Tag Archives: REMIC

REAL ESTATE AGENCIES, TITLE COMPANIES GEAR UP FOR MASS FORECLOSURES … UPDATE!

(BREAKING NEWS, OP-ED) — The information being offered in this post is current as of October 21, 2020 as of 12 noon Eastern Daylight Time and should be considered as to reasons why the foreclosure crisis is imminent. Any opinions offered are the author’s and do not constitute the rendering of legal advice. This post is for educational purposes only.

UPDATE: The webinar was held by a spokesperson for the Fidelity National Title Group (FLORIDA) at 11:00 a.m. EDT. Here’s what came of it all:

(1) FNTG’s “Agent Advantage” presentation was appealing to agents to become REO “handlers” of properties that are likely to face foreclosure, especially after the 1st of January. Homeowners that are in default with government-backed loans are going to get 120 days notice prior to the acceleration of the note. Those who don’t cure their loans will find themselves in the middle of a foreclosure proceeding, whether in a judicial or non-judicial format.

(2) Despite the fact the webinar was geared more toward Florida foreclosures, there were several key items of importance … especially where the title company downplayed what might happen if an REO-type Realtor® were told by the bank to go inspect the property, either by drive-by and/or personal knock-knock … the spokesperson used the language, “they might let their pit bull loose” or something worse, without saying that the Realtor® might get their ass blown away by a pissed off homeowner with a shotgun that doesn’t feel like leaving because they’re scared they’ll get COVID-19.

(3) All of the asset management companies that went away because the last foreclosure crisis dried up are now going to start popping up again and the spokesperson gave several locations of where to find these scalawags when they manifest themselves.

(4) If you’re a tenant, the U.S. Government says you have to be given a 90-day notice to quit. In the alternative, the bank might let you ride out your lease as long as you pay the bank your rent money. Heck, you might even make the bank an offer and finance the property out of the foreclosure!

Part of the issue here is that due to the pending foreclosure crisis … and I believe (in the first person here) that you are being given sufficient warning to understand that there will be a crisis … it’s just a matter of WHEN … how can you liquidate properties that are actually insurable when the titles to most of these properties are clouded? (I could have used another more definitive expletive to describe title conditions but I won’t … you get the picture.)

I believe the investor community will come out in full force looking for bargain basement opportunities to score on what may turn out to be another rash of shadow inventory flooding the market. In order to meet these demands, real estate agents must know how to deal in Real Estate Owned (REO) properties and how to process them, whether it be through short sales or actual seizure by parties that might not be entitled to take them. To that end, real estate companies that handle REO properties are going to be looking to hire (retain) additional agents to handle this mess.

Further, title companies have to issue policies covering the defects in title if these REO’s are going to be liquidated. The problem is … they can’t … not without a Schedule B exception. This means if an investor acquires the property that has been taken “hook or by crook”, chances are he’s going to get a quit claim or special warranty deed that exempts the alleged “grantor” from all liability connected with the purchase of the home, which in essence means that the only thing the home can be used for is rental income, at least until enough time passes when a title company will insure that property. Whatever the case, it’s going to be a free for all in the REO market.

You can bet the banks won’t be the ones doing the foreclosing either. It will be their mortgage loan servicers, who have been paying all of these delinquent bills on behalf of the borrower to the investors of the REMICs and junk debt pools (like LSF9). These shysters will go to great lengths to make their stories plausible, the likes of which make for a great criminal complaint to the county sheriff.

CRIMINAL COMPLAINTS … FALLING ON DEAF EARS?

In my book, if your State has a criminal code or statute that says it’s illegal to record documents in the land records that contain patently false and misrepresentative information, then a criminal prosecution should result. The problem is, 99.9% of homeowners do not understand what their rights are when it comes to challenging criminal issues. Nope, it’s not a citizen’s arrest. It’s a citizens formal declaration to law enforcement that a crime has occurred and a demand to law enforcement to do something about it.

To my knowledge, dozens of complaints have been lodged with county sheriffs all over the U.S. and nothing is being done. Virtually none of these complaints is being investigated. The excuses?

“We don’t have the manpower to investigate white collar crime.”

“This looks to be more of a civil matter rather than a criminal one.”

“I don’t see any injured party here.”

I’ve heard these excuses directly from the mouths of sheriff’s investigators and district attorneys I’ve met with. Two detectives from Osceola County, Florida actually had the chutzpah to tell me that the items I stated in the Osceola County Forensic Examination were “victimless crimes”.

