NY Times: Student Debt Getting Wiped Out by Fraudulent Claims of Securitization
Posted by Neil Garfield | July 18, 2017
So here is an example of why you need to send a DVL (Debt Validation Letter).
It turns out that mainstream media and the court system are much more willing to get into bank fraud as to students than they were when it came to homeowners. The facts are the same.
“Somewhere along the line” the debt was severed from any entity answering to the description of a creditor. Thus the “servicer” for the “trust” (debt collectors, because they are not the owners of the debt) derives its powers, authority and obligations from an entity that does NOT own the loan.
Dozens of lawsuits to collect student loans are being dismissed — essentially wiping out the debt. The reason, just like homeowner loans, is that the chain of title on the loans is broken, inconsistent and jsut plain wrong, resulting in lawsuits being filed against students for nonexistent loans — i.e., where the student didn’t borrow money. Like homeowners, it is a numbers game. Most students don’t know how to defend themselves and so the false claims are nonetheless entered as default judgments against students who had no debt owed to anyone, or at least not the party that sued.
Like homeowners, it is a numbers game. Most students don’t know how to defend themselves and so the false claims are nonetheless entered as default judgments against students who had no debt owed to anyone, or at least not the party that sued the student.
The only correction I would make is that at the top of their diagram they assume the loan was made by a lender in an aneforceable loan contract. This is really a grey area. If the loan was prefunded by investors who were buying into trusts then the “originators” should not have been on the promissory notes. If you accept the premise that no consideration passed from the “originator” to the student or homeowner then it must be conlusively presumed that no enforceable loan contract was created because the investors were left out of it.
The only “defense” offered by the persons representing the “trusts” is that “As news of the servicing issues and the trusts’ inability to produce the documents needed to foreclose on loans spreads, the likelihood of more defaults rises.” This is a blatant attempt to direct attention against the students and and toward the same problem we have with homeowner loans: as the California Supreme Court (Yvanova) stated unequivocably, the fact that a debt is owed does not mean it is owed to ANYONE who claims rights to collect it.
Based upon that “defense” the trusts and banks are asserting an untenable position. They are trying to get everyone on board with the idea that even if they don’t own the debt, ev en if they have no right to enforce they should still win becuase the students debts will be wiped out and that would be a terrible thing. Yes it would be a bad thing for investors — but that happened as soon as they invested into a three card Monty scheme that intentionally lost and obscured the paperwork so that investors money could be stolen, diverted or otherwise end up in the pocket of debt collectors.
Here are some notable quotes from the New York Times article by Stacey Cowley and Jessica Silver-Greenberg.
“It’s fraud to try to collect on loans that you don’t own,” Mr. Uderitz said. “We want no part of that. If it’s a loan we’re owed fairly, we want to collect. We need answers on this.”
Judges have already dismissed dozens of lawsuits against former students, essentially wiping out their debt, because documents proving who owns the loans are missing. A review of court records by The New York Times shows that many other collection cases are deeply flawed, with incomplete ownership records and mass-produced documentation.
“It’s a numbers game,” said Richard D. Gaudreau, a lawyer in New Hampshire who has defended against several National Collegiate lawsuits. “My experience is they try to bully you at first, and then if you’re not susceptible to that, they back off, because they don’t really want to litigate these cases.”
as the debt passed through many hands before landing in National Collegiate’s trusts, critical paperwork documenting the loans’ ownership disappeared, according to documents that have surfaced in a little-noticed legal battle involving the trusts in state and federal courts in Delaware and Pennsylvania.
National Collegiate’s legal problems have hinged on its inability to prove it owns the student loans, not on any falsification of documents.
Over and over, she said, the company drops lawsuits — often on the eve of a trial or deposition — when borrowers contest them. “I question whether they actually possess the documents necessary to show that they own loans.”
If you have a student loan and you want to get a student loan securitization audit see the products below.
For information on foreclosure defense call us at 800-459-1215. We offer litigation support, admissible evidence, expert witness testimony, education, training, and support in all 50 states to attorneys and pro se homeowners.
If you or anyone you know is facing foreclosure, or has already lost a property to foreclosure, and want to sue for mortgage fraud, foreclosure fraud, wrongful foreclosure, or quiet title to your home FRAUD STOPPERS PMA can help you save time and money and increase your odds of success getting the legal remedy that you deserve. If you have received a Notice of Default (NOD) or a Foreclosure Notice (Foreclosure Complaint) and you want to know how to respond to the Notice of Default (NOD) or a Foreclosure Notice (Foreclosure Complaint) join FRAUD STOPPERS PMA today because FRAUD STOPPERS has a proven system to help you fight to save your home from foreclosure and sue for mortgage fraud. FRAUD STOPPERS turnkey Quiet Title Lawsuit package or Wrongful Foreclosure Lawsuit package includes a court ready complaint (petition for damages), Bloomberg Securitization Audit, Expert Witness Affidavit, Application for Temporary Restraining Order (to stop a foreclosure sale or stop an eviction), Lis Pendens (to cloud the marketability of the title to the real property), and Pro Se legal education material that can show you how to win a Quiet Title Lawsuit or win a Wrongful Foreclosure Lawsuit. This entire court ready Quiet Title Lawsuit Package or Wrongful Foreclosure Lawsuit Package can help you save money in legal fees and help you increase your odds of success. Join FRAUD STOPPERS PMA today and get mortgage fraud analysis and the facts and evidence you need to get the legal remedy you deserve at www.fraudstopper.org/pma
FRAUD STOPPERS PMA
Feel free to connect with us . . .
Address: Birch Tree MO 65438
DISCLOSURE: NOTICE OF Copyright © 2019 FRAUD STOPPERS, FRAUD STOPPERS PMA. Disclaimer: Any information or answers are provided for informational purposes only, does not constitute legal advice, and does not create PMA-Member relationship. THIS SITE IS NOT INTENDED TO BE MISCONSTRUED AS LEGAL ADVICE. Legal Information is NOT Legal Advice: This site provides “information” that is only designed to help users safely cope with their own general legal needs. Legal information is NOT the same as legal advice — the application of law to an individual’s specific circumstances. FRAUD STOPPERS is a National Private Members Association (PMA). PLEASE TAKE NOTICE OF THE FOLLOWING MARS Disclosure[s] 12 C.F.R. 1015.: (1) FRAUD STOPPERS PMA is NOT Affiliated with any Government Agency or Any Bank Lender; (2) Even if YOU Accept any of FRAUD STOPPERS PMA Products or Services Your Lender May Choose to NOT Change Your Loan. FRAUD STOPPERS products and services are only available to Active Members of the FRAUD STOPPERS PRIVATE MEMBERS ASSOCIATION. To join FRAUD STOPPERS PMA click here: https://www.fraudstoppers.org/members-only/