Tag Archives: Clouded Titles

WILL THERE BE AN UPTICK IN FORECLOSURES ONCE THE CORONA-CRISIS IS OVER?

(OP-ED) — The author of this post is a consultant to attorneys on foreclosure and chain of title matters and none of the following opinions should be constituted as legal advice or seek to guarantee a legal outcome. It posits what this author sees as what is to come.  It may not be the “whole new way of life” everyone thinks is going to take place due to this pandemic. 

This post is not for the faint of heart nor is it designed to make you more paranoid than most of you probably already are.  It is designed to impart some common sense rationality into dealing with the post-traumatic issues of what we collectively are all perceiving as a “crisis”.

Some of us think this whole thing is overblown.  The majority however have unknowingly allowed the “crisis” to replace common sense with survival fear … and rightly so.  It’s one thing to think that the coronavirus was just going to stay put in China when in fact, we have such an upwardly mobile society that everyone has been instilled with traveling to different parts of the world, be it on a plane, on a cruise, whatever … no one expected this would hit America and I believe we were all duped as to the “numbers” and the “purpose” for COVID-19.

Here are some interesting “takes” I’ve picked up on over the last couple of weeks …

  1. Chinese-Americans who are loyal to this country have stated to me that China well understated the numbers of dead and infected as the result of the viral spread there.
  2. The understatement was intentional, to lull us all (and I mean the World Health Organization (WHO) and the countries affected by the virus, including America) into a false sense of security so we would continue to go on about our daily lives as if this virus really didn’t matter.
  3. Knowing that we were already embroiled in political turmoil in this country, we’ve been “played” by the Chinese in a further effort to destroy the credibility of many of our elected leaders and further create political dissension in our every day lives.
  4. Most of the world was not medically ready for another pandemic.  If WHO was really concerned with the spread of this virus, it should have reacted more quickly when it was observed that the virus was spreading outside of China’s borders.
  5. We can all point fingers at our government for being “reactive”, because that is how our government has always been … reactive instead of proactive.  We weren’t ready for the virus when it hit our shores and we sure as hell aren’t ready for it now.
  6. Our medical systems in this country rely too much on non-essential and boutique surgeries and were not ready to deal with massive shortages in critical care supplies and labor.
  7. Our government’s medical “advisories” and social “responsibilities” were lacking in keeping its undisciplined citizenry safe from each other, allowing for Darwinistic opportunities to avail themselves upon an unsuspecting public.
  8. Instead of heading off the pandemic “at the pass”, state and local governments were slow to react to contain the virus and identify the “vectors”, which is what South Korea did when it first became aware of the invasion of the virus.
  9. The saving grace was that most state governments went above and beyond the federal measures enacted to stop evictions and foreclosures during the coronavirus outbreak.
  10. The not-so-saving grace is what happens after the fallout rears its ugly head, the supply chain breaks down in certain quarters and the economy can’t put enough people back to work fast enough to recover from the shock the country took in the 30-60 “stay in place” periods.

This is where thinks get “quirky”.

As was explained in some “insider” memorandums which I managed to retrieve through my back channels, the mortgage loan servicers (especially on these MERS-originated mortgages) have to pay advances on the distribution dates to the investors who funded the loans through the various REMICs (Real Estate Mortgage Investment Conduits).

There were (at last count) roughly 6.6-million people that applied for unemployment benefits, despite the economic “stimulus” package.  In my twisted mind, this is like getting a hand job by a hooker, wherein the “wham bam” happens and then you realize the relief was only temporary and you’re right back at the stress level you started from before “the act” happened.

The mortgage loan servicers who handle the payments to the REMICs (the advance payments of principal and interest on every securitized loan) every month on the distribution date, have to pay those advance payments whether borrowers make those payments or not.  I hope you got that.  No matter (during this crisis) whether you made your monthly mortgage payment or not, you are NOT in default because the servicer has been making your payments anyway.  They just won’t tell you that.

