This would mean you’ve had enough of your mortgage loan servicer!
One of the reasons I write on this blog is also to direct you to my Substack page.
I realize that hundreds of you have subscribed to this page because this blog has been up at just about the time I published my second book, Clouded Titles!
TIPS ON HANDLING ISSUES WITH YOUR SERVICER (posted as a courtesy):
Don’t be afraid to send out periodic QWR’s (Qualified Written Requests under RESPA Section 6).
Any requests for a QWR must go to the servicer’s QWR address … don’t make the mistake many homeowners do and send QWR’s to their general mail stop. They’ll never get answered and they don’t qualify as QWR’s.
In a foreclosure scenario, assume the servicer is trying to reimburse itself, which is why, as part of your DVL (Debt Validation Letter), make sure to ask for a complete file of your escrow account and see how much of it the servicer sends you, especially AFTER the servicers notify you of a change.
You can never see the original note, especially if it’s been entered into the MERS System®, so don’t bother asking for it. You’ll always get a copy, never the original. It’s been shredded!
In Deed of Trust States, be aware that the servicer (not the lender) and its law firm is in complete control of the substitution of trustees! That’s a breach of contract because the Deed of Trust clearly states that the Lender can only substitute the trustee (unless you’ve signed a MERS RIDER)!
In Mortgage States, law firms that send you notices are debt collectors and the specific FDCPA language must appear on their letter in plain English in a notable area of the letter. If you need further guidance, you might wish to grab a copy of my FDCPA book!
In all debt collection cases, if you don’t respond in writing, the party sending you the letter will automatically assume the debt to be valid. If it involves a mortgage loan, you need to research to see whether or not your lender still exists because that originating lender was paid off at closing!
When using QWR’s, don’t hit the servicer with 50 questions. Some foreclosures can purposefully get dragged on by homeowners who send 2 or 3 questions at a time and a month later, after receiving the results, send out follow-up letters in response to the first set of questions, asking for more information. I’ve seen foreclosures drag out 2 to 3 years longer because of QWR’s being sent to the servicers. Read your mortgage security instrument! The Loan Servicers are in complete control after the loan closes!
Don’t be fooled into countersuing closed REMIC trusts. I find the smart homeowners are suing the servicers and their attorneys instead! LOL
Doing case research is probably the most important thing you can do if you find yourself in a predicament with the servicer (alleged default, escrow problems, etc.).
Again, thanks for visiting. I know I haven’t posted here in awhile but it doesn’t mean I’m still not available.
(THIS JUST IN, MAYBE) — How is it that the Trump Administration appears to be headed in the same direction as the “Dubya” Administration in nominating a hedge fund manager to head up the corporate United States (Inc.)’s Treasury Post?
Back in late 2007 and 2008, hedge funds, many of which operated within the residential securities markets, went belly up … but not before the people running them made off (MADOFF, get it?) with not only investor money but also with all of the 10.2-million homes in America that were foreclosed on.
Many of the Real Estate Mortgage Investment Conduits (“REMICs”) made money off of the backs of hardworking Americans in so many different ways, raping pension funds and homeowners of their equities, using the corrupt U.S. (Article I Administrative) Court systems to help them complete their tasks. The banks, acting as trustees for closed REMIC trusts, filed foreclosure actions by the thousands every month, knowing that the homeowners and their attorneys had zero knowledge of how to respond with affirmative defenses that actually made sense. Out of all of the foreclosures that were filed, only 1 out of every 200 foreclosures ended up being dismissed. The other 199 foreclosures were due to people packing up their belongings and vacating their residences, which made it so easy for the banks’ servicers to acquire real estate.
Even though there are certain laws that say the banks aren’t in the business of holding real estate, there are no provisions that dictate that mortgage loan servicers can’t own and dispense with those foreclosed homes. There is enough evidence out there to demonstrate that the entire Treasury Department is a sham on America because the Internal Revenue Service, a separate corporate brand of U.S. Inc.’s Treasury Department, won’t investigate the foreclosure thefts that continue to manifest themselves across America because the REMICs could be penetrated and tens of billions of tax dollars collected; however, with the servicers running their con game behind the scenes, no one is the wiser.
