FORECLOSURE DEFENSE WORKSHOP IN LAS VEGAS: THE C&E ON STEROIDS!

(BREAKING NEWS) — Due to the nature of the current situation involving the millions of false and misrepresentative assignments littering all of the land records in America, DK Consultants LLC has ramped up its educational attack on the system of things versus those millions of suspect assignments and other documents!  

Clouded Titles author Dave Krieger and California quiet title attorney Al West have teamed up once again to bring you a workshop so specific in nature to the real culprits in the foreclosure arena, we couldn’t keep this quiet any longer!  We wrote a book about it … it’s THE C&E ON STEROIDS! A Layman’s Guide to Cancellation & Expungement Actions!

We’ve put together a tw0-day workshop that gets into the nuts and bolts of the documents that should send mortgage loan servicers and their employees running for cover!

The Cancellation & Expungement (C & E) action is not widely understood, yet with the right ammo, foreclosure defense attorneys can “up their odds” of winning or settling their cases in knowing the information we’ve collected over time can be massively useful to their game plan … so … after much debate we had to share it with everyone!  There is a BEST TIME, an OKAY TIME and a WORST POSSIBLE TIME to do a C&E; however, the ammo we have makes all three potential outcomes for success achievable!

THERE’S A REASON … 

You’ve heard that there have been multiple actions against the MERS® System and Mortgage Electronic Registration Systems, Inc.’s beneficial and nominee status.  If you want to defeat that in your suspect assignment you need the C & E!  With over 80-million homes affected by these assignments, can you imagine the business model you could engage in marketing your services to attorneys and homeowners as a BUSINESS?   These assignments are going to have to get knocked out and if the U.S. Supreme Court decides that MERS is not a valid beneficiary and isn’t really a nominee on your mortgage or deed of trust … imagine how many pissed off homeowners there are going to be that all want to execute on a legal sniper attack on their chain of title that you already have the ammunition for … do you see a business opportunity here?

What are you waiting for?

The downloadable forms you need to attend are right here: LAS VEGAS FORECLOSURE DEFENSE WORKSHOP INFORMATION

Book your sleeping room for this event by clicking on this link: : http://group.doubletree.com/ForeclosureDefense

We got a really great room rate and FREE breakfast buffet! Seating is limited!

THE FALSE ASSUMPTION

There is a false assumption that has floated about for years about how to deal with these assignments and running into court screaming “FRAUD!” at the judge is NOT the answer.  You will lose your case every time without the necessary precursors and attack plans.  So we’re getting together in Las Vegas to bring you the actual “procedures” used in previously successful cases to show you that if any attorney were to employ this out of the gate … we would be saving you thousands of dollars and years of “delay games”!  Everyone wants a “finite end” to the foreclosure mess.  One thing is for sure … over 80-million land records have bogus assignments in them … all residue from the mortgage crisis … and these suspect assignments aren’t going away by themselves!  They will continue to sit there and rot your chain of title until you challenge them and have them removed.   The false assumption by most Americans is … it doesn’t matter what’s in the land records … as long as I get to stay in my home.  This false assumption is what has hurt America.  And the banks and their scumbag mortgage loan servicers continue to get away with “doing the dirty”.

Why would you want to throw good money away that you could use for Plan B (on useless litigation strategies), when you can employ strategies that will not only “get the message across” to the judge in such a way that it FORCES him to do the right thing versus throwing spaghetti noodles at a wall to see which one sticks?  If homeowners could think like investors … we wouldn’t be in this mess.  But they don’t … and we are.

Take the emotion out of your foreclosure and think STRATEGY!   Think of the most damning thing about your chain of title.  What is it?   The assignment, right?  Or maybe you have multiple assignments that are screwing with any common sense that’s left in the chain of title aside from the lack of marketability of title, right?

THE NUTS AND BOLTS

Al West and I have taken these “nuts and bolts” and put them into a working manual that allows you to:

  1. Determine the best process for attacking the right parties in the right venue;
  2. Determine the timeliness of employing said strategies and manage your case costs more efficiently;
  3. Determine how to send the bank’s attorneys into a panic over discovery pointed straight at them like a Howitzer;
  4. Determine how to formulate an attack plan to take out single or multiple targets at the same time;
  5. Determine the best way to shut down your foreclosure case by bringing in the necessary muscle to put the bank attorney’s head on a chopping block; and
  6. Determine the best way to keep your case in play until you’ve achieved finality … and then take out the law firm that brought you this misery in the first place!