The problem becomes worse however when the servicers have to make these payments regularly over time, believing that they can collect the the past due payments from the borrowers (who are out of work or close to being out of work or short on funds) who are wanting a forbearance on their mortgage loans.  This means the servicers would have to consider putting the payments (including interest) on the back end of the loan.  This means that for those of you who (for example) were on “Payment 22” of your amortization chart on a 30-year fixed rate loan, you’re asking for Payments 22, 23 and 24 (plus interest) to be put on the back end of your loan, which is compounding interest upon principal upon interest.  Let’s face it, most Americans do NOT have the reserves to make the mortgage payments past one month, which is why they had to borrow the money to buy the home in the first place.

Now the mortgage loan servicers are stressed financially because the payments have to be paid into the securitized trust pool every month, regardless of the borrowers’ circumstances.  The servicers may be forced into “having to rob Peter to pay Paul”, which means the servicers will borrow from escrow accounts all over their servicing network of mortgages, in the hopes that they’ll be able to repay those escrow accounts back over time.  The problem is, when that doesn’t happen (and even at the time funds were borrowed from escrows), there is still a shortage in the escrow accounts that the servicers borrowed from to pay the REMICs their monthly payments to.  A prolonged period of these payments (6-9 months; if this crisis were to continue) would put the servicers in jeopardy.

Fast forward to the end of the corona-crisis … 

The mortgage loan servicers are out of pocket all of the advance payments they had to pay during the crisis, which means they’re going to be on an all-out campaign to try and recover as much of the shortfalls as possible to reimburse all of the escrows they borrowed from to keep everything looking “current” on the books (this is why servicers get in trouble).  This is one of the reasons why Ocwen got into trouble and ended up having to sell $600-million in securities to bolster its “advance” payment funds to investors.  That’s like chasing a large, lump-sum credit card payment, making minimum payments every month.  The debts just never seem to get paid off.  Most borrowers can understand that.  Now, factor that into a much larger scale.

By now, you’re beginning to see the “crisis” occurring within the ranks of the mortgage loan servicers.  They will be reluctant to do loan mods because that means more perks for the borrowers. Extensions the servicers really aren’t interested in “affording” because they’re already swimming in borrowed time.

Couple that with the borrower’s payment history of already-missed payments BEFORE the crisis was declared and you’ve just dumped gasoline on the already burning flame.  My suggestions here, which are simple to ascertain and follow:

  1. During the crisis, check your land records EVERY WEEK to see whether or not the servicer has “manufactured” any assignments using MERS (Mortgage Electronic Registration Systems, Inc.) as a means to assign, transfer or convey a mortgage loan into a REMIC trust in anticipation of having to do a foreclosure.
  2. If the assignment was done BEFORE the foreclosure and you’ve already become aware of it, use this opportunity to research your chain of title and see whether or not the information contained within the assignment is false and misrepresentative.
  3. Look up the state statutes to see what felonies were committed by asserting the false and misrepresentative information into the assignment, which was subsequently recorded into the public record and begin to document all aspects of it (who created the assignment, who executed the assignment, who notarized the assignment, who are the parties named in the assignment, who caused it to be recorded, etc.) for reference.
  4. DO NOT attempt to contact any of the parties creating the allegedly-bogus assignment. This is like tipping your hand in a high-stakes poker game.  I cannot stress that enough (as a consultant to foreclosure cases).  Telling the other side of your game plan is going to jeopardize your chances for recovery down the road.  What is important is to gather as much information as possible about all of the parties mentioned within the assignment without contacting them directly.  (There will be plenty of time for that in court-controlled discovery).
  5. Obtain a certified copy of your REMIC from the United States Securities and Exchange Commission while the ink is still fresh and you can take advantage of the time lapse created by the corona-crisis which allows you some advantage in preparing a suit for cancelling and expunging the suspect assignment.

For those of you that don’t get the “gist” of attacking documents, I have a kit available (in limited supply) online at CloudedTitles.com/shopThe C&E on Steroids!   This will give you a blueprint as to how to successfully challenge the phony documents in the land records.   It’s an 8-DVD video set plus a book containing the information you’ll need to arm yourself for the upcoming “fight” I think many of you are going to be involved in.