In fact, there are enough hedge fund profits out there to upright our nation’s entire tax debt! But the IRS won’t do its job, no matter how much We the People bitch and complain.
And just like the Bush 2 administration, when the foreclosure cycles were at their peak, hedge fund manager Hank Paulson headed up the Treasury Department. Now we have another hedge fund manager getting ready to take the driver’s seat, post-confirmation. Could America be in for another property takeover?
Imagine how a private banking cartel called the Federal Reserve System (Bank), whose chairman can pretty much screw over America with high interest rates to stifle the real estate market by design. Compare today’s foreclosure cycles with those from 2008-2016. While today’s figures pale in comparison with their previous cycle, over 400,000 Americans will have either lost their homes by the time the clock strikes 12 and the ball drops over Times Square or will be pretty damned close to it.
As the economy continues to reel from the past four years of a tax-and-spend government, the Biden Administration continues to give away leftover Congress-appropriated funding at breakneck speed before he has to leave office, while sending more U.S. munitions to Ukraine to further piss off Putin.
This author is convinced that there is nothing more than the old man in the White House who has lost his marbles would love to see nothing more than World War Three in full fruition before he leaves office. Just another mess for former President Trump to clean up. But then Mr. Trump has to nominate Scott Bessent, a hedge fund manager from Key Group, to the post of Secretary of the Treasury? Seriously?
Ye Shall know them by their fruits … and the next 12 months (starting January 20, 2025) are going to spell out clearly whether America’s economy is going to survive or we’re going to see massive foreclosures that will rival Bush 2’s clean-out of the U.S. economy. If interest rates stay high, people will refuse to borrow. The number of Chapter 7 bankruptcies will continue to rise, especially in the 60+ crowd. GenZ’ers will not be able to do anything but move back in with their parents and while making their parents’ lives miserable with their bellyaching, the family unit will continue to struggle.
The most recent survey of folks making over $100,000 a year are still living paycheck to paycheck. In order to be successful in the United States, the average person (statistically) needs to be making over $270,000 a year in order to meet their desired level of success. In net worth terms, according to the report, the threshold for success is $5.3-million. Okay, good luck with that.
According to the Fed, the average net worth of a family in 2022 was $1.06-million. And how much of those families had bonds generated with their personal identifying information on Wall Street before they went to the closing table and encumbered their equity with a home mortgage or equity loan?
As this author stated before, a $500,000 mortgage loan nets the securitization industry $7-million … and even more after the servicer forecloses on the homeowner. In order for the entire industry to crash out of its insanity, every homeowner with a mortgage or securitized credit card or auto debt would have to file a Chapter 7 bankruptcy and discharge all their debt … and be left with nothing … because the proofs of claim filed in bankruptcy court would all be servicer-driven (which is why the mortgage loan servicing industry is so extremely profitable) would seek lifts of automatic stay. This author just wonders how many homeowners filing Chapter 7 will seek to repudiate all of the financially-related contracts they signed since they got into the world of securitization (all the way back to 1999).
Do you think that will ever happen? Or will Americans continue to be slaves to the rhythm? Keep your eye on the calendar, the Senate confirmation hearings and the 2025 calendar. This isn’t going to be a pretty picture and you’ll be lucky to survive it.
(BREAKING NEWS) — With an anticipation of an estimated 300,000 upcoming foreclosures in the Golden State (California), Redondo Beach, California attorney Al West has launched a Foreclosure Relief – Defense Seminar, slated to be held this Saturday, January 28, 2023. See the details below:
The CloudedTitles.com website registration has now been activated. There are still seats available for the upcoming seminar. You can access the Syllabus and the Registration Form below (as well as on the website itself):
Currently, there are 13,539 active foreclosures in the State of California. Currently, there are over 2,800 active foreclosure sales scheduled in the State of California. Many of these foreclosures involve REMICs and their connective mortgage loan servicers (who are really doing the dirty work in an attempt to unjustly enrich themselves). This is not an uncommon scenario and you can anticipate that with the current election cycle behind us (not the “Red Wave” you were expecting) and the challenges thereto, there will be more political infighting as well as a serious uptick in foreclosures across the entire nation as inflation causes mortgage loan defaults and subsequent foreclosures; thus, it’s time to prepare NOW, BEFORE you go into default (or are in anticipation of being in default soon).
