COME TO OUR SANTA MONICA SEMINARS 9/3-9/4
florida-regulator-resigns-after-letting-bank-robbers-and-other-felons-operate-as-mortgage-brokers
Dear Bryan:
OK. FIRST OF ALL YOU WILL BE CONTACTED BY A MEMBER OF OUR TEAM TO GET FURTHER INFORMATION SO WE MIGHT BE ABLE TO HELP YOU A LITTLE MORE. PLEASE REMEMBER THAT I AM A LICENSED ATTORNEY IN FLORIDA BUT ACTUALLY DON’T PRACTICE ANYMORE. WHATEVER I TELL YOU HERE SHOULD BE REVIEWED WITH COMPETENT LICENSED LOCAL COUNSEL BEFORE YOU MAKE ANY DECISION OR TAKE ANY ACTION. ANYTHING I SAY HERE IS BASED UPON THE LIMITED AMOUNT OF INFORMATION YOU HAVE GIVEN TO ME AND UPON A COMPLETE REVIEW OF YOUR FACTS,MY OPINION COULD CHANGE AND IN ANY EVENT MY OPINION MIGHT NOT BE RELEVANT IN YOUR LEGAL JURISDICTION.
I’ll break down your fact pattern piece piece and comment on each piece:
1. You write “I am currently dealing with an issue in court where I actually rescinded a loan within the 3 day period.”
ANSWER:
- Whether your rescission was effective depends upon how you did it. But most cases state that ANY written intention to rescind is sufficient. The rescission, as you can see in the blog and general comments below, has the effect of canceling the note and mortgage.
- The 3 day rescission appears to be different than other rescission remedies in that it applies automatically.
- Other rescissions are subject to acceptance or objection by lenders.
- This means that ALL documents should have been returned to you, canceled with an acknowledgment that the loan is null and void.
- If the mortgage was recorded, a satisfaction of mortgage should be recorded by the “lender” and can be required in a court of law.
- If the note was signed, then the note should be returned to you in its original form, along with some writing on it that says “rescinded or canceled.”
- Remember that rescission under TILA is NOT the only rescission remedy available under State and Federal Statutes and common law.
- PLEASE NOTE THAT THE PRACTICE OF “SELLING FORWARD” MIGHT COMPLICATE ANY RESCISSION. THE “LENDER” MIGHT WELL RESIST YOUR ATTEMPT TO RESCIND EVEN THOUGH IT HAS NO RIGHT TO DO SO. ITS MOTIVATION IS THAT BY “SELLING FORWARD” IT ESSENTIALLY RECEIVED MONEY IN FULL FOR THE FULL AMOUNT OF THE PRINCIPAL STATED ON YOUR NOTE OR PROPOSED NOTE AND IT ASSIGNED YOUR NOTE AND MORTGAGE EVEN IF YOUR NOTE AND MORTGAGE NEVER EXISTED.
- IN ADDITION, THE “LENDER” WAS ACTUALLY A STAND-IN FOR THE REAL LENDER WHO WAS NOT DISCLOSED SO YOUR RESCISSION MIGHT HAVE BEEN ADDRESSED, UNDER TILA, TECHNICALLY TO THE WRONG PARTY, BUT THE APPARENT AGENCY OF THE NOMINAL DISCLOSED LENDER WILL PROBABLY BE SUFFICIENT TO MAKE YOUR RESCISSION VALID.
- UNDER THE POOLING AND SERVICE AGREEMENT SIGNED BETWEEN THE “LENDER” AND THE REAL LENDER THE “LENDER” MIGHT HAVE TO BUY BACK YOUR LOAN OR SUBSTITUTE WITH ANOTHER “LIKE” LOAN AND MIGHT NOT HAVE THE SOLVENCY (OR WILLINGNESS) TO DO IT.
- IN 40% OF THE CASES, THE DOCUMENTATION HAS DISAPPEARED BECAUSE THE “SELLING FORWARD” CAN ONLY BE ACCOMPLISHED BY EXECUTING A FRAUDULENT OF ASSIGNMENT OF A NON-EXISTENT NOTE AND MORTGAGE AND EXECUTED IN BLANK WITH A SQUIGGLE OVER YOUR NAME AS THOUGH YOU HAD SIGNED IT. THIS PRACTICE HAS BEEN USED EVEN WHERE THE LOAN WAS SOLD AT OR AFTER CLOSING. Thus the REVERSAL OF THE TRANSACTION REVEALS FRAUD ON THE PART OF AGENTS, SERVANTS OR EMPLOYEES OF “LENDER” AND OTHER PARTIES. Thus the note is destroyed or missing when the subject comes up.
