They might have meant to do it and they might not have thought of it, but the effect of the funding created by The Federal Reserve that bailed out the investment banks so that the investment banks could bail out the investors in ABS certificates, is that the mortgages and notes are satisfied twice over and the borrowers have already paid through taxes and should not be made to pay twice by paying off a non-existent debt to a party that has been twice paid or more and has already signed off its rights to enforce the note or mortgage.
New Entry of Glossary
INVESTOR: SEE LENDER, REAL PARTY IN INTEREST, HOLDER IN DUE COURSE, SOURCE OF FUNDS see also cyruswellstexascase-excellent-verbiage-on-securitization-conspiracy-with-charts-and-causes-of-action
In the mortgage meltdown context the investor is the actual source of funding on all residential mortgages. Investors include but are not limited to “qualified” investors possessing sufficient net worth under SEC rules, or the status of being a financial institution themselves, which includes pension funds, mutual funds, hedge funds, city operating funds, county operating funds, national operating funds from many countries, and corporate operating funds.
ABS certificates were sold as “cash equivalent” many of the investors being led to believe that they were weekly auction market interest rate securities that would not and could not vary in value — until one day in March, 2008, when Lehman Brothers sent out an innocuous memo to all investors in ABS certificates that the auction market had convened but that there were no buyers.Many thousands of “investors” most of whom representing tens of millions of individual people found out the certificates were essentially worthless. These worthless securities (having no value because of the reasons stated in this blog) are in the process of being publicly and privately re-purchased at face value, despite the fact that they have a negative fair market value. The purchasers are the investment banking firms that created and sold them in the first place. But the source of money is the Federal Reserve which in this “special circumstance” has opened its discount lending window to investment bank for the first time history. The FED is accepting the worthless ABS certificates or evidence of them at face nominal value and “lending” the investment bank the money using as collateral the worthless ABS certificates. Thus the FED, creates funds to soak up the losses across the board. The significance of all this is that the debt originated by the borrower has been paid multiple times and the right to foreclose the mortgage or enforce the note has been extinguished by alteration of terms and actual payment. In short, the Federal Reserve is becoming the real party in interest or the POSSIBLE real party in interest in virtually ALL loan transactions originated from 2001-2008, the holder in due course, and has no intention or desire to become involved in foreclosures. The parties who are “exercising their right” to enforce the note and mortgage do not have such a right because they are not who they say they are, because they have already been paid, and even the people who paid them have been paid. The terms of the secure transaction (mortgage) has been eviscerated and the note has been satisfied by the taxpayer bailout of the investment banking combines.
Filed under: CDO, currency, Eviction, foreclosure, GTC | Honor, Mortgage | Tagged: ABS certificates, bailout, fair market value, Federal reserve, foreclosure defense, foreclosure offense |
John R,
You should probably run this question by Neil.
So let me see if I understand this. Joe gets a mortgage from H&R Block. Next day they sell it to Option One. Payments don’t get made, they give it to Wells Fargo to foreclose on. Wells forecloses (as Servicer to the “Asset Backed Trust”) and the assignment is dated AFTER foreclosure filing. That would be lack of standing error 1. Since Option One was holding the paper when payments quit being made, isn’t there a rule of some kind against them passing paper that’s in default, and if so, then that assignment was fraudulent also. BUT, is Wells finally, when they get all their paperwork together, the actual note “holder” or is it really the “Asset Backed Securitized Trust” that they are Servicers for and as such do they really have the ability to foreclose or do they still lack standing? But it gets deeper! Since the “assets” are sold off as derivatives (I believe) and derivatives (I believe) are sold wholly with the guarantee of a buy back in the event of a “credit trigger” (like the time Joe quits making his payments)… BUT, there’s no assignments between the investor’s that bought the Mortgages and the “TRUST” (which is just a pooling entity anyway) in either direction! Contrary to some law I’m sure. But OK… I’m lost so far so let me continue on this path for a minute. Joe quits making his payment signaling a credit event. And the Trust has to “take back” the note, but the Trust is insured. So the Trusts insurance is going to negate any losses to the Trust… BUT someone has to have a loss before they can foreclose. Can someone law this out longitudinally for me? I have to tell it to a Judge in a couple of weeks. John R.
Sal,
I’m in San Diego also, and in foreclosure. Please feel free to email me, perhaps we can exchange some useful info.
Steve
99Libra@gmail.com
Hello, great site and information that you are providing. I am helping my brother with his issues regarding the purchase of his California home in 2005. So far, I have tried the useless HUD referral to do a loan modification which was a complete waste of time.
