Rehearing Denied November 20, 2019
FROM THE BENTON COUNTY CIRCUIT COURT [NO. 04CV-15-1301],
HONORABLE JOHN R. SCOTT, JUDGE
Law Firm, PLLC, by: Josh Sanford, for Appellant.
& Associates, P.L.L.C., Little Rock, by: H. Keith Morrison,
you may find yourself in a beautiful house
you may ask yourself, well
I get here? 
Appellant Vicki Kline owns a house located on Champions
Boulevard in Rogers, Arkansas, which is subject to a
mortgage. Yet she claims that, unbeknownst to her, her
signature was forged on numerous mortgage documents for the
litigation, Kline sought a declaration that the mortgage on
the property held by appellee PHH Mortgage Corporation (PHH)
is void. Kline pursued this relief on the basis of alleged
forgeries of her signature on certain mortgage documents and
pursuant to Arkansas Code Annotated section 18-12-403 (Repl.
2015) (sometimes referred to as Section 403).
did not prevail before the circuit court. There, the court
declined to grant her relief based on Section 403 and ordered
a decree of foreclosure in favor of PHH. Kline appeals to our
court. After due consideration, we affirm.
April 2000, Kline and her former husband, John Marquez,
purchased property located on Champions Boulevard in Rogers,
Arkansas, for $65,000. In 2001, they executed a $765,000
mortgage in favor of Arvest Bank to build a house on the
property. In the years that followed, several additional
loans would be taken out on the property in the names of both
Kline and Marquez.
2002, a $345,000 second mortgage in favor of Arvest Bank was
executed in the names of Kline and Marquez. In 2003, a
mortgage in the amount of $1.2 million was executed in favor
of Regions Bank with Klines and Marquezs names appearing on
the note. Shortly after the mortgage with Regions Bank was
entered into, a release of the Arvest mortgages was recorded.
In 2004, a $1.36 million mortgage in favor of Merrill Lynch
was executed in the names of Kline and Marquez. A settlement
statement reflects that the Merrill Lynch mortgage was used
to pay off the Regions mortgage. The Merrill Lynch mortgage
was recorded in November 2004. Thereafter, the Regions
mortgage was released, which was recorded in December 2004.
Subsequently, Merrill Lynch assigned its mortgage to PHH, a
subsidiary and loan-servicing arm of Merrill Lynch.
June 2010, Kline and Marquez filed for Chapter 7 bankruptcy.
Their personal liability on the Merrill Lynch loan was
discharged in the Chapter 7 bankruptcy, and the bankruptcy
terminated in October 2010. Despite the discharge, Kline and
Marquez continued to voluntarily pay ...