Breaking News for Homeowners Facing Foreclosure:
According to a government audit nearly 83% of mortgages survey contained legal errors and violations that could be problematic for lenders attempting to foreclose!
Do You Have One of Them?
CHANCES ARE GOOD YOUR MORTGAGE LOAN CONTRACT CONTAINS FRAUD. According to a government audit 83% of the mortgages contain legal violations and errors. Legal violations and errors, breaches of contract, appraisal fraud, mortgage fraud, clouds on title, and other issues have caused a large number of mortgage transactions to be legally problematic for lenders attempting to foreclose. Furthermore these legal issues that exist in many mortgages can result in a Borrower having legal grounds to file suit as a countermeasure to foreclosure.
If you are currently facing foreclosure, or you have recently lost your home to foreclosure, we recommend that you take immediate action and join FRAUD STOPPERS because we will analysis your mortgage loan documents for signs of fraud, and show you a proven way to save time and money (and increase your odds of success) suing for financial compensation for mortgage fraud, clear and marketable title to your home, or both!
Learn How to Cancel Secured and Unsecured Debt Obligations through Strategic Litigation Right Now.
FRAUD STOPPERS will analysis your mortgage loan documents for violations of the Uniform Commercial Code (UCC) to determine what legal options your current mortgage loan situation qualifies for. Then we will help you formulate an effective and affordable strategy to get the legal remedy that the law entitles you to, and that you deserve.
Our primary focus is helping you get clear and marketable title to your property by arguing that the actions of the banks have made the security provisions of the mortgage/deed of trust unenforceable as a matter of law.
Our Association of member’s main objective is to maintain and improve the civil rights, constitutional guarantees and political freedom for every member and citizen of the United States of America.
We believe that the First Amendment of the Constitution of the United States of America guarantees our members free speech, petition, assembly, and the right to gather together for the lawful purpose of advising and helping one another in asserting our rights under the Federal and State Constitutions and Statutes.
Get the FACTS and EVIDENCE that you need to fight mortgage and foreclosure fraud, stop a foreclosure sale or eviction, and save your house from foreclosure. Yes. Upwards of 95% of all home loan borrowers have suffered injuries in the form of appraisal fraud, mortgage fraud, legal errors, contract breaches, and/or regulatory law breaches. To discover these, the borrower must hire a competent professional to conduct a comprehensive examination of all documents related to the loan transaction. With an examination report in hand to prove the injuries, the borrower may negotiate a favorable settlement or sue for damages. Only such an examination, and artfully presenting the causes of action revealed in the exam report, can provide a reliable way for the borrower to end up with cash in hand or other financial compensation for the injuries. Currently there is an estimated 70,000,000 mortgages that MERS claims to hold. This represents about 60% of the residential real estate in the United States of America. So chances are your mortgage and loan has been compromised.
What is MERS?
MERS functions as a centralized electronic registry of mortgages, and it was supposed to track the ownership of these mortgages, which are typically sold multiple times during the loan’s life. MERS potentially affects upwards of 70 million residential mortgage loans nationwide, and almost completely crashed the U.S. housing market by itself because of so many problems with the packages.
MERS was created by lenders and title insurance companies, so it would be easier to transfer the beneficial interests to other secondary market lenders. Yet, some mortgages ended up significantly discounted due to packaging problems, which made them inactive. Where’s the “IOU” for the mortgage debt?
The MERS Scandal
Missing documents, notary fraud, and “robo-signing” led the way. There was a lot of chaos involved with MERS mortgage packets, which contained no original promissory notes (the “IOU” for the mortgage debt) in these same MERS files.
Knowledgeable homeowners were able to completely stop their home foreclosures by pointing out that the foreclosing entity, such as the mortgage servicing company, didn’t have a legal right to foreclose on their homes, since they didn’t have all of their valid mortgage paperwork in their files. These questionable ownership interests in the mortgages led to foreclosure moratoriums, court settlements, and inactive statuses.
There were a large number of allegations of notary fraud in which real or fake notaries such as “Linda Green” were allegedly part of the massive “Robo-Signing Scandal” nationwide.
It has been suggested that promissory notes, deeds of trust or mortgages, and other loan or title documents were forged, left blank, or illegally assigned to numerous mortgage investors. Since MERS was set up to become as paperless, speedy, and efficient as possible, there was not enough third party oversight to check whether these documents were valid.
Questionable Beneficial Interests
“No Note = No Debt” became the mantra for homeowners who were in the midst of their own foreclosures due to the weaker U.S. economy. Some savvy property owners were able to legally void their existing mortgage debt altogether by proving that the foreclosing mortgage company had no valid beneficial interests in the existing mortgage, and thus had to legal right to collect any payments.
Other homeowners were able to show that their MERS files had fraudulent notary signatures signed on behalf of both owners and lenders, which moved their file designations over to “inactive” as well.
Mortgage lenders that have collapsed or imploded since the official start of the Credit Crisis back in 2007, such as Countrywide, Indy Mac, Lehman Brothers, World Savings, Downey Savings, and Washington Mutual still figuratively exist by way of their asset or beneficial interest transfers to the “strawman” named MERS.
MERS may pay no taxes or employ anyone. Without the proper assignment of these MERS mortgages, these same imploded mortgage companies’ loans could have ceased to exist.
Our understanding is that generally the requirements set forth in the pooling and servicing agreements were not followed, and they were not followed in the following way: The pooling and servicing agreements says that when the notes are transferred to the trust there needs to be an endorsement in blank to the trust, as well as a complete chain of endorsements for all proceeding transfers. That means that the originator of the loan has to have a specific endorsement transferring it from the securitization sponsor, the sponsor to the depositor, and then the depositor in blank to the trust.
What we have found is that in the majority of the cases that chain of endorsements is not there. There is simply a single endorsement in blank.
That creates a problem because it does not comply with the trust documents. That is a severe problem because most pooling and servicing agreements are trust that are governed by New York law, and New York law says that if you are not punctilious in following the trust documents for a transfer, the transfer is void. It doesn’t matter if you intended it, its void. That transfer is void even if that transfer would have otherwise complied with law. And if the transfer is void that would mean that the trust does not own the mortgages, and therefore lacks standing to foreclose.
It’s axiomatic that in order to bring a foreclose action the plaintiff must have legal standing. Only the mortgagee has such standing. Thus various problems like false or faulty affidavits, as well as back dated mortgage assignments, and altered or wholly counterfeited notes, mortgages, and assignments all relate to the evidentiary need to prove standing.
If your mortgage loan contract was part of a table funded securitized transaction then there is a really good chance that your mortgage loan documents probably contain legal errors, violations, tortuous conduct, contract breaches, and fraud, that could result in you being entitled to receive financial compensation, a reduction in your principal balance, clear and free title to your property, or even better!
FRAUD STOPPERS Private Members Association (PMA) can help you save time and money, and increase your odds of success, getting the legal remedy that the law entitles you to, and that you deserve, with these products and services: Stop Foreclosure Sale Methods, Stop Eviction Methods, Reverse Foreclosure Sale, Breach of Contract Lawsuits, Quiet Title Lawsuits, Slander of Title Lawsuits, Wrongful Foreclosure Lawsuits, Federal Fair Debt Collections Practices Act (FDCPA) Lawsuits, Federal Consumer Financial Protection Bureau (CFPB) Audits & Lawsuits, Federal Truth in Lending Act (TILA) Rescission Lawsuits, Bloomberg Securitization Audits, Mortgage Fraud Audits, Robo Signing Audits, Chain of Title Investigations, Trial Ready Evidence Packages, Expert Witness Affidavits, Expert Witness Testimony, Pro Se Products & Services, Pro Se Education & Training Material, Pro Se Administrative Documents, Nationwide Foreclosure Defense Attorney Network, Attorney Education Curriculum, Attorney Loan Modifications, Pro Se Loan Modifications, Attorney Bankruptcy Services, Pro Se Bankruptcy Services & Support, Investor Short Sale / Buyback Transactions, Investor Joint Venture Transactions, Private Equity Refinance Transactions, Creative Real Estate Solutions, Deed in Lieu Transactions, Credit Repair Programs, Easy Non-Credit Based Financing Options Available!
Stop Foreclosure, Sue for Breach of Contract
Now is the perfect time to stand up for your legal rights and sue for beach of contract, mortgage fraud, and foreclosure fraud because the legal tide is beginning to turn, and homeowners are starting to win! In 2016 the California Supreme Court ruled in Yvanova v. New Century Mortgage Corporation (Case No. S218973, Cal. Sup. Ct. February 18, 2016) that homeowners have legal standing to challenge an assignment of the mortgage loan contract in an action for wrongful foreclosure on the grounds that the assignment(s) is/are void. Obviously if the court had ruled differently, the banks would have had carte blanche to forge mortgage assignments with wild abandon. In fact, without a system of endorsements and assignments it would be impossible to determine who has a legitimate interest in the property!
In THE PAPER CHASE: SECURITIZATION, FORECLOSURE, AND THE UNCERTAINTY OF MORTGAGE TITLE ADAM J. LEVITIN writes "the mortgage foreclosure crisis raises legal questions as important as its economic impact. Questions that were straightforward and uncontroversial a generation ago today threaten the stability of a $13 trillion mortgage market: Who has standing to foreclose? If a foreclosure was done improperly, what is the effect? And what is the proper legal method for transferring mortgages? These questions implicate the clarity of title for property nationwide and pose a too- big-to-fail problem for the courts.
The legal confusion stems from the existence of competing systems for establishing title to mortgages and transferring those rights. Historically, mortgage title was established and transferred through the “public demonstration” regimes of UCC Article 3 and land recordation systems. This arrangement worked satisfactorily when mortgages were rarely transferred. Mortgage finance, however, shifted to securitization, which involves repeated bulk transfers of mortgages.
Like many other cases, current trial court decisions are getting reversed because the courts are waking up to the reality of the rule of law. What they have been following is an off the books rule of “anything but a free house.” However a recent Yale Law Review Article eviscerates the assumptions of a free house for the homeowners and destroys the myth that somehow that policy has saved the nation. You can read the Yale Law Review article “In Defense of “Free Houses” for more information on this tide change.
To facilitate securitization, deal architects developed alternative “contracting” regimes for mortgage title: UCC Article 9 and MERS, a private mortgage registry. These new regimes reduced the cost of securitization by dispensing with demonstrative formalities, but at the expense of reduced clarity of title, which raised the costs of mortgage enforcement. This trade-off benefited the securitization industry at the expense of securitization investors because it became apparent only subsequently with the rise in mortgage foreclosures. The harm, however, has not been limited to securitization investors. Clouded mortgage title has significant negative externalities on the economy as a whole.
If your loan contains fraud or it was securitized then your lender may have breached your mortgage loan contract, and therefore your mortgage loan contract could be legally challenged in a court of law. If your mortgage loan contract is declared legally void, then any assignments of the mortgage loan contract, or subsequent assignments, could also be declared legally void.
Securitization is the process of taking an asset and transforming them into a security. A typical example of securitization is a mortgage-backed security (MBS), which is a type of asset-backed security that is secured by a collection of mortgages. Keep in mind that it is perfectly legal for banks to create mortgage-backed securities (MBS's); however there are significant legal ramifications that will either harm you, or benefit you, depending on what actions you take in response to the fact that your mortgage or deed of trust is legally void resulting in your property, in reality, being unsecured, just like a unsecured credit card debt. What's in your wallet?
This is why we recommend that you take immediate action and sue for the remedy the law entitles you to, and that you deserve. Treble damages and clear and free title to your home. Not sure if your loan contains mortgage fraud or if it was securitized, no problem, we will do a free mortgage fraud analysis and free Bloomberg securitization search for you.
Many of the programs that had modest success in the early days have fallen into disfavor as banks have enacted strategies to counter their progress. The banks are not going to go down without a serious fight. They have a large arsenal of tools to use, and the legal muscle to keep the industry off balance. This is not a static game. The reason that banks have been successful, for the most part, in protecting the large number of mortgages that were securitized is that there is an intricate web of legal theories that they hide behind to justify what they have done. In effect, they have created a shell game where the ball seems to move around in defiance of the laws of physics.
The banks are relying on a complex interaction between UCC 3 commercial paper law, UCC 9 securitization law, bailment law, agency law and local laws of the jurisdiction where the property is located. They would have us believe that what they have been doing since the 1970’s is perfectly legitimate. Many lawyers who have challenged the banks have gotten close to exposing the scheme only to find that judges retreat away from the complexity of the legal theories involved and fall back on procedural barriers under the auspices of protecting the equitable interests of the banks and their agents.
FRAUD STOPPERS Foreclosure Defense Program has moved the bar forward in many substantial ways:
- Our Private Administrative process is a targeted approach to Informal Discovery:
- 3-501. PRESENTMENT or States equivalent
- Mortgage Error Resolution/Request for Information: If you believe there is an error on your mortgage loan statement or you’d like to request information related to your mortgage loan servicing, you must exercise certain rights under Federal law related to resolving errors and requesting information about your mortgage loan. If you think your credit report, bill or your mortgage loan account contains an error, or if you need more information about your mortgage loan, you send a written letter concerning your error and/or request.
- Cutting edge mortgage fraud examination and court ready lawsuits and trial ready evidence to win your case
- Nationwide foreclosure defense attorneys and Pro Se litigation education and support products and services
Subsection of Presentment (example Covenant 8 of UCC3 Note) shows NOTE and under paragraph 1 states: “BORROWER’S PROMISE TO PAY: In return for a loan that I have received, I promise to pay….
MULTI STATE FIXED RATE NOTE--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3200 1/01 (page 1 of 3 pages) Covenant:
- WAIVERS
I and any other person who has obligations under this Note waive the rights of Presentment and Notice of Dishonor. “Presentment” means the right to require the Note Holder to demand payment of amounts due. “Notice of Dishonor” means the right to require the Note Holder to give notice to other persons that amounts due have not been paid.
- 15 U.S. Code § 1692g - Validation of debts
Often a debt collector cannot validate a debt and therefore cannot legally enforce collections.
- Truth In Lending Act (TILA RESCISSION) codified in 12 CFR Part 226 (Regulation Z); particularly§ 226.34 Prohibited acts and §226.32 sub-paragraph (ii) et seq. predatory lending practices
A mortgage loan covered by the Truth in Lending Act may be rescinded by mailing a Rescission Letter to the purported lender, forcing the purported lender/creditor to oppose that rescission with a lawsuit within 20 days or lose all opposition rights.
- The primary focus of the legal aspect of our program revolves around taking the theories and best practices that have been most successful around the country and make refinements.
“Here, the specific defect alleged is that the attempted transfers were made after the closing date of the securitized trust holding the pooled mortgages and therefore the transfers were ineffective.
- Our program seeks to avoid getting mired in the complexity of the various areas of law involved, instead focusing on a simple, focused approach that makes it harder for judges to avoid the strength of our core arguments.
- The PMA trustees and executive team have a diverse set of skills and significant experience in the core areas that will improve the success factors for our operations.
We have spent an exhaustive amount of time analyzing all of the cases that have been successful in resolving mortgage securitization problems. We have designed our legal information litigation strategy to hit the banks hard and fast where they are most vulnerable.
Our primary focus is on getting clear and marketable title to the property by arguing that the actions of the banks have made the security provisions of the mortgage/deed of trust unenforceable.
Instead of fighting the foreclosure itself head-on, we argue that none of the banks or their agents has the right to enforce the foreclosure provisions of the Mortgage/Deed of Trust. In effect, if none of the banks have standing to enforce the foreclosure provision, we are entitled AS A MATTER OF LAW to a declaratory judgment of Breach of Contract (Security Agreement) that is res judicata, i.e., a permanent ban on foreclosure.
The Stand & Fight Program is a complete program that provides you with everything you need:
- Administrated Process
- Court Ready Chain of Title Investigation and Signed Affidavit
- Complaint along with all exhibits
- Legal Research
- Legal Briefs
- Motions
- Answers
- Interrogatories
- Depositions
- Case Management for Local Civil Rules of Procedures
- Training and Support
Take action right now and get the FACTS and HELP that you need to gain the legal remedy that the law entitles you to, and that you deserve!
What is MERS?
What is MERS? MERS is the Mortgage Electronic Registration System and it is an electronic database that holds digitized mortgage loan documents. You can search the MERS Database here: The MERS Servicer ID to identify the servicer associated with a mortgage loan registered on the MERS System.
Bankers Association testified to THE FLORIDA SUPREME COURT (in CASE NO.: 09-1460) that the physical loan documents were deliberately destroyed to avoid any confusion upon their conversion to electronic files. CASE 09-1460 COMMENTS OF THE FLORIDA BANKERS ASSOCIATION
In other words, the Banksters deliberately destroyed the wet ink signature loan documents for millions of mortgages in MERS the Mortgage Electronic Registration System.
A Few Facts about MERS
- Mortgage Electronic Registration Systems (MERS) is incorporated within the State of Delaware.
- Mortgage Electronic Registration Systems (MERS) was first incorporated in Delaware in 1999.
- The total number of shares of common stock authorized by MERS’ articles of incorporation is 1,000.
- The total number of shares of Mortgage Electronic Registration Systems (MERS) common stock actually issued is 1,000.
- Mortgage Electronic Registration Systems (MERS) is a wholly owned subsidiary of MERSCorp, Inc.
- MERS’ principal place of business at 1595 Spring Hill Road, Suite 310, Vienna, Virginia 22182
- MERS’ national data center is located in Plano, Texas.
- MERS’ serves as a “nominee” of mortgages and deeds of trust recorded in all fifty states.
- Over 50 million loans have been registered on the Mortgage Electronic Registration Systems (MERS) system. (UPDATE 9/11/2011: 70 MILLION American Mortgages)
- MERS’ federal tax identification number is “541927784”.