- If you DID sign a note, there is the distinct possibility that it was transferred or transmitted to a Structured Investment Vehicle (SIV — see Glossary) in the Cayman Islands or to some other third party and might not be recoverable by your lender.
2. You write: “(The closing atty. at the title co. seemed shady and we did not feel comfortable with the whole deal.) Well, they (WAMU) funded and paid off the other mort. co. within the 3 days which violated the “delay of performance” statute. Then they attempted to collect and I informed them that I had rescinded. (I have a copy of the form, a copy of the express mail label, a copy of the signed delivery receipt, etc.) Plenty of proof that I rescinded in a timely manner. This was 2001. I made no payment to them at all.”
ANSWER:
- If you willl look at one of the recent blog posts, you will see that a title company sued Countrywide mortgage basically saying that they should not be on the hook for fraudulent dealing engendered by Countrywide. The title company is supposed to make sure you have clear title and it is required to perform due diligence before it issues a title policy. Once it issues the title policy it is liable for any damages resulting from ad efect in title. It is presumed, I think correctly, that the title company knows all it needs to know. In most cases, the title company was well aware of the securitization of these loans and the fact that recording, fees paid, real parties in interest and other disclosure requirements, together with other wrongful behavior, created a cloud on the title to the property, the mortgage and the note — three separate issues of ittle, each having its own legal consequences. You might have good claims against the title company and the title insuraunce company (and the title company and the title insurance company might have good claims against your “lender”).
- The attorney for the title company is under the same obligations as the title company PLUS his obligations as a lawyer to avoid even the appearance of impropriety. You might have claims against the attorney as well. If you have a gut feeling that something is wrong, it usually is wrong, and you should not proceed unless and until you have consulted with someone who is competent, licensed and objective, with no dog in the race except to do right by you.
- WAMU, according to its 10k annual reports filed with the Securities and Exchange Commission, which is a sworn public document, sold all of its loans and participated in the loose procedures desribed above. In all probability their problem resulted from the fact that they received the money but didn’t have the money or the willingness to reverse the transaction because all of a sudden they were at risk on what they thought was a risk free transaction. From an accounting perspective their problem was simple. They never took the loan onto their balance sheet as an asset, never set aside a reserve for rescission, default or delinquency, and therefore have no way of accounting for a rescission where all they really did was act as an unregistered mortgage broker and conduit for a loan from an undisclosed third party.
3. You write: “I made no payment to them at all. I attempted to pay my old mort. co. but they sent my payment back. Well I faxed them (WAMU) several copies of my rescission documents over the years and it wasn’t until 2005 that they canceled the mortgage with a “lost note” affidavit. Clearly beyond the 20 day requirement in paragraph (d)(2) of reg. Z. Now here in 2008 they are trying to sue for the money they paid out back in 2001.”
ANSWER:
- This is slightly confused and the reason why we need more information. I assume you mean that you made no payment to WAMU because you had rescinded. The fact that they canceled the note with a lost note affidavit might not be sufficient if they were no longer the holder or holder in due course.
- In any event, my guess is that applicable statutes of limitations or the rarely used common law doctrine of laches would prevent them from proceeding in litigation. There is also a possibiity of estoppel since you acted on their cancellation of the note with the lost note affidavit. Beware the affidavit however — it was probably signed by someone with absolutely no knowledge of you, your transaction, your note or your mortgage. In this case, though it would seem that a full recovery of your attorney fees and costs would be appropriate.
- They key here is to keep the burden of proof on them. If they succeed in somehow shifting the burden of proof onto you, there is considerable expense in discovery and other investigations that are required.
- Seems like the suit should be met with a speaking motion to dismiss, a notice of action that you will seek attorney fees for a frivolous lawsit, and/or a motio for summary judgment.
- If you ahve the lost note affidavit and there is paperwork showing that they were cancelling the debt, and they can’t show that you ever paid,they have a problem. They have an even greater problem if they never resolved the payoff of your old mortgage. Sounds to me that at this point you have your house free and clear of any encumbrance of mortgage or note.
- In order to clarify the situation, it would seem appropriate to file an action to quiet title against WAMU.