I recently began to inspect the closing documents for this loan and discovered that the original mortgage company that made this interest only loan to my brother who had a FICO score over 700 and qualified for a normal loan, falsified income information on the original loan application. The app says he had a $14,000 per month income which in overinflated by at least $10,000.
This house has a $352,000 Mortgage and is currently valued at around $200,000. We signed up with a company here in San Diego called You Walk Away, LLC that is currently conducting a forensic document analysis and is talking to the Servicer of the loan. The last Mortgage payment was made on May 1, 2008.
Upon finding your site and realizing that California is a non-judicial foreclosure state, I decided I also need to attack the foreclosure along with everyone else who is working on the issue.
On August 20, 2008 I sent a Certified Copy of the Letter to the Trustee from this site and copied it to the servicer. At the end of the letter, I asked that the Trustee and the servicer respond to all of my attached question. I attached the interrogatories found on this site, only I replaced all references to Interrogatory with the word Question.
On August 28, 2008 I received a letter from the servicer acknowledging receipt of my certified letter and that I will receive a response within 30 – 60 days. It assured me that a copy of the response will be forwarded to any interested party as requested.
I will let you know just how many of those “questions” get answered and/or if they try to move forward with a non-judicial foreclosure even after being put on notice.
I almost forgot to give an update on my situation. If you guys are not aware, Citi Residential foreclosed on my deceased mothers home on August 5,2008. Prior to them foreclosing, I sought help from Atlanta based Acorn Housing. Acorn;s Director Ozell Brooklin attempted to negotiate on my behalf.
The loan origianted with Ameriquest Mortage. My mother passed of sudden death in April of 2003. I discovered Ameriquest inflated the appraisal on a home that was worth on about 60,000 to 170,000. To make a long story short, I contacted Ameriquest with my concerns. My complaint reached their President William (Bill) Cook and we settled the matter ON PAPER!
It doesn’t end here, as time went on I found more fraud by Ameriquest. I contacted Mr. Cook again. Mr. Cook agreed to pull the account all together. He told me that he was suspending the payments and would deed property back over to the estate as a nuisance settlement once Ameriquest made enough off the interest. I also agreed not to sue Ameriquest. Now, I realie all agreements dealing with real estate has to be in writing. There hadn’t been any payments for FIVE years. Ameriqueat also did not send any statements or demands. Every thing appeared to be going well. Read on.
In March of 2008 (over five year’s later) Citi Residential (Office of the President) contacted me stating they needed to make arrangements on the loan. They claimed Deutsche Bank purchased the property and they would not be honoring any settlement I had with Ameriquest. I assumed if they did indeed purchase the loan, they would be bound by any and all agreements prior to the purchase. At any event, they foreclosed. the first foreclosure was filed June 2, 2008. I went over to the court house and noticed they were not on the deeds. I brought it to their attention and they canceled the foreclosure stating they wanted to work things out with me. I beg the differ. They haulted it to get their paper work right! A weeklater they filed an assignment into the court record. The assignment listed Deutsche Bank as the Trustee and others etc. WHO THE HELL IS OTHERS?
I asked the foreclosure attorney who it represented. They told me they represented Citi Residential. This is a problem. Georgia laws favor the lenders but the clause in the law state that the legal holder of the note can only file for foreclosure.
Trustee’s and Service Providers have gotten away with this for years. The other problem is Ameriquest abandoned their obligation’s to collect. They can’t come back five years later stating they dont wish to honor an agreement. The assignment states that Deutsche Bank was listed as the trustee under series 2002-C. I checked with the SEC and the Series started in October 2002 and ended in December of 2003. If this is true, why didn’t Deutsche Bank file for foreclosure. In fact Deutsche legal department in New York told me and a SEC investigator they do not own the note and does not know where it is. Citi Residential claims Deutsche should have the note. Where is the note. The attorney’s filed for an eviction in Dekalb County Court. However it was returned due to a wrong zip code.
Citi residential offered me cash for keys, but the amount they offered isn’t nerely enough. I need help ASAP! This is why it is important that every one come together and retain an attorney. I will be homeless in about two weeks because I could not afford representation. Now I will be filing a pro se motion to stop the eviction due to extenuating circumstances. My need for an attorney is urgent. Dont let this happen to you. Even if Jeff Barnes cant assist me, I will be making a donation of $300 dollars to go towards other cases. I can be best reached at 404-975-8964.
Shawn
Wow!!! never thought of that, this will be very interesting to see how this all starts panning out. i have become a daily reader.