Tag Archives: The Krieger Files

DEFEATING DIVERSITY IN FORECLOSURE ACTIONS

(BREAKING NEWS — OP-ED) — The author of this post is the author of Clouded Titles, The Quiet Title War Manual, The C & E on Steroids!, The FDCPA, Debt Collection & Foreclosures, The Credit Restoration Primer, End Game Strategies, Beyond End Game Strategies and host of The Krieger Files.  The opinions expressed herein are that of the author and should not be construed as legal advice.  For legal advice, seek competent counsel that clearly understands what constitutes diversity jurisdiction.

Even in its most liberal stature, the U.S. 9th Circuit Court of Appeals has again, redefined and re-explained that REMIC trusts can end up costing you lots of money in litigation, fighting a losing battle in federal court by re-constituting an opinion of what constitutes diversity jurisdiction.  See the link below to the 17-page ruling:

Demarest v HSBC Bank USA NA, 9th App Cir No 17-56432 (Apr 8, 2019)

You’ll readily notice in the caption on Page 1 that HSBC and MERS were “incorrectly sued”, which would indicate to me they were sued in the wrong name, as indicated in the caption.

Part of the problem here is that the trustee was also sued (Western Progressive, LLC) and the trustee was also out-of-state as to its “headquarters”, which put all of the Defendants, coupled with the $75,000 required for complete diversity jurisdiction, squarely in federal court.

Again, Hawaii Attorney Gary Victor Dubin, who is again in the crosshairs of the Hawaii Bar (thanks to the banks and their attorneys who don’t like lawyers who beat them in court), likens being in federal court to suicide, which he has succinctly stated that it (suicide) is better than being in federal court.  Yet, a lot of people end up becoming victims within the federal system because of improper and incomplete pleadings.   Couple that with WHO you sue and the numbers of removed cases rise exponentially.

Why sue MERS?

This entity is the “bastard child” of MERSCORP Holdings, Inc., which is now owned by Intercontinental Exchange, Inc. (which also owns the New York Stock Exchange).  This newly-acquired entity has the backing of Wall Street.  The ownership of MERS may have changed, but the stupidity of the courts in relying on every tenet of MERS’s flawed business model incorporated within the “MERS® System”, has caused nothing but utter conflict among the state courts and federal circuit courts.

Like MERS says or intimates in its pleadings (among some of the third-person, schizophrenic quotations from its collective counsel and others), “We didn’t do anything wrong!”  “We want to be all things to all people!”  “We are the God of Securitization!”  (sic)  “We are everyone’s beneficiary that names us in their mortgages and deeds of trust!”  “We can be a nominee (agent) and beneficiary at the same time!”  “We can do anything we want, because we’re MERS!”  “We can remove you to federal court because we know your pleadings lack sufficiency and we can get them dismissed!”  “We can be in multiple states at any given moment and the federal judges will do what we say because we own them!” (that’s what they think, seriously).

Knowing you’re dealing with such a filthy, stinking rich entity that kowtows to Wall Street, why in bloody hell would you name them in anything?  Do you seriously have deep pockets?

You’re dealing with a multi-billion-dollar-a-year company here.   Here are some facts you should face:

  1. You signed the mortgage (or deed of trust).  No one held a gun to your head.  You could have walked away from the closing, but you didn’t.
  2. You could have read the entire agreement, asked questions; and when you didn’t get sufficient answers, you could have put off the closing until you got clarification, but you didn’t.
  3. You had no idea that the closing agent and the entity that agent represented knew (or should have known) WHERE the funds were coming from; how the funds were getting to the escrow account that was wiring your funds to the closing agent; and all of the details regarding the validity of the “lender” and “mortgagee of record”.
  4. You had no idea what the acronym “MIN” meant … nor had you any idea of the 18-digit number following that acronym.
  5. You had no idea your loan was being securitized through a Real Estate Mortgage Investment Conduit (REMIC) on Wall Street.
  6. You had no idea that your home loan was being funded by investors unknown to you.

Yet, you got hoodwinked into signing your life away to a life of potential PTFD (Post-Traumatic Foreclosure Disorder), should you fail to make your monthly mortgage payments!

What constitutes diversity jurisdiction?

In order to be able to remove a lawsuit to federal court (which is a court of limited jurisdiction), two things have to occur:

  1. The Plaintiff is a resident of State “A”, while the Defendant(s) are known to be residents of State “B”.
  2. The amount in controversy must exceed $75,000.

Gee … I wonder what would happen if the homeowner showed the caption as:

Joan Demarest and the Registered Holders of Nomura Home Equity Loan, Inc., Asset-Backed Certificates, Series 2006-HE2 … as joint petitioners … with NO defendants listed … and asked for a declaratory judgment ruling on the merits of WHO got screwed in this deal?  Where’s the controversy then?  (you attorneys can chime in here)

In order to have justiciable controversy (the makings of a proper lawsuit that a court can claim jurisdiction to rule on), you have to have a Plaintiff and a Defendant(s).  If you have “joint petitioners” and NO defendants, how can there be a “controversy” if both joint petitioners agree on the same thing?  Despite the fact that the certificate holders are from all over the world, some of them (To Be Determined) may be in the state you’re residing in (State “A”).   If there’s no State “B”, then why list DOES 1-10, inclusive, like this case did?    I actually litigated a case (while out of state) through the mail, with a co-party, as joint petitioners, and got my ruling from a court in Missouri!  Does that surprise you?