Not only that … we’re going to show you HOW TO create a business model attacking notary bonds and making tens of thousands of dollars a year in extra income doing it!  Imagine how many notaries’ commissions you can knock out … and you’re just one consumer!   Imagine a horde of informed consumers (with this business model) doing it as a way to fund their litigation!  You get to help mankind out while taking out the unscrupulous scumbags that are attesting to these false and misrepresentative assignments while going after the law firms that ordered these phony assignments to be created in the first place!  The question is: How far are you willing to go to achieve these ends?

After much analysis, we’ve figured out a way to put the Cancellation & Expungement Action (C&E) into “hyperdrive” to:

  1. Take out the other side’s attorney and have him up on misconduct charges before his respective state bar disciplinary committee!  (This attack plan works in all 50 states!)
  2. Show you that if the judge in your case won’t “do the right thing” … how Plan B: (a.) puts him on notice; (b.) sets him up to have his bond attacked; (c.) sets the county up (the county the judge gets a paycheck from in “doing the wrong thing” by ignoring your demands to heed the evidence in your case) to become the new target of your litigation; (d.) turns the county’s ignorance and willful disregard of the law into potential criminal prosecution against the key players in charge and (e.) turns your plight into a 3-ring media circus that the county cannot ignore!  (Believe me, the county DOES NOT want that!)
  3. Take both the judge and the banks’ attorneys up to the next level of disciplinary action while shaming them in the media!

When a cop shoots someone, he gets put on administrative leave, right?   Why?  Because the proper authorities have to investigate to determine whether or not the cop committed a crime (homicide, attempted homicide, etc.) or acted in self-defense.  He’s on desk duty until the investigation is over, no matter how long it takes!

When a judge aids and abets felony perjury, his sovereign immunity as a judge can be challenged in a multitude of ways.  Once the county he works for (and gets a paycheck from) discovers his misconduct, the county by all right and reason should put him on administrative leave.  He’s on desk duty until the investigation is over, no matter how long it takes!   And don’t think the rest of the judges in that county aren’t going to sit up and take notice!  They don’t want their bonding companies investigating them!

THE C & E GOES INTO HYPERDRIVE … ON STEROIDS! 

When you leave this workshop … you will have the necessary tools to:

  1. Arm your attorney with the right offensive ammo to go looking for bear;
  2. Prepare adequate pleadings to put forward an original petition to generate a responsive pleading in a non-judicial setting that sets the other side up for attack;
  3. Prepare adequate responses to alternatively counterclaim or affirmatively defend a foreclosure complaint that sets the other side up for attack in a judicial setting;
  4. Use BOTH #2 and #3 to set the trap … and 9 times out of 10, the arrogant bank attorneys will fall for it and put their law licenses in harm’s way;
  5. How to posture discovery to trap the bank’s attorneys in a web of their own making;
  6. How to make use of expert witness testimony to attack false assignments and set the attack plan into motion to get the attorney for the bank in hot water;
  7. How to make use of expert witness testimony to assert negligent misrepresentation on the part of the bank’s lawyer;
  8. Start your own business putting notary’s out of business (and maybe even getting them prosecuted for felony perjury);
  9. How to make proper use of discovery to buy you month’s … even years of delays … because it’s so lethal the bank’s attorneys won’t answer it; and
  10. How to do all of the foregoing while keeping your emotions in check and your cards close to the chest!

Think of how much money you could save by implementing this attack plan!

YOU ARE THE SNIPER!

If you’ve read the 10-part series, “Gutting the Underbelly of the Beast” … we’re going to show you the system of things in hyperdrive … using the C & E as bait to go after the other side’s lawyers and foreclosure trustees!   (Lord knows they all need to be in jail, right?)

And the best part of it … we’ll SHOW you written proof that what we’re teaching in this two-day event is working in the courts RIGHT NOW!

AND … we’ll provide you with the business model and the design plans to attack notary bonds and make money doing it!