Why is this important?   If you’re facing foreclosure, even before the crisis, this moratorium will give you time to: (a.) think about Plan B; and (b.) act on that plan.  Even the 60-day window, which has already started ticking (courtesy of the federal government and extended by various state governments) will give you enough time to get your case files together, analyze them and more forward with retaining counsel (if you haven’t already) to “fight the good fight” because the corona-crisis itself was just not enough … we’ll be seeing another wave of foreclosures when it’s over because when it comes to reimbursement of an already-depleted money supply, the servicers (who are tasked with stealing the home) will stop at nothing to take your home away from you … and sadly, the government won’t be there to bail you out.

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UPTICK IN REPORTED U.S. COVID-19 CASES!

(BREAKING NEWS, OP-ED) — 2:50 p.m. EDT, March 27, 2020

3.3 Million new unemployment claims have been filed across America as the loss of jobs on a grand scale has forced Americans to go on assistance, despite the $2-trillion stimulus (pork) package.

The United States has now surpassed China in the number of reported coronavirus cases. The death toll in the U.S. is now over 1,000 people. 

New York has now become the epicenter of the coronavirus as the spread is accelerating. 

The Empire State is reporting (a new revised figure at the time of this post) 23,112 cases in New York City alone, accounting for 365 deaths there. The State of New York’s reported cases is greater than the sum of all 49 states’ reported cases! 

Worldwide, the number of coronavirus cases has exceeded a half million people. 

Tomorrow evening (March 27th), City Spotlight – Special Edition’s Dave Krieger (along with co-host R. J. Malloy) will be updating you on the latest statistics of what has happened in America and how communities are reacting.   The program airs shortly after 6:00 p.m. Eastern Daylight Time on WKDW-FM, North Port, Florida. Tune in for more information … as well as our “take” on things. 

FLORIDA CASE REPORT

As of the time of this update, the number of Florida cases rose to 2,900, with 34 deaths and 456 people hospitalized.  Statistically, this represents about .012% of those infected; however, it does not tell us how many people are infected and don’t know it yet, which is why states are putting their citizens on lockdown and only allowing essential services to operate. Florida is not one of them yet.  Rather than implement a statewide lockdown, Governor Ron DeSantis is allowing the counties to decide whether the pandemic in their own region is worthy of containment to the point of telling residents to stay home. 

Meanwhile, those business in Florida who are in need of assistance due to business losses can contact R. J. Malloy at WKDW-FM Radio (an agent for the SBA for the small business loans) at (941) 564-8739 and he can help you apply for low-cost emergency funds.   Since all 67 counties have been declared a disaster area, emergency assistance from the SBA can now be applied for. 

FLORIDA’S GOVERNOR HAS ISSUED AN EXECUTIVE ORDER: DO NOT COME TO FLORIDA! 

Excessive travel is not recommended, especially people planning on coming to Florida.  The Governor has issued an Executive Order for residents outside of the State of Florida NOT TO ENTER the State at all, especially from areas like New York, Connecticut and New Jersey, where the virus has been tabulated in record numbers. The Executive Order appears to have been issued due to residents fleeing the New York Tri-State area (NY, NJ, CT). The Order requires incoming “escapees” to undergo mandatory 14-day isolation and has made it a misdemeanor crime punishable by 60 days in jail and a $500 fine if not adhered to, with the costs of the isolation paid for by the airline passenger trying to “escape”. The Order says nothing about those from that area sneaking in by way of a vehicle. 

Many counties in the State have taken up the idea and several have implemented restrictive curfews and lockdowns.  South Florida (Palm Beach, Broward and Miami-Dade Counties) and Hillsborough County (Tampa) are the current “hot spots” in the State for the coronavirus.

I’m going to be belabor my previous points again here because most of you have already read much of what was contained on previous posts.  

