WHEN JUDGES LISTEN … AND WHEN THEY DON’T!

(OP-ED) — The author of this post begs your consideration of the following foreclosure-related news item from the SE Texas Record (a journal published to highlight cases where the banks win and the homeowners lose, among other things) … for educational purposes only …

Notice the above Defendants?  

It should be well-decided among the legal community that suing MERS is fruitless, but people still listen to these half-baled arguments that MERS knew or should have known that its so-called “members” (which really are user-subscribers to the MERS® System) freely use MERS’s name (an acronym for Mortgage Electronic Registration Systems, Inc.) to assign notes and mortgages to anyone the servicers’ employees are told to assign them to, regardless of whether MERS really has any authority to do so.  Yet some attorneys are still smoking “legal crack” and are still naming MERS as a Defendant.

When will the legal community wake up to this grievous error?   MERS is a database run by Wall Street’s Intercontinental Exchange Inc. and NOT an entity with money or answers to anything.  An electronic database (nor its officers, of a shell corporation) are willing and able to give any plaintiff any discovery.  The real issue here is what the chain of title would have revealed if carefully analyzed.

Read the appellate ruling from the 1st Division of the Texas Court of Appeals if you like, for educational purposes only about how to get cases removed to federal court, where the federal judges (who are appointed for life) bend you over, screw you with no lube and hand you back to the state court after you beg for mercy.

Hernandez v MERS et al, 1st App Ct Tex No 01-18-00468-CV (Oct 22, 2019)

While not attempting to be so graphic, can you imagine the money these folks spent trying to stay in their home, to no avail?

Notice two of the Defendants … LSF8 Master Participation Trust and Caliber Home Loans, Inc.?  These two are married in a third-world debt collection scheme to screw homeowners.  LSF8 is no more of a trust than the LSF9 that this blog posted recently lost in a court battle in West Palm Beach, Florida at roughly the same time and space in the foreclosure world.  This is why I call it the “LSF8 (or 9) Masterbatory Participation Trust” because these jerk-offs do nothing more than spin third-party debt sell-offs into a package they claim is a “trust” but is nothing more than junk, defaulted mortgage loan pools and then call them “equitable instruments” and using their phony documents (where they incorporate MERS into the equation) to steal people’s homes.  U.S. Bank didn’t suffer any harm here because U.S. Bank as Trustee didn’t really pull the trigger.  Caliber Home Loans did.  I’ll bet if you looked at these folks’ assignments, Caliber Home Loan employees were using MERS to convey these toxic assets into these debt pools for the purposes of foreclosure … and they do it within the time frame that homeowners could challenge them anywhere.  In Texas, the state’s Civil Practice and Remedies Code (§ 16.033) allows you to challenge a recording that is less than two years old … and I can tell you … Caliber is stupid enough to file stuff within that challenge timeframe because it wants to steal your home, by any means possible. They’re greedy, remember?

MERS, Robosigners and Perjury

Sadly, these attorneys don’t realize that anyone signing as an “Officer” of MERS has to have a $5,000,000 fidelity bond and an errors and omissions policy covering their signing activities.  That requirement is mandated under MERS Rules of Membership for all robosigners.   So why aren’t these robosigners being sued in a Cancellation and Expungement action and made to produce these documents to prove they’re a legitimate, bona fide, MERS “Certifying Officer”??? (which is a joke in of itself) because these people have no idea what they’re signing at any given moment.

In my world, we don’t sue assignees and we don’t sue MERS.  We sue the robosigner and the notary (if the notary doesn’t have a bond) on the assignments, because the devil is in the details within the assignments, NOT THE NOTES!  When you start arguing NOTES, you lose because judges won’t listen.  Judges don’t care about assignments in foreclosure courts either.  If the party bringing the foreclosure has the note (somewhere in their possession), that’s good enough for the judge. How they got the note doesn’t matter to the judge either.  The judge just wants the case off their docket and YOU are nothing more than a statistic to them.  They can go home and sleep at night, knowing they put you out on the street, because they were simply doing their jobs.

