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K21-006
SETTLEMENT AGREEMENT AND GENERAL RELEASE
PARTIES: This Settlement Agreement and General Release ("Agreement")
1.1 Grant County, a public entity ("the County").
1.2 Shellpoint Loan Servicing ("Shellpoint") in relation to its servicing of a
mortgage loan with borrower Scott Forman and the property commonly known as 19535 Road
A NE, Soap Lake, Washington 98851 (the "Property"). I
All parties listed above are sometimes collectively referred to as the "Parties" or
individually referred to as a "Party."
2. RECITALS: The Agreement is made with reference to the following facts:
2.1 Whereas, Shellpoint serviced the mortgage loan, and Green Tree Financial
Servicing Corporation ("Green Tree") retained a lien pursuant to a Deed of Trust and Note dated
May 15, 1999, and recorded with the Grant County Auditor's office on May 29, 1999, under
Recording No. 1047350 (the "Deed of Trust").
2.2 Whereas, Scott Forman and Tina Forman executed a Note on or about
May 15, 1999 wherein the Forman obtained a mortgage loan (the Loan") in the total amount of
$82,294.15 and promised to make monthly payments to Green Tree which Note was secured by
the Deed of Trust.
2.3 Whereas, the County alleges that it sent notice of a tax foreclosure sale to
Green Tree at 600 108th Avenue NE, Suite 320, Bellevue, WA 98004 on August 27, 2019, as
the beneficiary of record of the Deed of Trust.
2.4 Whereas, the County then learned from Scott Forman that he was sending
his mortgage payments to Ditech Financial, LLC ("Ditech") at PO Box 15009, Tempe, AZ
85284-0109.
2.5 Whereas, the County alleges that it sent the Notice to Ditech on August 28,
2019 via certified mail, for which a Ditech representative signed the return receipt.
2.6 Whereas, the County alleges that record owner Scott Forman remained
delinquent on his real property taxes and a judicial tax foreclosure action was noticed via a
certificate of delinquency and filed against the Property on or about June 17, 2019, in the
Superior Court of Grant County under Case No. 19-2-00799-13.
2.7 Whereas, subsequent to the receipt of the Notice, Ditech representatives
contacted the County on multiple occasions before the sale inquiring about the payoff balance
of the delinquent property taxes set forth in the Notice.
I The subject property address is currently recognized as "19477 Road A NE, Soap Lake, Washington 98851.1"
2.8 Whereas, Shellpoint maintains that the County did not properly serve notice
of the summons and complaint of the tax foreclosure action before it obtained default judgment
on or about October 25, 2019.
2.9 Whereas, the County obtained a tax foreclosure judgment to sell the subject
property and sold it to a third party (Jacob Sligar) on or about November 22, 2019 (the
"Foreclosure").
2.10 Whereas, the County subsequently retained an excess of sales funds of the
sale of the Property and then provided such excess funds to Scott Forman.
2.11 Whereas, Scott Forman then provided a grant deed to Jacob Sligar without
providing full payment due under the Note or working with Shellpoint to maintain its interest or
make full payment on the lien upon receipt of the excess funds.
2.12 Whereas, the Parties have reached a mutually agreeable resolution of all
claims and defenses as between the County and Shellpoint related to the tax foreclosure sale and
the excess funds and intend to resolve the claims and any other claims or potential claims the
County did or could have made arising out of the County's purchase, financing, and/or interest
in the Property, or the foreclosure thereon.
3. SETTLEMENT TERMS:
3.1 The County agrees to make a payment of sixty-seven thousand dollars and
no cents ($67,000.00) payable to "Shellpoint Mortgage Servicing" via check within 30 days full
execution of this Agreement to following address:
NewRez LLC d/b/a Shellpoint Mortgage Servicing
2100 E. Elliot Road Building 94
Tempe, AZ 85284
Loan Reference Number: 0579935670
C/O: Elizabeth Eaton, Shellpoint Mortgage Servicing Counsel
3.2 If the County does not make full payment as provided in paragraph 3. 1,
within 30 days of full execution, and as set forth herein, no releases of any kind shall be provided
by Shellpoint or its agents or representatives.
4. GENERAL RELEASES:
4.1 Except as to such contractual rights as may be created by the Agreement,
the County hereby releases and forever discharges Shellpoint, along with NewRez, LLC, Ditech,
and Green Tree, and any other beneficiary, lender, or servicer of the Loan at issue, including any
and all partnerships, principals, joint ventures, partners, owners, officers, directors, co -venturers,
corporations, companies, business entities, agents, employees, attorneys, assignors, assignees,
licensees, licensors, parent companies or corporations, predecessors, successors, heirs, investors,
all affiliates of each of the foregoing, and title companies, trustees, and attorneys (collectively
referred to herein as the "Shellpoint Released Parties") from any and all civil claims, arbitrations,
administrative claims or proceedings, demands, cause or causes of action, and/or judgments,
arising out of or related to any and all claims relating to the Loan, the Property, or the Foreclosure,
and any claims that the County may have against the Shellpoint Released Parties or that could have
been asserted in the Claims.