UPDATED NEWS ON THE C&E —  There appears to be a glimmer of hope on the horizon: 

  1. An attorney threatened a servicer with a C&E action in Florida.  The servicer immediately lowered the sale price of a probate (reverse mortgage) property by $20,000 rather than risk a trial.
  2. Another attorney in Lee County, Florida pushed for discovery in another C&E action.  The law firm for the servicer called, wanting to settle the matter before trial. 
  3. Another investor filed two (2) criminal complaints on 2 separate properties in Las Vegas, Nevada with the Metro Police Department.  The Police Department forwarded both complaints to the Clark County District Attorney and the Nevada Attorney General’s office for further criminal investigation.  When the opposing side’s lawyer found out about the criminal complaints, she told the investor’s attorney, “We are taking these criminal complaints very seriously.”  Duh?  

These are just 3 examples of how powerful a C&E is!  You can get the entire DVD/book training kit online at CloudedTitles.com/Shop

I mean seriously … what are you doing for the next two weeks confined at home?  Why not get an education?  Knowledge is power! 

And for those of you in despair, there is some lightheartedness out there: Coronavirus Rhapsody

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Filed under BREAKING NEWS, OP-ED

REMEMBER WHO THE ENEMY IS …

(BREAKING NEWS) — The author of this post is issuing this update to give you a bit more incentive to participate in the upcoming online COTA Workshop.  The information presented here is for educational purposes only; however, it’s based on years of research by this author and through discussions with attorneys who have utilized this material to their benefit. 

For those of you who are being exposed to COTA (an acronym for Chain Of Title Assessment) for the first time, or wish to intensify the study into the COTA for future use in helping others (and making a sideline income from your knowledge you’ve obtained here), let’s briefly delve into what the chain of title is and how the COTA differs from a simple “title report” issued by today’s title companies across America.

(1) Assists in identifying all known potential claimants to property

It doesn’t matter whether you’re buying a home for the first time or putting your faith in a landlord who claims to own the home he’s renting to you, it pays to understand “who’s on title”. In this day and age, more and more issues of fraudulent transfer and assignments of lien have permeated hundreds of thousands of land records, if not by crooks attempting to commit identity theft by recording false deeds, but by the very banks and secondary players “in the game” that created assignments out of thin air and caused them to be placed into the public record, all since the 2008 financial collapse!  Simply looking at the deed to a piece of property isn’t enough. The aftermath that followed the collapse (2009-2015) has been proven by this author and others to have been one giant scheme to steal property across America by some very unscrupulous sponsor-sellers on Wall Street using phony documents to get their way.  If you or this author ever attempted to do what the banks did, we’d be in jail, because the government is in bed with the banks!  The COTA helps you to identify those person(s) who say they have an interest in the property, whether by claim of ownership or by lien interest.

(2) Assists in identifying potential unknown intervening assignees

Many do not recognize the word “mesne”.  It’s pronounced “mine”.  It’s a legal term that means unidentified players within the chain of title and these players became unknown “assignees” through the use of an electronic database called Mortgage Electronic Registration Systems, Inc. (or “MERS”).  If you’ve read Clouded Titles, you know that MERS is currently operating under its third incorporated version, taken over in October of 2018 by the same corporate outfit that owns the New York Stock Exchange, ICE (an acronym for Intercontinental Exchange, Inc.). The mesne assignees entered the chain of title to millions of pieces of property through the use of the MERS System®.  This workshop will teach you the fundamentals of how securitization operates and just how the silent invasion of millions of phony documents entered the public recording system. It’s knowledge that has cost over 10-million Americans their homes because they didn’t have that knowledge when they took out their mortgage loans way back when.  If this workshop could save you tens of thousands of dollars in mistakes, wouldn’t that be worth it?

(3) Assists in identifying abuse to the title by lien holders & clients 

It goes without saying that millions of Americans have fallen prey to the scheme of obfuscation within the chain of title by parties that all of a sudden “claimed” an interest in any given piece of property in America simply by creating an assignment of mortgage (or deed of trust) with the intention of giving the recorded instrument legal effect for the purposes of foreclosure.  The banks and the financial industry supporting the use of MERS then proceeded to infiltrate all 3,041 public records through the use of legislation, which more than likely came into being through the use of “monetary incentives” (i.e., “the best congress money can buy”) to get legislation passed to allow a “book entry system” to permeate the land records all across America through the use (and abuse) of documents that were vague and ambiguous, which this author first discussed in the very first COTA Workshop he ever taught, as a CLE to attorneys in Texas. Now you can have access to that same information, which could help you in making what could be life and death decisions!