- Mortgage Electronic Registration Systems (MERS) does not take applications for, underwrite or negotiate mortgage loans.
- Mortgage Electronic Registration Systems (MERS) does not make or originate mortgage loans to consumers.
- Mortgage Electronic Registration Systems (MERS) does not extend any credit to consumers.
- Mortgage Electronic Registration Systems (MERS) has no role in the origination or original funding of the mortgages or deeds of trust for which it serves as “nominee”.
- Mortgage Electronic Registration Systems (MERS) does not service mortgage loans.
- Mortgage Electronic Registration Systems (MERS) does not sell mortgage loans.
- Mortgage Electronic Registration Systems (MERS) is not an investor who acquires mortgage loans on the secondary market.
- Mortgage Electronic Registration Systems (MERS) does not ever receive or process mortgage applications.
- Mortgage Electronic Registration Systems (MERS) simply holds mortgage liens in a nominee capacity and through its electronic registry, tracks changes in the ownership of mortgage loans and servicing rights related thereto.
- MERS© System is not a vehicle for creating or transferring beneficial interests in mortgage loans.
- Mortgage Electronic Registration Systems (MERS) is not named as a beneficiary of the alleged promissory note.
- Mortgage Electronic Registration Systems (MERS) is never the owner of the promissory note for which it seeks foreclosure.
- Mortgage Electronic Registration Systems (MERS) has no legal or beneficial interest in the promissory note underlying the security instrument for which it serves as “nominee”.
- Mortgage Electronic Registration Systems (MERS) has no legal or beneficial interest in the loan instrument underlying the security instrument for which it serves as “nominee”
- Mortgage Electronic Registration Systems (MERS) has no legal or beneficial interest in the mortgage indebtedness underlying the security instrument for which it serves as “nominee”.
- Mortgage Electronic Registration Systems (MERS) has no interest at all in the promissory note evidencing the mortgage indebtedness.
- Mortgage Electronic Registration Systems (MERS)is not a party to the alleged mortgage indebtedness underlying the security instrument for which it serves as “nominee”.
- Mortgage Electronic Registration Systems (MERS) has no financial or other interest in whether or not a mortgage loan is repaid.
- Mortgage Electronic Registration Systems (MERS) is not the owner of the promissory note secured by the mortgage and has no rights to the payments made by the debtor on such promissory note.
- Mortgage Electronic Registration Systems (MERS) does not make or acquire promissory notes or debt instruments of any nature and therefore cannot be said to be acquiring mortgage loans.
- Mortgage Electronic Registration Systems (MERS) has no interest in the notes secured by mortgages or the mortgage servicing rights related thereto.
- Mortgage Electronic Registration Systems (MERS) does not acquire any interest (legal or beneficial) in the loan instrument (i.e., the promissory note or other debt instrument).
- Mortgage Electronic Registration Systems (MERS) has no rights whatsoever to any payments made on account of such mortgage loans, to any servicing rights related to such mortgage loans, or to any mortgaged properties securing such mortgage loans.
- The note owner appoints MERS to be its agent to only hold the mortgage lien interest, not to hold any interest in the note.
- Mortgage Electronic Registration Systems (MERS) does not hold any interest (legal or beneficial) in the promissory notes that are secured by such mortgages or in any servicing rights associated with the mortgage loan.
- The debtor on the note owes no obligation to MERS and does not pay Mortgage Electronic Registration Systems (MERS)on the note.
- Mortgage Electronic Registration Systems (MERS) is not entitled to receive any of the payments associated with the alleged mortgage indebtedness.
- Mortgage Electronic Registration Systems (MERS) is not entitled to receive any of the interest revenue associated with mortgage indebtedness for which it serves as “nominee”.
- Interest revenue related to the mortgage indebtedness for which Mortgage Electronic Registration Systems (MERS) serves as “nominee” is never reflected within MERS’ bookkeeping or accounting records nor does such interest influence MERS’ earnings.
- Mortgage indebtedness for which Mortgage Electronic Registration Systems (MERS) serves as the serves as “nominee” is not reflected as an asset on MERS’ financial statements.
- Failure to collect the outstanding balance of a mortgage loan will not result in an accounting loss by Mortgage Electronic Registration Systems (MERS).
- When a foreclosure is completed, MERS never actually retains or enjoys the use of any of the proceeds from a sale of the foreclosed property, but rather would remit such proceeds to the true party at interest.
- Mortgage Electronic Registration Systems (MERS) is not actually at risk as to the payment or nonpayment of the mortgages or deeds of trust for which it serves as “nominee”.
- Mortgage Electronic Registration Systems (MERS) has no pecuniary interest in the promissory notes or the mortgage indebtedness for which it serves as “nominee”.
- Mortgage Electronic Registration Systems (MERS) is not personally aggrieved by any alleged default of a promissory note for which it serves as “nominee”.
- There exists no real controversy between MERS and any mortgagor alleged to be in default.
- Mortgage Electronic Registration Systems (MERS) has never suffered any injury by arising out of any alleged default of a promissory note for which it serves as “nominee”.
- Mortgage Electronic Registration Systems (MERS) holds the mortgage lien as nominee for the owner of the promissory note.
- Mortgage Electronic Registration Systems (MERS), in a nominee capacity for lenders, merely acquires legal title to the security instrument (i.e., the deed of trust or mortgage that secures the loan).
- Mortgage Electronic Registration Systems (MERS) simply holds legal title to mortgages and deeds of trust as a nominee for the owner of the promissory note.
- Mortgage Electronic Registration Systems (MERS) immobilizes the mortgage lien while transfers of the promissory notes and servicing rights continue to occur.
- The investor continues to own and hold the promissory note, but under the MERS® System, the servicing entity only holds contractual servicing rights and MERS holds legal title to the mortgage as nominee for the benefit of the investor (or owner and holder of the note) and not for itself.
- In effect, the mortgage lien becomes immobilized by Mortgage Electronic Registration Systems (MERS) continuing to hold the mortgage lien when the note is sold from one investor to another via an endorsement and delivery of the note or the transfer of servicing rights from one Mortgage Electronic Registration Systems (MERS) member to another Mortgage Electronic Registration Systems (MERS) member via a purchase and sale agreement which is a non-recordable contract right.
- Legal title to the mortgage or deed of trust remains in MERS after such transfers and is tracked by Mortgage Electronic Registration Systems (MERS) in its electronic registry.
- Mortgage Electronic Registration Systems (MERS) holds legal title to the mortgage for the benefit of the owner of the note.
- The beneficial interest in the mortgage (or person or entity whose interest is secured by the mortgage) runs to the owner and holder of the promissory note and/or servicing rights thereunder.
- Mortgage Electronic Registration Systems (MERS) has no interest at all in the promissory note evidencing the mortgage loan.
- Mortgage Electronic Registration Systems (MERS) does not acquire an interest in promissory notes or debt instruments of any nature.
- The beneficial interest in the mortgage (or the person or entity whose interest is secured by the mortgage) runs to the owner and holder of the promissory note (NOT MERS).
MERS as Holder
- Mortgage Electronic Registration Systems (MERS) is never the holder of a promissory note in the ordinary course of business.
- Mortgage Electronic Registration Systems (MERS) is not a custodian of promissory notes underlying the security instrument for which it serves as “nominee”.
- Mortgage Electronic Registration Systems (MERS) does not even maintain copies of promissory notes underlying the security instrument for which it serves as “nominee”.
- Sometimes when an investor or servicer desires to foreclose, the servicer obtains the promissory note from the custodian holding the note on behalf of the mortgage investor and places that note in the hands of a servicer employee who has been appointed as an officer (vice president and assistant secretary) of MERS by corporate resolution.
- When a promissory note is placed in the hands of a servicer employee who is also an Mortgage Electronic Registration Systems (MERS) officer, Mortgage Electronic Registration Systems (MERS) asserts that this transfer of custody into the hands of this nominal officer (without any transfer of ownership or beneficial interest) renders Mortgage Electronic Registration Systems (MERS) the holder.
- No consideration or compensation is exchanged between the owner of the promissory note and Mortgage Electronic Registration Systems (MERS) in consideration of this transfer in custody.
- Even when the promissory note is physically placed in the hands of the servicer’s employee who is a nominal Mortgage Electronic Registration Systems (MERS) officer, Mortgage Electronic Registration Systems (MERS) has no actual authority to control the foreclosure or the legal actions undertaken in its name.
- Mortgage Electronic Registration Systems (MERS) will never willingly reveal the identity of the owner of the promissory note unless ordered to do so by the court.
- Mortgage Electronic Registration Systems (MERS) will never willingly reveal the identity of the prior holders of the promissory note unless ordered to do so by the court.
- Since the transfer in custody of the promissory note is not for consideration, this transfer of custody is not reflected in any contemporaneous accounting records.
- Mortgage Electronic Registration Systems (MERS)is never a holder in due course when the transfer of custody occurs after default.
- Mortgage Electronic Registration Systems (MERS) is never the holder when the promissory note is shown to be lost or stolen.
MERS’ Role in Mortgage Servicing
- Mortgage Electronic Registration Systems (MERS) does not service mortgage loans.
- Mortgage Electronic Registration Systems (MERS) is not the owner of the servicing rights relating to the mortgage loan and Mortgage Electronic Registration Systems (MERS) does not service loans.
- Mortgage Electronic Registration Systems (MERS) does not collect mortgage payments.
- Mortgage Electronic Registration Systems (MERS) does not hold escrows for taxes and insurance.
- Mortgage Electronic Registration Systems (MERS) does not provide any servicing functions on mortgage loans, whatsoever.
- Those rights are typically held by the servicer of the loan, who may or may not also be the holder of the note.
MERS’ Rights To Control the Foreclosure
- Mortgage Electronic Registration Systems (MERS) must all times comply with the instructions of the holder of the mortgage loan promissory notes.
- Mortgage Electronic Registration Systems (MERS) only acts when directed to by its members and for the sole benefit of the owners and holders of the promissory notes secured by the mortgage instruments naming Mortgage Electronic Registration Systems (MERS) as nominee owner.
- MERS’ members employ and pay the attorneys bringing foreclosure actions in MERS’ name.
MERS’ Access To or Control over Records or Documents
- Mortgage Electronic Registration Systems (MERS) has never maintained archival copies of any mortgage application for which it serves as “nominee”.
- In its regular course of business, Mortgage Electronic Registration Systems (MERS) as a corporation does not maintain physical possession or custody of promissory notes, deeds of trust or other mortgage security instruments on behalf of its principals.
- MERS as a corporation has no archive or repository of the promissory notes secured by deeds of trust or other mortgage security instruments for which it serves as nominee.
- Mortgage Electronic Registration Systems (MERS) as a corporation is not a custodian of the promissory notes secured by deeds of trust or other mortgage security instruments for which it serves as nominee.
- Mortgage Electronic Registration Systems (MERS) as a corporation has no archive or repository of the deeds of trust or other mortgage security instruments for which it serves as nominee.
- In its regular course of business, Mortgage Electronic Registration Systems (MERS) as a corporation does not routinely receive or archive copies of the promissory notes secured by the mortgage security instruments for which it serves as nominee.
- In its regular course of business, Mortgage Electronic Registration Systems (MERS) as a corporation does not routinely receive or archive copies of the mortgage security instruments for which it serves as nominee.
- Copies of the instruments attached to MERS’ petitions or complaints so not come from MERS’ corporate files or archives.
- In its regular course of business, Mortgage Electronic Registration Systems (MERS) as a corporation does not input the promissory note or mortgage security instrument ownership registration data for new mortgages for which it serves as nominee, but rather the registration information for such mortgages are entered by the “member” mortgage lenders, investors and/or servicers originating, purchasing, and/or selling such mortgages or mortgage servicing rights.
- Mortgage Electronic Registration Systems (MERS) does not maintain a central corporate archive of demands, notices, claims, appointments, releases, assignments, or other files, documents and/or communications relating to collections efforts undertaken by Mortgage Electronic Registration Systems (MERS) officers appointed by corporate resolution and acting under its authority.
Management and Supervision
- In preparing affidavits and certifications, officers of Mortgage Electronic Registration Systems (MERS), including Vice Presidents and Assistant Secretaries, making representations under MERS’ authority and on MERS’ behalf, are not primarily relying upon books of account, documents, records or files within MERS’ corporate supervision, custody or control.
- Officers of Mortgage Electronic Registration Systems (MERS) preparing affidavits and certifications, including Vice Presidents and Assistant Secretaries, and otherwise making representations under MERS’ authority and on MERS’ behalf, do not routinely furnish copies of these affidavits or certifications to MERS for corporate retention or archival.
- Officers of Mortgage Electronic Registration Systems (MERS) preparing affidavits and certifications, including Vice Presidents and Assistant Secretaries, and otherwise making representations under MERS’ authority and on MERS’ behalf are not working under the supervision or direction of senior Mortgage Electronic Registration Systems (MERS) officers or employees, but rather are supervised by personnel employed by mortgage investors or mortgage servicers.
This should be a pretty good start for those of you faced with a foreclosure in which Mortgage Electronic Registration Systems (MERS) is falsely asserting that it is the owner of the promissory note. Whether Mortgage Electronic Registration Systems (MERS) is or was ever the holder is a FACT QUESTION which can be determined only by ascertaining the chain of custody of the promissory note. When the promissory note is lost, missing or stolen, Mortgage Electronic Registration Systems (MERS) is NOT the holder.
By William A. Roper, Jr. Excerpted from the MSFraud Forum thread “Facts about MERS / MERS Unmasked”
Is Your MERS Mortgage Status Designated Inactive?
Many homeowners find out their existing mortgage is listed as “inactive.” An inactive status can refer to the transfer of their mortgage to another loan servicer, or to a few other factors as noted below.
The difference between having an inactive or an active MERS (Mortgage Electronic Registration System) loan may determine if the property owner has any improved or worsened home equity, or a truly saleable asset.
What is MERS?
MERS functions as a centralized electronic registry of mortgages, and it was supposed to track the ownership of these mortgages, which are typically sold multiple times during the loan’s life. MERS potentially affects upwards of 70 million residential mortgage loans nationwide, and almost completely crashed the U.S. housing market by itself because of so many problems with the packages.
MERS was created by lenders and title insurance companies, so it would be easier to transfer the beneficial interests to other secondary market lenders. Yet, some mortgages ended up significantly discounted due to packaging problems, which made them inactive.
Where’s the “IOU” for the mortgage debt?
The MERS Scandal
Missing documents, notary fraud, and “robo-signing” led the way.
There was a lot of chaos involved with MERS mortgage packets, which contained no original promissory notes (the “IOU” for the mortgage debt) in these same MERS files.
Knowledgeable homeowners were able to completely stop their home foreclosures by pointing out that the foreclosing entity, such as the mortgage servicing company, didn’t have a legal right to foreclose on their homes, since they didn’t have all of their valid mortgage paperwork in their files.
These questionable ownership interests in the mortgages led to foreclosure moratoriums, court settlements, and inactive statuses.
There were a large number of allegations of notary fraud in which real or fake notaries such as “Linda Green” were allegedly part of the massive “Robo-Signing Scandal” nationwide.
It has been suggested that promissory notes, deeds of trust or mortgages, and other loan or title documents were forged, left blank, or illegally assigned to numerous mortgage investors. Since MERS was set up to become as paperless, speedy, and efficient as possible, there was not enough third party oversight to check whether these documents were valid.
Questionable Beneficial Interests
“No Note = No Debt” became the mantra for homeowners who were in the midst of their own foreclosures due to the weaker U.S. economy. Some savvy property owners were able to legally void their existing mortgage debt altogether by proving that the foreclosing mortgage company had no valid beneficial interests in the existing mortgage, and thus had to legal right to collect any payments.
Other homeowners were able to show that their MERS files had fraudulent notary signatures signed on behalf of both owners and lenders, which moved their file designations over to “inactive” as well.
Mortgage lenders that have collapsed or imploded since the official start of the Credit Crisis back in 2007, such as Countrywide, Indy Mac, Lehman Brothers, World Savings, Downey Savings, and Washington Mutual still figuratively exist by way of their asset or beneficial interest transfers to the “strawman” named MERS.
MERS may pay no taxes or employ anyone. Without the proper assignment of these MERS mortgages, these same imploded mortgage companies’ loans could have ceased to exist.
The Shadow Inventory & MERS
Instead of upwards of 60 million residential MERS mortgages becoming inactive or possibly even completely voided and worthless, many of the largest banks and mortgage service companies worked closely with the U.S. government to create the National Mortgage Settlement in early 2012. This insanely small $25 billion settlement is but a mere fraction of the potentially trillions of dollars of MERS mortgages nationwide.
The National Mortgage Settlement of 2012 and MERS Scandal were two of the primary reasons why home listings nationally dropped dramatically.
There were potentially millions of Shadow Inventory homes (mortgage payments are more than 90 days late), which may not have valid promissory notes, or other mortgage or title instruments or documents, in the files. The lack of listed home inventory led to a rapid increase of home prices between 2011 and 2013 (also partly due to the record low mortgage rates).
The “Inactive” MERS Designation
An inactive MERS designation may relate to the loan having been refinanced or paid off, discounted, or completely voided due to the invalid mortgage documents in the file. Or, the mortgage loan was assigned out of the MERS system to a completely new mortgage servicing company.
A property owner with a MERS mortgage can find the status of their loan by searching for their 18-digit Mortgage Identification Number (MERS MIN). Then, the same person may search online for the MERS Servicer ID system in order to check the status of their mortgage.
Before attempting to pay off a MERS loan, it’s very important to find out if all of the mortgage payments have been properly applied to the account. The vast majority of MERS mortgages have been assigned to multiple mortgage investors over the years, so it is very important to check your own payment history over the years in order to determine if all of your payments have been credited to every mortgage servicing lender’s accounts.
