Tag Archives: DTCC

IF YOU THINK THE DECK IS STACKED AGAINST YOU IN A FORECLOSURE, YOU’RE RIGHT!

Op-Ed!

It pains me to have to read some of the posts on this blog, because I see that foreclosures are starting up again and many people are finding themselves without a clue as to what their odds are if they decide to fight, or not.  To that end, I’m posting my “Top 10” observations (not legal advice) here:

  1. You are not alone in your fight. Know that other homeowners are also considering the same options that you are, whether to “fight” or “flight” (run away, which 95% of homeowners do, spineless wimps).
  2. You will have to get rid of many ill-conceived misconceptions. Because we live in the “Age of Entitlement”, everyone thinks: (a.)  the bank did me wrong; and (b.)  I deserve a free house.  Wrong! You signed a contract and a security instrument!  No one held a gun to your head!  They dangled “the carrot” and you bit into it, hook, line and sinker!  You have to have a “Come to Jesus” meeting with you and your family and chuck all of these preconceived notions because without an open mind, you will dig yourself an even deeper hole!
  3. You have to understand that judges are homeowners too. Most of them probably still pay on a mortgage. This means you will have to understand how to overcome the conjecture and speculative arguments and derogatory comments that the bank’s attorneys (who have had years at this to perfect their craft) will make in court to sway the emotions of the judge.  You borrowed the money from someone, but maybe it’s not just “that guy”, your Honor.
  4. You at least have your day in court if you live in a judicial foreclosure state.  It really pisses me off when homeowners don’t show up in court and least say something!  You have your day in court as mandated by law, but sadly, 95% of homeowners freak out and run away.  The banks are counting on this. So are the courts. It’s a numbers game folks.  The less cases that judges have to hear, the better.  They know it.  I know it.  But you won’t know it if you don’t at least show up and say something!
  5. If you live in a non-judicial foreclosure state, you have to initiate proceedings to stop the sale of your home!  This means you either have to have a lot of time on your hands to do research or you will be like most of the 95% of homeowners who do nothing and wait for the county sheriff to show up and put you (and your family) to the curb.  Filing a Notice of Lis Pendens does nothing but “gum up” title temporarily.  Filing that means a “suit is pending” and if there is not suit, you filed a fraudulent document in the land records that could land you in jail, where you will do no one any good, especially those who depend on you for survival.  You are the Plaintiff and only a temporary restraining order will stop a foreclosure sale!  The burden of proof is on you unless you know how to turn the tables on the bank.  This is a fact, not legal advice!
  6. When it comes to foreclosure, apathy reigns supreme!  I have never seen a situation more tenuous where people become so in denial about life.  Instead of doing something about the scenario when it presents itself, many people go into this “woe is me funk”.  As a responsible American homeowner, that is really messed up.  Buying a home is one of the biggest, major decisions you will make in your life and most homeowners bit off more than they could chew (when credit was so readily available).  The banks are not all to blame.  They are crooks (true) … and I don’t trust them.  It’s bad enough that this election cycle gives us so little (the lesser of two evils) to choose from, but to have the banks controlling all of the behaviors of Congress and our presidents for the last two centuries is so appalling and what’s even more damning is that homeowners who have the power of the vote, do nothing.  So when you’re left with few choices in a time like this, remember, the collective body politic voted to set the system up this way.  The “system” has no mercy for those who think they’re “entitled” because someone else has to pay for it.
  7. The second wave of “foreclosure fraud” starts with unscrupulous foreclosure defense attorneys!  They’re out there and these are the types that want to make you their “monthly annuity”.  Foreclosure defense is big business and if you’re going to make monthly payments to an attorney to stave off a foreclosure, you’d better have an “end game”.  The real attorney will demand you have an end game before even taking your case and if you don’t have one, you’re likely to end up on the street anyway.
