The author of this blog post is a consultant to attorneys in mortgage foreclosure cases and the information shared in this particular piece should not be construed as legal advice (but rather as common sense suggestions to live by).
Visit http://www.cloudedtitles.com for more information.
NO ONE GETS A FREE HOUSE!
That includes you too, Mr. Banker! If you can prove you own the mortgage and the note because you shredded (spoliated) or lost your paperwork, then you can’t foreclose. It’s that simple. Yet daily, judicial state courts are cutting corners by allowing manufactured “crap” to be entered as evidence with no questions asked. If you can even show bearer paper, whether you own the note or not, you seemingly get a “go pass” to take the house. This may not be the “norm” for much longer. Why? Because many Americans are waking up and the ones with money to fight are getting smarter. Knowledge is power folks and the reason I started Chain of Title Assessment Workshops up in the first place is to start the educational process into the “who, what, when, where and why” we are faced with this mortgage foreclosure dilemma in the first place.
The fact that homeowners and their attorneys do not rebut the foreclosure mill attorney’s slanderous comments made in court (i.e., “These people are deadbeats, your Honor!”; “These people just want a free house, your Honor!”, etc.) with, “Defendant’s counsel reserves the right to behave and make slanderous comments in the same manner as the Plaintiff’s (bank’s) counsel is doing!” shows a lack of chutzpah on the part of the foreclosure defense attorney. Further, if the judges are going to allow fraud to be committed upon their courts, then they should be unseated and not allowed to serve on the bench. A prime example of the type of action to reduce foreclosure tyranny was in the Florida court of Judge Diana Lewis (who was replaced by Jessica Tictin, a former foreclosure defense attorney) in the last election. Judges need to understand that when confronted with foreclosure issues (robosigning, fraudulent documents, notary fraud, computer-manipulated documentation, etc.) they need to allow discovery and thus stop attempting to “clear the dockets” in the name of judicial expediency. But then again, this is why we have appellate courts. This is why there is no free house. Anyone with equity in their home, especially substantial equity, can certainly understand why planning an appeal from the beginning is the most important part of the legal process. Just simply throwing claims of fraud on paper proves nothing without evidence. Retaining auditors to do various “independent examinations” of your records is NOT evidence either (and can and will be tossed out as evidence), because these audits and examinations rely on multiple sources which have to be deposed and this is where the fight in the civil realm can be costly.
Here’s some more “cud to ruminate on” … as long as the banks and their attorneys are going to treat you like goyim:
1. Whether or not you may claim that you were defrauded, no one held a gun to your head to sign the mortgage and note at closing.
If you got one of these subprime loans that are referred to as NINJA (no income, no job, no assets) or “liar loans”, then it is clear that: (a.) you probably did not understand what you were signing at closing; (b.) the lender you borrowed the money from probably misrepresented its position to you in the equation called “securitization”; and (c.) you did not get the proper financial education in high school or college, enough to understand why you had rights ab initio. You will be faced with these aspects as soon as you enter the courtroom, because many judges pay their mortgages every month and they’ll certainly want to know why you’re not paying yours. If you don’t have equity, then how can you do equity? That works in reverse against the banks as well.
2. Ask yourself why you didn’t ask more questions at closing, like, “What is this MERS listed on my mortgage or deed of trust?”
Ah … you knew I’d get to this point sooner or later, right?
MERS is a private corporation owned by MERSCORP Holdings, Inc. (who used to be known as MERSCORP, Inc.). Both of these separate corporations were formed in Delaware and are statutory creatures of that State. You wonder why banks incorporate in Delaware? It’s because of the tax and other legal advantages that State offers them (like South Dakota). By not asking for a copy of the mortgage and note you’re going to sign beforehand to examine it for potential pitfalls is just another “sign” that your financial education was lacking. So here’s some homework …
(a.) Study the Gramm-Leach-Bliley Act. Get the list of all of those currently-serving Senators and Congresspersons who voted for it and seek to get them voted out of office. They did the “greater good” wrong by repealing the Glass-Steagall Act (another thing you need to research). This Act kept the banks out of the securities business. By the passing of Gramm-Leach-Bliley, in 1999, that more mortgage market chicanery was to follow. You need to understand the serious nature of what happened to America as a whole when the banks were allowed to securitize mortgages. The repeal of Glass-Steagall put the screws to America as we know it.