It’s imperative that the owner pays off the correct amounts, which may mean more money back to the owner and much less money for the current mortgage loan servicer. As such, a little research and loan analysis by a property owner on their personal payment histories can save them a lot of money and headaches.
Here is some additional information on MERS:
- MERS Is Dead
- MERS Admits NO Interest in Mortgage and No Loss on Default
-
New York's U.S. Bankruptcy Court Rules MERS's Business Model Is Illegal
- Consent Order for MERSCORP and Mortgage Electronic Registration Systems, Inc. (MERS)
Take action right now and get the FACTS and HELP that you need to gain the legal remedy that the law entitles you to, and that you deserve!
How to Respond to a Notice of Default
Now let’s talk about the foreclosure laws as they relate to everybody. If you have received a Notice of Default (NOD) or Notice of Acceleration (NOA), then time is short and you need to do something. And the only thing that will get the banks attention is a lawsuit. If you have an impending sale there are a number of things you can do. If you haven’t done anything concerning the foreclosure process as yet, there are some things you have to do simultaneously.
The first thing you want to do is send out a number of letters. Whoever is attempting to foreclosure on you, on that person you should send a debt validation letter (DVL). Often, a debt validation letter (DVL) will stall the foreclosure. Because when a debt validation letter is filed, the lender is obligated by the Fair Debt Collections Practices Act (FDCPA) to validate the debt.
A presentment under the Uniform Commercial Code (UCC) is defined as a demand for payment on a debt in us dollars. If your sent a presentment (a demand for payment) from anyone, you may dispute the debt with that person, and if you send them a letter stating that you dispute the debt and a demand that the claimant prove up their claim, then the debt collector is required to seize all collection efforts until they have proved up the claim.
So if your lender is in the process of foreclosure, and you send them a debt validation letter, they’re going to claim that in this case they are not debt collectors, but in fact they are merely attempting to recover collateral. The courts across the country are split on this issue. Some states say yes they are a debt collector, and some say no they are not a debt collector. For our purpose we don’t care either way, because we’re going to make the claim and by law once the demand is made they must prove up their position either way. The issue that we’ve been making with the lawsuits we’ve been helping people produce is that they are a debt collector until they show that they are not a debt collector. Usually they like to reply with a Rule 12 (motion to dismiss for failure to state a claim), alleging that they are NOT debt collectors and therefore they do not fall under the FDCPA.
So the argument that we’re making here is that in order to implement the intent of the legislator (and that intent was to prevent someone with no claim on a debt from collecting on a debt), you are demanding they prove their position.
If you have a debt with GMAC and I call you from Joe Blow collections, or send you a letter claiming I’m collecting for GMAC and you need to send all your future payments to me. Well if you send your payments to them and they are not collecting for GMAC the payments you send to them do not extinguish the debt; and that’s in the Uniform Commercial Code.
You see the foreclosure mills and the banks agents are trying to squeeze in under that exclusion, and claim that they are not trying to collect money; rather they are attempting to recover property. But in order to recover the property you have to get a notice of intent to foreclose in the form of a notice of default (NOD) and opportunity to cure the default (by paying money). This is stated in the mortgage.
Now we are saying that makes you a debt collector. Because the bank is saying you better pay a certain amount in U.S. dollars, or else they will become a collateral collections agent, and take the property as collateral. So the argument you will be making to the court is even if the jurisdiction says that the debt collector, and the foreclosure agent falls under the exclusion, until such time as they prove that they are actually in that position, they fall under the FDCPA.
If you get a phone call, you will use the: “Let’s Play a Little Q & A” on them. YOU must take control of the situation.
Write down their name, and the time and date they called. This is very important. (If you can record the conversation it will help you to transcribe to a ledger, the reason for this is that generally a recorded conversation is not admissible in a court room (the Judge will not allow it) however a transcript is admissible with no problem).
- What is the name of the company that you work for (where you work)
- What is their address
- What state are they in
- What is the zip code
- What is the phone number
- What is the name of the creditor (originally claims the debt)
- What is their address
- What state are they in
- What is the zip code
- What is their phone number
- What is the Account number
- What is the amount that you (or they) claim that I owe
The purpose of this is that there are certain things they must do during the telephone conversation and the primary one is as follows. The very first thing they must do after identifying themselves is to read you your consumer warning.
This is also referred to the “Mini-Miranda” “This is an attempt to collect a debt and any information obtained will be used for that purpose”.
If they do not inform you of your rights they have violated section § 807 of the DCPA and is a $1,000.00 violation.
On top of that, in your Debt Validation Letter you should request that they only contact you by U.S. Mail. This way each phone call could result in you being paid up to $1,500.00 for each violation of the Federal Telephone Consumer Protection Act 47 U.S.C. § 227.
Moving along! Think about this, if someone could be excluded from proving their position, just by making the claim that they weren’t a debt collector, and not have to prove it up the claim, then the statute requiring someone’s to prove their position would have no force in fact. In other words the law would be meaningless. So you’re saying that the bank is a debt collector, until they prove they are not. So now the burden of proof shifts to them proving they are not.
Either way it does not matter because this is just round one. In your lawsuit you can stipulate that IF they prove up their position you will dismiss this issue.
What you’re claiming here is you don’t know who the real holder of the note is, and for good reason. With all this robo-signing, and loan securitization, and transferring these loans, mortgages, and deeds of trust all over the place, you don’t have a clue to who the real holder of the note is. So you don’t know who has the actual authority to perform the foreclosure, so you’re asking that they prove up their position. Until they do this the foreclosure should be halted. Some people have been able to stop the foreclosure for years with this one simple step.
Remember your lender or loan servicer sent you a notice of default (NOD) and opportunity to cure; and you just need to make sure that if you send the amount necessary to cure that it will actually cure the debt; and you won’t have somebody coming back next week trying to foreclose again.
So the first thing you need to do is send the a good Debt Validation Letter; because when your lender or loan servicer receives it they are essentially statutory estopped from any and all further collection efforts until they answer.
After you mail your Debt Validation Letter, if they send you an answer, more than likely it will be a “non-responsive answer”. They may send you a copy of the deed of trust/mortgage, and maybe a copy of the note (if they have one). But they will not send you the originals that you requested, and they will not make originals available for your inspection, because in all likelihood they do not have them.
In fact the Bankers Association testified to the Florida Supreme Court in CASE NO.:09-1460 that “The reason many firms file lost note counts as a standard alternative pleading in the complaint is because the physical document was deliberately eliminated to avoid confusion immediately upon its conversion to an electronic file.”
So in order to address that issue in the debt validation letter you demand that they produce the original note for inspection by you; as is your right under Federal law. Now this is governed by Uniform Commercial Code 3-501; and it says that when a creditor sends a presentment to a debtor, and the debtor demands production of the original security instrument, the creditor must make the instrument available for inspection by the debtor. They do not have to give it to you; they just have to show it to you. If they fail to do so, the debtor can cease all payments without dishonor.
Now this creates Statutory Estoppel on two different fronts, and it will almost always stop the foreclosure, at least the first time you send them it. It usually takes them a little bit of time to get regrouped. Once they send you this bogus answer they may try to go ahead and start the foreclose process again. And there are things you can do if and when they do that.
But first things first, send the debt validation letters. Then as soon as you can you want to get a suit filed under the Fair Debt Collections Practice Act (FDCPA). When you send in your Debt Validation Letter (DVL) and then file suit for the same purpose. File suit demanding that the person claiming authority to foreclosure prove up their position; demand that they prove they are actually a bonafide agent for the true holder of the note.
Now this could be a big problem for the bank. The bank may actually be, or whoever the alleged principal for the agent is, may actually be the true holder of the note. But their problem is, in the last 13 years or so, after the repeal of the Glass Steagall Act and the repeal of the prohibition against derivatives, it sort of unleashed the money changers on us and they got themselves into such a glut of swallowing all of the equity of this country, that they just didn’t take care of business. They didn’t take care of the bookkeeping very well and usually they cannot legally prove up their position.
So when you file suit for this, and we’ve done a bunch of them, you have to understand that the courts are absolutely totally corrupt. They will dismiss your case no matter what, even if you have an attorney. Because the banks have money and power, and they can apply political pressure. And don’t forget that some of the federal judges are dirty rotten scoundrels. Maybe they can’t help it, maybe their position depend on them being dirty rotten scoundrels, but in the end…..they’re dirty rotten scoundrels; and they will rule against the Pro Se at every turn. So you have to expect that, and be prepared for that.
But don’t worry because the How to Win in Court Course will teach you how to argue your case, for the record, so you can win on appeal. Get this amazing course right now at https://fraudstoppers.org/education/
And keep in mind that you have some things you can do as Pro Se to tilt the scales of justice in your favor. As a Pro Se you don’t have to worry about that scoundrel judge pulling your bar card, because you don’t have one! Generally you don’t have to worry about the judge sanctioning you, because for the most part, the things that will get someone sanctioned only apply to lawyers. As long as you don’t curse the judge out, and you put on the appearance of civility, they’ll have no way to sanction you.
When you start filing judicial conduct complaints against a judge every time they squeak, every time they do something to deserve it, they can do nothing to stop you. If you file a judicial conduct complaint against the judge, and the judge says one word to you, that’s obstruction of justice and tampering with a witness and that can get them into big trouble real fast.
The same goes for bar grievances against attorneys. Bar grievances can affect attorney’s malpractice insurance. So these are just a few of the things that you can do to them as a Pro Se, which lawyers can’t do. If you have a lawyer, they can’t do any of these things, because if they do anything the judge doesn’t like, the judge can jerk their bar card away, almost at whim. But you’ll have to worry about that, and we will show you how to take some actions that will make up for a lot of these problems we have with corrupt judges and courts. I’m hoping that if we can get enough people doing this, that we can put enough pressure on the judges, that they will stop playing these shenanigans, in order to get us to stop filing judicial conduct complaints against them every time they turn around. But that is a discussion for another day.
Once you file your lawsuit you can expect a rule of 12 motion (dismiss for failure to stay to claim); and they will have 21 days to file that answer. So if you’re facing foreclosure they generally have to give you 21 days notice; and they generally time it so it’s exactly 21 days notice. So you will want to file a federal (or state) lawsuit fast, and that will almost certainly stop the sale.
Now it may NOT statutorily stop the sale. The only thing you can do to legally stop the bank from foreclosing on your property is to get a court order; like a temporary restraining order signed by a judge. Or you can also file for bankruptcy to temporarily stop the sale!
However, once you sue them, the reality is that win lose or draw, you’ll probably come out ahead because civil litigation takes time; and time is money!
So once you file an action against them, if the bank goes ahead and forecloses on the property while the litigation is going on, they could have opened themselves up for even more damages. Plus nobody in their right mind would purchase the property; because there would be a Lis Pendens filed against the property; and we’ll show you how to file a Lis Pendens (Latin for “suit pending”) later.
So after you mail your debt validation letter, you want to go to the local register of deeds (or your county recorder of deeds office) and get a copy of every document that has been filed in the county records for your property, from the date you purchased the property to present.
You’ll look for a deed of trust, or a mortgage, depending on what state you live in. If you live in a judicial state you have a mortgage. If you live in a non-judicial state you have a deed of trust.
If you are not sure if your state is a judicial or non-judicial, here is a list: https://fraudstoppers.org/foreclosure-laws-by-state/
You should get a copy of every page of each document recorded against your properties chain of title, from the time you purchased the home until present. Print the Search Results, with your name as GRANTOR and GRANTEE, and your wife’s name as GRANTOR and GRANTEE, then search the property address, and print the search results.
Take your camera and take a picture of every page starting with the index or the cover page of your deed record file and save each picture by:
Yr-mo-day, YOUR LAST NAME, Name of Doc, Page of Doc:
[Example: 2013-07-04, Smith, Original Deed of Trust, 17 Pages]
You should end up with copies of your Original Warranty Deed, Deed of Trust (or Mortgage, as it is called in some states).
While looking at the Deed of Trust or Mortgage, click on the button or link for “RELATED DOCUMENTS” and print the search results, then get a copy of any “Assignments of Deed of Trust or Mortgage” and any “Releases of Liens”,” Appointments of Substitute Trustees”, “Trustee Deeds”, and Law Firm Letters, like Default or Acceleration Letters from Attorneys who are hired to collect the debts from you.
Get a copy of everything in the file to the present date. You’ll also look for an assignment of substitute of trustee, an appointment of the note, and an appointment of the deed of trust or mortgage.
You may be able to get free copies of your county recorder of deeds documents online. Here is some information on how to do that: https://fraudstoppers.org/how-to-get-free-online-copies-of-your-county-recorder-of-deeds-land-record-documents/
These are the primary documents you’ll look for. And you may see a notice of default, or notice of intent to foreclose. Basically you want to get a copy of every document filed against your property from the time you purchased it until the present.
Then once you get a copy of these documents look at the authentication, which is the notary. Documents filed in the county record are not self authenticating. Since these documents are filed by someone that just comes down to the court, or hands it to the court, or they send it by mail, someone has to sign the document for it to be valid.
An authentication is when a person goes before someone who is authorized to do this, authorized to verify that the person who is claiming to sign the document, is in fact the person they claim to be. Essentially that’s all the authentication is. The notary will authenticate that this person came before me, and either I knew them personally or they identified themselves to me by this method; and I made the determination that this person is who they say they are.
This is one of the biggest areas of fraud in the whole foreclosure issue and it is absolutely the dumbest place to commit fraud. It’s arrogance beyond belief, its total reckless disregard for our laws and our courts. To file a document with a fraudulent identification is a felony; and the banksters have filed millions of them!
If you remember back to the 60 Minutes’ episode The Next Housing Shock a young guy got on television and bragged that he could sign Linda Green’s name, something like 360 times an hour. Think about it, in just one hour he committed enough felonies to put him in a federal penitentiary for several life sentences. This guy was no rocket scientist, but he could write fast! And the notaries, it’s a relatively minor thing, and its standard business procedure. But these guys are cranking out foreclosures so fast that having to wait for a notary, or having to wait for a notary to sit across the table from you as your signing these documents, and take the time to fill out their ledger and have you sign the ledger, while that’s inconvenient, and it’s not efficient.
So the foreclosure mills will hire somebody, at the entry level position who doesn’t know anything, and they come to them and say: “Hey we need a notary, and if you want to be a notary we can pay for your application fee, and your bond, and everything you need like your stamp and your ledger, and we’ll make you a notary.” And the new entry level clerk says “wonderful, I’ll be a notary”. And then the company comes to them with a big stack of documents and says “here you go, we need you to notarize these for us.” And generally this is a law firm, so the entry level clerk believes that this must be legal, and they do what there told and they notarize the stack of fraudulent documents. So now when the foreclosing agency needs a notarized document they just pull one off the shelf and fill it out.
What the notary is required to do in a number of states is to keep a sequential ledger. Anybody who has taken a document to get it notarized will recognize the procedure. You sign your document in front of the notary, after you have identified yourself to the notary, and then the notary will fill out some stuff on this ledger, and turn around and have you sign it. And now they even have a fingerprint pad where they will have you put your fingerprint or thumbprint on it. And that’s so if anyone ever has a question about the authentication, the notary can prove up the authentication.
Well the first thing you need to do is to pull every notary name off of every document that’s been filed in the county records office against your house, and send them a letter requesting a copy of their sequential ledger, from the day before to the day after any authentication appears in the record. And we suggest that you do not send it yourself. Have someone you know send it. And be sure to send its certified mail. Anything that you cannot conclusively prove that you sent and was received will go into the trash. Now that may not be right, but that’s the way it works. So always send all of your legal correspondences Certified Mail Return Receipt Requested!
The Post Office will give you a tracking number. Write that tracking number on the top of your letters & correspondences. Make a copy of the letter with the tracking number written on the top, then mail the letter. This provides you proof when they sign for the letter, and what the substance of the letter was.
You may get an answer back from them, but it will most likely be non-responsive. If they send you an answer and it is not the sequential ledger, or if the record shows that the ledger is incomplete, then the answer is non-responsive! To date, we have yet to receive a single responsive answer to this request. If you don’t receive a responsive answer, you will have a valid reason to believe that the authentication is invalid.
Now there is one particular notary that most people will have a question about, and that’s the one on the deed of trust or the mortgage. When you signed that at closing there was a notary sitting at the table across from you, as a rule. There’s required to be, but not always. Sometimes the lender will come to your house and have you fill out all the documents at your kitchen table. Well, that’s not quite legal because that deed of trust or mortgage must be authenticated; because that document is intended to be filed with the county register. And documents filed at the county register or are not self authenticating and they must be authenticated by a notary.
If there was no notary, than the document is not authenticated; but if there was a notary, you have to ask “was that a notary?” Because you don’t really know, they look like notaries and they act like notaries; but what we have found in sending these letters out, is that they are not necessarily notaries. Or even if they were notaries often they’re not notaries any longer. And when a notary cases to be a notary, the notary is required to send their substantial ledger to the clerk of the court, or county clerk. We’ve never found the county clerk who has one.
What we have found more often than I would have expected, is that we send a request from a notary on the deed of trust, and would get a letter back saying that our letter is undeliverable. So we contact the secretary of state who oversees notaries and who issues the notary authority and we asked the secretary of state for an address on the notary; and the secretary states because we don’t know who this person is. Now we are not exactly sure what is going on here. It may be that once a notaries’ commission expires, and it hasn’t been renewed, the secretary state may not maintain information on them. We don’t know if that’s the case or not, or if the secretary of state never had any information on the person. We don’t know what the deal is!
But what we do know is that the secretary of state says to us, “we don’t know anything about this person, and they’re not a notary, and we don’t have any record of them.” And for us, that works GREAT! We can live with that; because that creates an adverse inference that whoever sat across from us at the closing table, posing as a notary, was not in fact a notary.