(4) Assists in identifying potential causes of action for use in litigation

The one thing for certain in America is that these abuses within “the system of things” has made the greater percentage of the citizens in this country litigious in one way, shape or form. The remains of those who have been foreclosed upon in the past have paved the road with bad case law because they (and their attorneys) fought with bad information, information that was passed through the legal forums throughout America by attorneys who became part of a very widespread network of what are known as foreclosure mills.  Some have fallen by the wayside, while others have only gained in strength by setting case law in their favor before most Americans (who were foreclosure victims, and their lawyers) realized what kind of legal charade was being falsely portrayed within the judicial venues throughout this country.  This author is convinced that all of this was by design, to give these foreclosure mills lots of work and as one attorney this author knows put it, “How to steal people’s homes for fun and profit.”  Sadly, 97% of all affected homeowners cut and ran, leaving the system to its own devices.  Those who fought the banks and their servicers found out the hard way that claiming “fraud” costs money … more money than the average American homeowner anticipated spending to stay in their home. There’s a right way and a wrong way to understand “the game” … and you’ll learn that in this workshop!

(5) Establishes proof of ownership in the chain of title (deraignment)

Here’s a term (deraignment) that most people don’t understand the concept of.  In this workshop, the author is going to show you not only what this term means, but how it’s applied in law!

(6) Establishes parameters for given time periods of recordation (laches)

The doctrine of laches kind of works like a ticking clock.  Many Americans have been duped into believing that once they’ve found out that they were “screwed over” by the banks, they attempted to file lawsuits against the banks and MERS, something the banks were geared up in advance to wage a winning war against these unsuspecting homeowners and their attorneys, who soon found out that there were more ways of making money than by doing simple wills and estate planning.  Welcome to the understanding of what makes a foreclosure defense lawyer tick … your paycheck in his trust account!  Laches is further explained in the COTA Workshop … which can be taken via the internet right from your very own home computer.

(7) Establishes proper document recordation value (as to sequence)

It’s not just a recorded document that makes a difference … it’s how all of the documents in the chain of title interrelate to each other.  We’re going to go into detail by showing you case studies within the COTA Workshop so you can gain an understanding of how these abuses within the chain of title occurred and how the COTA is used to formulate litigation.

(8) Establishes proper evidence to identify potential problems with title

If you had a way to identify issues within your chain of title, wouldn’t that make your understanding of future litigation more practical?  This is why so many attorneys across America have read Clouded Titles. In fact, this book (written by the author who is teaching this online COTA Workshop) was recommended to homeowners by U.S. Bankruptcy Court Trustees!  This means that the information contained within this book (and this author’s subsequent teachings) was very quickly picked up by “the system” and integrated into its database of legal knowledge.  As a bonus … for those of you taking the online COTA Workshop … you’re going to receive a complimentary copy of this book that has gotten the attention of even the federal judiciary!  Suing for everything under the sun (including the kitchen sink) is a big waste of time and money.  This online COTA Workshop will teach you the basics of understanding what the aspects of litigation are and how you, as a past, present and future homeowner, can benefit from understanding the fundamental issues within chains of title that have been affected by the schemes perpetrated by the banks and their henchmen.  This goes way beyond what title companies will ever reveal … because the title companies are “in on it”!

(9) Raises potential legal issues based on research of statutory violations

This author has written other publications which explore the universe of legal claims based on violations of statute.  Your mission, should you decide to accept it, is to understand how and where to find this information … and the author will show you how in the online COTA Workshop!

(10) Raises potential legal issues based on unproven but evident fraud

Fraud! Fraud! Fraud!  That’s all this author hears homeowners bleat (like sheep to the slaughter).  Learn what the potential legal issues are without becoming a victim of them!  It’s a very expensive proposition … something this author knows could save you tens of thousands of dollars in legal fees just by your gaining an understanding of how you (as a homeowner) have been duped.