  8. Most people don’t even have an “end game”!  This is even more sad in a land where we have lots of hidden opportunities.  What I did when I looked at my own scenario, which I discussed in my book Clouded Titles, was to: (a.) examine my finances to see whether I could fight a foreclosure in the first place; (b.) look at my other options as to living scenarios (I had a rental property I could move into, which was becoming vacant, which made my choice easier); and (c.) I had to look at what if any equity I was giving up.  Most people took out 30-year mortgages.  I find 30-year notes to be a waste of time and money (in interest, which makes most of the 30-year period giving up little equity; just like renting).  I only do 15-year notes if at all anymore.  If you can’t afford the 15-year note payment, then rent! You may find yourself having a large yard sale and liquidating what possessions you don’t need and then using those proceeds to find yourself other “opportunities”.  The opportunities are there if you’d just look for them and stop whining about the dilemma you’re in!  If you think things are “hunky dory” right now, wait until the sheriff shows up and moves you out on the lawn.  Watch the “99 Homes” movie trailer if you want a real vivid picture!  (I still can’t watch it without tearing up and getting an aching feeling in my gut!)
  9. BOTH SIDES of the political aisle put this whole thing into motion!  If you think that either political candidate for president is the “right one”, think again.  When’s the last time you studied the Constitution?  If you read the manner in which the Founding Fathers set this country up, you would understand that Congress makes the laws, NOT the president.  Sure, the president may “influence” what laws get propounded, but the president’s job is to “enforce the law”, as the Chief Executive.  Congress voted to repeal the Glass-Steagall Act, not just one side or another.  The two-party system has failed us folks!  Your average congressperson is the bank’s “bitch” and has been for quite a number of decades!  The only way to stop this is to do what California and Illinois are doing to Wells Fargo Bank now … change banks!  The mega-banks got us into trouble in 2008 and nothing has changed.  Servicers are still robosigning documents and foreclosure mill attorneys are “in it up to their necks” in fraudulent documents in their reliance of such to steal borrower’s homes.   The whole thing has turned into one big criminal RICO issue and MERS is the platform, the business model, that facilitates it!  When homeowners wake up and smell what is really going on, AND DO SOMETHING ABOUT IT, then things will change, not until.  I moved all my money and investments out of the major banks, why aren’t you doing that?   The big banks are your enemy!  The faster you realize this, the better.
  10. It’s hard to be right when the government is wrong!  The government bailed out the banks.  This was all an artificial ploy upon the American taxpayer anyway, as the banks paid the government back.  Those who screwed the government out of TARP funds are being (or have been) prosecuted and put in jail.  The government is in bed with the banks, otherwise, you wouldn’t have 12 USC (Banks and Banking) passed as law.  The banks are the most heavily-regulated industries in the country, but we disrespect ourselves when we stoop so low as to “borrow money” from them and dig ourselves in over our heads and makes ourselves destitute (by design).  Those who borrowed to pay for their education are now financial “slaves to the rhythm”.  Sorry, but the government’s answers to everything are Hegelian in nature and were put there to make you a slave.  I can’t help it that you didn’t do your homework!   No one taught you any better.  No one taught you finance in school.  No one told you that you had to read the damned documents at the closing table before you signed them and if you didn’t understand what you were getting yourself into, then it’s on you. However, the government allowed this mechanism to be put into place for a reason.  This is why Snowden is now in Moscow.  The only person who can change their life destiny is YOU! 