Now maybe they were, but there’s no evidence to indicate that. So you can go back to the court, and say that you have reason to believe, and you do believe, that this document was never properly authenticated, and that the acknowledgement on the document was fraudulent, and you ask that the document be stricken from the record. Now what the court is likely to come back and say is: “well did you sign it?” To which you should reply: “Objection relevance!”
It’s irrelevant because the document must be authenticated, or proven, and it is not. You do not know if that is precisely the document that you signed at closing. Your bank may have made up another one. You can never know what the document your bank is reporting to have is, unless they bring you the original; and they will NEVER do that!
But you raise the issue so that if you can get the deed of trust, or mortgage, to be declared by the judge to be of no force and effect; your bank will have a real big problem! But generally the one that we can go after is not good deed of trust, or mortgage, in this particular regard. There are other places to go after the validity of the deed of trust, or mortgage.
But for now the documents that were really looking for, is the assignment of substitute trustee and the assignment of deed of trust. Now that one, we don’t know who signed at one, and this is the issue that goes to robo-signers. The problem with going to the court and accusing somebody being robo-signers, is you can go to the judge and say this person is a robo-signer and his name is splattered all over the Internet. And the judge is going to say “so, what does that have to do with this issue? Just because he’s accused of being a robo-signer doesn’t mean he didn’t have authority to sign this document. What evidence do you have to show that he did not have authority to sign this document?”
To which you can reply while Your Honor, this guy is a robo-signer and his name is all over the Internet. So I sent a letter to the company, for whom this person acted as an agent, and I requested evidence of the power of attorney for this person, and on these letters we have never received a responsive answer yet.
So after you complete the above mention step, you can then go to the court and say your Honor, I think this guy is a robo-signer (his name is splattered all over the internet), so I sent a letter to the company for whom he signed, asking them for proof of power of attorney, and I didn’t get any response. And this creates the adverse inference that the guy did not have power of attorney.
Furthermore, you’ve looked in the county record and expected to find evidence of power of attorney, as is required by law for anyone who files this type of document, that is specifically referenced by our state law, and I did not find any such evidence that he had power of attorney.
This creates a prima fascia case for this document being insufficient for filing in the record and I ask the court to rule that it’s insufficient, and is therefore void and of no force and effect.
This is all you want the judge to rule on at this time, and this is where you’re filing a petition for declaratory judgment. You’re not asking for any damages, at this time. You’re only asking that the judge make a declaration; and the only declaration we want the judge to make is that this document, as it exist by looking at the four corners, is insufficient for filing. Doing these steps as soon as possible can cause big problems for your bank and their foreclosure efforts.
Remember these steps are only the start to defeating your fraudulent mortgage or foreclosure. The banks have paid lobbyist to help Congress pass laws that benefit the banks and their foreclosure efforts, so you will need to do more to reach a successful outcome and a happy ending.
For more information on what you should do if you receive a notice of default or foreclosure complaint watch this video: https://fraudstoppers.org/how-to-respond-to-a-notice-of-default-or-foreclosure-complaint
If you are thinking about filing a lawsuit against your lender or current loan servicer for mortgage or foreclosure fraud register for a free mortgage fraud analysis and we will help you determine what legal options your loan qualifies for.
Facts About Bad Mortgage Loans
How significant a risk is noncompliance with consumer protection laws?
The mortgage industry is struggling to comply with consumer protection laws. A remarkable report published by the FDIC Office of the Inspector General reveals that during 2005 (which was the peak year of the mortgage boom measured by number of loans originated), 83% of federally supervised banks that made loans were cited for patterns of "significant compliance violations." The percentage was presumably higher for state-licensed, non-depository lenders who were responsible for originating 52% of subprime mortgages and are subject to a much broader patchwork of state regulation. Violations of consumer protection laws can result in rescission (effectively canceling the loan), defense against foreclosure, fines, penalties and (both civil and criminal) damages that can exceed the original principal balance of the loan.
You may download the report (Report Number 06-024) from the FDIC website. There are also additional reputational risks associated with charges of predatory and discriminatory lending. Investors - including anyone in the chain of title for whole loans and the securitization trust for securities - can be liable, even though the violator waste broker or originating lender. In other words, the investor can be held liable and suffer damages for actions outside its control and for which had no knowledge. What consumer protection laws does FRAUD STOPPERS PMA cover and how are these compliance requirements applied to a mortgage loan?
FRAUD STOPPERS PMA provides a comprehensive analyzes of electronic loan data to determine whether a mortgage transaction complies with over 300 federal and state consumer protection laws related to mortgage lending. Specifically, FRAUD STOPPERS PMA automated mortgage compliance audits reviews mortgage loans for compliance with the following consumer credit issues: truth-in-lending disclosures, usury, predatory lending, impermissible fees, interest rate accrual restrictions (such as negative amortization and balloons payments) and prepayment penalty enforceability.
It is important to understand that any number of laws may apply to a particular mortgage transaction. Knowing which laws apply is not a simple task, since it depends on how the lender is licensed or chartered. Licensed lenders operate under the licensing authorities of the various states with which they do business. Most states have multiple licenses granting lenders the authority to make loans. Each such license imposes different substantive requirements governing loan terms. For instance, certain licenses allow subordinate lien loans while others govern loans with higher interest rates.
In some states, more than one license may authorize lenders to make the same loan, although subtle differences in the consumer protection requirements apply to the loan terms. FRAUD STOPPERS PMA determines if lenders and brokers are properly licensed (and in good standing) or exempt, and then applies the correct laws based on that licensing status. It does this by leveraging its proprietary nationwide licensing database, described in the License Verification and Monitoring section of this site.
Chartered financial institutions—such as state and national banks and federal savings banks—are subject to different regulatory requirements. For instance, most chartered institutions “export” interest rates from their home state to the target state in which the loan is made. This results in a complex synthesis of both the home state’s and target state’s consumer protection laws —an analysis that is difficult to perform efficiently without automation. Likewise, chartered institutions may in certain cases preempt states laws and in other instances must observe them. Again, FRAUD STOPPERS PMA bases its reviews on how an institution is chartered and what permissible regulatory elections it is making.
Once the lender’s license or charter authority is known, as well as its elections, the review must consider the specific transaction terms—such as the APR, interest rate, loan balance, lien position, occupancy type, etc.—to determine which out of the several laws that might apply to the lender govern a particular mortgage loan. No other automated compliance solution provides this degree of detail and precision to its analysis, and this is the reason no other provider equals FRAUD STOPPERS PMA in quality.
Who Owns Your Mortgage Note?
Have you ever asked who owns your mortgage note? A better question to ask is, “If I paid off my mortgage loan tomorrow, would I get clear and equitable title to my real property?” If your mortgage loan contract was converted into a mortgage backed security and sold to an investment trust on Wall Street you might not!
If you are thinking of applying for a loan modification, or refinancing through the Home Affordable Refinance Program (HARP), Home Affordable Modification Program (HAMP), or other program(s) under the Making Home Affordable (MHA) initiative there are a few things to consider.
First, remember that the entity who claims to own your mortgage loan is not automatically the same entity that may be servicing your mortgage loan. A loan servicer is a debt collections company that sends you mortgage statements, takes your payments each month, and if you have an escrow account, pays your homeowner’s insurance and property tax bills. But who really owns your mortgage loan?
If you want to find out here are a few things you can do:
- Ask the servicer. Your loan servicer is legally obligated to tell you the name, address, and telephone number of the owner of your loan as shown in their records. It’s a good idea to ask them in writing officially with a “Qualified Written Request” via certified mail while keeping a log of your communications. The name of your servicer should be on your mortgage statement, but you can also use the MERS link below.
- Original lender. Your loan may have never been sold, and still kept as a “portfolio loan” with the original lender. That’s the way loans used to be done!
- Fannie Mae. In reality, many loans are sold to FNMA aka “Fannie Mae”. See Fannie Mae loan lookup tool.
- Freddie Mac. Similar story with Federal Home Loan Mortgage Corporation (FHLMC) aka “Freddie Mac”. See Freddie Mac loan lookup tool.
- Mortgage Electronic Registration Systems, Inc. (MERS) is a big online registry designed to replace the costly process of publicly recording mortgage ownership at the local government level with a private electronic version that allows the swapping of mortgages with no friction at all. MERS tracks both the servicing rights and ownership of mortgage loans in the United States, although the accuracy has been called into question. See MERS ServiceID lookup tool. You can also call them at 888-679-6377 FREE.
- Search the Securities and Exchange Commission (SEC) for the alleged trust that claims they are the owner of your mortgage loan: https://fraudstoppers.org/how-to-search-the-sec-for-a-securitized-trust
- Register for a Free Mortgage Fraud Analysis and Securitization Search. Complete our Mortgage Fraud Analysis form and we will conduct a free securitization check to see if your mortgage loan contract was converted into a mortgage backed security and who really owns your note. If your loan was securitized than you may have legal standing to sue your lender, or current loan servicer, for mortgage fraud and quiet title. Find out more by completing our Mortgage Fraud Analysis form or call us at 773-877-3655 and we will help you get the facts and evidence you need to get the legal remedy you deserve.
Cases like the Glaski v. Bank of America and Jesinoski v. Countrywide Home Loans may have provided hope for homeowners who were victims of mortgage and foreclosure fraud. But they did not strike at the heart of the real problem behind the securitization of millions of mortgage loans.
The Glaski decision states that if some entity wants to collect on a debt they must first legally own that debt. Furthermore, if that entity is claiming ownership by way of an Assignment, it must prove that Assignment is legally valid.
The Jesinoski case addressed a borrower’s right to rescind, or cancel, their mortgage loan contract under the Truth in Lending Act (TILA) by only providing written notice to the lender, without filing suit. A loan is rescinded at the time the rescission letter is mailed. If the lender wants to refute or fight the rescission they must file an action to do so, and they have limited time to do so.
If your mortgage was securitized (the practice of pooling mortgages and selling their related cash flows to third party investors as securities) then it was part of a table funded transaction. In a table funded transaction the borrower named on the note is NOT in debt to the lender ("Pretender Lender") because they signed the note in the capacity of an Accommodation Party, or co-signer for the purpose of incurring liability on the instrument without being a direct beneficiary of the value given for the instrument!
The broker, or originator, of the loan is pretending to loan money to the alleged "Borrower", but in reality they trick the alleged "Borrower" into co-signing on a note that is pledged as collateral on a warehouse line of credit with the funding bank.
It is illegal for banks to loan credit, they can only loan money!
But if the Pretender Lender is not the entity putting up the funds, then there is no underlining indebtedness between the alleged "Borrower" and the originator who is named on the note. And if there is no underlining indebtedness between the parties named on the note, then the mortgage (or deed of trust) vaporizes into nothingness, and is legally unenforceable as a matter of law.
If your mortgage loan contract was part of a table funded transaction and converted into a mortgage backed security that was sold to an investment vehicle, or trust, on Wall Street, then you may have legal standing to rescind your mortgage loan contract, and sue your "Pretender Lender" for Special Damages equal to triple the original amount of your note, plus clear and equitable title to your home!
Fraud Stoppers is part of a National Private Members Association that provides back office litigation support to law firms, foreclosure defense advocacy groups, and pro se litigants nationwide. Our Private Members Association can help you sue your lender for mortgage fraud, with or without an attorney.
Then after our free mortgage fraud analysis is done, we can scheduled a free potential cause of action consultation to discuss your loan and lawsuit in detail and help you get started filing your state and federal lawsuit for the remedy that the law entitles you to, and that you deserve!
You can save 60% to 70% in legal fees when you get your lawsuit started yourself, Pro Se, (without an attorney), and then bring in a local attorney to help you at trial, where you need them the most! This way you can get the best of both worlds: Save money in legal fees, and get the professional help you need at the same time!
FRAUD STOPPERS Private Members Association (PMA) has a PROVEN WAY to help you save time and money, and increase your odds of success, suing the banks for mortgage and foreclosure fraud.
Our primary focus is helping you get clear and marketable title to your property by arguing that the actions of the banks have made the security provisions of the mortgage/deed of trust unenforceable as a matter of law.
Notice of Default and Paragraph 22 of the Standard Mortgage
Some think that there has been a dry spell for wins of homeowners beating the big banks. However the decision below shows otherwise and is very important for a couple of reasons. First it gives us more of a confirmed road map of how to make defenses in certain cases that have facts similar to this case…i.e. violations of Paragraph 22 of the mortgage, in regards to a notice of default (NOD), which we knew about but this decision emphasizes the importance of this type of defense. But also important…..Judge Gantz is back in full swing helping borrowers fight against illegal foreclosures. You will recall that he wrote the Freemont decision, Ibanez, and others…but then he seemed to have lost some momentum. However, with this decision, Judge Gantz is back in full stride protecting us from the criminal banks and their illegal foreclosure practices.
FEDERAL NATIONAL MORTGAGE ASSOCIATION vs. ELVITRIA M. MARROQUIN & others
NOTICE: All slip opinions and orders are subject to formal revision and are superseded by the advance sheets and bound volumes of the Official Reports. If you find a typographical error or other formal error, please notify the Reporter of Decisions, Supreme Judicial Court, John Adams Courthouse, 1 Pemberton Square, Suite 2500, Boston, MA, 02108-1750; (617) 557-1030; SJCReporter@sjc.state.ma.us SJC-12139
FEDERAL NATIONAL MORTGAGE ASSOCIATION vs. ELVITRIA M. MARROQUIN & others.1 Essex. January 9, 2017. – May 11, 2017. Present: Gants, C.J., Lenk, Hines, Gaziano, Lowy, & Budd, JJ. Mortgage, Foreclosure, Real estate. Real Property, Mortgage, Sale. Notice, Foreclosure of mortgage. Summary process. Complaint filed in the Northeast Division of the Housing Court Department on June 18, 2012. The case was heard by David D. Kerman, J., on motions for summary judgment. The Supreme Judicial Court granted an application for direct appellate review. Cody J. Cocanig for the plaintiff. Dayne Lee (Eloise P. Lawrence also present) for Elvitria M. Marroquin. Joshua T. Gutierrez, Daniel D. Bahls, & Andrew S. Webman, for Lewis R. Fleischner & another, amici curiae, submitted a brief.
1 Julio E. Vasquez and Christopher Vasquez. GANTS, C.J. In Pinti v. Emigrant Mtge. Co., 472 Mass. 226, 227, 232 (2015), we held that a foreclosure by statutory power of sale pursuant to G. L. c. 183, § 21, and G. L. c. 244, §§ 11- 17C, is invalid unless the notice of default strictly complies with paragraph 22 of the standard mortgage, which informs the mortgagor of, among other things, the action required to cure the default, and the right of the mortgagor to bring a court action to challenge the existence of a default or to present any defense to acceleration and foreclosure.
We applied this holding to the parties in Pinti but concluded that our decision “should be given prospective effect only.” Id. at 243. We therefore declared that the decision “will apply to mortgage foreclosure sales of properties that are the subject of a mortgage containing paragraph 22 or its equivalent and for which the notice of default required by paragraph 22 is sent after the date of this opinion,” which was issued on July 17, 2015.Id. We did not reach the question whether our holding should be applied to any case pending in the trial court or on appeal. Id. at 243 n.25.
We reach that question here, and conclude that the Pinti decision applies in any case where the issue was timely and fairly asserted in the trial court or on appeal before July 17, 2015. Because we conclude that the defendants timely and fairly raised this issue in the Housing Court before that date, and because the notice of default did not strictly comply with the requirements in paragraph 22 of the mortgage, we affirm the judge’s ruling declaring the foreclosure sale void.
Background. In December, 2005, the defendants2 secured a mortgage loan in the amount of $312,000 from American Mortgage Express Corporation (American Mortgage) and, as security for the loan, granted a mortgage on their home to Mortgage Electronic Registration Systems, Inc. (MERS), which American Mortgage had designated as the mortgagee in a nominee capacity. MERS subsequently assigned the mortgage to Bank of America, N.A. (Bank of America), as successor by merger to BAC Home Loans Servicing, LP, formerly known as Countrywide Home Loans Servicing, LP. After the defendants failed to make their mortgage payments, the loan servicer, Countrywide Home Loans Servicing, LP, on October 17, 2008, mailed the defendants a notice of intention to foreclose (notice of default). The notice informed the defendants that they were in default and set forth the amount due to cure the default. The notice warned in relevant part:
2 The mortgage loan was secured by the defendants Elvitria M. Marroquin and Julio E. Vasquez. The limited record before us suggests that Christopher Vasquez is Marroquin’s son, and that a motion filed by the Federal National Mortgage Association to amend the summons and complaint to include him was granted by the Housing Court judge. For convenience, we refer to “the defendants” throughout this opinion.
“If the default is not cured on or before January 15, 2009, the mortgage payments will be accelerated with the full amount remaining accelerated and becoming due and payable in full, and foreclosure proceedings will be initiated at that time. As such, the failure to cure the default may result in the foreclosure and sale of your property. . . . You may, if required by law or your loan documents, have the right to cure the default after the acceleration of the mortgage payments and prior to the foreclosure sale of your property if all amounts past due are paid within the time permitted by law. . . .Further, you may have the right to bring a court action to assert the non-existence of a default or any other defense you may have to acceleration and foreclosure.”
The defendants did not cure the default, and in March, 2012, Bank of America gave notice and conducted a foreclosure sale by public auction of the mortgaged home. Bank of America was the high bidder at the foreclosure auction and subsequently assigned its winning bid to the Federal National Mortgage Association (Fannie Mae or plaintiff), which properly recorded the foreclosure deed conveying title of the property in May, 2012. On June 18, 2012, Fannie Mae initiated a summary process action in the Housing Court to evict the defendants from the property. On June 19, 2012, the defendants, representing themselves but assisted by counsel, filed an answer in which, by checking a box, they proffered as a defense to the eviction that “[t]he plaintiff’s case should be dismissed because it does not have proper title to the property and therefore does not have standing to bring this action and/or cannot prove a superior right to possession of the premises.”