(11) Raises awareness of concern by the Preparer as to legal consideration

If you were going to help others (while making a living doing COTAs) avoid these same pitfalls, wouldn’t it be nice to know exactly HOW the author came to understand the fundamental concept of how the chain of title works?  Spending tens of thousands of dollars in litigation costs makes everyone but you (the homeowner) rich.  Why drop that big dime if you can possibly avoid it?  We’ll even be discussing quiet title and the use of declaratory judgment actions as a part of the common strategy to get to the truth of the matter involving chain of title!

(12) Raises the stakes of potential legal claims for damages

Out of these dozen reasons why you should consider taking this online COTA Workshop … if you had a clear and concise understanding of what you were up against and knew the real issues within your chain of title (or could research the chain of title for a prospective property you wish to acquire as a means of building equity), wouldn’t it be nice to know that once you’re all settled in, you’re not going to become a victim of foreclosure by some unscrupulous lender, based on those mesne assignees this author talked about in the beginning of this post?  If you knew which legal claims were more profitable than others, wouldn’t that be a good thing?

The online COTA Workshop begins February 1st (that’s this coming Saturday) … why not start out the New Year with a chunk of knowledge that can not only save you thousands of dollars in legal fees, but also give you the opportunity to make a decent living while helping others avoid the pitfalls that have cost millions of Americans dearly.

Click here to register to attend! 

In addition, if you missed something … after taking the online COTA Workshop … we’ll make these sessions available to you online so you can further your studies and pick up the nuggets you may have missed while attending the online COTA Workshop … all of which you can access FREE OF CHARGE, with your paid attendance to the workshop!

Plus, by attending the online COTA Workshop, you get a complimentary copy of the book Clouded Titles!

The webinar platform will give you a chance to ask questions at the Q&A breaks in the class too!  

Knowledge is power!

The clock is ticking … what are you waiting for?

A summons to appear in court or a notice of default?

Don’t be a victim!

Arm yourself with education!

Click here to register to attend! 

 

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Filed under BREAKING NEWS, Securitization Issues, webinar, workshop

TEN YEARS LATER … HAS YOUR DEFINITION OF “INSANITY” CHANGED YET?

(OP-ED) — The author of this post posits these comments based on his own observations and none of this should be construed to be legal advice. For the record, the definition of “insanity” is … doing the same thing for the next 10 years you did the last 10 years expecting different results. 

Who would have ever thought that me breaking my foot would steer me down a path of moral concern, that is, America’s foreclosure crisis based on phony documents?

The Beginning of Insanity

It all began in mid-2007, when, quite by accident, I was surfing the county clerk’s website looking for details on my Texas property and discovered repetitive references to Mortgage Electronic Registration Systems, Inc. (hereinafter “MERS”).  I had no idea who MERS was until I started doing further research into this entity only to discover this electronic database had been around since at least 1999.  It didn’t even occur to me that MERS was a brainchild of the banks because at that time, there wasn’t much information out there because the lawsuits that have made the annals of American history were not made manifest yet.

I also had no idea that MERS and the banks were working hand in hand to further their “case wins” in courts by posturing MERS as some sort of legitimate “party” that had the right to foreclose on property.  I only discovered this in 2009 after I started doing serious research into security instruments and all of the accompanying documents that littered the land records across America in the wake of the financial crisis of 2008 and the previous redux of securitization, which finally reared its ugly head in a way that most Americans could understand.  It was at that time I started to develop what would later become the Chain of Title Assessment (COTA).  How the documents interrelated to each other became more important than the actual information contained within each document because a pattern of behavior became obvious which was worth doing more research on.  That pattern of behavior was recorded assignments being placed within the land records just prior to a foreclosure being commenced on any given piece of property in America.

By mid-2010, I had a specific pattern identified and was able to develop a COTA checklist based on that pattern of misbehavior.  The pattern was not just a making of the law firm or the trustees attempting to enforce security instruments.  It became obvious later on in the game that the law firms and trustees actually were doing the bidding of the mortgage loan servicers; however, that realization did not come until AFTER Clouded Titles had been published (in December of 2010).  It was not until mid-2012 that things began to surface that would lead me straight to identifying who was behind all of the chicanery that enveloped all 3,041 of our nation’s real property records.  At that point in time, I had already established a working relationship with several Texas Clerks and had lectured to their Clerks’ School, sponsored by the V.G. Young Institute for County Government.  Williamson County Clerk Nancy Rister and Williamson County government were the first to attack MERS and the servicers and third-party document mills head-on in a land record audit, which was formally released in January of 2013.