The other side of the coin with Wells Fargo?  I wonder … given the 2-million or so phony accounts they set up … how many mortgages did they rehypothecate?   Congress hasn’t even started looking into that.   Chase has a patented template for creating “ghost accounts” ( jp-morgan-chase-rehypothecation-2 ) … makes you wonder what’s really inside the databases of the DTCC and Cede & Co. huh?  I know from talking to other homeowners that dummy mortgage loans have been set up too, not just bank accounts.  Maybe Congress is turning a blind eye, maybe they’re just ignorant.  Don’t blame me. You elected them.  And this is why I don’t trust banks!  You are a fool if you think that your money is “safe and sound”!

So, the bottom line here is … not everyone’s strategy is the same as everyone came from different walks of life, has different resources available to them and can think clearly under pressure.  Put all your fears aside and analyze your scenario and come up with an “end game”.   I don’t want to see you end up in a tent city.

 

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CONNING THE CASH-STRAPPED CONSUMER: STATES & FTC TARGETING AUDITS

The author of this post conducts forensic examinations and chain of title assessments at the request of homeowners, when necessary, for use in case development. This posts seeks to clarify today’s issues in a world of “promises” that mislead homeowners.  It also seeks to identify issues where foreclosure defense law firms are also being targeted because of their involvement with such audits.  The author is also a consultant to attorneys on various mortgage foreclosure defense issues. 

It is no secret that tens of millions of homeowners got into trouble with predatory home mortgages.  Tens of millions of them have MERS-originated Mortgages.  If you asked the average mortgagor on the street if they knew what a “MERS-originated Mortgage” was, they couldn’t tell you.  They don’t know because they weren’t told at closing that the “funds” they were receiving to buy their (generally over-appraised) home may NOT have come from the source named on their Mortgage or Deed of Trust.  Instead, the MERS® System was used because the borrowers’ loans were securitized.  This “system” was created specifically for that purpose (to track the sale and transfer of loans electronically, in a MERSCORP-owned database, with no regulatory oversight).  You can’t believe everything you read either.  Due diligence is required here.

I do not see either the federal or state governments coming out and educating homeowners on the subject of MERS-originated mortgages and securitization.  Nope.  People didn’t start finding out about securitization until 2009, just after the foreclosure mess was revealed in the media.  Then there was the bailout.  People didn’t understand that either.  People didn’t understand that the banks made some $53-trillion in credit default swap bets.   In 2009, even most attorneys looking at the “bigger picture” for the first time didn’t know what credit default swaps were.  Only the learned on Wall Street knew what they were and how much money was made.

If you ask the average person who Cede & Company is … or Depository Trust & Clearing Corporation … you’ll never get a solid answer because people still don’t know the real truth. Many are still investigating entities like these because they believe (as do I) that they (as Borrowers) actually do have something to do with the securitization scheme.

Simply put, without the Borrower’s monthly mortgage payment, the payout to investors on the other end of the securitization chain fails.  How much simpler can I make it?  The scheme needed the Borrower’s payment to work, otherwise, the investors wouldn’t get paid.  Turns out many of them didn’t because many of these REMICs (Real Estate Mortgage Investment Conduits) failed.  I personally believe that ALL of these REMICs actually contain NOTHING!  … and never did!  Ever!  It’s a paper trail that leads nowhere, except maybe to some back-end accounting.  If this accounting were ever truthfully exposed, a lot of people would be going to prison.  It would make the Enron Scandal look like a Sunday school picnic.  Now you see whose side the government is on here, because it sure isn’t the homeowner.  In fact, practically any settlement done by the 49 States Attorney’s General and the Department of Justice ended up going to them, not the affected homeowners.  The settlements left homeowners “hanging out to dry” except for private rights of action, which cost money.

People didn’t find out about fraudulent document manufacturing until 2010.  By the time the federal and state governments stepped in do to anything about these scenarios, it was 2012, February to be exact.  The OSCEOLA COUNTY FORENSIC EXAMINATION c0nducted by DK Consultants LLC revealed that the practices that the servicers agreed NOT to do back in 2012 is still going on, on a much larger scale.

Prison is the only thing these people will understand.  Good luck with that idea. Look who was running the Attorney General’s office at the time.  And do you wonder why the government picks and chooses WHO it intends to prosecute as well as WHO it doesn’t?  Here’s one “inside look” at the scandal.  Imagine how much money in retainers Covington & Burling makes.  They’re the DC law firm that has MERSCORP for a client.  The former U. S. Attorney General, Eric Holder, is back in the saddle over at C&B now.  His move back to C&B (with sidekick Lanny Breuer) kind of resembles the same iconic revolving door at the SEC by Wall Street investment bankers.  Breuer’s comments are featured in the back end of the link, “inside look” (CBS 60 Minutes video).