And California attorney Al West was sitting right there beside me and heard it all, in total shock and disbelief. His comment was, “You guys are way in over your head. This is way above your pay grade.”

This is why you have the power to attack the bonds of the sheriff and the district attorney if they refuse to investigate and prosecute your complaint. The bonding information can be acquired through the County Attorney, County Executive or the county’s Risk Manager. You simply complain to the bonding company that the county violated your due process rights regarding redress of grievances under the Constitution and get your 42 USC § 1983 paperwork in order. Start with obtaining the bonding agent’s name and complete contact information. It may take you all the way into the State’s very own risk pool (a big pool of money used to pay off indiscretions carried out by public officers against the injured) in the form of a Tort Claims Action.

Again, I recall a recent post where I posited two cases, one written by Hon. Amy Coney Barrett, where due process rights come into play if “the other side” uses dishonorable means to prosecute a case:

The other case was a ruling from the U. S. Supreme Court:

What’s just as bad is when a judge goes along with all of this bogus paperwork and thinks that he/she doesn’t have to answer for any defective paperwork, even after being put on notice by the court that he/she could be an accessory to fraud on the court and/or perjury and/or subornation of perjury by the foreclosure mill attorney of any witness put on the stand if he ignores your warning.

This is one of the key items we’ll be discussing in the upcoming Foreclosure Defense 101 Workshop this Saturday (October 24, 2020) from 10:00 a.m. to 2:00 p.m. EDT, which is being offered as a online webinar. Can’t attend? That’s okay. We’re going to make the entire webinar recording available afterwards, so don’t panic … yet. Remember, there is a foreclosure crisis looming and we don’t want you to be a victim … at least not without a fight.

If you don’t know your rights … you don’t have any.

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Letting the banks “get away with it” …

(BREAKING NEWS, OP-ED) — Part of what we’ll be discussing in the upcoming Foreclosure Defense 101 Workshop on Saturday, October 24th between 10:00 a.m. and 2:00 p.m. (EDT) is affidavits … in general … and specifically regarding lost notes and assignments.

To further this discussion, I did some heavy research after seeing a Law.com post about a Pennsylvania “lost note affidavit” case and upon review, found what I was looking for … and the results were shocking!

On Page 2 of this 12-page opinion, the borrower (Rao) mortgaged the property and gave MERS nominee status on behalf of SunTrust Mortgage, Inc. That was in early 2006. Notice the following sentence … “On or around April 22, 2013, SunTrust discovered the note was missing from their vault and David Aken, Vice President, executed a Lost Note Affidavit.” Two years later MERS, assigned the mortgage to MB Financial.

Without looking at the assignment, I’ll bet you the servicer’s employees drafted and executed that assignment and it all followed Rao’s alleged “default” on his mortgage (March 1, 2011). That means it took SunTrust two years (April 22, 2013) to discover it didn’t have a “note” in its vault. Could it be that the note was shredded after it was uploaded into the MERS® System? At the bottom of page 2, MB Financial claimed it was in possession, either “directly or through an agent” of a “Lost Note Affidavit”, maintaining it had the right to foreclose on the mortgage.

Now we go to court … MB Financial’s attorney brought in a witness from SunTrust’s “default” department, attesting to the fact that a “Lost Note Affidavit” existed with a “copy” of the note, which contained no endorsement page. Gee, the author wonders how they got a “copy” of the Note if it was lost … Hmmm. Did anyone bother to ask why that was so? How can you negotiate a “note” if only a “copy” exists?

The bank also submitted a certified copy of the Assignment of Mortgage, assumedly drafted and executed by SunTrust to MB Financial. The trial court sustained Mr. Rao’s objection to the Lost Note Affidavit based on hearsay and refused to allow it into evidence, in addition to the admission of the Limited Power of Attorney.

The confusion begins where Mr. Rao (assumedly through his attorney) first made an oral motion for a Nonsuit and discussing with the judge the difference between a Nonsuit and a Directed Verdict, which the Court then entered on behalf of the homeowner. The Directed Verdict was later changed to a Nonsuit in favor of the homeowner after the bank filed a Post-Trial Motion. The next paragraphs … read them carefully because they contain the “nuggets”, in which the objections were sustained in favor of the homeowner.