The material discussed in this workshop regarding the Homeowners Bill of Rights is specific to the State of California; however, the balance of the material discussed can apply to all 50 states. Based on the low cost of attending this Seminar, you may wish to consider attending. There are only 150 seats available for this event, classroom style. You can look for future discussion of this event on the Republic Broadcasting Network and The Power Hour.
If you wish to reserve a seat in this 1-day event, you should contact Dave Krieger directly at (512) 718-9604 after 1:00 p.m. (CST) Monday-Friday and reserve your seat with a credit card or go to the Clouded Titles website and click on the link to register through the shopping cart. The basis for attendance at this Seminar is first-come, first-served. For those concerned with COVID-19 restrictions, there are none at this workshop (no jabs or masks or social distancing required). There are restaurants in the host hotel and you get a free, made-to-order breakfast with your hotel sleeping room booking. For a more detailed explanation of the event, please read through the attachments on this post before contacting us about attendance arrangements.
Here we go again … another case in federal appeals court … another recognized attempt by a homeowner that failed when applied to the Spokeo v. Robins case handed down by the United States Supreme Court, 578 U.S. 330 (2016). See the case below:
While the case specifically denotes cases applicable to the Fair Credit Reporting Act, it has been judicially recognized in all 50 states as being the benchmark for proof of injury and raises the bar for such.
The case in chief is Foster v. PNC Bank, N.A. and wouldn’t you know it … Spokeo got tossed in for good measure because the homeowner (Foster) relied solely on his affidavit and couldn’t prove causation. See the case below:
To get to the nuts and bolts of Spokeo and how it was applied to this case, see pages 10-11 of the Foster ruling.
Page 11 of the Foster ruling clearly identifies that Foster lacks standing because the injury he is trying to prove happened is not fairly traceable and under Spokeo, it has to be an actual injury-in-fact! There’s no getting around this if you want Article III standing to pursue such a case.
It looks as if this case could have been done pro se. Most pro se cases fail because of 3 reasons: (1) lack of understanding and application of the Federal Rules of Civil Procedure; (2) lack of understanding of how case law should be applied; and (3) evidence based on emotion and not facts supported by evidence. Once you clearly read this case, you might understand why the author of this post thinks that way.
NOW … Why can’t Spokeo be applied to foreclosure cases?
Why can’t homeowners make the bank or REMIC Trust prove it suffered a concrete injury-in-fact under Spokeo? That question posits multiple answers because there is specific contract law involved.
Based on paralegal-level research, bringing any kind of claim against a creditor should be entertained BEFORE the real problems begin (like getting a notice of default). This author blames homeowners for not constantly checking their public land records for suspect documents, especially in the cases of REMIC trusts, wherein third-party document mills generally crank out manufactured documents that attempt to memorialize when a particular loan (mortgage or deed of trust and note) was actually conveyed into a REMIC trust pool. Sadly, most of the documents creep their way into the public record just before the foreclosure starts. And no one finds that just a little suspicious?
Even more unfortunate, because of the way the deck is stacked in court, judges don’t like giving homeowners free houses just because they come running and screaming into court with a two-dozen (or 200) page complaint, filled with emotion, conjecture and nothing concrete to back it up with, or, in the alternative, attempt to use all that wasted space to try to educate a judge towards their point of view with no attached exhibits or any other evidentiary process to back it up. This author has seen this in hundreds of cases he has reviewed, even by attorneys who thought they were good foreclosure mill attorneys (they miss stuff too)!
The key here, especially in REMIC trust cases (most of which are formed in New York or Delaware), there are commonalities that typically get overlooked and case law can and should be applied whenever possible to support whatever argument is being made. Unfortunately, many pro se litigants miss that opportunity and just continue to rant because they think they were unfairly treated by their mortgage loan servicer, who is the real party behind the foreclosure … not the closed REMIC. What? The REMIC was closed? When?
