Schoharie County man battles alleged deed theft
Cobleskill, N.Y. (WNYT) – David White got a knock on his Cobleskill door in Schoharie County. He said Joseph Goodnough asked about buying the house.
White found out he was on a foreclosure list. Over time, they had discussions.
Eventually, he said he agreed to sign tax transfer papers only.
Surveillance video shows they stopped at a Stewart’s in Schenectady, White assumed for gas.
“And he said no, this is where we’re going to meet the notary. I was like, very odd! This is very strange,” he said.
White said there was time pressure.
“Mr. Goodnough started laying papers down in front of me and he would point to where I needed to sign it, and then immediately, he would slap another page over the top of it and then point and say this is where you need to sign, and immediately again, he would slap another page on top of that, so I never really had a chance to look this stuff thoroughly through.”
White said he never got the copies of the papers he was promised.
After that, things soon took a turn.
On another day, police body camera video shows a call at White’s home. Someone claimed that there was a man unresponsive inside the Cobleskill house.
David White was shocked. He was absolutely fine, but it got worse.
“They basically said yes, we’re here to do the wellness check, we see you’re fine, etcetera, and by the way, Mr. Goodnough wanted us to give this to you,” he said. “And they handed me an eviction notice. Like a ten-day eviction notice! Out of my own house!”
White searched high and low for an attorney who would take the complicated case.
“Because it said that I transferred, or I sold the house to Mr. Goodnough for $25,000.”
White said he never got the money.
He lost weight and sleep, and kept wondering where he would go.
He finally made contact with attorney James Sottile, who championed White’s case with fierce determination.
He took Goodnough to court.
As for the mysterious and unsettling police and EMS call, Sottile said, “Well, I believe in retrospect looking back on this he wanted to get Mr. White out of the property. He tried to- he shut his power off, he shut his water off on him, he was living without utilities for 4-5 months.”
In a court decision, Judge Peter Lynch found that “Defendant Joseph Michael Goodnough fraudulently induced Plaintiff (White) to execute a deed purportedly conveying title to the premises….”
Deed fraud is a growing problem fueled by limited housing supply and rising home values.
Popular targets are vacant properties, those behind in taxes, in foreclosure, or the owner has died.
It’s become so pervasive, a new law makes deed theft a crime, a form of grand larceny.
This month, state police arrested Joseph Michael Goodnough and charged him with grand larceny.
Attorney Arthur Frost represents him in that criminal matter.
He said in a statement: “Mr. Goodnough is innocent of the crime he’s accused of. He was simply looking for a house for himself and his teenaged daughter. David White – the person Mr. Goodnough purchased the house from – was about to lose his house because Mr. White was delinquent in his taxes. Mr. Goodnough paid him a fair price and also paid off the delinquent taxes White owed. Mr. Goodnough then rented dumpsters and helped Mr. White clear the house. White voluntarily and intelligently signed a deed to sell the property to Mr. Goodnough, which was notarized. A notary would never notarize White’s signature if the notary thought White was incompetent. We look forward to proving Mr. Goodnough’s innocence in court.”
But for White, there’s a further complication. Goodnough had sold the property. That case continues in court.
“A house he owns. Ridiculous! I was just completely shocked,” said Sottile. “And what just snowballed into a massive litigation with subsequent purchasers that are house flippers that just put profit before people.”
Sottile also represents John and Richard Donnelly of Stephentown in Rensselaer County, who say they almost lost their home in their dealings with Goodnough.
John Donnelly’s full story about their Stephentown home will air on Thursday night.
The fear is that there may be many other deed fraud victims out there who just felt overwhelmed and helpless, and were never able to get an attorney.