For reasons not apparent from the record, Fannie Mae did not move for summary judgment until June, 2015, where, among other arguments, it contended that Bank of America had complied with the terms of the mortgage in exercising the power of sale, and specifically asserted that the notice of default had complied with paragraph 22 of the mortgage.3 On September 23, 2015, the defendants filed a cross motion for summary judgment in which they argued that the notice of default failed to strictly comply with the terms of paragraph 22 of the mortgage and that the defendants should be entitled to the benefit of our decision in Pinti even though the notice of default was sent well before the issuance of that opinion. In October, 2015, the judge granted the defendants’ cross motion for summary judgment and denied the plaintiff’s motion.
3 Paragraph 22 of the mortgage provides that in the event the borrower commits a breach of any term of the mortgage, prior to acceleration of the loan the lender must notify the borrower of “(a) the default; (b) the action required to cure the default; (c) a date, not less than [thirty] days from the date the notice is given to [the defendants], by which the default must be cured; and (d) that failure to cure the default on or before the date specified in the notice may result in acceleration of the sums secured by [the mortgage].”
Paragraph 22 further provides that such notice must inform the borrower “of the right to reinstate after acceleration and the right to bring a court action to assert the non-existence of a default or any other defense of the borrower to acceleration and sale.” It also declares that, if the default is not timely cured, the lender “may invoke the statutory power of sale.”
The judge found that the issue in Pinti had been “timely and fairly raised,” and concluded that our decision in Pinti should apply to all cases similarly situated that were pending in the trial court or on appeal where the issue had been timely and fairly raised before July 17, 2015. The judge also concluded that the notice of default failed to strictly comply with the requirement in paragraph 22 of the mortgage that the notice shall inform the borrower “of the right to reinstate after acceleration and the right to bring a court action to assert the non-existence of a default or any other defense of the borrower to acceleration and sale.”The judge found that, by stating, “You may, if required by law or your loan documents, have the right to cure the default after the acceleration of the mortgage payments and prior to the foreclosure sale of your property . . . ,” and “you may have the right to bring a court action to assert the non-existence of a default or any other defense you may have to acceleration and foreclosure” (emphasis added), the notice “significantly, and inexcusably, differed from, watered. . . down, and overshadowed the notice that was contractually and legally required by the mortgage.” He added that “there was no excuse for the difference in language “and that it was impossible to imagine any purpose for drafting a notice that failed to track the language of the mortgage “unless, of course, the purpose was to discourage [b]orrowers from asserting their rights.”4 After the judge issued his decision, the Appeals Court held in Aurora Loan Servs., LLC v. Murphy, 88 Mass. App. Ct. 726, 727
(2015), that the Pinti decision applies to cases pending on appeal where the claim that the notice of default failed to strictly comply with the notice provisions in the mortgage had been “raised and preserved” before the issuance of the decision. Although the issue was not before it, the Appeals Court declared that “the Pinti rule” did not extend to cases pending in the trial court. Id. at 732. Relying on this dictum, the plaintiff moved to vacate the judgment under Mass. R. Civ. P. 60 (b), 365 Mass. 828 (1974). The judge denied the motion, and the plaintiff appealed. We allowed the defendants’ application for direct appellate review. Discussion. 1. Application of the Pinti decision to pending cases. Our decision in Pinti was grounded in the requirement in G. L. c. 183, § 21, that, before a mortgagee may
4 The judge analogized the warning in the notice of default to a Miranda warning that informed a suspect before interrogation: “You [may] have the right to remain silent. If you give up the right [and if you have that right], anything you say or do [may] can and will be used against you in a court of law. You [may] have the right to an attorney. If you cannot afford an attorney [and if you have that right], one [may] will be appointed for you. Do you understand these rights as they have been read to you?”
exercise the power of sale in a foreclosure, it must “first comply[] with the terms of the mortgage and with the statutes relating to the foreclosure of mortgages by the exercise of a power of sale.”Because the power of sale is a “substantial power” that permits a mortgagee to foreclose without judicial oversight, we followed the traditional and familiar rule that “‘one who sells under a power [of sale] must follow strictly its terms’; the failure to do so results in ‘no valid execution of the power, and the sale is wholly void.'” Pinti, 472 Mass. at 232-233, quoting U.S. Bank Nat’l Ass’n v. Ibanez, 458 Mass. 637, 646 (2011). See Pryor v. Baker, 133 Mass. 459, 460 (1882) (“The exercise of a power to sell by a mortgagee is always carefully watched, and is to be exercised with careful regard to the interests of the mortgagor”).
Although it had long been established in law that the failure to strictly comply with the terms of a mortgage renders void an otherwise valid foreclosure sale, we gave our decision “prospective effect only, because the failure of a mortgagee to provide the mortgagor with the notice of default required by the mortgage is not a matter of record and, therefore, where there is a foreclosure sale in a title chain, ascertaining whether clear record title exists may not be possible.” Pinti, 472 Mass. at 243. Our concern was that a third party who purchases property that had once been sold at a foreclosure auction would not, through a title search, be able to determine whether the notice of default strictly complied with the terms of the mortgage. It would therefore be nearly impossible to eliminate the risk that the foreclosure sale would later be declared void and that the title would be returned to the foreclosed property owner. See id. We presumed that, after our decision in Pinti, mortgagees “as a general matter” would address this uncertainty by executing and recording “an affidavit of compliance with the notice provisions of paragraph 22 that includes a copy of the notice that was sent to the mortgagor pursuant to that paragraph.” Id. at 244.
However, we applied our ruling to the parties in Pinti, id. at 243, citing Eaton v. Federal Nat’l Mtge. Ass’n, 462 Mass. 569, 589 (2012), and deferred the question whether our holding “should be applied to any other class of cases pending on appeal.” Id. at 243 n.25. In Galiastro v. Mortgage Elec. Registration Sys., Inc., 467 Mass. 160, 167-170 (2014), we addressed that same issue in a closely parallel context. In Eaton, 462 Mass. at 571, we declared that a foreclosure by power of sale is invalid unless a foreclosing party holds the mortgage and also either holds the underlying note or acts on behalf of the note holder.
We applied this rule to the parties in Eaton, but otherwise gave the ruling prospective effect only. Id. In Galiastro, supra at 168, we extended the benefit of our decision in Eaton to litigants who had preserved this issue and whose cases were pending on appeal at the time that Eaton was decided. We declared that “[w]here multiple cases await appellate review on precisely the same question, it is inequitable for the case chosen as a vehicle to announce the court’s holding to be singled out as the ‘chance beneficiary’ of an otherwise prospective rule.” Galiastro, supra at 167-168, citing United States v. Johnson, 457 U.S. 537, 555 n.16 (1982), and Commonwealth v. Pring-Wilson, 448 Mass. 718, 736 (2007).
Limiting the application of prospective rulings to such a “chance beneficiary” would mean that something as arbitrary as the speed at which a case is litigated might determine its outcome, as only the first case raising this issue to reach the Supreme Judicial Court would get the benefit of the ruling. It would also greatly diminish the “incentive to bring challenges to existing precedent” by depriving similarly situated litigants “of the benefit for the work and expense involved in challenging the old rule.” Galiastro, supra at 169, quoting Powers v Wilkinson, 399 Mass. 650, 664 (1987).
The same principles underlying our decision in Galiastro to extend the Eaton rule to cases pending on appeal cause us to extend the Pinti rule to cases pending in the trial court where the Pinti issue was timely and fairly raised before we issued our decision in Pinti. In such cases, the homeowner-mortgagors are similarly situated to the plaintiffs in Pinti, because they presented the same arguments in the trial court that the Pinti plaintiffs presented to this court on appeal. All that distinguishes the homeowners in Pinti from the homeowners in this case is the pace of the litigation. The summary process complaint in this case was first filed in June, 2012; the complaint in Pinti seeking a judgment declaring that the foreclosure sale was void was filed in January, 2013. If this case had proceeded to judgment more promptly in the Housing Court, this appeal, rather than Pinti, might have been the one that established the so-called Pinti rule.5
Having so ruled, we now consider whether the homeowner defendants in this case timely and fairly raised a Pinti defense before the issuance of our Pinti decision. The judge found that they had, and we conclude that he was not clearly erroneous in so finding. We recognize that the defendants did not specifically allege that the mortgagee’s notice of default failed to strictly comply with the terms of paragraph 22 of the mortgage until they filed their cross motion for summary judgment on September 23,
5 We recognize that this ruling will increase the impact our Pinti decision may have on the validity of titles, but we expect the increase to be modest and that it will simply be part of the inherent “unevenness [that] is an inevitable consequence of any change in doctrine.” Galiastro v. Mortgage Elec. Registration Sys., Inc., 467 Mass. 160, 170 (2014), quoting Johnson Controls, Inc. v. Bowes, 381 Mass. 278, 283 n.4 (1980).
2015, more than two months after the issuance of our opinion in Pinti. But more than three years before that opinion, in June, 2012, they filed an answer as self-represented litigants where they checked the box proffering as a defense to the eviction that the plaintiff did not have “superior right to possession of the premises.”6 We need not consider whether the assertion of this affirmative defense alone was sufficient to give fair notice of a Pinti defense, because it is apparent from the plaintiff’s memorandum in support of its motion for summary judgment, which was filed one month before the issuance of our Pinti decision, that the plaintiff recognized that the defendants had alleged that the notice of default failed to comply with the terms of paragraph 22 of the mortgage. In that memorandum, the plaintiff argued that it had complied with the requirements of paragraph 22 and that it would be “irrational and fundamentally unfair” to declare the foreclosure proceeding void because of the purported minor differences between the language of the notice of default and that of the mortgage.
6 The full text of the defense, marked box no. 67 on the answer, states:”The plaintiff’s case should be dismissed because it does not have proper title to the property and therefore does not have standing to bring this action and/or cannot prove a superior right to possession of the premises. Wayne Inv. Corp. v. Abbott, 350 Mass. 775 (1966) (title defects can be raised as defense in summary process); G. L.239, § 1 (summary process available to plaintiff only if foreclosure carried out according to law).
“Where the plaintiff recognized that the defendants had raised the Pinti issue as a defense before our Pinti decision, the judge did not err in finding that the defendants fairly and timely raised the issue and therefore were entitled to the benefit of the Pinti decision.
Obligation of strict compliance. Having determined that the defendants are entitled to the benefit of our holding in Pinti, we must now address whether the notice of default strictly complied with paragraph 22 of the mortgage. It did not. Once a borrower has defaulted on a mortgage, G. L. c. 183, 21, authorizes the mortgagee to foreclose and sell the premises, provided it “first compl[ies] with the terms of the mortgage and with the statutes relating to the foreclosure of mortgages by the exercise of the power of sale.” Pinti, 472 Mass. at 232, quoting G. L. c. 183, § 21. As we explained in Pinti, supra at 236, “the ‘terms of the mortgage’ with which strict compliance is required — both as a matter of common law under this court’s decisions and under § 21 — include not only the provisions in paragraph 22 relating to the foreclosure sale itself, but also the provisions requiring and prescribing the preforeclosure notice of default” (footnote omitted). See Foster, Hall & Adams Co. v. Sayles, 213 Mass. 319, 322-324 (1913).
The notice of default in this case communicated much of what paragraph 22 requires but fell short in several crucial respects. Paragraph 22 requires that the notice “inform [the borrower] of the right to reinstate after acceleration and the right to bring a court action to assert the non-existence of a default or any other defense of [the borrower] to acceleration of sale.” Despite this language in the plaintiff’s own uniform mortgage instrument, the notice declared that the borrower “may, if required by law or [the borrower’s] loan documents, have the right to cure the default after the acceleration of the mortgage payments and prior to the foreclosure sale of [the borrower’s] property if all amounts past due are paid within the time permitted by law” (emphasis added). Similarly, the notice declared that the borrower “may have the right to bring a court action to assert the non-existence of a default or any other defense [the borrower] may have” (emphasis added).
We agree with the judge that this language in the notice “significantly, and inexcusably, differed from” the language in paragraph 22 of the mortgage, and “watered . . . down” the rights provided in that paragraph to the mortgagor homeowner. The phrase, “you may, if required by law or your loan documents, have the right to cure the default after acceleration,” suggests that the right to cure and reinstate is not available to every mortgagor, and that any such right is contingent upon the law or the provisions of other loan documents. But paragraph 19 of the mortgage specifically grants a mortgagor the right to reinstatement after acceleration, and sets forth the steps required to do so.This phrase instead suggests that the homeowner may need to perform legal research and analysis to discern whether the right to cure and reinstate is available.
Similarly, rather than unequivocally inform the borrower of the right to bring a court action to attempt to prevent a foreclosure by asserting that there was no default or by invoking another defense, the notice of default stated that the borrower may have the right to bring such an action. Here, too, the implication is that the right is merely conditional, without specifying the conditions, and that the mortgagor may not have the right to file an action in court.
The defendant contends that it accurately informed borrowers that they “may have” the right to bring a court action because they would have no such right if their court action lacked a good faith basis. But neither paragraph 22 of the mortgage nor the notice identified a bad faith exception to this right and we cannot reasonably infer that a borrower would understand that the “may have” language referenced such an exception.7
7 Because we find that the notice of default was not in strict compliance with paragraph 22, we need not address the We agree with the judge that, because the Pinti decision applies to this case and because the notice of default did not strictly comply with the requirements of paragraph 22 of the mortgage, the foreclosure sale is void.
8 Conclusion. The allowance of the defendants’ cross motion for summary judgment, as well as the denials of the plaintiff’s motions for summary judgment and for relief from judgment, are affirmed.
So ordered.
defendants’ contention that the plaintiff waived its argument that the notice was in strict compliance when it conceded that it was only in substantial compliance in the memorandum in support of its motion for summary judgment and at the hearing in the Housing Court.
"I cannot decide for you the moral obligations you should pursue; but if a wrong has been committed against you (such as a clouded title or a fraud resulting from a mortgage loan) you have the duty as an American property owner to correct it. Filing a lawsuit (in my book) reflects one’s personal responsibility.".
"I cannot decide for you the moral obligations you should pursue; but if a wrong has been committed against you (such as a clouded title or a fraud resulting from a mortgage loan) you have the duty as an American property owner to correct it. Filing a lawsuit (in my book) reflects one’s personal responsibility.".
Foreclosure Judges Taking Bribes from Banks to Illegally Foreclose on Homeowners
Are Foreclosure Judges Taking Bribes from Banks to Illegally Foreclose on Homeowners? Investigative journalist Janet Phelan, author of the book Exile and expert on uncovering evidence of financial corruption infesting our courts, exposes how corrupt foreclosure...
Limited offer: Take advantage of our 90-day Credit Repair Challenge!
Limited offer: Take advantage of our 90-day Credit Repair Challenge! Get your credit issues fixed and the credit score you need---or we'll work for FREE. For a limited time, if you sign up now, we'll give you the best offer we have ever made to anyone who has...
Stopping Foreclosure at the Last Minute: Strategies to Protect Your Home
Stopping Foreclosure at the Last Minute: Strategies to Protect Your Home Stopping Foreclosure at the Last Minute: Strategies to Protect Your Home Facing foreclosure is a daunting situation, but there are last-minute measures you can take to halt the process and...
How to Respond to a Notice of Default
How to Respond to a Notice of Default Now let’s talk about the foreclosure laws as they relate to everybody. If you have received a Notice of Default (NOD) or Notice of Acceleration (NOA), then time is short and you need to do something. And the only thing that...
How seniors can stay safe online with some really good tips and clear explanations
How seniors can stay safe online with some really good tips and clear explanations Hi To start with, I want to thank you for your article, here: https://fraudstoppers.org/fbi-looks-to-educate-more-on-elder-fraud/ . I found your page while searching for online safety...
How FRAUD STOPPERS Legal Professionals Can Assist Homeowners with Surplus Funds after Foreclosure
How FRAUD STOPPERS Legal Professionals Can Assist Homeowners with Surplus Funds after Foreclosure Foreclosure is a daunting prospect that many homeowners would rather avoid thinking about altogether. Unfortunately, some homeowners may face false foreclosure claims,...
Have You Seen The Con Yet? If not, great news, its now Free. Watch it Today
Have You Seen The Con Yet? If not, great news, The Con is now FREE! If you want to learn everything about the mortgage fraud scheme the banks created and our government covered-up, you have to watch The Con. Watch it now for free right now at...
HOW TO STOP TEXAS FORECLOSURES
TEXAS FORECLOSURES Foreclosure is a remedy available to lenders when borrowers default on their mortgage payments or breach other contractual obligations, such as failing to pay taxes or keep the property insured. To determine if a default has occurred, the loan...
Demystifying Foreclosure Defense: Exposing the Deception and Empowering Homeowners with FRAUD STOPPERS
Demystifying Foreclosure Defense: Exposing the Deception and Empowering Homeowners with FRAUD STOPPERS Facing foreclosure can be an overwhelming experience for homeowners, but understanding the truth behind the process and employing effective defense strategies can...
The Troubling Power of Private Bar Associations: Examining Political Influences and Ignorance in Enforcing Legal Rules in Foreclosure
The Troubling Power of Private Bar Associations: Examining Political Influences and Ignorance in Enforcing Legal Rules in Foreclosure The foreclosure crisis in the United States has raised concerns about the power wielded by private Bar associations and their ability...
What Are Your Legal Rights in Foreclosure and How Can FRAUD STOPPERS Help You
What Are Your Legal Rights in Foreclosure and How Can FRAUD STOPPERS Help Foreclosure can be a distressing experience for homeowners, but it's crucial to understand your legal rights during this process. This article provides an overview of these rights, summarizing...