4.2 The Shellpoint Released Parties hereby generally release, dismiss, and
forever discharge the County, along with its agents, employees, and attorneys (collectively referred
to herein as the "County Released Parties") from any and all claims or potential claims relating to
the Loan, the Foreclosure, or the Property. This release shall not be considered to waive claims
on either side for subsequent owner of the Property, or unrelated loans, notes, or deeds of trust.
4.3 The County and Shellpoint covenant and agree never to file or participate
in any suit or action, at law or in equity, or any arbitration, administrative proceeding, or other
proceeding, against one another or their respective Released Parties based upon or in any way
related to the claims released in this Agreement. This covenant includes, but is not limited to,
administrative actions, arbitrations, actions in court of law and equity, class actions, and any other
type of action or proceeding that the County or Shellpoint could file, but does not include an action
or claim to enforce the rights and obligations created by this Agreement or any action taken against
Scott Forman. This provision shall apply to Shellpoint only if the payment is timely made as per
paragraph 3.1.
5. REPRESENTATIONS AND WARRANTIES:
5.1 The County and Shellpoint hereby warrant and represent that each is the
sole owner of the claims released herein, and any potential claims against Released Parties that
relate to the Property, the Foreclosure, or the Loan as indicated herein.
5.2 The Parties have been advised to seek independent legal advice from their
own attorneys with respect to the advisability of making the settlement provided for herein, and
has sought such advice or knowingly declined to seek such counsel on its own accord.
5.3 No Party (nor any officer, agent, partner, employee, representative,
insurer, or attorney of or for any Party) has made any statement or representation to any other Party
regarding any fact relied upon in entering into the Agreement, and no Party relies upon any
statement, representation or promise of any other Party (or of any officer, agent, partner, employee,
representative, insurer, or attorney for any other Party), in executing the Agreement, or in making
the settlement provided for herein, except as expressly stated in the Agreement.
5.4 Each Party to the Agreement has made such investigation of the facts
pertaining to this settlement and to the Agreement, and of all matters pertinent, as that Party may
deem necessary.
5.5 No Party has assigned, transferred, or granted, or purported to assign,
transfer, or grant, any of the claims, demands, or cause or causes of action disposed of by the
Agreement.
5.6 Each of the signatories of this Agreement expressly represents and
warrants that they have signed this Agreement voluntarily, without any duress or undue influence
on the part, or on behalf, of any party; and warrants the terms of this Agreement are contractual
and not merely recitals. All recitals are incorporated into this Agreement by reference.
5.7 Each Party agrees to cooperate fully and execute any and all
supplementary documents and to take all additional actions which may be necessary or appropriate
to give full force and effect to the basic terms and intent of the Agreement.
6. SETTLEMENT: Nothing contained herein shall be construed as an admission
by any Party of any wrongdoing or any liability of any kind to any other Party. Each of the
Parties denies any liability -in connection with any claims and intends only to avoid the
expenses associated with litigation and to buy its peace.
7. MISCELLANEOUS:
7.1 The Agreement shall be deemed to have been executed and delivered
within the State of Washington, County of King, and the rights and obligations of the Parties shall
be construed and enforced in accordance with, and governed by, the laws of the state of
Washington, without regard to choice of law rules.
7.2 Except for those rights created by way of this Agreement, the Parties
hereby agree as part of this Agreement to bear their own respective fees and costs related to the
Loan, the Foreclosure, and/or the Property.
7.3 No waiver of any of the provisions of the Agreement shall be deemed or
shall constitute a waiver of any of the other provisions hereof whether or not similar, nor shall such
waiver constitute a continuing waiver.
7.4 This Agreement comprises the entirety of all agreements between the
Parties with respect to the subject matter hereof and supersedes all prior and contemporaneous oral
and written agreements and discussions. This Agreement may be amended only in writing, signed
by all Parties.
7.5 Each Party has cooperated in the drafting and preparation of the
Agreement. Hence, in any construction to be made of the Agreement, the same shall not be
construed against any Party.
7.6 In the event of mediation, litigation, or arbitration relating to the
enforcement and interpretation of this Agreement, the prevailing Party shall be entitled to recover
reasonable attorneys' fees, expert fees, and litigation costs.
7.7 In the event that any portion of this Agreement shall be judicially
determined to be ineffective, invalid, or unenforceable to any extent, that portion shall be deemed
severable from this Agreement and the invalidity and unenforceability thereof shall not affect the
validity and enforceability of the remaining portions of this Agreement.
7.8 A signed copy of the Agreement transmitted by facsimile machine or
electronic mail will have the same force and effect as an original signature.
7.9 This Agreement may be executed in counterparts, and when each Party
has signed and delivered at least one such counterpart, each counterpart shall be deemed an
original, and, when taken together with other signed counterparts, shall constitute one Agreement,
which shall be binding upon and effective as to all Parties.