The question is … are you willing to commit to fighting the good fight?

Are you willing to do a strategic sniper approach and stop throwing good money after bad?

Then you need to be at this workshop!

The downloadable forms you need to attend are right here: LAS VEGAS FORECLOSURE DEFENSE WORKSHOP INFORMATION

Book your sleeping room for the event by clicking this link: : http://group.doubletree.com/ForeclosureDefense

We got a really great room rate and FREE breakfast buffet! Seating is limited!

The ammunition you’re going to gain by attending this workshop is unlike anything we’ve published before; however, what we discussed in brief in The Quiet Title War Manual we’re going to expound upon in this two-day workshop!  Since Al West and I wrote the book … we’ve figured out the game plan and the attack strategies!

You get a copy of The C & E on Steroids! book just for attending!  

(No one else will have this manual but you until months from now! You get a head start!)

This book shows you everything you need to employ the Cancellation & Expungement Action (C&E), including:

1. Sample court filing schedules!

2. Sample pleadings used in other cases resulting in a positive outcome!

2. Sample discovery used in other cases that delayed the case or resulted in a positive outcome!

3. Exhibits used in other cases that worked!

4. Orders issued by courts in C & E actions that have worked!

5. Tactics used to combat the other side’s attempt to get sanctions against you!

6. Use of expert witnesses to expose the other side’s weaknesses!

And since this Workshop is in Las Vegas … here’s Lucky No. 7: Four different attack roadmap strategies for each case!

You get written handouts at the workshop that show you step-by-step assignment analysis (to identify your targets!)

1. Assignment and target analysis!

2. Research components used in case development!

3. How to couple a C&E with a quiet title action!

4. How to determine what legal provisions apply to your case!

5. Steps to take to beat the banks in HOA foreclosure cases! (Great for investors!)

6. Use of the notary to get at the rest of the singular or multiple targets!

You or someone you know needs this information … and seating is limited!  You’ll get hands-on approach training at this workshop! 

The downloadable forms you need to attend are right here: LAS VEGAS FORECLOSURE DEFENSE WORKSHOP INFORMATION

Book your sleeping room at the hotel by visiting this link: http://group.doubletree.com/ForeclosureDefense

We got a really great room rate and FREE breakfast buffet! Seating is limited!

6 Comments

Filed under BREAKING NEWS, Securitization Issues, workshop

MERS AND ITS ROLE AS A PLAINTIFF AND DEFENDANT … OR THE LACK THEREOF!

(OP-ED) — This is an educational overview as to what has taken place in the American legal forums in the last two decades and my take on what it all means:

UPDATE: Please see my comments to Lori’s question in the comments section as to Bank of America’s claimed “successor by merger” BS to BAC Home Loans Servicing LP fka Countrywide Home Loans Servicing, LP, especially using MERS to hide the real truth!

HISTORICAL PERSPECTIVE

On January 1, 1999, Mortgage Electronic Registration Systems, Inc. and its parent MERSCORP, Inc. (“MERSCORP”), surfaced as a new brainchild of the mortgage industry after two previously-failed efforts to put an effective electronic database into useable form.

MERSCORP is the “brain” part of  the “brainchild” … Mortgage Electronic Registration Systems, Inc. is the “child” part of the “brainchild”.

The acronym known as “MERS” was attached to the “brainchild” to further confuse the system of things from being able to specifically identify whether the parent or the baby bastard child is coming into play at any given moment.

According to research done by Robert M. Janes, J.D. (retired attorney) in his work SHELLGAME MERS, Contrived Confusion (available at esprouts.com), the “MERS” known in mortgages and deeds of trust as Mortgage Electronic Registration Systems, Inc. HAS NO “MEMBERS”, despite what attorneys for “MERS” have told judges all across America.  The entire system of things has bought into this crap.  Our entire judicial system has been permeated with lies.  As Hitler’s propaganda minister Joseph Goebbels stated (paraphrased), “tell a lie long enough and often enough and people will come to believe it as truth.”