God forbid that homeowners should be looking for answers to their questions.

They’ve been brainwashed into believing that they need to consult an attorney.  Attorneys cost money.  Attorneys rely on their paralegal staff to conduct research.   Many paralegals do not even understand the fundamentals of the securitization scheme.  Thus, outside entities who have focused their efforts on securitization and forensic analysis issues of mortgage loans (which include former mortgage loan officers) were retained to investigate the mortgages and deeds of trust in an effort to garner information on which to build a case favoring the homeowner.

Even foreclosure defense attorneys have been and are being continually attacked for representing homeowners. 

This was just posted by Scott Stafne on the Academia download site: 2015.09.04_Request_for_Production_Response_1

I happen to know (and have talked to) Scott Stafne.  He is a foreclosure defense attorney and a Constitutionalist.  He fights for homeowners.  Despite any “issues” perceived on this document, I think his law firm is under attack because they are successful.   In this report is a link to the Federal Trade Commission.  I tested this link a couple of times and it didn’t work.  I had to explore the FTC’s website to get at it:

https://www.consumer.ftc.gov/articles/0130-forensic-loan-audits

Of course, there are going to be scam artists in every playing field.  This is why consumers need to do due diligence before dropping a dime!

Meanwhile, other attorneys defending homeowners have suffered http://www.kaltura.com/index.php/kwidget/wid/1_guu3tx15/uiconf_id/8700151” target=”_blank”>physical abuse and retribution by the Courts!

But those who are forthright and upfront about WHAT they are going to do for homeowners are also being penalized.   Even if the homeowner fully understands that all the information in the world discovered in any kind of audit may not help them win their case, homeowners want to be informed.  Despite the warnings that this information is for case development, homeowners and their attorneys have gone into court and attempted to offer these reports into evidence; not without repercussions as evidenced in the following case:

101021 – In Re Norwood USBC N GA No such thing forensic audit

This is why I tell homeowners in my Chain of Title Assessment Workshops, which are educational in nature, NOT to use these types of reports in court.  They are working blueprints for attorneys to examine to determine issues of probative value.  Sometimes, they produce what I call “nuggets”.   In every case, a homeowner who has done their research into my firm contacts me.  I do not solicit them.  I have turned many homeowners away because their money could be better spent finding a place to live rather than retaining me to do a report when they can’t afford to retain counsel to look at it.   Every right-thinking attorney (that I have spoken with) believes that homeowners need to have an “end game”.  They want the homeowner to examine all their options, even though the homeowner may be “pissed” and/or “out for bear”, believing they have been defrauded.  In all instances, the budget should come first and spending money you shouldn’t spend should be your first consideration before retaining anyone to do research for you.

Many attorneys I have spoken with have told me that the chain of title has everything to do with proof of ownership of a piece of property and its marketability than any other audit could represent.   All COTAs (Chain of Title Assessments) are customized and do NOT contain graphs, flow charts, or any other “fluff” because they are full-on research papers.  There is no need to take up pages of space talking about generalizations (though we do talk about MERS if it’s involved in the chain of title) because there is so much useful information to be examined by counsel. COTAs DO examine REMICs if they are found within the chain of title because there is generally evidence of “manufactured standing” issues that come to light.

And speaking of audits, Marie McDonnell has just turned over her audit report to the Seattle City Auditors Office.  When it will be officially released in full is undetermined at this time.  We will keep you posted.

In the meantime, anyone … and I mean anyone … contemplating spending money for anything related to foreclosure defense FIRST weigh out their options of where their remaining funds would be better spent.  Understand that litigation takes it toll (stress) on the homeowner.  The family is affected too.  Planned to be outsourced by the lenders and their servicers.  If you have a fight you can take to their doorstep, then by all means, proceed if you have a good case and you are planning to appeal.  Most of the great decisions have come from the appellate level.

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