- Then I think Iw ould file a separate lawsuit to quiet title against the old mortgage company. from thier prospective they were right in returning your attmmepted payments because the loan was paid off.
4. You write: “Several questions because my lawyer has never faced anything like this. Wouldn’t violation of Federal Law be used as a defense against an “unjust enrichment” claim? Couldn’t a SOL defense be used because they let so much time expire and in a sense “NEVER” complied with paragraph (d)(2)?”
ANSWER: Your lawyer and every lawyer is actually facing issues like this every day — they just don’t realize it. Almost all loans from 2001-2008 fall into this category. This is only different because it highlights the chaos the players were creating. Yes SOL applies.
5. You Write: “Could it be established that I never have to comply with paragraph (d)(3) because they can never comply with (d)(2) technically because of an implied “statute of limitations” ie. the 20 days? Could my attempts to fax copies and work towards a resolution be considered an attempt to “tender” if a timely compliance with (d)(2) had occurred? Honestly, my wife and I sought a resolution years ago and instead WAMU sought on lt to force a loan on us and then tried all kinds of tactics to collect, EVEN FORECLOSURE proceedings! On a property that they had NO CLAIM to under the Right of Rescission we exercised. Their harassment has gone on to this day, and now THEY HAVE THE GALL TO SUE US! After all of this, I don’t think they deserve anything. I have done everything properly under the law, they have at every turn not followed the law and even denied that we had a rescission. Now a Judge may possibly rule in their favor, but I feel that the Right of Rescission may be the key to beating them. I know this is a lot, but do you have any advice on this situation?
>
> Thanks in advance and GOD BLESS!
>
> Bryan
ANSWER: I THINK WE HAVE COVERED IT. I AGREE WITH YOU BUT IT MIGHT BE MORE CHALLENGING WITH MORE FACTS. I WOULD PROCEED WITH MORTGAGE AUDITS ON BOTH “LOANS” AND A TITLE OPINION.
We have several who MIGHT assist you and you can of course find your own. You can also use the information on this blog to get started yourself or to get your lawyer started in the right direction.
A member of our team will contact you shortly to get information. This information will be passed on to a member of our volunteer team who will give you suggestions or options on how to proceed.
The normal procedure is as follows (although every case has some differences)
1. Information gathering — have your loan information and closing documents at your fingertips before our team member calls you. If you don’t get a call, please dial 954-494-6000.
2. File review
3. Referral to Mortgage Audit Group that will analyze your mortgage, find potential or actual violations of TILA and initiate RESPA procedures to settle your case.
4. Demand Letter to “lender” requesting documents to prove they are the holder of the note and that they have the power to enforce the mortgage and note.
5. Rescission Letter or Cancellation where appropriate: Note that this might be under TILA but it will probably include rescission or cancellation under other Federal and State statutes and common law. Rescission does NOT mean you are offering your house to the lender. Rescission is the reversal of a transaction. The transaction you reverse here is the “loan” of money in exchange for your signature on a pile of documents that you could not possible understand, and where the real lender was hidden from you, and where most of the fees generated by your loan closing was were not disclosed, which is a violation of several different Federal and State requirements. Rescission cancels the note and mortgage and gives rise to a possible claim by the lender for return of the loan — but without any claim on your house. The lender’s claim is subject to numerous defenses, affirmative defenses, set offs, and counterclaims.
6. Litigation: referral to a competent licensed legal professional in your area. Or you can find your own and our attorneys will assist. Fees vary, but a retainer is ordinarily involved since these attorneys must be paid for their time. However, most of the attorneys we work with keep their retainers low and take most of the case on contingency — a good indication that they believe a substantial recovery for you is possible. Recovery of attorneys fees and costs is deducted off the amount you owe.