MERSCORP however owned everything known as the MERS® System, up until the time that Intercontinental Exchange, Inc. (“ICE”, who also owns the New York Stock Exchange) bought MERSCORP and all of its assets and transferred all of the MERS servers to Mahwah, New Jersey, where ICE’s data servers are located.  This happened in October of 2018.  From February of 2012 until October of 2018, MERSCORP was merged into MERSCORP Holdings, Inc. and operated as such until ICE acquired it.

MERSCORP had all of the “Members” who technically are users and subscribers of its “MERS® System”.   They have an executory contract with MERSCORP.  As far as I can tell, when ICE acquired MERSCORP Holdings, Inc., ALL of the databases, memberships and every other facet of MERS went with the sale and transfer to ICE.

These latest developments also beg the question: Do I have to sue Intercontinental Exchange, Inc. if I want to go after MERSCORP Holdings, Inc., since ICE now owns MERSCORP?   That’s a question for counsel to answer; however, I personally wouldn’t sue either one of them, knowing what I know about NOT giving MERS a “leg up” … and given the fact that MERSCORP is now backed by the power of Wall Street funding!

MERS WANTS TO BE “ALL THINGS TO ALL PEOPLE”

Unfortunately for MERS, one State (Tennessee)’s Supreme Court gutted MERS’s business model like a chicken in the Ditto decision.  See attached:

MERS v DITTO_TN Supreme Court rules against MERS!

Unfortunately for the other 49 States, their respective Supreme Courts did not issue a ruling as succinctly as Tennessee’s ruling was.   Only Washington (Bain), Oregon (Niday and Brandrup), Montana (Pilgeram), Maine (Greenleaf and Saunders), New York (Agard, Bresler, Collymore and Silverberg), Kansas (Kesler), Arkansas (SW Homes), Nebraska (Dept. of Banking and Finance) and Missouri (Bellistri) did some damage to the MERS® System, but nowhere near the damage inflicted in Ditto.

Sadly, for the rest of the country, especially in Minnesota (Jackson) and Michigan (Sauerman), where the foregoing cases have propelled the MERS business model into fruition, homeowners in those states (except Minnesota and Michigan, where homeowners are essentially f**cked) have a long, uphill battle against any securitized trust that made use of the MERS® System to do its bidding.

REPUDIATION AGREEMENTS: A POTENTIAL WAY OUT

If you were lucky enough to have a mortgage loan originated by New Century Mortgage Corporation or Fieldstone Mortgage Company, you may have a legal solution as a possibility to consider in maneuvering through the legal pitfalls created by the use of MERS in your mortgage security instrument.

To date, to my knowledge and research, these two entities were the only two entities that had executory contracts with MERSCORP (or any form thereafter) repudiated their contracts with the MERS® System and its owner/parent MERSCORP Holdings, Inc.    See the attached below:

NCMC Notice of Repudiation

The foregoing repudiation was validated in the case of DiLibero v. MERS in Rhode Island.  I like to use this case because the Rhode Island Supreme Court likes to rub homeowners’ noses in MERS’s bullshit every chance it gets because Little Rhody’s lower courts have bought into the lies propounded by MERSCORP-retained attorneys.

See the case here: DiLibero v MERS_2015-13-190

In a previous post, I talked about the positive outcome of using the repudiation agreement as a means to assert the lack of standing of the Plaintiff Bank, unlike what happened in the Cruz v MERS case, where Cruz lost because he didn’t use the repudiation agreement. Duh?  (Was Cruz or his attorney even aware of this?)

See the case here: Cruz v. MERS_2015-12-136

The second known notice of repudiation was filed in the bankruptcy case of Fieldstone Mortgage Company, in a rather voluminous omnibus filing:

Fieldstone Mortgage Bankruptcy

As I teach in my COTA Workshops, repudiation of a contract in a Chapter 11 proceeding is like taking a dump.   Getting rid of excess baggage that could potentially weigh you down as to legal issues coming back to bite you in the ass.

In what I’ve just presented, both entities unilaterally decided they didn’t want to play in the MERS® System any further because they deemed it a potential liability and thus NOTICED MERS that they were ending their relationship with MERSCORP.  This has provided at least one homeowner with an “out”.

