I do not know what the law schools are teaching regarding real property law, but here is an atypical case where one alleged lender used a quiet title action to prove a mortgage loan existed on a piece of property and a Maine Superior Court Judge chimed in … loud and clear … “what the hell were you people thinking?”
In the case of U.S. Bank, N.A., as Trustee for LSF8 Master Participation Trust v. Decision One Mortgage Company, LLC, (Superior Court, CV-15-65)(July 26, 2016), the Plaintiff (U.S. Bank) claimed it owned a note and mortgage, claiming the Defendant (Decision One), the originating lender on the note, was defunct and could not collect on the note.
The problem I have is, U.S. Bank didn’t get it right in Ibanez and they sure didn’t get it right here. I mean, seriously, folks, using a quiet title action to prove up a note? Seriously? Someone either fell asleep in property law class or someone just is plain stupid in their legal analysis of this subject matter.
I have been trying to drum it into people’s heads that a quiet title action (when coupled with a request for declaratory relief) is used to determine who has superior title to any given piece of property … NOT to determine who owns the note with the right to enforce the terms of a mortgage.
Simply put … the court agreed with my teachings … not U. S. Bank’s attorneys! It is sad that my consulting is now limited to attorneys litigating quiet title and will not be available (unless you read The Quiet Title War Manual) to the general public.
A quiet title action, as Al West and I so succinctly put it in the foregoing 512-page educational manual, is an action whereby you put forth a claim that you have superior title and request that the court determine the rights and interests of the parties as to “title”. A note is an obligation created at the closing table and is not recorded in the public records, whereas “title” is recorded, by virtue of a deed. The deed is your proof of ownership.
MERS, Securitization and Quiet Title
I don’t see MERS anywhere on anyone’s “deeds”, yet MERS thinks they have “legal title” to everything contained within a MERS-originated mortgage. This is one of the reasons I keep telling people to “say NO! to MERS mortgages”. Once you let this parasite in, you’ve just exacted hell upon yourself in unwanted legal fees, because the intent of the founders of MERS (Fannie Mae, Freddie Mac and the banks) was to securitize your mortgage note (turn it into a security on Wall Street) and pander it to every ignorant investor who thinks that investing in securities is a “smart thing” to do. I see nothing wrong with getting up and walking out of a closing where you are presented with MERS-related paperwork. After all, by the time you get to the closing table, your note has probably already been sold at least nine times, WITHOUT YOUR SIGNATURE ON IT! This is the big lie folks!
Say NO! to MERS!
If you think that your signature on a mortgage note is the start of the sale of the terms and conditions put forth under Paragraph 19 or 20 (depending on which long-form mortgage document you are signing), think again. It doesn’t say WHEN the Lender may sell your note (or a partial interest thereof), as long as the Lender has your Form 1003 Loan Application. When your loan application is submitted, it gets pandered all over Wall Street, along with your personal identifying information, in addition to being inputted into the MERS® System electronic database. You make it all literally “legal” when you sign the mortgage and note. But what if you didn’t?
What if you “woke up” and realized the MERS-originated Mortgage was a scam to steal your personal identifying information (your payment history, your credit scores and your personal information, e.g. social security number, date of birth … all the things these would-be thieves use to steal your identity) and you said NO! and got up and walked out of a closing? What could the Lender do?
The REMIC trust rules allow for “qualified loans” to be substituted up to 90 days AFTER the trust closes, so that would be construed to mean that some other dumb sucker’s loan (who didn’t wake up like you did) would be put into the place occupied by your loan. The REMIC itself contains a list of loan numbers (yet to be assigned, until you sign the paperwork) and these loan numbers mean nothing without “legal backing” behind them.
If MERS is shown on your paperwork (solely as a nominee), this failure of a beta business model will attempt to outsource and outspend you and cause you serious health problems (because of what it does to your chain of title) … and by the time all this happens, your title is too late to fix because no one knows who owns what … except that the title to the property is in YOUR NAME! That is the for sure thing.
In the foregoing case, neither U.S. Bank nor Decision One was “on title”. The homeowner’s name was on title. I didn’t see him filing the quiet title action, probably because of ignorance. This is the fallacy being played upon the American public by the banks and it appears the banks themselves are drinking their own kool-aid.