Diversity FAILS if … 

  1. There is no amount in controversy (which is what you have in a declaratory relief case, like a cancellation and expungement action (C&E) over a bogus document in the land records; and
  2. You aren’t naming out-of-state defendants until the in-state defendants respond and lock the case up in state court.

Does this make any legal sense to you?

This is part of what we taught in the C&E Workshop in Las Vegas April 6th and 7th. 

America’s land records are a “crime scene”!

MERS’s flawed business model helped make it that way.  Over 80-million homeowners who unknowingly borrowed investor money through securitized mortgages did the rest of the damage.  It was “intentional” on MERS’s part.   It was ‘unintentional” on the homeowners’ part.

Despite the fact you can beat diversity, certain entities will remove the case to federal court anyway, just to F**K with you and your pocketbook!  MERS is one of those entities.

There is a right way and a wrong way to approach this scenario.  What Joan Demarest did in her case was the wrong way.

The “trustee” is a necessary party in Deed of Trust states!

You should know that if you name the trustee in your lawsuit, it’s likely that the trustee is “headquartered” out-of-state.   The trustee (in this case) was declared by the 9th Circuit panel to be a “real party to the controversy for purposes of diversity jurisdiction when he possess certain customary powers to hold, manage, and dispose of assets for the benefit of others”.

This case was filed in Los Angeles County Superior Court on May 27, 2016.  You would think that by then, anyone involved in this case could have figured out what the “end result” could be … but NO!  We have attorneys out there that like to use the “shotgun approach” instead of the “sniper approach”.  This is why California Attorney Al West and I put together “The C & E on Steroids!”   It’s a sniper approach to cleaning up the “crime scene”.   If you clean up the “crime scene”, then what evidence is there that a crime occurred?  What evidence is there that a party has standing to foreclose when the intended “consequence” of an assignment is declared void, cancelled and expunged from the land records?

This is why we found instructional appellate case law to support our research and methodology for doing these types of “sniper approach” end game strategies.  Everyone wants an “end game”.  Getting to that point is why people run into trouble having their dirty laundry removed to federal court where it’s likely to get dismissed on a 12(b)(6) motion.  And the foreclosure happens anyway, because “we’re too pissed to think straight!”

Watch the movie “American Sniper”.  Then, liken that mindset to your approach.  Knowing WHEN, WHERE, HOW and WHY you need to “take out” a target makes all the difference in the world.

Look for The C & E on Steroids!, along with the DVD training video kit, available in early May, only on CloudedTitles.com!

Sniper training at your fingertips!

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IF YOU FEEL LIKE YOU’RE ONLY GETTING HALF THE JUSTICE YOU DESERVE … YOU’RE NOT ALONE!

(BREAKING NEWS — OP-ED) — I have spent years doing research about the financial mess we have in America.  I first confronted this issue in the early 1990’s, when many of my friends (who were more creditworthy than I) would come to me, telling me they were “in over their heads” in credit card debt, on top of having to pay a mortgage loan.  In retrospect, my own personal situation wasn’t necessarily plagued by that same scenario.  Mine was figuring out a way to make an honest living by “working smart”.  People spend all their lives working hard, paying interest upon interest on a 30-year mortgage (mort = death; payments until death).  Now, student loans have taken the place of mortgages as the #1 stresser.  Why?  It may not be because we’re a nation of over achievers. It’s because we’ve been programmed by our parents who didn’t have it as good, wanting us to have it better than they did.  So what did they do?  Give us the ‘ol pep talk:  Go to school. Get good grades.  Graduate with a diploma.  Buy a car.  Go to college.  Graduate with a degree.  Get a good job.  Get married.  Buy a home.  Raise a family.  Work hard. Retire. Leave a legacy.

This all sounded well and good back then; however, the pep talk did NOT include financial education of the kind we’re used to.  Even today, what little financial education is taught in secondary and post-secondary education is severely limited.  They did not teach “CAR LOANS 101” in high school.  They did not teach “STUDENT LOANS 101” in high school.  They did not teach “MORTGAGE 101” in high school.  Hell, they didn’t even teach “CHECKBOOK 101” in high school.  Do they even teach this in college?  Not hardly.  Economics?   I had a Korean professor in college I could hardly understand, which made economics more boring than ever.  I still managed to learn something; but it wasn’t enough to sustain “real world living”.

