SEBASTIAN, Fla. — People in a Sebastian neighborhood are concerned about fires from a house, which they believe is quartering squatters after a woman died last March.
Officials responded to a fire in the neighborhood early this year at the house located at 112 Duncan St. Neighbors like Mark Paletsky are scared more fires will occur.
"That burned-out RV, it caught fire again in the middle of the night last week," he said. "It could have destroyed everybody's house in the neighborhood, and it's sitting there now with gas or oil. The remnants of the burned-out plastic going into the surface water."
Sebastian Mayor Ed Dodd said the city is powerless without the property owner asking for assistance during Wednesday's council meeting.
"There's nothing the city can do without direction from the property owner," Dodd said.
According to Indian River County property records, Ann Gail owns the property located at 112 Duncan St. However, Gail died in March 2023, according to an obituary WPTV confirmed belonged to the 84-year-old woman.
Records from the Indian River County Recorder show Gail and her husband, Warren Allen, entered into a Home Equity Conversion Loan Agreement — commonly called a reverse mortgage — with a company based in Kansas City called James B. Nutter and Company.
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WPTV reporter Ethan Stein called James B. Nutter and Company, who commonly goes by the name Nutter Home Loans, and received a message the company is permanently closed.
The Kansas City Star reported the company closed in June 2023 after the Department of Justice filed a complaint against the company in 2020.
According to the complaint, the government alleged the company forged certifications and used unqualified underwriters to approve Federal Housing Administration-insured Home Equity Conversion Mortgages. This, according to the complaint, allowed the company to increase loan production.
Records from the Indian River County Recorder show the Secretary for Housing and Urban Development (HUD) holds the security instrument in the Home Equity Conversion Loan. WPTV contacted the federal agency last week, and we're still awaiting a statement after it said it was looking into the situation.
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Gail's son said he believes HUD is supposed to own the house. He sent WPTV a copy of a letter he received from a company called Compu-Link Corporation, which identified itself as a contractor for the HUD. It asks for a death certificate, documentation of the estate has been probated, copy of the power of attorney papers and written request for the deed in lieu of foreclosure to willingly turn over the house.
But, he said he hasn't sent the paperwork over because he doesn't have a copy of the paperwork.
Meanwhile, a man and a woman identifying herself as Carmela are occupying the home on Duncan Street.
Carmela said she was Gail's caretaker before she passed away last year. She said she's living in the house because Gail gave her the house after she died.
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"She told me to stay here until the bank came," Carmela said. "But, I'm looking for a place to go to. I'm going to California."
She said she didn't know the company who entered into the home equity conversion loan closed and said Gail's family members destroyed her paperwork to live in the house.
"I can't find the paperwork," Carmela said. "They shredded papers. They took stuff. They took stuff off the walls and she left."
Sebastian police said it wasn't aware of any reports of anybody damaging the property to corroborate those allegations. Carmela said she plans to live in the house for another month before moving to California. She didn't answer WPTV's questions on why she is moving if she had a house in Florida.
Records that WPTV received show the property was cited by code enforcement on March 9 for accumulation of trash and debris. It gave the owner 15 days to clean up the property, but WPTV's crews saw the trash six weeks later on Wednesday. Previously, Sebastian's public information officer said the issue would be brought before a judge in the coming weeks.
A new Florida law would allow law enforcement to remove squatters from a home without law enforcement needing a court order. It goes into effect later this year. But, the mayor stressed it would also require the property owner to ask for help.