In any scenario (and I don’t care what foreclosure defense attorneys have to say about it), MERS should never be a defendant. The parties who sign the assignment have a different story to tell (other than the stories MERS vomits in court).  These people are minimum wage employees (generally) that randomly sign hundreds of documents a day into these junk debt pools, because they can’t be foreclosed on and sold any other way.  The chains of title are so screwed up that it would take an Einstein to figure out how to quiet them in a quiet title action.  Sadly, they sell these junk debts to investors who buy them (like Fannie and Freddie’s crap) who attempt to peddle them or turn them into the nation’s rental pool.

Most people don’t recognize that if you hold the robosigner’s feet to the fire, you might find out that:

  1. The law firm doing the foreclosure had something to do with the manufacture of the assignment (subornation of perjury);
  2. The person signing the document as an officer of MERS didn’t have the required fidelity bond and E&O policy (lack of authority, perjury);
  3. The notary who acknowledged the document was part of the bigger picture in the scheme (notary fraud, false swearing); and
  4. The attorney bringing the case to court knew or should have known about the chicanery behind the scenes (especially if the law firm had the document returned to them after the dastardly deed was done).

All 50 states have laws against perjury on the land records … and they are all felonies.  Some states have stronger laws that recommend that these false documents be turned over to prosecutors to have these robosigners “dealt with”.  Yeah, right.  This is America.  No politician (dressed in district attorney or state’s attorney’s clothing) will risk their asses prosecuting someone connected to the scheme of things because they might find out the real truth … this stuff occurs on a grand scale all across America!

My take on this is doing a cancellation and expungement action on the phony document BEFORE the case gets to foreclosure. Ah, but wait!  We all sit idly by and don’t bother checking the land records for clues, do we?  Part of America’s complacency, I guess.

This is the sad state of America.  This is why you should NOT deal with banks and other financial institutions who sell their paper into the MERS® System.  Portfolio loans, owner finance on a clear title or nothing. Your choices are few.  Make good choices.

Coming to the Clouded Titles website in February … ONLINE CHAIN OF TITLE ASSESSMENT CLASSES … stay tuned!

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FANNIE, FREDDIE AND MERS: RECIPE FOR COLLUSION TO SCREW AMERICA!

(OP-ED) — The author of this post is a consultant to trial attorneys and author of Clouded Titles – Mayday Edition, which exposed the corruption in banking in tandem with darker forces within the U.S. Government to fuel the largest housing grab America has ever seen.  The opinions expressed here are his own and do not constitute legal advice or seek to draw and conclusions of law. 

There has been a recent unveiling of sorts that discusses the conflict between the two GSE’s (government-sponsored entities) and MERS, which clearly shows who in fact spearheaded the push to turn the secondary residential mortgage market into a lying, conniving, deceiving bunch of thieves that have promulgated the use of electronic promissory notes (“eNotes”), which are uploaded into an electronic database called Mortgage Electronic Registration Systems, Inc. (hereinafter “MERS”), which, at its conception, was owned by MERSCORP, Inc.   Both of these entities were Delaware corporations based in Reston, Virginia.  But no longer.

After being merged into MERSCORP Holdings, Inc. in February of 2012, nearly seven years into the eRegistry (the database itself, which operates electronically to store information on the mortgage loans; e.g. the note and the security instrument), MERSCORP Holdings, Inc. was acquired by Intercontinental Exchange, Inc. (hereinafter “ICE”), which also owns the New York Stock Exchange.  All of MERSCORP’s Reston, Virginia operations were moved to ICE’s data centers in Mahwah, New Jersey, where they exist today.