Understand that was this entire matter was over was the differences between a nonsuit and a directed verdict and what the evidence could otherwise prove or show. Because the Trial Court precluded the Lost Note Affidavit from evidence, MB Financial couldn’t prove “possession” of the Note. But could it “prove” its case anyway if it only had a “copy”?

This is where it helps to know local court rules (or at best, state rules).

What you’re seeing in this case is the roundabout, typical argument that banks always use in getting their lost notes “re-established” to make them “stick” as evidence at trial. Why then, did it take SunTrust so long to discover it had no note? Was it because it wasn’t until after 2011 that Rao didn’t pay his mortgage loan and someone went looking for the documentation? Why did it take so long to discover the original note wasn’t part of the collateral loan file? The Superior Court ruled that as long as the witness can “provide sufficient information relating to the preparation and maintenance of the records” to justify their trustworthiness, they should be allowed into evidence as business records.

However, there is no mention of proof of the default. Since MERS was involved, the note had to have been securitized into a REMIC trust, which was commonplace during that time. The author sees no evidence of any default argument here, but rather, a business records exception argument.

Also notice that the Court declined to analyze whether the contents of the Lost Note Affidavit complied with the statutory “sufficiency requirements” and reversed and remanded the case for a new trial. That means MB Financial “gets another bite at the apple”.

And this is why we’re going to cover the affidavits per se in our upcoming workshop. The basis for creating an affidavit is personal knowledge and how and when “things” got lost, stolen, misplaced … or even created in the first place!

You can sign up for the workshop on the Clouded Titles website!

The author of this post is not an attorney and offers this constructive analysis for educational purposes only.

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TEXAS GOVERNOR UNDER FIRE FOR CLOSING NIGHT CLUBS … AND OTHER STUFF, INCLUDING FORECLOSURE NEWS!

(BREAKING NEWS – OP-ED) — I’m including the latest breaking news, including foreclosure-related cases, for your review and rumination. 

News from the Lone Star State …

And the misinformation and disinformation continues, despite Texas’s Lt. Governor Dan Patrick telling Dr. Anthony “Flip-Flop” Fauci to shove it on FOX News.  See the video interview with Laura Ingraham HERE!   After seeing the number of patents Fauci has and will benefit from, you can certainly see my disdain in giving him a nickname, since he seems to be the “giant zit” on the rectum of all of the fecal disinformation that got everyone at each other’s throats (someone hand me another piece of ass-wipe … I seem to be out … everyone’s beat me to the supplies again).

The Texas Bar and Night Club Alliance filed a class action lawsuit, the second suit filed this week against Texas Governor Greg Abbott, for taking discriminatory actions against night clubs, claiming they’re hot spots for COVID-19.  The suit asks for $10,000,000 in damages and states that Abbott should have given the bars more than 24 hours notice before ordering them shut down, which was not the case this time and the lawsuit maintains that Abbott is abusing his emergency powers “without proper legal notice.”   The bar industry in Texas alone employs over 800,000 workers.  Florida’s clubs have also been shuttered unless they serve food more than 50% of the time.  In both states, salons and spas have been allowed to reopen, where bar owners claim the social distancing rules go right out the window because the salon stylists are touching the hair, scalp and face of the clients, regardless of whether they’re wearing a mask or not.

News from the Pot-Smoking, Open Carry, Gun-Toting State … 

Meanwhile, in Colorado, one restaurant owner defied her state’s lockdown orders, keeping her restaurant (which serves alcohol) open and fully running.  Lauren and Jayson Boebert kept Shooter’s Grill open despite a sheriff’s cease and desist order.  This isn’t an ordinary bar and restaurant either. It’s located in Rifle, Colorado:  CLICK HERE TO GET YOUR MIND BLOWN! 

The significant thing about the owner, Lauren Boebert (a Florida native), is that she just defeated a five-time GOP U.S. Congressman (incumbent) in the 3rd U.S. Congressional Primary in Colorado … CLICK HERE FOR THE VIDEO!  The 33-year-old restauranteur and mother of 4 faces off against Democratic challenger Diane Mitsch Bush in the November general election.  It never ceases to amaze me how the mindset of America is changing more in favor of not only protectionist as to a country, but protectionist as to its people.  Well … if you don’t know your rights, you don’t have any.

Just in case you missed it … 

For those who missed Friday night’s broadcast with Dr. Judy Mikovits on City Spotlight – Special Edition … you can listen to the broadcasts (both of them) under the Show Archives (under the FES Banner) for FREE, on the CloudedTitles.com website! You can’t make for a great argument against Flip-Flop Fauci without knowing the science!

