Judge: JZK, Inc. Entitled to Info on Ex-Student’s Property

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Thurston County Superior Court Judge Gary Tabor ordered ex-RSE student Virginia Coverdale to authorize her mortgage loan servicer to give information to JZK, Inc. last Friday, leading Coverdale’s attorney to announce her client intends to sue the company for allegedly violating collection laws.

Last month, Tabor ordered Coverdale to pay the company’s lawyers $600,000 after ruling in favor of the company in a lawsuit after Coverdale posted videos on YouTube last October of JZ Knight, the Yelm woman who claims to channel Ramtha, a 35,000-year-old Lemurian warrior. Knight is the president of JZK, Inc. Coverdale is appealing Tabor’s ruling.

As part of that judgment, JZK, Inc.’s lawyers have been gathering information on Coverdale’s finances but, according to Jeffrey Grant, a lawyer for the company, they hit a roadblock when they tried to get information on property Coverdale owns in Thurston County.

Ocwen Loan Services, LLC, would not divulge information unless Coverdale signed an authorization form.

Breckan Scott, Coverdale’s lawyer, said in an email last week that she “got confirmation from the modification loan servicer that Jeff Grant stated that JZK, Inc. wanted to buy the mortgage.”

By Steven Wyble    

news3@yelmonline.com

Thurston County Superior Court Judge Gary Tabor ordered ex-RSE student Virginia Coverdale to authorize her mortgage loan servicer to give information to JZK, Inc. last Friday, leading Coverdale’s attorney to announce her client intends to sue the company for allegedly violating collection laws.

Last month, Tabor ordered Coverdale to pay the company’s lawyers $600,000 after ruling in favor of the company in a lawsuit after Coverdale posted videos on YouTube last October of JZ Knight, the Yelm woman who claims to channel Ramtha, a 35,000-year-old Lemurian warrior. Knight is the president of JZK, Inc. Coverdale is appealing Tabor’s ruling.

As part of that judgment, JZK, Inc.’s lawyers have been gathering information on Coverdale’s finances but, according to Jeffrey Grant, a lawyer for the company, they hit a roadblock when they tried to get information on property Coverdale owns in Thurston County.

Ocwen Loan Services, LLC, would not divulge information unless Coverdale signed an authorization form.

Breckan Scott, Coverdale’s lawyer, said in an email last week that she “got confirmation from the modification loan servicer that Jeff Grant stated that JZK, Inc. wanted to buy the mortgage.”

Scott contended the home may be protected under the state’s homestead law, which protects $125,000 of a home’s equity from forced sale to pay unsecured creditors.

By attempting to buy Coverdale’s mortgage, the company may be purposefully attempting to interfere with exempt property, she said.

Grant said the company is simply attempting to receive information from the loan service company in order to enforce the judgement.

“They’re somehow involved with a piece of real estate Coverdale owns, and that’s about all that we really know,” he said last week. “We’re interested in seeing if that asset is available to satisfy the judgment. But until we get information, we can’t really determine that.”

Tabor said the homestead law doesn’t apply to this situation.

“I understand that in this day and age there are often modifications to mortgage or loan agreements that adjust the amount of payments, set the terms or change the terms,” he said, according to a court transcript. “That may be the case, may not be the case here, but I know of no reason that the plaintiffs do not have the right to this information.”

Scott and Coverdale appeared emotional over the ruling, leading Tabor to ask Scott to “tone it down” and “proceed professionally.”

Scott said she was simply frustrated, and said she needed to make a record for Coverdale’s appeal.

Scott requested the judge’s order limit the company to only collecting information and preventing them from having conversations with the company outside of formal depositions.

“I think that is a very reasonable compromise which satisfies our concern that they have (been) trying to engage in tactics that aren’t just about getting information,” she said.

Grant didn’t agree to that.

“We don’t believe it’s necessary or appropriate that we be somehow handcuffed different than any other creditor throughout this country that has a legitimate, valid, enforceable judgment against a creditor …” he said.

Tabor said he wasn’t ordering anything regarding such conversations, just that information from the company on Coverdale’s property must be disclosed.

Tabor said if Coverdale doesn’t sign the authorization form, his order requires Ocwen to make the information available to JZK, Inc.

Scott said her client would not be signing the authorization form, because she “needs time to confer with attorneys that are bringing suit on her behalf” against JZK, Inc.

Outside the courtroom last Friday, Scott said she will be focusing on Coverdale’s appeal, so other attorneys will be taking on the new lawsuit.

“I have already spoken with several attorneys who have significant experience in prosecuting unfair debt collections including collections of judgments,” she said. “They have all indicated that JZK, Inc. has absolutely no legal right to take … (these) kinds of actions, including interfering with the homestead exemption, asserting that it has a right to her personal vehicle when it is clearly less than the statutory amount, and other ongoing instances of abuse and harassment that seem to be motivated more out of a vendetta than any legitimate interest in collecting its judgment.”

Grant said after the hearing he was pleased Tabor signed the order.

He said he couldn’t comment on Coverdale’s intentions to sue his client, as nothing has been filed yet.

“If there’s litigation, obviously we’ll look at it and evaluate it,” he said.

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