Collectively, MERS members pay $7.95 every time they enter a transfer of the eNote and its accompanying paperwork in the MERS® System.  Herein lies the rub.  The banking industry, in at least one letter to a judge (in 2009, in Florida), has admitted that once the paper “notes” are uploaded into the MERS® System and become “eNotes”, they don’t need the paper notes anymore and thus, they brag about shredding them.  On another note, there are “archives” all over the country that the megabanks claim hold the originals of the notes and mortgages, available within a reasonable time frame (to be retrieved) as a mortgage foreclosure case develops and the documents are called for.  But is that really the case?  What if these documents were actually “downloaded” from the MERS® System, printed out, and claimed to be (by the lender’s/servicer’s) the originals?

eNotes versus the Uniform Commercial Code (the “U.C.C.”), UETA and e-Sign

This recent article, authored by lawyers within the law firm of Dorsey & Whitney LLP, unveiled an eAlert which seeks to address potential issues which I thought might be useful for you and your attorney to know, or should they?  Due to the nature of the banks and their attorneys to play games with us and misdirect us at every turn with their propaganda … this article, whose link can be found here …

Potential Issues for Warehouse Providers with Electronic Mortgage Notes | Dorsey & Whitney LLP – JDSupra

… could be one major misdirect, according to our UCC guru Bob Janes, author of SHELLGAME MERS, Contrived Confusion, which can be found on the Clouded Titles website!

Here’s what Bob has to say about this article:

This paper shows an ignorance of negotiable instrument law and its interaction with Art 9 of the UCC. It appears to be a continuation of the effort to give appearance (operative word) of merit to the MERS system and the mortgage finance industries desire to profit by ignoring existing law and creating an sham appearance that might be able to help take people’s homes in future foreclosures without adherence to applicable law.

Secured interests under Art 9 are trumped (or is that a dirty word now?) by Art 3.  Only the person entitled to enforce the negotiable instrument has a right in the collateral (mtg or dot).  Whether the name of that person is in the chain of title for the mtg/dot is not important. 200 yr old common law, now codification by 9-203(g) are in unison: the collateral pledged to secure payment of the debt under a negotiable instrument always belongs the person entitled to enforce the debt pursuant to Art 3 of the UCC.  This paper does not address nor even encourage that the new e system design compile factual information necessary to determinations of enforcement right under the negotiable instrument law of Art 3.  The paper’s discussion of ‘perfection’ and ‘controller’ are irrelevant to determination of enforcement right under Art 3.  The paper shows no understanding of the importance of ‘possession’ of the note under negotiable law nor how and when possession is connected to the right to enforce the note.

The paper’s discussion of ‘holder in due course’ (“HDC”) also reflects the author’s ignorance or desire to misstate law.  The many elements of status as holder in due course are not addressed, nor is the system of maintaining eNote or eVault  requisite information/proof of the legal elements necessary to the right to enforce the note.   HDC is a subset of holders under the UCC.  Any person entitled to enforce the note pursuant to 3-301 (holder, nonholder in possession with rights of a holder, a person not in possession but with overwhelming evidence of having been the holder or nonholder entitled to enforce when the note was lost, stolen or destroyed) has priority rights in the mtg/dot regardless paperwork ‘perfection’ under Art 9.

The paper does not address the subservient role of Art 9 to negotiable instrument law and enforcement rights of Art 3.  This paper neither discusses the article 3 requirements for a person to be a holder in due course, nor does it demonstrate that information gathered and retained by the e-system will be useful in determining who has a right to enforce the note, and thereby, to enforce the mtg/dot.

Whether or not the enote/evault system becomes a reality, the homeowner defense against negligent or fraudulent foreclosure remains unchanged as long as the UCC remains as currently in the statutes of every state.  Merit requires discussion of the Art 3 detail necessary to establish enforcement rights in the note, and this paper is without demonstrated knowledge or effort to address the Art 3 requirements, policies, etc.

What do I think of this paper?  Not much.

The Continued Screw Job! 