In what I deem is a “new twist” to the equation, the New York-based law firm of Jenner & Block (where Neil Barofsky works), issued a memo, dated January (2019), entitled “Recent Developments in Bankruptcy Law”, wherein Section 9 talks about “executory contracts” and where the debtor in possession (of whatever is part of the debtor’s estate or business) does not need court approval to repudiate (or cancel) an executory contract (see below):

NOTE: Click on the picture to see it in full size!

For a full copy of the report (in PDF format): Recent Developments in Bankruptcy Law, Jan 2019 (Jenner & Block)

What does THIS SAY for Chapter 11 petitioners who repudiate MERSCORP executory contracts NOT needing court approval?   How do you know a MERSCORP executory contract with a so-called “MERS Member” was cancelled by the Chapter 11 debtor unless you ask about it (in discovery)?   Would you care to go rummaging through bankruptcy court filings (at ten cents a page)?   The repudiation agreement by the defunct lender or notice of such may not even be in there!

MERS AS A PLAINTIFF

In the states that allow Mortgage Electronic Registration Systems, Inc. to file a foreclosure action against a borrower, MERS is simply claiming that it’s exercising its right to foreclose per the language in the security instrument.  In some cases I’ve seen, MERS’s attorneys even come in and attempt to claim a surplus after the sale, even though MERS itself receives no payments, incurs no financial harm, etc. (see Restatement of Mortgages, Third § 5.4), which I think the law firm is clearly attempting to pilfer whatever surplus it can get for its own gains and not those of MERS or its parent.

The problem I have with MERS being anywhere near a foreclosure is not so much the contractual angle, but the damage angle, based on the Spokeo v. Robins decision by the U.S. Supreme Court.  How was MERS damaged?    In the Robinson case in California, MERS plead to the 9th Circuit (as part of getting the appellate court to affirm the lower court’s ruling) that its business model would be harmed if the appellate court didn’t rule in its favor.  You see how the lie permeates into the appellate court system?

Sadly, I liken MERSCORP CEO Bill Beckmann and his Board of Directors as a little Hitler and his band of little crony “yes-men”.   They all need to be in jail!  And speaking of Hitler …

MERS AS A DEFENDANT

The main reason that MERS (as Mortgage Electronic Registration Systems, Inc.) is listed as a Defendant in foreclosure cases is because the Plaintiff REMIC or servicer (posing as the party claiming to have the right to enforce the security instrument) wants to notice MERS in order for MERSCORP employees to check the database to make sure that there aren’t any other “mesne assignees” hiding somewhere within the chain of custody of the electronic trading going on involving that alleged loan, in order to provide a “clearing” of potential unknown Defendants that may come in later and file a claim in the case.

THE SUPREME COURT HAS (TO DATE) NOT ALLOWED ANTI-MERS CASES TO COME BEFORE IT

Writs of Certiorari have tried and failed.  However, I still believe that we will continue to see more MERS-related decisions appealed to the nation’s highest court until the matter of MERS’s flawed business model and the damage it has inflicted on over 80-million homes finally gets resolved.

THE BOTTOM LINE IS STILL THE ASSIGNMENTS: THE DEVIL IS IN THE DETAILS! 

Again, if you go into the back of The Quiet Title War Manual, you will see state-by-state listings of statutes that cover certain elements of law involving quiet title, declaratory relief, deficiency judgment law, etc. … and below that section, three individual paragraphs on actionable statutes and case law involving violation of statute in the recording of documents into the land records which contain false information (many of which are felony-rooted in nature) or violate provisions of state consumer protection act laws.  We are now (based on my past posts) seeing the use of these mechanisms in attacking the banks’ attorney(s) (because sometimes there is more than one attorney or law firm involved in any given foreclosure) in turning a statutory violation into an ethical violation!

When a foreclosure mill attorney is put “at risk” of being suspended or being disbarred for suborning perjury, committing perjury or some other ethical misconduct, do you really think he (or she) is going to want to stay in the fight?   Further, what future substituted law firm would want to step “into the pile of poop” created by the first law firm, knowing it would put itself “at risk” of having its Errors & Omissions insurance policy attacked?

Things To Watch Out For …

  1. Any entity that has filed for Chapter 11 Bankruptcy before 2010 … as to whether they got court approval to repudiate the MERSCORP executory contract.