How Homeowners Can Stop Foreclosure with Fraud Stoppers
How Homeowners Can Stop Foreclosure with Fraud Stoppers Foreclosure is a daunting experience that can shake any homeowner to their core. The thought of losing your home, the place that safeguards your memories and represents a significant portion of your life's work,...
Securing Home ownership: FRAUD STOPPERS’ Expertise in Chain of Title Analysis Benefits Borrowers Facing Loan Challenges in Fannie Mae REMIC Trusts
Securing Home ownership: FRAUD STOPPERS' Expertise in Chain of Title Analysis Benefits Borrowers Facing Loan Challenges in Fannie Mae REMIC Trusts Owning a home is often seen as the epitome of the American dream. It provides stability, a sense of belonging, and the...
Exposing Mortgage Fraud: FRAUD STOPPERS PMA Leading the Charge with Level 4 (Military Grade) Bloomberg Securitization Audits, Expert Witness Testimony, and Professional Litigation Packages
Exposing Mortgage Fraud: FRAUD STOPPERS PMA Leading the Charge with Level 4 (Military Grade) Bloomberg Securitization Audits, Expert Witness Testimony, and Professional Litigation Packages Mortgage fraud continues to be a pressing issue in the real estate industry,...
Efficiently Addressing Federal Court Backlog and Streamlining Justice in the Post-Pandemic Era
Efficiently Addressing Federal Court Backlog and Streamlining Justice in the Post-Pandemic Era FRAUD STOPPERS, a leading legal organization specializing in fraud prevention and protection, offers invaluable assistance in tackling the federal court backlog and...
Stop Foreclosure with FRAUD STOPPERS: Expert Mortgage Fraud Defense and Homeowner Empowerment
Stop Foreclosure with FRAUD STOPPERS: Expert Mortgage Fraud Defense and Homeowner Empowerment Foreclosure occurs when the owner of a mortgage seizes the property to repay the debt because the borrower has failed to make timely payments. Foreclosure can also be...
Protecting Consumers: How Fraud Stoppers and LegalShield Combat Mortgage Fraud
Title: Better Business Bureau Warns About Mortgage Scams Source: WAFB (May 30, 2023) The Better Business Bureau (BBB) has issued a warning regarding mortgage scams, highlighting the increasing prevalence of fraudulent activities in the mortgage industry....
Unveiling the Path to Victory: How FRAUD STOPPERS Empowers Homeowners in Foreclosure Cases and Quiet Title Lawsuits
Unveiling the Path to Victory: How FRAUD STOPPERS Empowers Homeowners in Foreclosure Cases and Quiet Title Lawsuits In the tumultuous era of the mortgage meltdown, some individuals were well aware of their actions. They sought to achieve their own financial...
Convicted Ex-Judge Must Use Pension to Pay Restitution for Mortgage Fraud
Convicted Ex-Judge Must Use Pension to Pay Restitution for Mortgage Fraud Former Cook County Judge Jessica Arong O'Brien, who served a prison sentence for mortgage fraud, has been ordered by an Illinois federal judge to contribute nearly $117,000 from her judicial and...
Landmark Foreclosure Defense Victory and How FRAUD STOPPERS Mortgage Audit Can Help You Achieve Similar Results
Landmark Foreclosure Victory in California Against HSBC "Landmark Foreclosure Defense Victory: Attorney Richard Antognini's Success in California and How FRAUD STOPPERS Mortgage Audit Can Help You Achieve Similar Results" In a noteworthy case, attorney Richard...
Unmasking False Claims in Bankruptcy: Unveiling the Power of Discovery Strategies with FRAUD STOPPERS’ Mortgage Audit
Unmasking False Claims in Bankruptcy: Unveiling the Power of Discovery Strategies with FRAUD STOPPERS' Mortgage Audit Introduction:When it comes to bankruptcy cases, false claims can pose a significant challenge for both lawyers and homeowners. Many individuals...
Navigating Finances: A Guide for Young Veterans Entering Civilian Life
Guide for Young Veterans Transitioning to Civilian Life: Mastering Your Finances How to equip yourself with essential financial skills and strategies to thrive as a young veteran transitioning to civilian life. Navigating Finances: A Guide for Young Veterans Entering...
Target faces mass civil litigation and criminal actions for promoting satan worship and murder
Target mass civil litigation and criminal complaints for promoting satan worship and murder. Target Tops Bud Light, Goes Next Level Pushing Satan Worship and Murder Facing backlash Target has removed most of the hardcore Satan worship and conservative murder...
How to Win a Foreclosure Case or Quiet Title Lawsuit Using Interlocutory Appeals and Discovery Demands
How to Win a Foreclosure Case or Quiet Title Lawsuit Using Interlocutory Appeals and Discovery Demands Facing a foreclosure case or quiet title lawsuit can be a daunting experience for homeowners. However, there are legal strategies that can significantly increase...
Preserve the Evidence to Overturn the Tables on the Money-Changers
Preserve the Evidence! To Adam Bronfman, Executive Producer of The Con, We stand in solidarity with the millions of homeowners whose lives have been destroyed by a criminal enterprise using the courts, law firms, and this country's government entities to become...
Patrick Lovell Truth Bombs The Con
https://rumble.com/v2nhty2-patrick-lovell-truth-bombs-the-con.html Patrick Lovell Truth Bombs The Con Do you think the system is corrupt? It is. Do you know how? I do. Lean in, please allow me to share it with you. rumble.com The Link for the $13...
How to Stop Fannie Mea Fake Foreclosures
How to Stop Fannie Mea Fake Foreclosures FRAUD STOPPERS PMA is your only source for court ready evidence to win your Fannie Mea foreclosure. Let FRAUD STOPPERS and our insider banking expert and licensed private investigator give you and your attorney the facts and...
How to Use the Right Words to Win a Foreclosure Case or Mortgage Fraud Lawsuit
How to Use the Right Words to Win a Foreclosure Case or Mortgage Fraud Lawsuit Don’t Say “LOAN” Neil GarfieldApr 24 Whenever anyone refers to your transaction as a loan, you should be objecting at the earliest possible moment (or else it is waived), and you...
Ocwen Related Matters
Ocwen Related Matters During the year ended December 31, 2022, Ocwen was our largest customer,accounting for 41% of our total revenue. Additionally, 6% of our revenue for theyear ended December 31, 2022 was earned on the loan portfolios serviced byOcwen, when a party...
Protecting Personal Health Information from Theft and Fraud
Protecting Personal Health Information from Theft and Fraud By Jenna Sherman Credit card numbers aren’t the only type of personal data that hackers are after. Medical records and personal health information are increasingly a target of data breaches, with...
Rescission under TILA: Homeowners’ Rights Upheld as Courts Grapple with Voided Mortgages and Clouded Titles – How FRAUD STOPPERS Can Provide Assistance
Rescission under TILA: Homeowners' Rights Upheld as Courts Grapple with Voided Mortgages and Clouded Titles - How FRAUD STOPPERS Can Provide Assistance The concept of rescission under the Truth in Lending Act (TILA) has become a crucial battleground for homeowners...
Failure to Challenge the Identity and Citizenship of the “trust” can be a fatal defect in foreclosure defense narratives
How to Hire the Right Foreclosure Defense Attorney
How to Hire the Right Foreclosure Defense Attorney Before you hire an attorney you need to know what they should be doing, what they should doing, and how to contract with them properly so you can ensure you are not taken advantage of by your attorney. You can learn...
Standing to Foreclose and Holder in Due Course with Rights to Enforce
Standing to Foreclose and Holder in Due Course with Rights to Enforce There are lots of valid foreclosures defenses that have worked, and there are hundreds of thousands of cases that have been won or settled by those who chose to fight. However, most of the...
VT Supreme Court Rules Value Must be Given in Mortgage Loan Contracts
VT Supreme Court Rules Value Must be Given in Mortgage Loan Contracts VT Supreme Court Asserts Value Must be Given and No Security Interest Attached to the Presumed Account By Neil Garfield This dispute is governed by Article 9 of the Vermont UCC, which covers...
PA Supreme Court Opines that Aiding and Abetting a Fraud is a Separate Recognizable Tort Claim
PA Supreme Court Opines that Aiding and Abetting a Fraud is a Separate Recognizable Tort Claim By Neil Garfield we hold Pennsylvania law recognizes the tort of aiding and abetting fraud, and the scienter requirement for this cause of action is actual knowledge of the...
Now You Can Sue New York Mellon For Mortgage Fraud
Now You Can Sue New York Mellon For Mortgage Fraud Stop Foreclosure | Sue for Mortgage Fraud | Quiet Title | Wrongful Foreclosure | Loan Mod Fraud | 800-459-1215 | Info@FraudStoppers.org If you want to stop foreclosure or sue your mortgage company for mortgage fraud,...
Mortgage Loan Instrument or Personal Property; what really got securitized?
Mortgage Loan Instrument or Personal Property; what really got securitized? We begin with the mortgage loan originator. Immediately after closing, the mortgage loan originator has taken possession of many documents of which only two (2) are required to be...
Auto Draft
The irrefutable logic at the foundation of all successful foreclosure defense narratives Neil GarfieldFeb 2 The mortgage lien is designed to protect against financial loss --- not to promote financial gain. If Wall Street wants to protect the financial gains it...
WHY ALL THE ROBO SIGNING?
WHY ALL THE ROBO SIGNING? In Jamie Dimon’s annual letter to shareholders, he talks about JP Morgan’s part in all of that. Essentially it was “not our finest hour,” he said, but at least JPM wasn’t as bad as other banks (even their subprime mortgages performed better...
Learn How to Control Lawyers and Judges and Win Your Case
Learn How to Control Lawyers and Judges and Win Your Case If you want to learn how to control lawyers and judges you must take the time to learn How to Win in Court by Dr. Fredrick Graves! In my 35 years of professional experience as a licensed attorney, I've argued...
Why Fabrications & Forgeries of Mortgages Loan Documents?
Why Fabrications & Forgeries of Mortgages Loan Documents? In an increasing number of foreclosure cases, homeowners are going head to head with the lawyers who file claims on behalf of entities on the basis off fabricated and/or forged instruments that in many...
Your Mortgage Documents Might be Fake
Your Mortgage Documents Might be Fake! Ya think, maybe? MERS alleges to have registered 71 million mortgages. There were likely another 15-20 million “non-MERS” mortgages… Prepare to be outraged. Newly obtained filings from this Florida woman’s lawsuit uncover...
Professional Quiet Title Litigation Package and Foreclosure Defense
Professional Quiet Title Litigation Package and Foreclosure Defense Recourse What is Quiet Title? I ask this question to get the reader to think about the two faces of Quiet Title. First, Quiet Title is an equitable Cause of Action that many homeowners’ use to...
100-facts-about-mortgage-securitization
100 INTRODUCTORY FACTS ABOUT MORTGAGE SECURITIZATION 1. Most mortgages in the U.S. are owned by trusts. 2. The trusts are often referred to as “RMBS” trusts, an acronym standing for “residential mortgage-backed securities.” 3. The total U.S. mortgage debt is between...
BANK CAN NOT LEND CREDIT. BANKS CAN ONLY LEND MONEY
BANK CAN NOT LEND CREDIT. BANKS CAN ONLY LEND MONEY Truth In Lending Act Case Law and Regulation Z Truth in Lending Act was passed to prevent unsophisticated consumer from being misled as to total cost of financing. Truth in Lending Act, Section 102, 15 U.S.C....
Avoid Loan Modification Traps
Avoid Loan Modification Traps, Pitfalls, and Scams The Business Model of Loan Servicers is to Foreclose on Innocent Borrowers. Securitization is the reason lenders attempt to foreclose on homeowners even when giving them a loan modification is the right thing...
The prime mistake among foreclosure defense attorneys
The prime mistake among foreclosure defense attorneys is that (a) they are looking at substantive law only without studying procedural law and (b) they still can't get over the "free house" myth. If you are confronted by a court order signed by a real judge that you...
Foreclosure Daily News Update ⋅ January 17, 2023
Stop Foreclosure | Sue for Fraud If you want to stop foreclosure or sue your mortgage company for mortgage fraud, FRAUD STOPPERS can help you save time and money, and increase your odds of success, getting the legal remedy that the law entitles you to, and that you...
65 SIGNS THAT YOUR MORTGAGE LOAN & FORECLOSURE DOCUMENTS COULD BE FRAUDULENT
Your Mortgage Documents Might be Fake! MERS alleges to have registered 71 million mortgages. There were likely another 15-20 million “non-MERS” mortgages… Prepare to be outraged. Newly obtained filings from this Florida woman’s lawsuit uncover horrifying scheme...
Your Mortgage Documents Might be Fake!
Your Mortgage Documents Might be Fake! MERS alleges to have registered 71 million mortgages. There were likely another 15-20 million “non-MERS” mortgages… Prepare to be outraged. Newly obtained filings from this Florida woman’s lawsuit uncover horrifying scheme...
The Case for Discipline of Attorney Who Present False Claims in Support of Foreclosure
Stop Foreclosure | Sue for Fraud If you want to stop foreclosure or sue your mortgage company for mortgage fraud, FRAUD STOPPERS can help you save time and money, and increase your odds of success, getting the legal remedy that the law entitles you to, and that you...
FRAUD STOPPERS Foreclosure & Mortgage Fraud Daily News Update ⋅ January 12, 2023
Stop Foreclosure | Sue for Fraud If you want to stop foreclosure or sue your mortgage company for mortgage fraud, FRAUD STOPPERS can help you save time and money, and increase your odds of success, getting the legal remedy that the law entitles you to, and that you...
Motion for Substitutions of Trustees and Foreclosure Defense
Stop Foreclosure | Sue for Fraud If you want to stop foreclosure or sue your mortgage company for mortgage fraud, FRAUD STOPPERS can help you save time and money, and increase your odds of success, getting the legal remedy that the law entitles you to, and that you...
FRAUD STOPPERS Foreclosure Daily News Update ⋅ January 11, 2023
Stop Foreclosure | Sue for Fraud If you want to stop foreclosure or sue your mortgage company for mortgage fraud, FRAUD STOPPERS can help you save time and money, and increase your odds of success, getting the legal remedy that the law entitles you to, and that you...
Mortgage Fraud Daily update ⋅ January 10, 2023
Mortgage Fraud Daily update ⋅ January 10, 2023 Ontario Court of Appeal Considers Interpretation of “Creditors or Others” Under the ... - JD Supra JD Supra The Ontario Fraudulent Conveyances Act (the FCA), a concise statute of ... the Pennsylvania...
Banking Lesson to Aid Homeowners in Discovery or Statutory Demand Letters
Banking Lesson to Aid Homeowners in Discovery or Statutory Demand Letters Neil GarfieldJan 9 Homeowners and their lawyers look at a canceled check and understandably and reasonably come to an erroneous conclusion. They think the check shows who physically received the...
Mortgage Fraud And Foreclosure Daily News Update ⋅ January 9, 2023
If you want to stop foreclosure or sue your mortgage company for mortgage fraud, FRAUD STOPPERS can help you save time and money, and increase your odds of success, getting the legal remedy that the law entitles you to, and that you deserve, guaranteed! FRAUD STOPPERS...
How to respond to idiotic non-responses received to QWR, DVL and CFPB complaint
How to respond to idiotic non-responses received to QWR, DVL and CFPB complaint Neil GarfieldJan 6 People often say that using the QWR and DVL is useless because you don't get any answers. But that is exactly my point. It is like pleading the 5th. In a civil...
Effective Strategies for Fraud Stoppers Foreclosure Defense and Quiet Title Lawsuits
Effective Strategies for Fraud Stoppers Foreclosure Defense and Quiet Title Lawsuits When facing the daunting challenge of foreclosure or seeking to establish a clear title to your property, having a solid understanding of the available legal strategies is crucial....
How to Prove Self-Employment Income to Buy a Home
How to Prove Self-Employment Income to Buy a Home When applying for a mortgage, lenders scrutinize your employment history to verify that you have the income and job stability to meet your payment obligations. Employment gaps, job-hopping, and unpredictable...
Student Loan Securitization Audit & Expert Witness Affidavit to Eliminate Your Student Loan Debt
Now You Can Get Your Student Loan Securitization Audit & Expert Witness Affidavit to Eliminate Your Student Loan Debt If you have a student loan chances are your debt is part of the illegal securitization practices of big banks and Wall Street. Securitization is...
Fake Texts Are Easy To Create, Difficult To Detect
Fake Texts Are Easy To Create, Difficult To Detect For lawyers, judges, juries, and investigators, discerning what’s real when dealing with digital evidence is more difficult than ever. This is due, in part, to how easy it is to create fake evidence. Specifically, a...
Foreclosure Daily News Update ⋅ December 14, 2022
Foreclosure Daily News Update ⋅ December 14, 2022 NOTICE OF FORECLOSURE BY ADVERTISEMENT | Legals | cadillacnews.com Cadillac News NOTICE OF FORECLOSURE BY ADVERTISEMENT Notice is given under section 3212 of the revised judicature act of 1961, 1961...
How To Win a Foreclosure Lawsuit or Quiet Title Lawsuit
How To Win a Foreclosure Lawsuit or Quiet Title Lawsuit How This Homeowner is Winning Neil GarfieldDec 14 Hat tip for Scott Staffne, Esq. for uploading an "Outline of Oral Argument Re Motion for Sanctions." First, I commend the preparation, which is notoriously absent...
Foreclosures soaring 57%
Foreclosures soaring 57% Neil GarfieldDec 12 As I have repeatedly reported, Wall Street's control over certain media outlets has consistently downplayed the number of foreclosures initiated against homeowners. We see far more articles saying foreclosures are low than...