So you see, Fannie and Freddie continue to peddle their toxic paper into our economy, further screwing with chains of title all across the country with every property their servicers stole on the back end of the foreclosure, which ended up getting transferred to Fannie Mae and Freddie Mac. You only see these two hoodlums on the back end of foreclosures, as they certainly wouldn’t rear their ugly head in the middle of one for fear of giving the government a black eye … and we wouldn’t want that now, would we?

It’s bad enough we have politicians polarizing America and screwing up everything they touch!  They don’t have the decency to quit interfering with the housing market by continuing to allow Fannie and Freddie to exist.

What’s worse, judges don’t really care about the UCC and are quick to misapply it.  Those who aren’t smart about what the UCC says (and turn their lamebrain lawyers loose in the courts repeating this bank’s diatribe) are sure to lose.  Yet we keep going to banks that don’t portfolio their own loans and keep doing business with them.  That’s on us!

 

 

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LSF9 GETS A BEAT DOWN IN PALM BEACH COUNTY COURT!

(BREAKING NEWS – OP-ED)The author of this post posits the following information for educational purposes only and the opinions expressed herein are that of his own and should not be construed as legal advice.

Hats off to Patrick Guinta, a foreclosure defense attorney in Pompano Beach, Florida, who handled a solid case for a personal representative of a decedent in defeating a sham trust in Circuit Court in Palm Beach County, Florida.

If you look at the court docket for this case, there were 5 pages on the Palm Beach County Clerk of Court’s website to sift through, wherein I obtained (albeit non-certified copies) legible documents, all reflecting back to the chain of title and a judge that was willing to listen to reason.  Many judges in Florida, especially the senior judges, think that if they rule against the REMICs (Real Estate Mortgage Investment Conduits) in foreclosure cases, that their pensions, of which many are vested in these securitized portfolios, will be adversely affected.  Part of that reasoning is flawed because:

  1. The REMICs never got the note and mortgage in the first place;
  2. If the REMIC did get the note and mortgage, it’s because the Master Servicer made it happen without the REMIC’s actual knowledge;
  3. Caliber Home Loans, who claims to be the servicer, wouldn’t know the truth if it bit ’em in the ass;
  4. Fortunately, Mr. Guinta managed to get an affidavit from private investigator Bill Paatalo (see here): Affidavit of Bill Paatalo
  5. Fortunately, the judge in this case decided to scrutinize the documents more fully (which many judges in Florida could care less) and issued a Final Judgment for the defendant (see here): Final Judgment for Defendant
  6. According to Bill Paatalo, the witness for Caliber Home Loans, the alleged servicer, “fought us for over a year on our motion to compel the trust agreement and to un-redact their version of the MLPSA. At trial, they inadvertently (I believe) allowed the un-redacted MLPSA (which they were ordered to produce under strict confidentiality) to be admitted into the record. They blew their confidentiality. The Caliber witness stormed out knowing he’ll never testify again. FYI – Serge Alexis. Alexis didn’t know anything about the MLPSA they themselves proffered, but oh boy did I go off on it to the judge and she was listening to every word. Their attorney from Albertelli was a deer in the friggin headlights!”

You see, anything Caliber Home Loans “touches” can’t be trusted.  Like MTGLQ Investors, LP, neither alleged loan claimant can actually prove how they got the note and they often use third-party document mills to do their dirty work (like Nationwide Title Clearing or Meridian Asset Services, both out of Pinellas County, Florida) to create assignments of mortgages and deeds of trust that are full of false misrepresentations.  Any attacks outside of the actual trial itself are met with Motions to Dismiss.  These people just want your house and they don’t care HOW they get it!

They’ll lie to a judge to get it!