(b.) It’s no secret that MERS and MERSCORP officially started business on January 1, 1999. They did not register to do business in all states. Perhaps you should look into whether they were registered to do business in your state at the time you got your loan because that may have an impact on whether they have standing to pursue a claim against you. It is no secret that MERS claims one thing to its members (who deliberately misuse and abuse the MERS® System to facilitate fraudulent, self-assigned assignments using MERS’s name as a precursor to foreclosure) while deceiving homeowners by not disclosing ALL of the aspects of who MERSCORP Holdings and the MERS® System are. You need to know all of the facts. This is why I wrote the book “Clouded Titles” … because that is what ends up eventually being created as an “issue” because MERS is shown on your mortgage or deed of trust.
(c.) “Study to show thyself approved … rightly dividing the Word of Truth.” This is not just a simple Biblical paraphrase, but it must be what all decent, hard-working Americans must do if they are going to survive. We must all come to know the law at some point and everyone needs to study THIS sets of laws (real property, rules of civil procedure and rules of evidence) if you are going to survive legal challenges in today’s court systems. If you go into court exuding that you deserve a “free house” because you were “defrauded” with no proof or evidence or money to back up what you’re claiming, then you have no right to be in court in the first place! By going into court and claiming non-provable issues, you make bad case law for everyone else who can come forward with justiciable issues of controversy. It’s the old saying, “one step forward … two steps back” each time a homeowner goes into court unprepared and badly financed to undertake what could turn out to be protracted litigation, because the banks will do everything in their power to outspend you.
3. You can’t stop a foreclosure based on your good looks!
In non-judicial states, the only way to stop a foreclosure is to file a lawsuit and obtain a temporary restraining order (“TRO”) to keep the lender from foreclosing on you by publication and sale. It may be that the “servicer” or one of its henchmen, known as a “substitute trustee” (because we can’t have the good ‘ol boy title companies who signed on as original trustees foreclosing on you now, can we? That’d be bad for business because no one would trust them) is the party conducting the foreclosure. In deed of trust states, the note is not required to be demonstrated in a “prove up” type hearing (as in judicial states, where court litigation to foreclose is mandated by law). This is why the banks all wish that every state was non-judicial (so they can steal anyone’s home any time they want to, whether you have a mortgage or not) because of the low-cost benefits of publication and sale. So simply going into court with the, “somebody done somebody wrong” song just doesn’t cut it when you don’t have your facts straight. The big banks and the trust entities doing the foreclosing these days have already gotten out in front of the frauds they created when they loaned you the money in the first place and sealed off many of the defenses you might be able to claim (but that doesn’t mean you still don’t have a shot at them). I invite you to get a copy of Robert M. Janes’ book “Fighting the Foreclosure Machine” and study it thoroughly. It’s the type of simple investment you need to have before you enter the foreclosure arena and attempt to fight “the Monster”.
TO BIG TO JAIL? REALLY?
Just because we put the heads of the major banking cartels in prison for doing all of this does NOT mean that their banks are going to fail and the American economy will be ruined. There are plenty of smaller state banks and credit unions out there to pick up the slack if the big banks get broken up or their CEO’s end up behind bars. To put this fallacy to rest, visit Ellen Brown’s website or get the book “Web of Debt” and understand exactly what happened to you in all this mess. Brown makes a great argument as to why the Bank of North Dakota is successful and why every State in the Union should create a bank modeled after it. Visit her website at http://www.ellenbrown.com. Brown attempted an unsuccessful bid for the California State Treasurer’s office.