Congress & FBI Investigation into Mortgage Fraud & Foreclosure Fraud
Congress & FBI Investigation into Mortgage Fraud & Foreclosure Fraud Hi, everyone! Believe it or not, we are finally hearing noises back from Congress and the FBI, so things could be getting pretty interesting for us very soon! I am submitting a report to the...
Unveiling the Misuse of Nonjudicial Foreclosure: Seeking Realignment of Parties to Challenge Allegations and Protect Homeowners
Unveiling the Misuse of Nonjudicial Foreclosure: Seeking Realignment of Parties to Challenge Allegations and Protect Homeowners with FRAUD STOPPERS' Guidance and Support The article discusses the issue of converting from nonjudicial to judicial foreclosure and...
Recovering Your Equity After Foreclosure
Recovering Your Equity After Foreclosure Neil GarfieldDec 6 As a result of court bias and the plethora of legal presumptions arising from fabricated documents, it might well be the better strategy to do nothing and then sue for excess proceeds followed by an amendment...
Enforcement of Discovery in Foreclosure Defense & Quiet Title Lawsuits
Enforcement of Discovery in Foreclosure Defense & Quiet Title Lawsuits Enforcement of Discovery — Sanctions Neil GarfieldNov 23 The heart of foreclosure defense lies in arcane procedures that occur within the context of discovery during litigation in court. The...
Zombie Debt
'Zombie Debt': Homeowners face foreclosure on old mortgages A growing number of homeowners say they are being blindsided by recent foreclosure actions on their homes over second loans that were taken out more than a decade ago ByMICHAEL HILL Associated Press November...
Holder of the note in due course for foreclosure defense
Holder of the note in due course for foreclosure defense Don’t ask for the true identity of the “holder of the note.” Ask instead for the identity of the holder in due course or the creditor. Neil GarfieldNov 18 The point is not the identity of the "holder" of the...
The “Debt” rabbit hole
The “Debt” rabbit hole Neil GarfieldNov 17 Take care to distinguish what contract you're talking about. If you receive money, the law says you must give it back unless it was payment for something or it was a gift. In that sense, the law imposes a contract on people...
How To Stay Organized When Dealing With Legal Documents
How To Stay Organized When Dealing With Legal Documents Megan Cooper Being organized is important in all aspects of life, but it’s downright crucial when it comes to legal documents. Legal documents often contain sensitive information that needs to be kept...
Foreclosure Daily News Update ⋅ November 14, 2022
Foreclosure Daily update ⋅ November 14, 2022 NEWS Foreclosure - Opelika Auburn News Opelika Auburn News L423 MORTGAGE FORECLOSURE SALE Default having been made in the payment of the indebtedness secured by that certain mortgage executed on...
Shellpoint Mortgage Fraud
Where’s Waldo? You need to stare at something for a while before you see everything. Neil GarfieldNov 7 While I was doing a CONSULT for someone, a reminder popped up on my computer screen relating to a statement sent under the letterhead of "Shellpoint." Since...
How to use expert witness or subject matter expert testimony to stop foreclosure and win a quiet title lawsuit or wrongful foreclosure lawsuit
How to use expert witness or subject matter expert testimony to stop foreclosure and win a quiet title lawsuit or wrongful foreclosure lawsuit “Experts” and Fact Witnesses Neil GarfieldNov 3 A lot of people contact me asking for an expert report. Most have no...
Hawaii Homeowners Win Wrongful Foreclosure Lawsuit
Hawaii Homeowners Win Wrongful Foreclosure Lawsuit Attorney Gary Dubin Does it Again In Hawaii: Persistence Pays Neil GarfieldOct 28 Gary Dubin is one of the few lawyers with more life and legal experience than I have. While I have won most of my trial cases,...
Next Webinar on How to Research Your Judge
Webinar on How to Research Your Judge (with an eye to determining if he or she is accepting bribes) to take place on November 3 at 2 pm Central. I am keeping this at a low fee of $30 so all who wish to may join. To register please contact me via FB or at...
Revealed–The Inside Scoop. F.A.C.E.U.S. (Families Against Court Embezzlement Unethical Standards)
Revealed–The Inside Scoop. F.A.C.E.U.S. (Families Against Court Embezzlement Unethical Standards) Call the show at 7:55 pm your time to this number 845-241-9962 press a one. If you have friends that want to call in and listen or have a question or a comment, they call...
Ocwen and PHH Mortgage Servicing Fraud
Ocwen and PHH Mortgage Servicing Fraud Maybe a subpoena to Scott Anderson will shake the tree Neil GarfieldOct 25 Ocwen is the parent company, and PHH is said to be a subsidiary and subservicer in charge of underperforming or nonperforming accounts. Those who read...
Court Orders Depositions of Top Biden Officials in Missouri AG’s Case for allegedly colluding to suppress freedom of speech.
Court Orders Depositions of Top Biden Officials in Missouri AG’s Case for allegedly colluding to suppress freedom of speech. October 24, 2022Contact: Constituent ServicesOffice: 573-751-3321 JEFFERSON CITY, Mo. – Missouri Attorney General Eric Schmitt announced...
5th circuit court of appeals ruled that the designs of the CFPB violated the constitution
5th circuit court of appeals ruled that the designs of the CFPB violated the constitution It is important to note the recent 3 judge panel of the 5th circuit court of appeals ruled that the designs of the CFPB violated the constitution because it received...
A Small Business Owner’s Guide to Preventing Fraud and Data Hacks
A Small Business Owner's Guide to Preventing Fraud and Data Hacks By Megan Cooper 1/018/2022Cybercrime is on the rise, with criminals targeting both individuals and businesses. If you're a business owner, you want to do all you can to prevent being a victim of...
How to Research Your Judge Webinar
How to Research Your Judge Webinar Concerns are ramping up on so many levels now that the US government has gone rogue. The concerns about the integrity of the legal system are fundamental to these perceptions. Many of us are embroiled in horrific...
Foreclosure News Daily update ⋅ September 12, 2022
Foreclosure News Daily update ⋅ September 12, 2022 NEWS The hitch? That small print in SUN mortgage documents. - The Boston Globe The Boston Globe ... Neighborhoods) has helped about 1,000 families avoid foreclosure. ... SUN acquires occupied foreclosed or...
FRAUD STOPPERS Daily Fraud News Update ⋅ September 8, 2022
FRAUD STOPPERS Daily Fraud News Update ⋅ September 8, 2022 NEWS Steve Bannon indicted on state charges of money laundering, conspiracy and fraud related ... CBS 58 ... money laundering, conspiracy and fraud related to border wall effort ... Bannon on federal fraud...
Challenging Banks Foreclosure Lawyers
Challenging the Lawyers for the Foreclosure Mill Neil GarfieldSep 7 Based upon 16 years of research, an investigation by our company, an investigation by third-party forensic analysts, and an investigation by law enforcement and law markets (see 50 state...
Foreclosure Defense Strategy
The Strategy of Foreclosure Defense Neil GarfieldSep 2 I recommend against raising an issue that you cannot prove. Specifically, the allegation that there are false claims of securitization of debt broadens the litigation beyond that which the judge is likely to...
Foreclosure Daily update ⋅ September 2, 2022
Foreclosure Daily update ⋅ September 2, 2022 NEWS 4 Costly Dangers of Buying a Foreclosure—and How To Avoid Them - Realtor.com Realtor.com Buying a foreclosure can be complicated, and that seemingly cut-rate deal may not save you as much money as you...
Foreclosure Loan Modification Fraud
Foreclosure Fraud: Watch Out for Con Artists Who Make Offers They cannot Fulfill. This includes “servicers” offering modifications. Neil GarfieldSep 1 As foreclosure filings and threats spike, so too will the number of fraudulent offerings that guarantee you an...
Securitization is a Ponzi Scheme
Securitization is a Ponzi Scheme. Homeowners are merely collateral damage. Neil GarfieldAug 30 Ponzi schemes work because of the continuing success of the tactical big lie --- i.e., nobody would tell a lie that big because it would discovered and therefore it must be...
Suing mortgage loan servicers for fraud
Drafting complaints against the pretender lenders and pretender servicers. Neil GarfieldAug 29 Many people try to draft lawsuits against the "servicers" and other actors who pretend to have credentials and status in connection with the existence, ownership,...
Foreclosure Mortgage Fraud Daily News Update ⋅ August 31, 2022
Foreclosure Mortgage Fraud Daily News Update ⋅ August 31, 2022 NEWS Foreclosures are rising with the end of COVID-era moratoriums. Here's where they're ... The Columbus Telegram Overall, foreclosure rates on homes across the country were up 143% in July, compared to...
holder of the note in due course
Homeowners! You need to know this! The difference between the possessor of a note, the holder, and the holder in due course. Neil GarfieldAug 25 Uniform Commercial Code preempts principles of common law and equity that are inconsistent with either its provisions or...
FRAUD STOPPERS Foreclosure Defense Empowers Homeowners Facing Foreclosure with Comprehensive Mortgage Audits and Legal Support
FRAUD STOPPERS Empowers Homeowners Facing Foreclosure with Comprehensive Mortgage Audits and Legal Support For homeowners looking for foreclosure defense the New York State Senate has passed a foreclosure abuse prevention bill aimed at addressing manipulative tactics...
Mortgage Fraud Daily update ⋅ August 18, 2022
Mortgage Fraud Daily update ⋅ August 18, 2022 Foreclosure Mortgage Fraud NEWS Q2 2022 Quarterly Mortgage Fraud Brief - CoreLogic® CoreLogic The CoreLogic Mortgage Fraud Brief analyzes the metro areas with the highest mortgage fraud risk on a quarterly basis, and...
Here is why the Judge doesn’t answer your questions in court
Here is why the Judge doesn’t answer your questions in court Neil GarfieldAug 12 I think the biggest mistake that trial lawyers and pro se litigants make is that they think their questions, especially those supported by forensic reviews, are sufficient to rebut the...
The Pooling and Servicing Agreement in Foreclosure Defense & Wrongful Foreclosure Lawsuits
The Pooling and Servicing Agreement is NOT a Trust Agreement Neil GarfieldJul 12 Unknown to lay people in court, the admission of an allegation or implied allegation (or even an argument) is the same thing as establishing that "fact" as true even if it isn't...
MERS and MERSCorp: What is it? NY Court tries to sort it out and misses the point.
MERS and MERSCorp: What is it? NY Court tries to sort it out and misses the point. Neil GarfieldJul 6 DreamBuilder-Invs.-v.-Merscorp-Holdings-Inc Bill Paatalo brought this case to my attention. Reading the entire case, one gets important clues on how to sue MERS and...
Disqualification of Foreclosure Mill Attorney
Disqualification of Foreclosure Mill Attorney Neil GarfieldJul 5 Over the years many lawyers and laypeople have sent me proposed motions to disqualify or bar opposing counsel from representing to the court that the bank he or she named in a complaint or claim is his...
Discovery you can’t afford to miss: the SEC
Discovery you can’t afford to miss: the SEC! https://cloudedtitlesblog.wordpress.com/2022/06/23/discovery-you-cant-afford-to-miss-the-sec/ (OP-ED) — The opinions expressed herein reflect those of the author and should not necessarily be construed as legal advice;...
Guidance on legal argument in foreclosure cases
Guidance on legal argument in foreclosure cases Neil GarfieldJul 1 OK. There are several aspects here. The most important one is to educate the judge and persuade the judge to apply existing legislative laws specifically the state laws adopting 9-203 of the UCC...
FBI looks to educate more on elder fraud
FBI looks to educate more on elder fraud By Charles Montgomery Published: Jun. 1, 2022 at 3:28 PM CDT HUNTSVILLE, Ala. (WAFF) - Have you or a family member ever been contacted through social media or by email with someone demanding payment? Maybe you received...
Defaulted Mortgages and Foreclosure Defense
Defaulted Mortgages and Foreclosure Defense Before you use the word “Default” know this: Neil Garfield Upon reflection, I think part of the problem is that most people including judges, don't truly understand the meaning of the word "default." A default does not exist...
Mortgage Foreclosure Fraud Daily News Update ⋅ May 31, 2022
Foreclosure Daily News Update ⋅ May 31, 2022 FRAUD STOPPERS NEWS Foreclosure Pressure Not Easing for Some Minnesotans - Public News Service Public News Service The Federal Reserve Bank of Minneapolis recently reported nearly 10 rural Minnesota counties had...
Foreclosure Daily News Update ⋅ May 30, 2022
Foreclosure Daily News Update ⋅ May 30, 2022 FRAUD STOPPERS NEWS (Published in the Brainerd Dispatch, May - Brainerd Dispatch - Brainerd Dispatch (Published in the Brainerd Dispatch, May - Brainerd Dispatch | News, weather, sports from Brainerd ... NOTICE OF MORTGAGE...
What to do after sending a Qualified Written Request (QWR) Letter or Debt Validation Letter (DVL)
What to do after sending a Qualified Written Request (QWR) Letter or Debt Validation Letter (DVL) OK I Sent a QWR and DVL. Now what? Neil Garfield The first thing you need to know is that there is no obligation to answer the notice if the questions are not...
Daniels v. Select Portfolio Servicing
11th Circuit Ct of Appeals Breaks New Ground — in favor of homeowners! Neil Garfield May 26 Daniels v. Select Portfolio Servicing, Inc., No. 19-10204 (11th Cir. May 24, 2022) The fact pattern sounds like something out of Gulliver's travels. Statements are regularly...
winning a fcra case post foreclosure
Winning a FCRA Case Post Foreclosure Winning an FCRA case on the back end of a foreclosure … on appeal in the 9th Circuit Deadly Clear May 19 Reblogged from Clouded Titles Blog: gross-v-citimortgage-inc-et-al-9th-app-cir-no-20-17160-may-16-2022Download (BREAKING...
How Homeowners Can Win Foreclosure Cases
How Homeowners Can Win Foreclosure Cases Homeowners with Courage and Conviction Generally Win Foreclosure Cases Neil Garfield I often receive links to cases that either corroborate what I have been saying or challenge my conclusions. Many of those links are opinions...
Pig in a Poke a Promissory Note is NOT a debt
A Promissory Note is NOT a debt. It is evidence of the debt and terms of repayment. Neil Garfield I can remember back when Nova Law Center was an old building on what and been a World War II airstrip. My fellow students and I would satisfy our need for speed on those...
Quiet Title Actions
Quiet Title Actions, Multiple Scenarios and Suspected Court Overreach Deadly Clear May 3 Reblogged from Clouded Titles Blog: (BREAKING NEWS, OP-ED) -- The author of this post is a paralegal and trial consultant to attorneys on chain of title issues. The article is...
Post Foreclosure Options
Post Foreclosure Options If the house is sold, is there anything I can do? Neil Garfield At least 40% of the inquiries received by my office ask what they can do after the auction has occurred or even after the REO property has been liquidated. As I have stated...
Deutsche Bank Searched Over Anti-Money Laundering Report
Deutsche Bank Searched Over Anti-Money Laundering Report (Bloomberg) -- Deutsche Bank AG’s offices in Frankfurt are being searched by law enforcement authorities over reports about potential money laundering that were filed by the lender. Police were at the bank’s...
Mortgage Foreclosure Fraud Daily News Update ⋅ May 5, 2022
Homeowners Alert! You Are Corresponding With Machines, Not People. Neil Garfield Most people do not spend their time keeping up with advances in technology. When it comes to their front door they know it has arrived. For about 12 years I have been telling people that...
Why the CFPB Announcement is Very Important
Why the CFPB Announcement is Very Important Neil Garfield when the time comes that a judge enters an order or judgment containing findings of fact, for example, that the records of the designated "servicer" are not business records that are not exempt from the hearsay...
Foreclosure Fraud & Mortgage Fraud Daily News Update ⋅ April 27, 2022
Foreclosure Daily News Update ⋅ April 27, 2022 NEWS Where Foreclosures Could Take Years to Process | Realtor Magazine Realtor Magazine Homes foreclosed on in the first quarter have been in the foreclosure process an average of 917 days—about 2.5 years, according to...
Post Foreclosure Trial Options
Post Foreclosure Trial Options When the homeowners loses in the trial court what are the options? Foreclosure litigation is a very special type of case. Normal rules of limitation and basic requirements of proof have been softened in favor of giving lawyers the...
JURISDICTIONAL CHALLENGES
JURISDICTIONAL CHALLENGES MUST NOT BE AIMED AT THE MERITS OF THE CLAIM Neil Garfield Apr 25 "Jurisdiction" is a term used to define whether or not the court has any authority to hear the case. Filing a bogus claim DOES invoke the jurisdiction of the court as long as...
knowledge of securitization to win foreclosure and quiet title cases
How to use your knowledge of securitization to win foreclosure and quiet title cases Neil Garfield Apr 22 In an effort to show the relevancy of securitization in the collection businesses established with each new transaction with homeowners, I have had some...
How to Win a Foreclosure Case or Quiet Title Lawsuit
How to Win a Foreclosure or Quiet Title Lawsuit Homeowner Beliefs and Fears Drive Losses in Court Neil Garfield There is no "YES". There are many people who get angry with me for ascribing some blame to the homeowners themselves for the toxic economic environment and...
Foreclosure Mortgage Fraud Daily News Update ⋅ April 19, 2022
Mortgage Fraud Daily News Update ⋅ April 19, 2022 NEWS MLO Mentor: HECM fraud and abuse | firsttuesday Journal First Tuesday Journal This article discusses abuse, theft, and fraud schemes related to Home Equity Conversion Mortgages (HECMs). 9 mortgage scams you...
MERS and the problem of false agency
MERS and the problem of false agency Posted on April 19, 2022 by Neil Garfield Since the beginning of this century, The initial transaction with homeowners was the product of multiple layers of paperwork, most of which were neither identified nor accessed by consumers...
