Did Kathy Nealy Buy Her Victory Condo Out of Foreclosure?

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The Terrace

What is this? It’s a public document called a Rescission of Substitute Trustee’s Sale and Cancellation of Substitute Trustee’s Deed. It shows that Kathy Nealy apparently bought or got her Victory condo unit at The Terrace back into her ownership after it was sold to PHH Mortgage on August 9, 2013. The mortgage default was rescinded on December 13, 2013, signed by Kathy on January 9, 2014 and notarized by John Wiley Price on January 28, 2014.

Yet in DCAD, the ownership of unit 216 at The Terrace House, 2323 North Houston, is still listed as the Federal National Mortgage Association. Huh.

I called Cheryl Jordan over at the Dallas County Appraisal District, who tells me DCAD picks up whatever is filed at the Dallas County Clerk’s office.

“We look at warranty deeds filed,” she says, “we can’t look at every court document filed, unless someone brings it to our attention.”

Well, now it’s now been brought to their attention.

Last Friday, the Feds arrested Kathy Nealy, John Wiley Price, Daphne Fain, and Christian Lloyd Campbell,  a “consultant” and former Nealy employee — the “Texas Four”. The federal indictment charges the defendants with an alleged bribery scheme in which Nealy and Christian Lloyd Campbell funneled money to Price in exchange for favorable votes for their clients, all of whom conducted business with the county. Price is also accused of handing out insider information on Nealy’s client’s competitors to win county bids. It was a “you pay to play” with the county. According to the indictment,  Nealy funneled more than $950,000 in “corrupt payments and benefits” to Price. She bought her Terrace unit December 7, 2006.

The Terrace Condos were developed by Hillwood, and offer one, two and three bedroom units with great storage space, laundries, and large balconies with great views of downtown Dallas.

Terrace Rescission Cancellation


Candy Evans

A real estate muckraker, Candy Evans is one of the nation’s leading real estate reporters. She is also the North Texas real estate editor for Forbes.com, CultureMap Dallas, Modern Luxury Dallas, & the Katy Trail Weekly. Candy has written for Joel Kotkin’s The New Geography, Inman Real Estate News, plus a host of national sites. Constantly breaking celebrity real estate news, she scooped former president George W. Bush's Dallas home in 2008. She is the founder and publisher of her signature CandysDirt.com, and SecondShelters.com, devoted to the vacation home market. Her verticals have won many awards, including Best Blog by the venerable National Association of Real Estate Editors, one of the nation’s oldest and most prestigious journalism associations. Candy holds an active Texas real estate license but does not sell. She is on the Board of Directors of Braemar Hotels & Resorts (BHR).

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