If we had not been suckered into believing that every American deserves a home of their own and then plied with subprime mortgages, we would have no purpose in reporting on this foreclosure mess. If we didn’t intimate that by having MERS on your mortgage or deed of trust would lead to a cloud on title, there would be no purpose for having Quiet Title Workshops. New for 2015, these workshops are a way to further your education on your contractual rights within the mortgage and deed of trust and procedurally, to understand HOW a quiet title action is supposed to work. It’s still one of the equitable remedies left to homeowners and after all, it is your evident contractual right to do so.
America will move forward when the masses become educated. This blog site seeks to provide you with the information you need to survive. What you do with that information once you have it is up to you. You still have a vote. Use it!
IT’S OKAY TO ADMIT YOU’VE MADE A MISTAKE!
Just don’t keep repeating it. In other words, if you got screwed by a MERS Mortgage or Deed of Trust, don’t enter into one the next time. Here’s some tips that I utilize in my chest of stratagems:
1. I stopped borrowing money from the big banks. I closed all of my personal and business accounts with them. I deal with smaller state banks and credit unions. Despite the “safe and secure” and “courteous service” crap the major banks ply you with, this too is a misperception. Many people don’t deal with banks at all. That’s your prerogative; however, in this day and age, convenience requires at least a debit card.
2. If you ever intend on purchasing a home, you at least need to establish some credit. This is why I wrote The Credit Restoration Primer, now in its 5th edition (that means there were 4 previous reasons why I added new material to the existing books). In this day and age, if you can’t pay cash, you will need at least a 680 credit score to get a decent mortgage. My book can help you in your quest to get to that point. I gave a copy of this book to all my children and told them to read it because I don’t want them repeating my mistakes when I first started out. By the way, I bought a deed in lieu of foreclosure for $2,000 down and $360.00 a month on a property that the bank held the paper to (a small community bank). The property had a house on 14.2 acres. The deals are out there folks, you just need to explore! The banks holding the paper just want someone who can pay the mortgage every month until it’s been satisfied in full. The banks really don’t want to own real estate. That’s why I like dealing with the smaller banks.
3. If you have to borrow, make sure MERS is NOT on your mortgage or deed of trust. Insist on that. If one bank or credit union can’t be of service because it’s a MERS member, find one that isn’t. Find one that won’t sell your mortgage loan into the MERS® System either. This is one way to protect your property’s title from the harm that is called unmarketability. Insurability means nothing if your title has clouds on it! Don’t be fooled by the misrepresentations of title companies. Read SCHEDULE B on the average Homeowner’s Indemnity Policy and you’ll see what I mean. Title companies are members of MERS too because they can “write around” defects created by the use of the MERS® System.
4. Get out of as much debt as you can and stop leaving paper trails. I’m running into a lot of individuals these days that are buying up land and holding it. I know that’s a stretch for some of you but raw land generally hasn’t been molested by the MERS® System and its member-users and so it offers some simple advantages of potential tax write-offs (interest paid). Many real estate agents don’t like selling raw land because many times, the purchaser’s intent is to build a small structure for cash, thus cutting them out of everything but a commission. Having a mortgage is not good, especially when you have no income to make the monthly payment. Getting America back to basics means starting with a “clean title” to a piece of raw land, because, as Will Rogers eloquently stated long ago, “They’re not making any more of it!”
Paper trails come by the misuse of credit cards. I keep some on hand for incidental purchases and purchases of airfare and hotels for my seminars, because I know I will pay it back in full when the bill comes due and I will have generated write-offs as a result. Paper trails are harmful if you spend money on frivolous things and use a credit card to do it with. It shows you’re irresponsible with your money and your credit. So, pay cash for your purchases when you can. Many people who by my credit primer are using the material to wipe off existing debt and clean off their credit histories. You will never disappear from society, despite what you think. Technology forbids this. They know where to find you, so stop being paranoid and start being proactive.