Fake Notices from Fraudulent Mortgage Loan Servicers
Fake Notices from Fraudulent Mortgage Loan Servicers Notices To and From Servicer Might Mean Nothing at All by Neil Garfield In homeowner finance, ALL claims start with notices from third parties with whom the homeowner has previously had no communication. My...
Interlocutory Appeals in Foreclosure Defense
Interlocutory Appeals in Foreclosure Defense Don’t wait until the end: Interlocutory appeals succeed where the issues are narrow by Neil Garfield Aggressive litigation means basically that the lawyer or pro se litigant uses every tool in the box to force the...
Mortgage Fraud & Foreclosure Daily News Update ⋅ April 14, 2022
Mortgage Fraud Daily News Update ⋅ April 14, 2022 Robert Morgan surrenders $16.3 million to feds to settle mortgage fraud case - Buffalo News Buffalo News Robert C. Morgan didn't just plead guilty to a felony related to mortgage fraud this week. The developer...
Former Sheriff Incarcerated for Refusing to Shut up about Guardianship Abuses
Former Sheriff Incarcerated for Refusing to Shut up about Guardianship Abuses By Janet Phelan As shock waves, initially engendered by the revelations of abuse in the high-profile conservatorship of pop star Britney Spears, begin to subside, another guardianship case...
Facts About Bad Mortgage Loans
Facts About Bad Mortgage Loans How significant a risk is noncompliance with consumer protection laws? The mortgage industry is struggling to comply with consumer protection laws. A remarkable report published by the FDIC Office of the Inspector General reveals that...
Why the UCC Matters in Foreclosure Cases
Why the UCC Matters in Foreclosure Cases by Neil Garfield The problem as illustrated by many scholarly articles and articles on this blog is that courts are given to treat plaintiffs and claimants as holders in due course without anyone asking them to do so. The first...
Requirements to Qualify as an Expert Witness in Foreclosure Defense Case
You Don’t Need to Call a Forensic Investigator as an Expert: He or she can be called as a fact witness thus avoiding any requirements to qualify an expert. by Neil Garfield I keep getting messages from homeowners who are furious with the corrupt system of the courts...
Mortgage Servicer Fraud Exposed
Mortgage Servicer Fraud Exposed It’s the small stuff that reveals the fraud by Neil Garfield Several contributors to the blog have identified specific information regarding the true owner and operator of physical mail addresses used in connection with correspondence,...
Zombie Second Mortgages
What Are Zombie Second Mortgages? The zombie mortgages that are wreaking havoc today are second mortgages. Many were originated by predatory lenders in the years leading up to the 2007 financial crisis. During that era of frenzied lending, brokers often combined first...
Mortgage Fraud Daily News Update ⋅ March 28, 2022
Mortgage Fraud Daily News Update ⋅ March 28, 2022 Court convicts 50-year-old man over fraud | The Guardian Nigeria News The Guardian Nigeria News Justice Oluwatoyin Taiwo of a Lagos Special Offences Court has convicted a 50-year-old man, Abiodun Adeola Sadiq, for...
Truths about Foreclosure Defense
Truths about Foreclosure Defense Gary Dubin on the Attack in California: Simple Truths About Foreclosure Defense by Neil Garfield Dubin reports that the status of judicial consensus in California is pretty much the way it was before he entered the battle in Hawaii. I...
Avoid mortgage loan modification scams
Avoid mortgage loan modification scams March 26, 2022 Millions of homeowners struggled to make their mortgage payments during the COVID-19 pandemic, and it’s important for all homeowners to know about mortgage loan modification scams and how to avoid them. The...
A Victim’s Story From The Heart – Share Yours!
A Victim's Story From The Heart - Share Yours! Three-time victim of foreclosure, Paris Dube, shares her personal story with all of you. She knows the stories all too well, since as a paralegal, she's prepared hundreds of her FACT Reports for those folks. Paris...
Foreclosure Daily News Update ⋅ March 25, 2022
Foreclosure Daily Update ⋅ March 25, 2022 February Foreclosure Starts Dip Following January Spike - DSNews DS News Black Knight has released its “first look” at the February 2022 mortgage data finding that the national delinquency rate nearly returned to ... ...
Fake Money Fraudulent Mortgages
Fake Money Fraudulent Mortgages Do you have a fraudulent mortgage? Do you want to sue the bank for mortgage fraud, or foreclosure fraud? If so, join FRAUD STOPPERS because we have a proven way to help you save time and money and increase your odds of success getting...
Mortgage Fraud Daily News Update ⋅ March 23, 2022
Mortgage Fraud Daily News Update ⋅ March 23, 2022 CFPB Issues Policy on Contractual 'Gag' Clauses and Fake Review Fraud Consumer Financial Protection Bureau Many families learn about and shop for credit cards, mortgages, and other financial products online,...
Mortgage Servicing Fraud
Mortgage Servicing Fraud About that “servicer” by Neil Garfield If you refer to the company that has been named as the "servicer" for your "loan", as your servicer or your lender, you are already wrong. Regardless of what company is named as "servicer", it is not...
How to Use RESPA Qualified Written Request (QWR) in Foreclosure Defense
How to Use RESPA Qualified Written Request (QWR) in Foreclosure Defense Qualified Written Request (QWR): How to use RESPAby Neil Garfield RESPA is a consumer protection statute that regulates the real estate settlement process, including loan servicing and...
Business Record Exception to Hearsay
Business Record Exception to Hearsay Oregon Case Directly Corroborates My Analysis of Business Record Exception to Hearsay by Neil Garfield The bottom line and the importance of this analysis is that the basis for any claim in foreclosure is the enforcement of...
difference between substantive claims or theories and the procedural opportunities to present them in foreclosure defense cases
Wading through the difference between substantive claims or theories and the procedural opportunities to present them by Neil Garfield A recent exchange of correspondence from a good client of mine (one of the legacy cases I am still directly litigating) produced...
Foreclosure Defense Information “Payment History” is not the loan receivable account
Foreclosure Defense Information “Payment History” is not the loan receivable account by Neil Garfield The payment history is not the loan receivable account by definition and it is never presented as such. Failure to recognize this obscure fact often results in...
foreclosures and securitization
2022: Recap of what we know about foreclosures and securitization by Neil Garfield Here is a line from another lawyer that I spoke with:"The investment banks were not selling securities and they can't say that they were because if they did say that then they would be...
Wilmington Trust Foreclosure Fraud
Wilmington Entities in Foreclosure by Neil Garfield The "Wilmington" name shows up with what appears to be increasing frequency in foreclosures. The bottom line, in my opinion, is that whenever the "Wilmington" name appears in foreclosure cases, it is an attempt to...
Mortgage Fraud Daily News Update ⋅ December 29, 2021
Delaware Federal District Court Challenges the Ghost Nature of REMIC Trusts and BY Implication the Role of Trustees by Neil Garfield This is subject to rehearing, reconsideration and appeal. But in Delaware where the financial industry is coddled to the point of...
131 Federal Judges Broke the Law by Hearing Cases Where They Had a Financial Interest
131 Federal Judges Broke the Law by Hearing Cases Where They Had a Financial Interest Join the demand for compensation from judges who have broken the law by hearing cases in which they have a financial interest and who abuse their power NOTES: I would be grateful if...
Foreclosure & Mortgage Fraud News Update ⋅ December 28, 2021
Destroying, Hiding or Fabricating Evidence: Doctrines Regarding Spoliation of Evidence by Neil Garfield The latest issue of the Florida Bar journal contains several interesting articles. One of them is entitled "Spoliation of Evidence and Non-party witnesses." The...
Evidence Against Bank of America and their Lawyers
Former Florida Supreme Court Justices issue Ominous Warnings about our Judiciary & The Evidence Against Bank of America and their Lawyers Please join us. We need all our prayer warriors! I have two hearings Wednesday and Thursday of this week before Judge Migna...
How Homeowners Can Win in Court
“I challenged that and the judge completely ignored the report and my challenge”: How homeowners without knowledge of legal requirements for practice in court lose cases they could have won. by Neil Garfield People often tell me that they challenged something in court...
Lack of Standing to Foreclose
Why You Need to Perform Investigation of Real Facts in the Real World by Neil Garfield I state with great confidence that among those homeowners who perform and achieve a slam dunk win over the foreclosure lawyers, the great majority enjoy that victory because they...
Foreclosure Daily News Update ⋅ December 16, 2021
If you want to stop a foreclosure sale, sue for mortgage fraud, quiet title, or wrongful foreclosure, file bankruptcy to stop a foreclosure sale using a little known bankruptcy secret to become mortgage free and walk away with a free house, you need several things to...
Foreclosure Daily News Update ⋅ December 14, 2021
Foreclosure Daily News Update ⋅ December 14, 2021 Not all Forced-Sale Mortgage Foreclosures are Exempt from Avoidance as Fraudulent ... - JD Supra JD Supra The United States Supreme Court held in BFP v. Resolution Trust, that properties sold at...
How To Respond in a Discovery Dispute with Wells Fargo, Fannie Mae and Wachovia as the Originator
You Can Use This As a Template for How I Would Respond in a Discovery Dispute — Especially with Wells Fargo, Fannie Mae and Wachovia as the Originator by Neil Garfield In a dispute between the attorney for the homeowner and the attorney for the alleged "lender",...
Foreclosure Daily News Update ⋅ December 13, 2021
Foreclosure Daily News Update ⋅ December 13, 2021 Worried your house might end up in foreclosure? $197 million in relief funds can help - Yahoo News Yahoo News The money can help homeowners catch up on mortgage delinquencies and prevent defaults and...
The Con
Greetings to you all: For some of you, it is has been a long time since we have spoken. Life does get busy and my client base is quite large so keeping in touch with everyone proves to be difficult. But I come to you today because I have promised each of you...
Mortgage Fraud & Foreclosure Fraud Daily News Update ⋅ December 10, 2021
Mortgage Fraud Daily News Update ⋅ December 10, 2021 Former Phoenix police officer arrested for PPP loan fraud - TheGrio TheGrio Former officer Toni Richardson is facing federal fraud charges after allegedly falsifying an application for the Paycheck...
How Homeowners Win
Homeowners Win Only When They Litigate Properly — Not Because They Are Right by Neil Garfield There is a difference between securitization, on the one hand, and securitization of debt, on the other. They are not the same thing. The entire scheme that is currently...
COVID OSHA REGULATIONS RULES AND MANDATE MADNESS
COVID OSHA REGULATIONS RULES AND MANDATE MADNESS Please donate to support this work and spread the word at https://standupmichigan.com/ COVID_Article_Final OSHA, REGULATIONS, RULES, AND MANDATE MADNESS By Kristen Meghan, Sr. Industrial Hygienist Tammy...
Stop the Foreclosure Crisis: To All Local, State and Federal Government Officials
Stop the Foreclosure Crisis To All Local, State and Federal Government Officials: We, the people of the United States of America, are appalled by the ongoing foreclosure crisis and demand a new foreclosure and eviction moratorium until these issues are...
Free Debt Validation Letters To Stop Foreclosure
It's a business. Anyone can make a claim. Anyone can say that they are representing someone who has a claim. If you don't contest it, the claim might be presumed as valid even though it has no basis in fact. The investment banks don't want you to read articles like...
Magna Bank, N.A. as Trustee is FRAUD
Magna Bank, N.A. as Trustee for registered holders of certificates issued under the name of the Macandcheese Acquisition Trust, Inc. an inactive corporation, for a nonexistent trust, series 2022-XL-1 by Neil Garfield So a friend of mine left her phone in my car. Here...
Foreclosure Daily News Update ⋅ December 2, 2021
How Could This Not Be a Loan? by Neil Garfield I think the one idea that sticks in the throat of nearly everyone is the idea that no money was loaned. That idea seems impossible and to many skeptics, it sounds like a snake-oil salesman trying to peddle what people...
Mortgage Fraud Daily News Update ⋅ November 29, 2021
Hi, everyone! I hope you are having a great start to your holiday season! American Property Owners Network ( APON) IS CALLING ON ALL THOSE WHO CARE to organize nationally against the fraudclosure machine! PLEASE SPREAD THE WORD! We need to meet to discuss networking,...
FRAUD STOPPERS Mortgage Foreclosure Fraud Daily News Update ⋅ November 26, 2021
HOW THEY DID IT: CONVENTIONAL LOAN TRANSACTION EXPLAINED by Neil Garfield The following link leads to an oversimplified chart of a conventional loan transaction, leaving out the actual people at each step and leaving out several of the computer servers:CHART:...
Revised UCC Article 9, IRC 1031, and Liens on Real Property
Revised UCC Article 9, IRC 1031 Like Kind Exchange Transactions, and Liens on Real Property. Revised UCC Article 9, IRC 1031 Like Kind Exchange Transactions, and Liens on Real Property.Did the lien’s beneficial interest maintain perfection, and was it therefore...
Reverse Mortgages
If you have a reverse mortgage foreclosure to stop FRAUD STOPPERS can help you uncover if you have legal standing to sue for financial compensation, clear and free title to your home or better both! Join FRAUD STOPPERS PMA today and let us help you get the legal...
Black Knight
Missouri Attorney General Files Suit Against Springfield Public Schools for Sunshine Law Violations After Requesting Documents on Critical Race Theory in Schools November 16, 2021Contact: Constituent ServicesOffice: 573-751-3321 SPRINGFIELD, Mo. – Today, Missouri...
Stop Foreclosure Mortgage Fraud Daily Update ⋅ November 15, 2021
If you want to Stop Foreclosure and stop Mortgage Fraud you must get legal education, legal support, and legal documents. FRAUD STOPPERS has everything you need to Stop Foreclosure and Mortgage Fraud including: legal education, legal documents, court ready evidence,...
Biden and Court Clerks Trespassing on Private Businesses
Dear Commissioners for the Biden Administration and Court Clerks please stop trespassing upon our private business. Attached are just one example of the documentation of financial warfare for which we have presented to the treasury and the military provided for ex FBI...
Equitable Defenses Explained
Unilateral Mistake: Equitable Defenses Explained — How homeowners can get the upper hand and defend against enforcement of contract that is different from the one they knew or intended by Neil Garfield Homeowners are missing out on a huge opportunity for economic gain...
What is the best way to prevent title scams
What is the best way to prevent title scams? Q: Recently, the focus has been on title theft and home loss. What is the best way to check the status of a title and prevent the property from being stolen? — James A: Real estate ownership fraud is serious, but...
Mortgage Fraud & Foreclosure Daily News Update ⋅ November 6, 2021
Are you behind on mortgage payments? Are you in or facing a foreclosure and at risk of losing your home? There are two main options to save your finances: a Chapter 13 bankruptcy or a Chapter 7 bankruptcy, and our experienced Nebraska bankruptcy attorneys are here to...
131 federal judges oversaw cases involving companies in which they or their families owned stock
131 federal judges oversaw cases involving companies in which they or their families owned stock BY DEBRA CASSENS WEISS SEPTEMBER 29, 2021, 10:37 AM CDT A Wall Street Journal investigation has found that 131 federal judges oversaw 685 court cases in the last decade...
Foreclosure & Mortgage Fraud Daily News Update ⋅ November 5, 2021
Want to allege fraud? Not so fast by Neil Garfield Both homeowners and lawyers like to throw around the term "fraud upon the court." But it actually ends up diminishing the credibility of both. There are several reasons why you should not allege fraud unless you have...
This Sunday, Nov. 7–Organizing meeting; upcoming 5 facebook events; and affidavit-writing campaign
To our government officials Hi, fraudclosure heroes! Please forward the info below (and link to workshop Sunday ) to all who you consider leaders in helping victims of fraudulent foreclosure. Our board members, member-leadership, advisory board members and other...
Foreclosure & Mortgage Fraud Daily News Update ⋅ November 2, 2021
Those letters from the lawyer for the alleged “servicer” named PHH by Neil Garfield It is true that someone will execute a release of the lien. What is not true is that they have any authority to do so --- nor is it true that PHH has any right to receive any money,...
PennyMac Mortgage Fraud
FRAUD STOPPERS is the only organization, to our knowledge, that can provide you (and your attorney) with loan level data and mortgage securitization information for all Government-Sponsored Enterprise Mortgages, including Fannie Mae, Freddie Mac, Ginnie Mae,...
Mortgage Fraud & Foreclosure Daily News Update ⋅ October 29, 2021
Mortgage Fraud Daily News Update ⋅ October 29, 2021 Report reveals significant increase in mortgage fraud risk Mortgage Professional America At the end of Q2 2021, about one in 120 mortgage applications (approximately 0.83% of all applications)...
FRAUD STOPPERS Foreclosure & Mortgage Fraud Daily News Update ⋅ October 28, 2021
Foreclosure Daily News update ⋅ October 28, 2021 Home foreclosures are at record lows - Axios Axios Two months after the federal foreclosure moratorium ended, foreclosure activity in the U.S. is at a record low. Facing foreclosure?...
Mortgage Fraud & Foreclosure Daily News October 26, 2021
Foreclosure Daily update ⋅ October 26, 2021 NEWS Judge: Bridgeport church under foreclosure must be vacated - Connecticut Post Connecticut Post Moales had requested a stay of Meyer's previous foreclosure order while he appealed it to the U.S. Second Circuit Court of...
A Senior’s Guide to Making the Most of COVID-Related Life Changes
A Senior's Guide to Making the Most of COVID-Related Life Changes By Bob Shannon The COVID-19 pandemic has changed everyday life. Senior citizens have been especially impacted due to the fact that they are a high-risk group, not to mention the constant threat of...
Foreclosure Mortgage Fraud Daily update ⋅ October 19, 2021
Foreclosure Daily update ⋅ October 19, 2021 NEWS Democrats Gopal, Houghtaling, and Downey Highlight Record of Protecting Tenants, Homeowners ... Insider NJ ... legislation that enacted a moratorium on foreclosures and evictions. ... end of 2021...