In other related QAnon-type news … 

On yet even another note … this is a 45-minute video you might want to partake in if you have a bit more time: WATCH HERE! (It’s still on YouTube! WOW! … I got this video from one of my old school chums who’s an attorney in California!).  

Meanwhile, have you noticed that Bill Gates has been quiet of late and they just arrested Jeffrey Epstein (who didn’t hang himself)’s sidekick, Ghislane Maxwell?  Are we draining the swamp or what?  1, 2, 3, 4, 5 … senses working overtime!  (thought you might like to take a break from the “heavy” in favor of some happy music)

In foreclosure-related news … you’re going to love this case! 

In this instance, the alleged REMIC trust, which is nothing more than a glorified administrator for a cesspool of defaulted loans (and not really a REMIC), got its butt kicked in the Maine Supreme Judicial Court.  Read the case here: Wilmington Trust NA v Berry, 2020 ME 95 (July 2, 2020)

This is why you have to be sharp forensically, especially when it comes to the Rules of Evidence.

Let’s move up to the federal level, with another FDCPA “published” win for the homeowners! 

In this case, the Consumer Financial Protection Bureau even got involved, submitting an amicus brief in a state whose courts just hate whiny homeowners.  Read the case here: Bender v Elmore & Throop, PC, 4th App Cir No 19-1325 (July 2, 2020)

And this is why we have Courts of Appeals … because U.S. District Court judges always seem to be pro-bank, pro-debt collection agency, pro-whatever as long as they get to play God for 15 minutes. Patience is more than a virtue, especially when it comes to an FDCPA claim.

And when both the lower court and court of appeals seem to play “pin the tail on the donkey” with your rear end, there’s always hope in the Supremes! 

And for yet another whammy involving Rules of Evidence, the hearsay rule and why it’s sometimes necessary to take the matter all the way up to a state Supreme Court, check out this case: Jackson et al v HFC III et al, Sup Ct Fla No SC18-357 (July 2, 2020)

And in my final stab at First Amendment freedoms … see the latest case where a high school went after a cheerleader-reject after she wrote “Fuck Cheer” on a Snapchat post … (hint, hint … the cheerleader won … go team!).  The amazing thing is this case was precedent setting …

B.L., a minor vs. Mahanoy Area School Dist, 3rd App Circuit No 19-1842 (June 30, 2020)_Precedential

But for all the headaches and legal expenses incurred by mommy and daddy, I would think it’s better to control one’s emotions, especially on social media, unless you’ve got a big bank account and a serious axe to grind.

So much for a bit of light reading, eh?

Happy 4th.  Stay safe.

Celebrate your freedom … while you still can!

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PREPARING FOR THE FORECLOSURE ONSLAUGHT

(OP-ED) — The author of this post is a paralegal and trial consultant on quiet title, foreclosure and document challenges and does not offer the following information for anything but educational “intake” value; thus, none of this should be regarded as legal advice nor relied upon without the advice of competent counsel.  

THE TIME TO PREPARE IS NOW!

Understand that my postulations on this blog serve as warning signals for “how to head ’em off at the pass” and my notions are served by supporting case law.

I consider Rhode Island to be a hopeless case when it comes to MERS-related cases.  Anytime you want to argue what rights MERS has to do anything in front of a Rhode Island Superior Court judge, you may as well just turn around, bend over and let him … (insert your own imaginative deviations here).

However, on occasion, a case will come up where judges’ deviant behavior is called out by their state’s Supreme Court and I make note of the following case as it relates to other matters you should be looking out for at the inception of the alleged “bank” behavior in its attempt to start a foreclosure action:

Woel v Christiana Trust et al, Sup Ct R. I. No. 2018-347 (June 2, 2020)

The very basic tenets of a foreclosure involve “notice” and what constitutes proper notice.  Many things come into play in this 16-page opinion; however, despite the rantings of the mortgage loan servicer in this opinion (Selene Finance), the state’s highest court vacated the Superior Court judge’s for summary judgment in favor of the alleged REMIC.