NOTE: WHILE I AM LICENSED TO PRACTICE LAW IN THE STATE OF FLORIDA AND I AM AN EXPERIENCED LITIGATOR — ESPECIALLY WITH THE ISSUES RAISED BY FORECLOSURE DEFENSE, I CONSIDER MYSELF RETIRED, AND I HAVE NO INTENTION OF ACCEPTING A RETAINER OR APPEARING IN COURT ON BEHALF OF ANY NEW CLIENTS. I AM A WRITER AND A RESOURCE. SINCE I LIVE IN ARIZONA, THE LIKELIHOOD OF MY APPEARING IN ANY CASE IN FEDERAL OR STATE COURT IN FLORIDA IS EXTREMELY LOW. THEREFORE I HAVE BEEN SEEKING AND RECRUITING ATTORNEYS WHO ‘GET IT” TO TAKE THESE CASES ON. I TEACH SEMINARS AND I MENTOR LAWYERS OVER THE PHONE. I AM ALSO AUTHORING A BOOK ON THE HOMEOWNER’S WAR, WORKBOOKS FOR LAWYERS AND WORKBOOKS FOR PRO SE LITIGANTS WHO CANNOT FIND OR AFFORD AN ATTORNEY. I DO NOT RECOMMEND PRO SE APPEARANCES ALTHOUGH I WILL CANDIDLY REPORT THAT PRO SE LITIGANTS ARE HAVING CONSIDERABLE SUCCESS AT THE MOMENT.
Neil F. Garfield, Esq.
ngarfield@msn.com
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> Date: Mon, 18 Aug 2008 12:14:33 +0000
> To: ngarfield@msn.com
New comment on your post #165 “FORECLOSURES: TILA RIGHT OF RESCISSION and CONSEQUENCES”
> E-mail : bkfoster@bellsouth.net
> Comment:
> I am currently dealing with an issue in court where I actually rescinded a loan within the 3 day period. (The closing atty. at the title co. seemed shady and we did not feel comfortable with the whole deal.) Well, they (WAMU) funded and paid off the other mort. co. within the 3 days which violated the “delay of performance” statute. Then they attempted to collect and I informed them that I had rescinded. (I have a copy of the form, a copy of the express mail label, a copy of the signed delivery receipt, etc.) Plenty of proof that I rescinded in a timely manner. This was 2001. I made no payment to them at all. I attempted to pay my old mort. co. but they sent my payment back. Well I faxed them (WAMU) several copies of my rescission documents over the years and it wasn’t until 2005 that they canceled the mortgage with a “lost note” affidavit. Clearly beyond the 20 day requirement in paragraph (d)(2) of reg. Z. Now here in 2008 they are trying to sue for the money they paid out back
> in 2001. Several questions because my lawyer has never faced anything like this. Wouldn’t violation of Federal Law be used as a defense against an “unjust enrichment” claim? Couldn’t a SOL defense be used because they let so much time expire and in a sense “NEVER” complied with paragraph (d)(2)? Could it be established that I never have to comply with paragraph (d)(3) because they can never comply with (d)(2) technically because of an implied “statute of limitations” ie. the 20 days? Could my attempts to fax copies and work towards a resolution be considered an attempt to “tender” if a timely compliance with (d)(2) had occurred? Honestly, my wife and I sought a resolution years ago and instead WAMU sought on lt to force a loan on us and then tried all kinds of tactics to collect, EVEN FORECLOSURE proceedings! On a property that they had NO CLAIM to under the Right of Rescission we exercised. Their harassment has gone on to this day, and now THEY HAVE THE GALL TO SUE US! After all of
> this, I don’t think they deserve anything. I have done everything properly under the law, they have at every turn not followed the law and even denied that we had a rescission. Now a Judge may possibly rule in their favor, but I feel that the Right of Rescission may be the key to beating them. I know this is a lot, but do you have any advice on this situation?
>
> Thanks in advance and GOD BLESS!
