All the blood drained from Karen’s face. Her mouth opened, but her vocal cords refused to work.
“Your Honor—” Mitchell stammered, half-standing.
Grace ignored him. “Every one of those mortgages contains a standard acceleration clause, legal and enforceable under Virginia law. This clause allows the lender—Mr. Reeves—to demand immediate, full payment of the loan if the collateral, meaning the homes, is threatened with a loss of value.”
Judge Hendricks leaned forward, suddenly intensely interested. “Counselor, what is your point?”
“My point, Your Honor, is this. If the HOA succeeds in forcing Mr. Reeves off his property, and if property values decline as a result—which the HOA itself claims will happen—then Mr. Reeves has the legal right to accelerate every one of those 167 mortgages. That means 167 homeowners would be required to pay off their loans in full, immediately. We are talking about approximately one hundred and twenty million dollars in outstanding mortgage debt.”
Pandemonium erupted.
The residents in the gallery leaped to their feet. Shouts of panic and outrage filled the air. Judge Hendricks slammed her gavel repeatedly. “Order! Order in this court!”
Mitchell Carver shot to his feet, his slick composure entirely shattered. “Your Honor, that is extortion! This is a blatant attempt to intimidate—”
“No, Mr. Carver,” Grace snapped, her voice cutting through the noise like a whip. “It is contract law. Your clients signed those mortgages. They agreed to the terms. Mr. Reeves is simply informing the court of his legal rights. If the HOA forces him off his property and values drop, he has every right to protect his collateral.”
The judge looked directly at the man in the flannel shirt. “Mr. Reeves. Is this accurate?”