WILLIAMSON COUNTY REAL PROPERTY RECORDS AUDIT_January 29, 2013

Judging by MERS’s reaction to the audit, I knew we were onto something. MERS went out of its way to try to debunk the 179 pages of damning assertions that the mortgage loan servicers and their third-party document mills were the ones behind all of the false and misrepresentative statements we would soon come to identify in the hundreds of COTAs I would being conducting since Clouded Titles was released.  Reporters kept telling me that MERS claimed it did nothing wrong and my reply was, “Then why is everybody suing them?”

A Big Mistake

The chain of title assessment (COTA) has been referenced as a “chain of title analysis”; however, through whatever name you want to give it, the research that goes into a COTA makes it a report, an investigative piece if you will.  By the time that the mortgage loan servicers agreed with 49 states Attorneys’ General to stop production on fraudulent documents, word had spread not only to the legal community but also the public at large, that this chicanery was widespread. Foreclosure victims became outraged at the thought of being defrauded through the illicit use of the land records.  It was at about that time that the COTA hit the courts.  Reliance on a COTA in a court of law or of equity is a huge mistake as many have discovered.  Proof of that will be made manifest in this post.  By the time homeowners and their attorneys ran screaming into court about the “fraud” in the documents, MERS and the banks had already set case precedent that the contents of the documents could not be challenged because the borrowers were not “third party beneficiaries” to the assignments and therefore had no right to challenge.  In my opinion, this lame excuse of not benefitting from the assignment was a ploy to gain favor with the courts, whose judges went along with the argument because the homeowners’ attorneys had no comeback to the argument.  The big mistake however, was the misuse of the COTA and the laziness of homeowners’ counsel to conduct proper discovery.

Many litigants ran into court with their research and attempted to use it as “evidence” to prove their theories that they were defrauded by and through the use of “fraudulent documents” recorded in the public records. Once such case involving this posts’s author manifested itself in Texas on November 25, 2013, in the same year that the Williamson County Real Property Records Audit was released.  See the case below and pay attention to the references on Page 4, where this author’s name is mentioned:

Brown v BANA_Tex 5th App Dist No 05-12-01382-CV (Nov 25, 2013)

Quoting my name and my book and making references to it is not PROOF as the Appellant soon learned the hard way.

During the time span from the time this case came out, Clouded Titles had been on the market for three years and had expanded from its 254-page original version to 432 pages (not the Mayday Edition, which is the revised final version). I knew that judges and attorneys were aware of it … and not just because of its consistent use in the courts.  By that time, the Circuit Clerk of Osceola County, Florida, Armando Ramirez, was introduced to the book and was encouraged by the public to make contact with the author, which led to the commissioning of another land record investigation, which was conducted roughly 90 days AFTER the mortgage loan servicers vowed in writing never to launder the land records with fraudulent documents again, as shown below:

OSCEOLA COUNTY FORENSIC EXAMINATION

The author of this post, once this document was made public, was attacked by the media in what appeared to be political retribution against the Clerk of the Circuit Court (Ramirez), who was again elected to his Clerk’s post in a majority vote the following election cycle.  However, this time, MERS did not play a role in the politicizing and demonizing of the report, which had an attorney opinion letter attached to it like the Williamson County report did.  Instead, the media and foreclosure mill law firms jumped into the fray, slamming the Clerk for spending county money on a report that they maliciously called a “foreclosure audit”.  Again, misuse of the COTA.  The Report issued to the Clerk was just that … a Report outlining the abuses that continued in his own land records from June 1, 2012 to June 1, 2014, well after the mortgage loan servicers agreed to stop putting false and misrepresentative documents in the land records, where they still appear to be continuing on through today!