Couple that with our national media and its advertising campaigns.  Look at what’s on TV today!  There’s more commercials for car loan financing, mortgage loan financing, buy now … pay later campaigns … than you can shake a stick at.  I know that sounds cliche, but have you ever actually watched these commercials and how you’re being baited?  Now imagine your kids are getting the same programming on prime time TV.  This is not only America’s problem.  This is a global problem.  It’s just that Americans have more disposable income than 90% of all the other countries in the world.  And what do Americans do?  Ask how many Americans how deep in debt they are and you’re just scratching the tip of what I call “the system of things”.

I will be discussing “the system of things” as part of my new, upcoming nationally-syndicated radio show:

After writing numerous books since 1995 (and having been exposed to radio since 1968), what else can I do to help make America a better place?   As with every endeavor, there are always going to be naysayers pointing fingers; however, the stuff that we will be talking about on THIS radio program is NOT intended to shock the conscience.  It is not “shock jock” radio.  These are 25-minute segments that discuss the very things that America is lacking, because 25 minutes is about all anyone can take because our “input stream” has been overloaded with indoctrinated “system diatribe” and developing this program was even a learning curve for me.  If you think this is going to be an Alex Jones-type program … sorry … I don’t make my life all about conspiracy theories, despite the fact that “the system of things” is full of them!  I do NOT support the Republican party.  I do NOT support the Democratic party.  It’s a single party system of oligarchs that control “the system of things” anyway.  Most of America just hasn’t noticed that yet.   Then there’s “deep state”.  Yes … that actually DOES EXIST!  It’s NOT a conspiracy.  It’s a bureaucracy.  It’s what is running this country, much of it unfettered and without immediate oversight or accountability.

To add to the dimensional quality of this program, I intend on taking up the online educational focus on chain of title issues through an 8-hour COTA Workshop.  I will share what research I have learned over the last 10+ years on my Clouded Titles website.  I know, it’s been long in coming … and I do not feel like conducting two-day events all over the U.S. that only produce a handful of Americans that have finally awakened to the truth about “the system of things”.   We have determined that two (2), four-hour teaching modules is what is necessary (with handouts delivered directly to you in your “inbox” in PDF format) can easily accommodate what many who have attended my previous classes call, “information overload”.  And we will make it affordable for everyone so that you can sit in the comfort of your home, on your computer, and get the real property portion of “the system of things” you didn’t get in high school (or even college).  And it won’t take up your whole weekend.  In other words, my 3-day COTA class will be streamlined into one day, because people have to work and support their families.   I will make this program available once every 3 months. These programs will not be all the same thing because “the system of things” changes from time to time … thus, there are updates to share, based on new research and case law.  I will have attorneys on the program from time to time because homeowners who are in trouble need perspective from a legal standpoint.  This is all part of the educational process.

Like credit reports, people need to check their public record files once every six (6) months to see what’s there.  Financial planning (PLAN B) is NOW required these days because we are headed for another cyclical recession despite what all of the talking heads on TV are telling us.  America has a Congress that is bipolar and self-serving.  You can’t run a country whose political hierarchy promotes “pushing back” (unintended consequences of violence) against others who believe differently than you about “the system of things”.  The “system of things” was created because Americans, as a whole, the body politic, ALLOWED IT to be created.   We worry about our toil and our last meal while our government tries to play “nanny state” games with us.  Why?  Because we’re not educated.  They are.  They think they’re better than us.  This is what an oligarchy is folks!  And we let them make us worry about what they’re doing when we should be concerned more about what we’re doing.  Our current behaviors are what is driving us into a “class war”.

Change starts at home.  Change filters out into your locale (be it unincorporated area, township, city, county, whatever ) because of the need to communicate with others besides those in your own household.  You have more control over your local government than you realize.  We spend so much time behind locked doors because our “pre-programmed condition of servitude” has caused us to hide in fear (and maybe even shame) because of what America has become.

If you think that complaining to the government will do you any good … you can forget that.  Government is too busy trying to figure out how to exist in such a way that you will be lulled into a false sense of security.  This is one of the reasons my new show is going to tackle both the legal and political angles, tying them together into social perspective so the average consumer will “get it”.

Justice begins at home.  It was handed down over centuries.  It’s called discipline.  If people were totally disciplined and walked in love, we wouldn’t need laws because everyone would be doing “the right thing”.  Because America is not a safe place to live anymore (don’t kid yourself if you think it is), Americans need to condition themselves to be more disciplined and that happens through education.  The betterment of our justice system begins with education.  Most Americans don’t even know what a “federal reserve note” is and what it represents.  Just ask any kid in high school if they know what it is.  You’d be surprised at what you’ll hear in response.  What’s in your wallet DRIVES the justice system (and we don’t even realize it).  That’s why we … as a collective body politic … need to get at the truth of what is going on and then deal with it in an appropriate, albeit civil manner.

The system revolves around the dollar … how it is made … and how it is spent.  Once you get a complete “handle” on that concept, your life will be easier and your “system of things” will change for the better.  Until then, the justice you think you deserve is like the glass half empty.   Every American is affected by it.   It’s a mindset that has to change if America is going to survive the recessions and political upsets of the future.

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