Preparation for the onslaught by your alleged “note holder” involves some deliberate planning:

  1. Get out all of your mortgage documents and read them, especially the part where the default and any related notices to you come into play.  If notice does not comport to the terms of your mortgage or deed of trust, your focal point becomes attacking THAT flaw, not everything else.  The foregoing case illustrates that.
  2. Obtain copies of all recorded documents NOW!  You get them from your county land records. Do not wait until you start getting notices from your mortgage loan servicer and go into a state of panic or denial and hit the “pause” button.  Because of this COVID-19  pandemic, you have the ideal opportunity to get proactive to deal with what may be coming at you head-on when the moratoriums are lifted and the servicers go on the warpath.
  3. Locate any/all Assignments of Mortgage or Deed of Trust.  These become your secondary form of attack.  You will need to analyze them fully and understand what constitutes the basis for your attack.  Come at them in the wrong way and your attack plans will fail. Examining these assignments requires due diligence and intensive research.  Plan on spending an entire day looking up everyone that is named within those assignments and background them thoroughly.
  4. Develop a timeline of your chain of title.  You have to be able to clearly identify WHAT happened during the course of ownership of your home and identify with specificity WHEN it happened and attempt to detail the reasons for such occurrences.  Knowing HOW an entity operates in order to develop suspect patterns is important in your research, so don’t skimp here, on time or details.
  5. Obtain certified copies of all recored assignments as well as “office copies” of all recorded documents.  You want a certified copy of the assignment as evidence in support of your two-pronged secondary attack.  What I will be sharing in the upcoming online Foreclosure Defense 101 Workshop will deal with this step in the process.  Keep in mind that you may have experience in dealing with previous foreclosure attempts.  Many of the defenses may have resulted in successes in your favor; however, also keep in mind that the servicers’ lawyers are going to ramp up the next time and probably won’t make the same mistake again.
  6. Open all mail and especially those certified letters and notices from your alleged “note holder” or servicer.  DO NOT let them pile up on the desk or kitchen counter. Be excited when they arrive.  Be excited when the process server comes to your door.  DO NOT avoid service.  If you do, the bank’s lawyers (who are really representing the servicers) will serve you with Substituted Service and/or when that attempt fails, you get hit with a default judgment, which is as good as gold to the bank!  (This of course, does not apply to deed of trust states!)
  7. Examine any notices you receive regarding the “alleged default” on your loan. Understand WHO the letter is coming from and WHO is attempting to accelerate the note, which requires payment in full in lieu of pursuit of a foreclosure action against your property.  The letter should fully explain WHO is claiming to be the “note holder” that has the right to enforce the terms of the mortgage or deed of trust.  If that portion is missing from the notice, you have every right to immediately demand an explanation vis a vis a Qualified Written Request under Section 6 of the Real Estate Settlement Procedures Act (RESPA).  You cannot prepare an adequate defense if you don’t know who’s coming after you.
  8. In all instances, assume that: (a.) any notices you get from a trustee or law firm are based on actions by the mortgage loan servicer, NOT the lender or trustee of a REMIC trust; (b.) any notices you get will likely contain false and misrepresentative statements; and (c.) any notices you get will rely on a corresponding assignment that has been recorded in the land records preceding a Substitution of Trustee or Notice of Default or Notice of Intent to Foreclose.
  9. At all times during the process, keep your eye on the land records!  Check them weekly for any sign of new recordings, corrections to the assignments or newer recordings, attempts to hide the assignments by using alternative means (like putting all of the recorded documents in the name of your spouse, etc.). If need be, ask your county clerk for help in determining if there’s “anything else” in the land records you’ve missed that could defeat your defense, including Limited Powers of Attorney recorded by the mortgage loan servicers, especially when they’re the “assignor” and the “assignee” (called a self-assignment) of any alleged authority.
  10. Understand that YOU are NOT the perpetrator of any alleged foreclosure scheme coming against you!  You have every right as a property owner to defend the home to the best of your ability, even if you lack legal acumen.  As a participant, you may also become the victim of identity theft and numerous felonies committed by the bank, the trustee or the mortgage loan servicer dealing with your mortgage loan.  Assume everything they tell you is a lie … and you won’t be surprised later because you’ve prepared yourself to retaliate against their false assumptions.

Mortgage loan servicers are out to make money to reimburse what they had to pay investors or whatever lender happens to allege it’s the “note holder”.

At a point in time in the near future, the moratoriums will be lifted and you should be well prepared to understand whether the servicer coming against you has any right to offer you a loan modification or forbearance … or for that matter … to come against you at all.  I’ll discuss that in my next segment.  Visit the Clouded Titles website for more information!

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Filed under OP-ED, Securitization Issues, webinar, workshop

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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