The Bigger Mistake

What’s even worse is that a lot of wannabe “investigators” who claimed that their research was solid proof did not pass muster in other cases.  As I will demonstrate in the upcoming Chain Of Title Assessment Workshop, to be held online on the Clouded Titles website starting on February 1, 2020, this author has been pontificating all through the ages that Chain of Title Assessments (COTAs) are NOT EVIDENCE in court, despite the ignorance of litigants and their attorneys.  In this workshop, the author will cite a U.S. Supreme Court case that clearly identifies a COTA as research developed from multiple sources and compiled into a report, which this author has constantly maintained is to be used for case development and not as evidence in of itself.  But given the desperation of homeowners, along with the mistakes made by these alleged “foreclosure rescue services” that claim the COTA is their Holy Grail in order to make a buck, these assessments are STILL NOT EVIDENCE in court, as the most recent case out of Idaho demonstrates:

Losee v Deutsche Bank Natl Trust Co, Sup Ct Idaho No 45721 (Nov 29, 2019)

Do you see the date on this case?  It was just issued the day before this author published this post! 

What in the hell are these people thinking?  If I have maintained that a 1943 United States Supreme Court ruling by this nation’s highest court mandates that COTAs cannot be relied on as evidence, why are these wannabe investigators and their litigants ignoring it?

Previously, much to my chagrin, I’ve warned attorneys NOT to waive my COTAs around in court.  One of them did in a Houston federal court and got screamed at by the judge.  This is where the joke about “judges screaming my name and it wasn’t during sex” evolved from. (“Who’s Dave Krieger????!!!!!!!!)

One other attorney in Michigan was forced to let a judge see the COTA (by the judge’s own insistence) because the attorney kept referring to the document while making arguments in court.  Once the judge read the document (assumedly during his lunch break), he got an education, even though it was still NOT being offered as evidence, and ordered the parties to settle the case as he stated, “neither one of you are going to like the way I rule on this one!”   In the end, the bank got the house back and the homeowners got their money back and then some.  This still does not mean that the COTA is evidence unless the material within the COTA is vetted and relied upon by expert witnesses or utilized to craft discovery to go after the underbelly of the other side’s arguments.

I beg of you … please do not continue to misuse these reports.  These reports are meant as investigative research and proper discovery must be utilized to vet the research.  Simply walking into court and waving these reports around screaming “Fraud This!” and “Fraud That!” will get you nowhere.

To get a real idea of HOW TO do a Chain of Title Assessment (COTA) on your own, where you can get a real education, I am offering the first online COTA Workshop on Saturday, February 1st (2020), in 4, 2-part segments, from 9:00 a.m. to 1:00 p.m. Eastern Standard Time.  Here’s the schedule of the online classes:

Sessions 1 and 2, Saturday, February 1, 2020; 9:00 a.m. – 1:00 p.m. (EST)

Sessions 3 and 4, Saturday, February 8, 2020; 9:00 a.m. – 1:00 p.m. (EST)

Sessions 5 and 6, Saturday, February 15, 2020; 9:00 a.m. – 1:00 p.m. (EST)

Sessions 7 and 8, Saturday, February 22, 2020; 9:00 a.m. – 1:00 p.m. (EST)

I have revised the COTA to take the purpose of the workshop out of the “business model mode” and craft it into the “consumer mode” for the purposes of giving you a basic education into the realm of document identification and research.  Click the following link to leave your email address in the blank space provided and the Registration Form will be emailed to you.  Once you are enrolled in all four sessions, you will be able to access the online workshop presentation (as it will be recorded for future use) on the Clouded Titles website!

The Definition of Insanity Needs to Change in Your World!

I can tell you with a certainty that mine has!  In fact, I use COTA research to make money in my real estate investing.  Had homeowners going through foreclosure been thinking about Plan B instead of trying to fight the inevitable losing court battle ratios, America might have had better case law than what it has now.  With the banks creating as much negative case law against homeowners and as tilted as the system is against borrowers who don’t pay their mortgage payments, it’s time to change your mindset and use the COTA to your advantage.  My workshop strategies have now shifted into the realm of COTA use to make money to survive instead of defending your home in a losing battle.

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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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