Friday, May 13, 2011


Longtime PM readers know we have done many articles over the years about the 'shenanigans' of LD-6 Rep. Carl Seel; his bankruptcy (here & here), his foreclosures, his abuses of Clean Elections $$$, even his appearance on "The Daily Show"!

But the most serious indiscretion yet may have occurred. Many media sources are now asking the question:


KPHO Channel 5 did a story Tuesday night on this:

State Senator's Mortage Reduction Questioned

Rep. Carl Seel was supposed to propose an amendment to hold lenders accountable in foreclosure situations, but at the last minute he didn't. At the same time the principal on his mortgage was reduced by more than 50 percent. Coincidence? You decide.

Look closely. Seels' house has a new roof, and new paint. WHO paid for that? Check out the video we did in our story on Friday, April 08, 2011:

Donald Trump and Arizona Representative Carl Seel meet just 5 days before lawmaker’s dilapidated home auctioned at courthouse


Don't believe us? Read what others are saying about this:

From the PPennypacker Blog:

Enter Republican, Birther Bill author, who met with Donald Trump last month, Rep. Carl Seel (R).

Seel was suppose to propose an amendment to revive the bill but never showed up. Apparently he decided there was no point because word was handed down from the powers that be that it had "no chance" of being adopted.

But another "coincidence" happened.

Seel's bank, Ocwen, suddenly granted him a principal reduction that reduced his mortgage to $88,000 from roughly $190,000, which industry insiders say is "unheard of."

Wow! Isn't he lucky!!!
You can read more about Rep. Seel's deal here

From the Mandleman Matters Blog:

Remember Arizona’s Senate Bill 1259 that would have required servicers to produce a declaration that they had the proper chain of title prior to foreclosing on someone’s home? You know… the one that passed the Arizona Senate 28-2 that I wrote about back on February 23rd of this year?

Remember maybe a month ago when I tried to follow up to see how the bill was proceeding in the Arizona House of Representatives… only to find out that on the way to the House… it disappeared… the text replaced by some bill about firefighting with the same number? And no one was saying a word about it? If you missed it, I wrote about it here.

Okay, well… it appears that the story is not over yet.

It seems that one Arizona homeowner set out to revive the essence of the bill, drafting an amendment and recruiting Rep. Carl Seel to propose that it be added to Senate Bill 1474, being sponsored by Senator Ron Gould.

His name is Darrell Blomberg, and he’s a Phoenix area Realtor, and a past president of one of the local boards of Realtors… who is now involved in auditing trustee sales for homeowners. Basically, he looks for some basis upon which a sale might be cancelled, or at the very least postponed. He acknowledges that it only represents a temporary solution, but it’s often important to the homeowner nonetheless. He was actually working on one such audit for Rep. Seel, which is how the two came to know each other.

I’d heard about him from another contact I have in Arizona as being someone very active in the legislation related to foreclosures, so I reached out to him over this past weekend to see what he knew. He returned my call after reading my story about the disappearing SB 1259 bill, and he certainly did have some news for me and he was very disappointed about the whole thing.

According to Mr. Blomberg, it seems that when the day came around for Rep. Carl Seel to propose the amendment, as he had agreed to do, he was running late and ultimately didn’t get there on time. The amendment was never proposed as a result.

When I first heard Darrell the story, I thought… well, maybe it was traffic. Or, a doctor’s appointment that ran late? Perhaps friends came in from out of town?

When Rep. Seel was asked what had happened to prevent him from showing up on time to propose the amendment, he explained that he had decided not to propose it because he was told there was no chance of it being adopted… something about it not being “germane,” whatever that means.

One thing though… from what Darrell explained to me, Carl Seel must have been in a very good mood the day of his unexpected tardiness, because even though he had been previously turned down twice for his own loan modification, two days before he showed up too late to propose the amendment, Ocwen granted him a PRINCIPAL REDUCTION that reduced his mortgage to $88,000 from roughly $190,000… that’s a reduction of approximately 56% give or take a few points one way or the other.
Now that is lucky, was all I could think to say. Really lucky, considering it was Ocwen, a servicer I’ve been told is among the most difficult when it comes to modifying loans. In fact, it’s almost like being the single-ticket-lottery-winner-three-days-in-a-row kind of lucky, wouldn’t you say?

So, how did Darrell know about the fortuitous timing of Mr. Seel’s generous principal reduction?

It’s quite simple really… Seel hired him to help him with his loan.

You see, according to Darrell Blomberg, Rep. Seel had asked him to conduct an audit of Seel’s trustee sale in an effort to postpone his own home’s sale, which had been scheduled after his servicer denied his loan modification application for the second time. And Darrell had forwarded the results of his examination to Ocwen in a letter outlining several discrepancies in an attempt to delay the sale date.

As a result of that close involvement, Darrell says he personally saw the paperwork indicating both the trustee sale was being cancelled and that the significant principal reduction was being granted as part of Seel’s loan modification. He even went over it with Seel, telling him he hadn’t seen many… if any… like this one.

For the record, my two calls to Rep. Seel’s office were not returned. I spoke with his assistant who answered the phone at his office. I explained that I was calling to ask Rep. Seel to comment on a recently obtained loan modification granted by Ocwen… she said she knew nothing about it, but would contact him and convey my message. I explained that I was going to run the story today and that it was urgent that I hear from him should he want to deny the report… and… well… as of 5:03 PM today… nothing… and I’ve been staring at my phone for hours.

Darrell says that his only thought at the time was that Ocwen had granted the principal reduction because of some combination of Seel playing his elected representative card and what he had done pointing out inadequacies in the documentation related to the trustee sale… Seel wasn’t scheduled to propose the amendment he had drafted for another two days, so there was no reason to believe anything else was in play.
When the day came for Seel to speak for the amendment, Darrell was there, pacing the halls of the Arizona legislature, calling him repeatedly on his cell phone, wondering where he was… and why he would be so late… until it was too late.

And the amendment was never introduced in the legislature. Again. Gone without a debate, without a vote, without any consideration for the people of the State of Arizona.

If ALL of this is true, Rep. Carl Seel should RESIGN immediately!!! All of us here at Politico Mafioso ask that the new Speaker of the House ANDY TOBIN start an investigation of this 'mess'. NO Elected Official should profit from his/her position. Seel's past actions prove that he is only in this to 'make money'. Carl Seel is a total embarassment to the citizens of LD-6 & the voters of Arizona!

It's time for shisters like Carl Seel to be held accountable his actions!






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