.”
“I hit her. The case was resolved through diversion. Those are the facts.”
He laughed.
“You talk weird.”
Fine.
Then the sapphire proceeds were released into divorce escrow.
$4,250.
Dana noted it.
One line.
No emotional category.
That was healthy.
Then criminal subpoenas arrived.
I would testify.
So would Chloe.
Elaine.
Harbor Crest underwriter.
Dana.
Digital examiner.
Greg’s trial would begin five months after the anniversary dinner.
May you like
Our marriage had ended in fifteen seconds.
Proving why took half a year.