This also goes to show that if you get a judge who will actually listen to testimony and stop being so anti-homeowner (e.g., “Well, if the bank shows up, they must own the note, so therefore, they’re entitled to foreclose!”).  This kind of reasoning is flawed because there is no basis in fact. It’s purely the judge’s own emotionally-biased opinion.  Like Al West, who will be lecturing on securitization and the games the bank’s play in the upcoming “Beyond Foreclosure” workshop in Orlando, Florida (along with this author and others), he always hears this same diatribe from judges in California: “Well, Mr. West, your arguments are sound, but we just cannot hurt the banks.”

If I had a picture of Al’s “size 9 asshole” (where many a judge has put his foot into, figuratively) I would show it to you as proof!

And what happens when your attorney doesn’t do their job (as Mr. Guinta has done here, successfully)?  What recourse do you have?

We’re going to discuss that at the upcoming workshop as well.  It’s called legal malpractice.  It happens a lot, especially when you hook up with lawyers that just see you as a monthly annuity and nothing more.  People retain these attorneys without ever vetting their work. At least I bothered to post the Final Judgment in this blog, so you can plainly see that some attorneys actually do “do their job” and do it well.

One of the folks who I worked with (on their case) for a number of years just got their attorney suspended for a year (with other sanctions). They will explain how they did it at the workshop.  Their attorney took $6,000 from them, agreed to do 2 depositions (of a robosigner and a notary) involving a bogus assignment of deed of trust (and note) and then pocketed the money and failed to do the depositions.  Not only that, the attorney failed to communicate with his clients until AFTER he made his court appearances … which cost them a loss in federal court, based on phony documents.  In this case, the judge obviously took the chain of title seriously, more than most judges would, especially in most Florida foreclosure courts.

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BEAL BANK GETS ITS ASS HANDED TO IT BY MAINE SUPREME COURT!

(BREAKING NEWS – OP-ED) — … and this is why we’ve been telling you to look more closely at assignments of mortgage and deeds of trust.  It appears the Maine Supremes decided Beal Bank wasn’t entitled to an Assignment of Mortgage by a defunct lender, New Century Mortgage Corporation.  Seriously?  Who’s going to “make up the assignment out of thin air” now, Beal Bank?   Don’t be surprised if Beal Bank tries to get the loan servicer to do its dirty work for it!

See the case here: Beal Bank USA v New Century Mortgage Corporation, 2019 ME 150 (Oct 1, 2019)

See page 3 where it appears the attorneys for Beal Bank lied to the courts, telling them that “MERS” purportedly assigned the subject mortgage to LNV Corporation.

MERS didn’t assign “shit” folks! 

In fact, it highly likely that:

  1. MERS and its parent MERSCORP, Inc. had absolutely no idea that its name was being used in creating the assignment;
  2. The mortgage loan servicers more than likely had a hand it drafting the paperwork for the land records;
  3. The Greenleaf case in Maine set precedent in the district court’s decision against Beal Bank; and
  4. The equitable trust doctrine doesn’t apply here, jut because Beal says so!

Don’t be surprised to find MERS-assigned mortgages in the land records when foreclosure is intended!

 

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IN NEVADA, TIMING IS EVERYTHING … ESPECIALLY IN QUIET TITLE ACTIONS!

(BREAKING NEWS – OP-ED) — The author of this post offers this information for your educational value and not as legal advice; however, the court in this instance, the Supreme Court of Nevada, clearly screwed U.S. Bank, N.A. in favor of SFR Investments Pool 1 … reversing the summary judgment against SFR and ruling in SFR’s favor as to quiet title!   See the case below:

SFR Investments Pool 1 LLC v US Bank NA, 135 Nev 45 (Sep 26, 2019)

Key Takeaways:

  1. The early bird gets the worm … yet sometimes gets to fight over who gets to eat it.
  2. The appellate process worked all the way to the Supreme Court of Nevada, who saw reason to reverse it.
  3. The decision was per curiam.
  4. Retroactive annulments of bankruptcy stays are key to jumping in with both feet; hence, timing is everything.
  5. SFR used Nevada statutes to prove its case (and its right to sell the property at an HOA sale) was compliant with the statute.

 

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