Does anyone bother to read the REMIC’s 424(b)(5) Prospectus and attempt to tie information into their cases? This author hasn’t seen much evidence of that lately because attorneys dealing in foreclosures believe the judge doesn’t care what happened to the loan if it went into a REMIC trust. This is where knowing how to pick your battles makes all the sense in the world. The Prospectus analysis in of itself can be extremely daunting and time consuming, unless you know where to look. Then you have to apply what you’ve discovered to your discovery to make sure what you think you know can stick in a court of law. It’s called securitization failure.
The bottom line however, is whether the REMIC settled with its investors at any point in time in its history or whether the mortgage loan servicer actually performed under the Prospectus agreement and made the payments of principal and interest as identified under the ADVANCES section of the REMIC’s own governing regulations. If the payments were made by the servicer (whether the Borrower paid them or not) … then who has suffered actual Article III concrete injury-in-fact under Spokeo. There’s the rub.
If the servicer has been paying the certificate holders and the action is being brought on behalf of the certificate holders based on borrower default … how’s that possible? The servicer has paid the monthly payments to the certificate holders, so where’s the concrete injury-in-fact? The borrower isn’t in default if this is happening, are they? Who brings that up in court? Who asks the court to determine an injury-in-fact? Hmmm.
Because the bank is trying to foreclose, the courts automatically assume they own the loan; otherwise, why would they be filing a foreclosure action in the first place?
There’s the other rub. If the case involves a REMIC trust, this author believes with a certainty that the mortgage loan servicer is playing “lender” and claiming it has the right to foreclose when it can’t prove actual concrete injury-in-fact based on contract law because it doesn’t have a contract with the homeowner. Yet, bank’s attorneys come into court and misrepresent those facts all the time in an attempt to create standing for a fictitious plaintiff (one that no longer exists in most cases).
Yep, none of this seems fair, does it? But, as any good paralegal can tell you, all of our collective work is research and if you don’t take the time to do it, you can’t prove anything and your case is dead in the water before you even get started.
Then there’s the other faux pas … suing everything under the sun because they’re identified with the REMIC. Example: MERS. Big waste of time. MERS is owned by the same company that owns the NYSE. Where do you think you fit into that financial scheme of things. MERS has more money than any pro se or attorney-supported litigant out there and will outspend you and give you nothing. Besides, from a paralegal’s standpoint, it adds well more to the costs of processing a case because of service issues, actual service of process, filing responses and memorandums for every single defendant named. So what if MERS was used to electronically facilitate the transfer of securitized mortgage loans. Case law on MERS is so diverse and scattered among the states and federal circuits even the U.S. Supreme Court won’t entertain looking at MERS-related cases 99.9% of the time.
Declaratory Relief Actions
This is why this author likes declaratory relief actions. While these types of actions are discretionary at the federal level, state court judges will normally entertain them. You’re asking for a determination on a question, not a final ruling. To get to the final ruling, you have to have your questions answered, enough to prove your allegations contained a factual basis, as determined by the court. This paralegal and consultant always sees better results when dec relief actions come early and go after specific targets and not just a bunch of ballyhoo on paper. Since most judges are being ordered to clear dockets, does your case really belong in foreclosure court where all the judge sees you as is a deadbeat? Or would it be better if you were in a county court of law where the judge wasn’t occupied with foreclosure as the main issue? This author has seen successes with the latter of the two modes.
Yet homeowners wait until everything is “around their ankles” before they act. The author blames this on the lack of legal education. Spokeo (since its 2016 ruling), has been wielded like a two-edged sword, mostly in favor of the lenders. In closing, this means one would have to spend serious time doing research and digging up the facts to build an actual case. Spokeo is law. Spokeo is not emotion. People would do themselves a big favor by studying the law, especially tort law. Prosser and Keeton on Torts, 5th Edition would be a great start.
The author is also nationally-syndicated talk show host on The Power Hour.
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