>
> Bryan
>
>
Filed under: CDO, currency, Eviction, foreclosure, GTC | Honor, Mortgage | Tagged: 3 day rescission, foreclosure defense, lost note affidavit, rescission, selling forward |
I have read the questions being asked of you and your response. I have a similar problem. My home was illegally conveyed by a person who stated that he was employed by AT&T/and worked with people who were seeking refinancing. His proof was showing a business card and picture Id as such. After speaking with him for a while, I signed an application for refinancing. Next day after speaking with an attorney that application was made null and void. However, this person without my knowledge and the attorney’s knowledge went to the local court clerk’s office and change my property into his company’s name, via a deed. My attorney was aware of what was going on, but didn’t act fast enough, for within a few days, the property was again transferred and recorded, and within 2 weeks it was sold to a person out of town, for $100,000, and a mortgage was put on the property. It was proven that it was a scam, However the fraudulent mortgage was assigned to Chase. Chase knew of the fraud for its attorney admitted it, but they obtain the fraudulent mortgage and eventually moved me out of my home. They then sold my home, to another person. Afterward the property begin transferring from one person to the other, after they found out about the illegal transfer. Now an attorney has the property even though he knows of the fraudulent transfer. Can that illegal deed be deleted from the recording office as being a fraudulent transfer? All of my furniture and belongings were taken, for my family and I were told to leave the premises immediately
c
i too want to get class action against wamu i have 3 houses they are forcl.on mine and modify my rentals . ive been through hell. i have court tomorrow im so stressted. i want the bank to let me work out something but they dont care
I have been sued by WAMU at least once a year since 2001. Since January 2008, they have filed 5 complaints to foreclose. Most recent complaint shows plaintiff as JP Morgan and I don’t know what happened to the last complaint as my attorney has ceased to respond to my email or calls. I’ve prepared a motion to amend answer/vacate & reinstate (explaining that I really do not know it’s status, but have doubt that it is active based on their history – they’ve slipped motions to dismiss before the judge without notifying me before – I wrote the Judge and the attorneys were quite upset) and plan to mail it tomorrow. If this is the wrong thing to do, would someone please speak up?
COULD YOU SEND ME A LIST OF SACRAAMENTO ATTYS THAT GET IT. I NEED HELP ASAP. NOD WAS MAIL TO ME 2/13/2009. TRUSTEE SALE DATE WILL BE IN MAY 09.
Thanks, Mario.
Is that Dawn Rapaport? (I believe I’ve seem her name here). Peter Ticktin?
I feel like the cancer victim that has to fight or sue its insurance company to pony up while withering away. Where’s justice been the past 8 years?
How’s the book business? I’ve got 300 cartons of books to sell, including 144 different versions of Alice In Wonderland. How might I move them?
Adios, compadre!
Allan
Allan,
I live in Florida.I have had to teach my lawyers how to defend me.I have exercised great patience with my Lawyers.The only lawyer I have found I was able to work with was Dawn Rapperport in South Florida.
Mr Peter Ticktin is also excellent and a very kind and humble Lawyer.
The regulators are not very usefull or helpfull.
Joe the plummer is ignorant and if he makes $250,000.00 per year in profit he should pay tax
I too am a WAMU customer, now dealing with USBNA as trustee for SASCO 2005 RF5.
Recently wrested a title insurance policy from a stonewalling family member who forged my late mother’s falsely witnessed signature on documents for years.
When I made a claim for indemnity and legal help on the title policy, they claimed I was not an Insured since my incapacitated mother purportedly quitclaimed her interest to my brother, her caretaker. I responded self-dealing is not allowed caretakers or fiduciaries in Florida, besides the quitclaim was forged and posthumous!
Well, I asked, how about the part where your title company guarantees the closing against deceptive practices and fraud (the issuing agent/closing attorney/notary was part of a conspiracy to defraud my mother, commit identity theft, elder abuse, and financial exploitation)?
Their response, which bordered on the Kafkaesque, suggested, “you mean to now claim coverage when you’re telling me there never was a contract with the Insured?” I reckon they’ll wait until I hire a lawyer to sue them before they’ll act.
When I alerted the Florida Insurance regulators, they didn’t have a clue what title insurance was. The gatekeeper there told me “only matters happening AFTER the closing are covered by title insurance. Your brother’s forgery is not.” What an exercise in futility. So third world! I guess that’s what happens when a red state eviscerates a regulatory scheme! How would Joe the Plumber vote if he knew what befalls the little guy when there’s no entity to back him up? We need Change we can believe in.
Allan
Reading the above comments, I too am a WAMU consumer and am currently going thru the foreclosure process, I would want to reach out to all California victims, to get together and form a class action, we would be stronger in numbers and might be able to find a good attorney to represent us in this matter. If you know anyone who has the same situation we should start acting now.
WAMU They and their employees deserve to have gone under! Citizens have been complaining about these pigs for years. Am shocked our government never did anything just as they have never done anything to stop CitiMortgage, Wells Fargo and Aurora Loan Services who also rank right up there with WAMU scum!
Lisa –
Try http://www.LoanCompliance AdvisoryGroup.com They did a good job on my mortgage audit for a reasonable cost. Their main office is located in New Jersey.
how do i find a forensic mortgage audit person/place?
Nothing WaMu does would surprise me. Not that this is relevant, but I have them for my personal and business banking, and they’re horrible.