5. Filing bankruptcy is NOT an option. If you have no credit cards or loads of unsecured debt to get rid of (and you’re only doing it to stall foreclosure), perhaps you need to restrategize and rethink your living ideals. If people would stop buying “McMansions”, builders would stop building them. The economy can survive quite nicely building 1000-1500 square foot homes. Bankruptcy puts a kink in your credit for ten (10) years, even if it’s dismissed after it’s been filed. Filing bankruptcy shows intent to discharge debt but it doesn’t relieve you from your mortgage or deed of trust as a security. The bank will eventually get it back (whether it legally can prove it owns it or not). Even though bankruptcy is a strategy and doesn’t carry as much of a stigma as it used to, it still shows up on your credit report and at best, you will be “stalled out” for at least 2-3 years while you try to regroup. If you have no equity in the house that’s being foreclosed on, taking a 150-point hit and moving on is a lot better than blowing all of your money fighting a court battle that if you lose, you’ll have nothing left to regroup on.
Last weekend, my wife visited Miami Beach and went for a walk to take in the sights. We passed a homeless man sleeping on the street in a nook off of a busy sidewalk. Of all places to be homeless. Miami Beach. Seriously? This led to the conversation that the man was there by choice because everyone in America has the freedom to make choices. A lot of people end up like this man because they: (a.) made the wrong choices; (b.) made the wrong choices more than once; and (c.) chose to have a pity party instead of rising to the occasion and doing something about it.
6. At some point, figure out a plan to pay off your existing mortgage. Whether it’s by relocating to smaller digs or restructuring your finances by lightening your load (getting rid of things that aren’t making you money but are taking up space), come up with a game plan to completely get out of debt, including your mortgage. Start with a 5-year plan. Figure out what you will need to live on for that period of time, less taxes paid, and pay down on the principal with the difference every month.
Many people tell me they are “prepping”. That would appear to indicate to mean (to me) that they don’t trust the economy or the government and are taking personal responsibility for doing something about it. I never chastise preppers; however, they’ve made mistakes setting up camp too. There is something to be said for “living like the Amish”. I spent three years studying the ways of the Amish. They seem to have a fundamentally great plan to survive in case everything “hits the fan”. There’s nothing like being mortgage free when another crash occurs. I believe it will. Don’t ask me when … but I don’t believe it will be this year despite what all the doom-and-gloomers think. Never hurts to plan though, right?
7. Only buy what you can afford. America got into financial straits by greed and gluttony. Just because you’ve made a mistake buying too much house doesn’t mean you can’t scale down. This is America and you still have the opportunity to make choices. By buying a modest home and not a McMansion, you’ll have time and more funds to do something constructive with your life, like blessing others. People who have lots of money have a different set of problems. America has gotten out of the “saving” habit. Rather than leaving money in the bank to save, put it into real estate that will eventually pay you a return in one form or fashion.
8. Become proactive in your government. Do things that will make a difference, like getting your land records audited or examined. Change begins at home, even if it’s a small change. Change your world by example for others to see and follow. Don’t settle for mediocre just because it achieves a political whim. Strive for a finite end to a problem and not just a stopgap to a symptom. Your County Commission or Board of Supervisors is a great forum in making your voice heard (not to mention the networking opportunities with like-minded people). Squeaky wheels get greased.
9. Keep your prepping activities to yourself. It’s bad enough we have GPS and smartphones. Don’t go broadcasting that you’ve stocked up or your neighbors who didn’t will know where to go when the store shelves are bare. Don’t let others chastise you for your efforts. After all, grandma and grandpa did this long ago because they knew there would be “rainy days” too. Nothing has changed. This is still America … land of the fee and home of the slave. Don’t become a refugee like the homeless man in Miami Beach who chose his miserable lifestyle. While it is sad we have tent cities to show for our misbehaviors, no one held a gun to our head to sign the mortgage and note, remember? We need to take responsibility for our actions.
10. If you’re having trouble in a job, then retrain and move forward into another line of work. Many times, certain jobs because obsolete. I created a niche that will outlive me and I am sharing it with others who can also make a living doing what I do. If retraining is part of your regrouping effort, then find a way to make it happen. Living in a career where you are stagnating is as equally unproductive as it is unhealthy. If you’re going to “suck off the government teat”, then at least make it a temporary thing and not a permanent one.
There are people who make things happen.
There are people who watch things happen.
There are people who wonder what happened.
I prefer not to be in the category with the last two.