This provides you with a potential argument (or at least an affirmative defense to a foreclosure) that MERS and its alleged “agents” (“officers’)  for the “nominee” has any authority that was repudiated by the originating lender (debtor-in-possession);

2.  Assignments dated AFTER the originating lender filed for bankruptcy (easily discovered on Google or Google Scholar).

You especially want to check for language within the assignments (of mortgage or deed of trust) that says, “together with the Note”, because MERS cannot transfer what it does not have an interest in.   Secondly, not many people argue that there is no specific right delegated to MERS to “assign” anything.   Thirdly, NOTES ARE NEGOTIATED … not transferred or assigned; and

3.  Any mortgage foreclosure complaints, notices of trustee’s sale or similar notices that reflect that MERS has any authority to do anything, specific to the state of the union you are in.

Certain states, as I’ve mentioned before, do NOT allow MERS to do much of anything, while in other states, MERS can pretty much steamroller over homeowners.

My question is, why are you still living there?   Or better yet, why haven’t you attacked the assignments in Consumer Protection or statutory claims?

The Devil Is In The Details

Always check the assignment of mortgage or deed of trust for:

  1. Self-dealing (by the servicer and its employees);
  2. Claims that the note was “assigned” in addition to the mortgage or deed of trust by MERS;
  3. Names and addresses of law firms involved in the assignment;
  4. Names and addresses of title companies involved in the assignment;
  5. Names and addresses of servicers involved in the assignment that claim the Plaintiff’s address is in c/o the servicer’s address;
  6. Names of known robosigners involved in the assignment;
  7. Names of notaries participating in the assignment that are acknowledging under PENALTY OF PERJURY;
  8. Phony MERS addresses (like their alleged Ocala, Florida address, which actually belonged to Electronic Data Systems);
  9. Dates of assignments that well post-date the REMIC’s 424(b)(5) Prospectus Cut-Off and Closing Dates;
  10. Post-dating or back-dating of the assignment; and
  11. Documents created in one state that are executed in another state.

Any of these “details” can be used as evidence to go after the law firm attempting the foreclosure!   And THAT my friends … is how the system of things should work!

Coming soon …

P.S.: Hat tip to David A. Rogers, Esq. of Austin, Texas for the Fieldstone materials!

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THE SYSTEM OF THINGS: ANOTHER MINI-VICTORY IN FLORIDA!

(BREAKING NEWS — OP-ED) — This is not legal advice!  The author of this post is bringing you the latest mini-victory courtesy of Florida Criminal Code § 817.535 … and its applicability to defeating the banks’ servicer’s motions!  Read these briefs for your own educational benefit and understand that we are using “the system of things” to move the cases forward! 

(VOLUSIA COUNTY, FLORIDA) — A judge in Volusia County Circuit Court has DENIED the Defendant’s Motion to Strike in a mortgage foreclosure case.

SEE THE COURT’S ORDER HERE: motiontostrike-denied

The arguments posited in this case deal with what I’ve previously discussed on this blog site … statutory violations!

Not every state has the same kind of statutory components as Florida (some do) that offer a civil component that could bolster a homeowner’s claim that the bank and its servicer AND its law firm knew of should have known that what they proffered to the court through their pleadings and exhibits could come back to bite them.

Whether you are an investor who is faced with a legal conundrum  over an acquired property or a homeowner who is facing foreclosure, you should understand that there are statutes, which I explain in detail in the back end of THE QUIET TITLE WAR MANUAL, on a state-by-state basis, that covers statutory violations as well as your common law right to bring an action under consumer protection act statutes or based on a criminal component that could be brought into the mix in the civil realm.   For example, perjury is a felony.  If you are in a civil trial and you commit perjury giving false testimony, the matter now becomes a criminal matter … subject (of course) to the discretion of the court.   If the attorney representing the bank or the servicer lies to the court and misrepresents the truth or relies on false and misrepresentative exhibits as part of their presentation and pleadings, then what do you think the court should do to them?   It happens all the time in court yet homeowners’ attorneys seem to turn a blind eye to it.  Well, not EVERY foreclosure defense attorney turns a blind eye to it, but a lot of them do because (after all) we can’t “rat out the brotherhood now, can we?”