7.10 It is further understood and agreed that a true, accurate and complete
photocopy of this document is deemed a duplicate original, each of them to have the full force and
legal effect, as such and may be signed, if necessary in counterpart.
ATTEST:
Approved as to form:
1 s''
Kevin McCrae (
Civil Deputy Prosecuting Attorney
Date: - l i I l ) Jr I
GRANT COUNTY
BOARD OF COUNTY
COMMISSIONERS
' NT COU 'Y, , VASHING TON
Cindy Cart , Chair
U
Danny EStone, Vice Chair
i
ob e
SHFLLPOINT LOAN SERVICING
2/5/2021 NEW Z, L bl HELLPOINT MORTGAGE SERVICING
DATED; , 2020 By
Name: ea er�U�l
Its: Corporate Counsel
Professional Services Agreement re
Adult Drug Court Discretionary Grant
Page 2 of 5
to any of the benefits the County provides for County employees. Contractor will be solely and
entirely responsible for its acts and for the acts of its agents, employees, servants, subcontractors,
or otherwise during the performance of the Agreement.
3. Term: This contract shall commence upon its complete execution and shall terminate March 31,
2021. The parties may elect to terminate this Agreement sooner by giving written notice of
termination to the other party. Said termination shall be effective 14 days from the date of receipt
of said written notice.
4. Obligations of County: The County agrees and promises to:
4.1 Dedicate appropriate County staff time and resources (including but not limited to Social
Service Program staff, Superior Court staff, Prosecuting Attorney Office staff, and Office of
Public Defense staff) to ensure Contractor has the information needed to facilitate technical
assistance and to write and assemble all documents and data required by the grant application
process.
4.2 Make County staff available at times and in sufficient frequency, as is agreed to by parties.
4.3 Pay a flat fee of $10,000 for these services, which include data gathering, phone
consultations, and provision of all information and all related documents, materials and
supplies necessary to write and submit the Adult Drug Court Discretionary Grant prior to
March 17, 2021, or as soon as the 2021 grant application filing period opens if said period
opens after March 3, 2021.
In addition to the flat fee of $10,000 for these services, Grant County agrees to pay expenses
related to travel for in-person meetings (based on applicable GSA FY rates) to include
mileage, lodging, parking, and meals at per diem rates for Washington. Expenses are not to
exceed $4,500.00. Expenses will be reimbursed by Grant County within thirty (30) days upon
receipt of an itemized, monthly statement.
The County agrees that in the event either the County decides to stop pursuing the grant or
the Bureau of Justice Assistance (BJA) changes the grant qualifications where Grant County
would no longer qualify, then the County will reimburse the contractor for the documented
hours spent working on preparing this grant. The rate of reimbursement will be $50/hour and
the contractor will submit written documentation of hours worked.
4.4 The County shall operate in compliance with all state and federal regulations.
5. Obligation of Contractor: The Contractor agrees and promises:
5.1 Availability. The Contractor will perform all work on the activities described above between
the date this agreement is executed and March 17, 2021.
Professional Services Agreement re
Adult Drug Court Discretionary Grant
Page 3 of 5
5.2 Billing. The Contractor shall invoice the County monthly for services performed and
expenses incurred under this agreement.
5.3 The Contractor shall carry at her own expense the following insurance coverage to the extent
described below:
5.3.1 Automobile insurance covering bodily injury and property damage activities of the
Contractor arising out of or, in connection with Work performed under this
Agreement in an amount not less than $1,000,000 combined single limit for each
accident.
5.3.2 The Contractor shall procure policies for all insurance required by this section for a
period of not less than one year and shall provide the County (on or before the date
this Agreement commences) with a certificate of insurance as satisfactory evidence
that the premiums have been paid and that such insurance policy is in effect. The
County shall be carried as a named insured on each insurance policy required by this
section.
5.3.3 Upon demand by the County, the Contractor shall provide a complete copy of all
policies for insurance required by this Agreement. This requirement is supplementary
to, but does not replace the requirement in this Agreement to provide the County with
certificates of insurance as satisfactory evidence that the premiums have been paid
and that such insurance policy is in effect.
5.4 Participate in the completion of Washington State Patrol Background Check.
5.5 Scope of Work on the Adult Drug Court Discretionary Grant:
Task:
The Contractor shall provide technical grant writing services; facilitate meetings with the
Grant County Adult Drug Court Planning Committee, the Drug Court Team and Grant
County Social Services for the purposes of writing and submitting the BJA Adult Drug
Court Discretionary Grant.
The Contractor shall convene meetings with County staff to review the status and
development of the grant application. Meetings shall be scheduled as frequently as
mutually deemed necessary by Contractor and County staff. Contractor and County staff
shall work collaboratively with Administrative Office of the Courts in the grant application
process.
Services shall include consultation, technical assistance, data collection and the written
development of the Adult Drug Court Discretionary grant application, and all other
documents in the format required by the grant application guidelines.
The Contractor shall deliver the completed grant application ready for submission prior to
March 17, 2021.