If an attorney for the bank tells the bank’s witness to misrepresent the truth on the stand (or in a deposition) and it is discovered through an evidentiary hearing that the attorney suborned perjury … well, that’s a felony too!

If you’ve read my posts on “Gutting the Underbelly of the Beast” … I’ve explained the process of what happens (and what’s available) by running a misconduct complaint up to the state bar’s disciplinary board.  You (as a pro se litigant) will NOT have the same results as a bar-licensed attorney who files the same complaint before the tribunal.  Statutory violations can thus be turned into ethical violations when the bank’s attorney doesn’t play fair and doesn’t tell the whole truth or misrepresents the truth in his pleadings and exhibits.

Now for the real slice and dice … 

Here’s the motion put forward by the homeowners, as Plaintiffs, which prompted the bank’s motion to strike:

amend_cc_08.20.18

This is WHY the judge denied the motion to strike and placed this matter for trial.

The way I’m reading this, it’s the perfect set-up for the ethical violations and eventual reporting to the bar of the charges so the bank’s attorneys would stand to be disciplined.  It’s the way the system of things is supposed to work!

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INVESTOR ALERT: ACQUIRING MORTGAGED PROPERTIES CAN RACK UP UNNECESSARY LEGAL BILLS

(OP-ED) — The following is an opinion of the author only and the content offered herein is for your educational benefit.  Enjoy! 

One of the avenues investors like to travel upon is that of acquiring homeowners association liens.  Such was the case in Texas with Kingman Holdings LLC.  You can read the case here:

wells fargo bank na v kingman holdings llc, tex app (5th) cir no 05-17-01240-cv (jan 17, 2019)

The one thing I didn’t notice is all of the “assignments” that were talked about in the suit.  None of them were ever challenged.  And this is a MERS-originated Deed of Trust, so you know it was securitized.   As the case states, Lehman’s Asset Backed Securities Mortgage Loan Trust 2007-1 was involved and it is highly likely that there are multiple issues regarding the actual negotiation of the note and related paperwork to the custodian of the trust at the proper time stipulated by the 424(b)(5) Prospectus for that REMIC trust.  What this case argued was lien superiority and Wells Fargo won, despite the lack of challenge to the assignments.  I wonder what the outcome would be if the false and misrepresentative statements contained in the pleadings in the lawsuit, which ties the false statements made in the pleadings to the documents in the land records, thus opening the door to further scrutiny (albeit the other side might scream that we’re reaching; parol evidence).

No pain … no gain.  But investors have to be careful when it comes to buying HOA-related properties.  This is why I like tax deeds.  The county in fact DOES have first lien priority, whereas HOA’s do not.  In fact, reading into this case, nothing in the HOA paperwork showed its lien was superior, but money was spent litigating the case anyway.  Learn from other’s futile mistakes.

You can look at this case and say, “The banks always win!”  however, understand who the appellant is here … the bank.  It got ruled against in the lower court!

Sadly, I’ve come to understand that most HOAs only notify the actual owner of the property and NOT the lenders that might have a mortgage on that property.  This puts investors in a vary “gray area” when it comes to acquiring property that has an existing mortgage, thinking that nothing will come of it.  So … caveat emptor, especially if you’re investor who didn’t plan on spending extra cash in litigation.

NEW REVISED COTA CHECKLIST

AS AN ADDED BENEFIT to this story … please download the PDF of our new COTA Checklist for 2019 here:

2019 cota checklist

Having tools at the ready when you’re doing property searches isn’t a bad thing, especially when your own property might be in jeopardy.

GOVERNMENT SHUTDOWN UPDATE:

On another note … while not related to chain of title issues … the Air Traffic Controllers Union and a host of its membership have filed suit against the government, citing air security risk due to the government shutdown … read the lawsuit here:

patca et al v us, us d.c. no 1-19-cv-00062 (jan 11, 2019)

This lawsuit may not move too fast given what we reported on this blog yesterday about the courts’ running out of funds tomorrow.   If air traffic controllers have to suffer, what do you think airline passengers might face in the near future?   Don’t you think shit rolls downhill?   Make your travel plans accordingly as flying might not be the best option right now.

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