Foreclosure Defense: Most Common Question: Domestic Financial Terrorism

“THE EFFECT ON THE NATION, AND THE EFFECT ON THE NUMBER OF AMERICANS DIRECTLY AND PROFOUNDLY IMPACTED BY THIS FRAUD EXCEEDS THE REACH OF OSAMA BIN LADEN. THE PATRIOTIC THING TO DO IS TO CHALLENGE THE LENDERS, CHALLENGE THE TRUSTEES, CHALLENGE THE COURTS, CHALLENGE THE SHERIFF, CHALLENGE THE TITLE, CHALLENGE THE NOTE, CHALLENGE THE NOTE, FIRING THE AMMUNITION WE HAVE FROM WHEREEVER WE ARE AND NOT NECESSARILY FOLLOWING THE “RULES” (GUERILLA STYLE THE WAY WE DID IN THE REVOLUTIONARY WAR) BECAUSE MAKE NO MISTAKE ABOUT IT, IF THE FINANCIAL SERVICES INDUSTRY SUCCEEDS IN LEAVING BORROWERS HOLDING THE BAG, THE COUNTRY WILL BE TAKEN DOWN MORE NOTCHES THAN IT CAN RECOVER FROM.

THE PATRIOTIC RESPONSE, THE AMERICAN RESPONSE, IS TO BEAT THEM BACK INTO SUBMISSION USING THE EMPOWERMENT OF NUMBERS, THE USE OF CURRENT LAWS AND COMMMON LAW REGARDING THE DUTIES OF “LENDERS”, MORTGAGE BROKERS, TITLE AGENTS, TRUSTEES, LOAN ORIGINATORS, APPRAISERS, THE COURT SYSTEM, THE EXISTING RULES OF EVIDENCE, THE EXISTING RULES OF PROCEDURE, AND THE EXISTING SUBSTANTIVE LAWS GOVERNING THE TRANSFERS OF INTERESSTS IN REAL PROPERTY, THE CREATION AND TRANSFER OF NEGOTIABLE INSTRUMENTS, THE CREATION AND TRANSFER OF SECURITIES, LAWS OF USURY, FRAUD, AND DECEPTIVE BUSINESS AND LENDING PRACTICES. IT’S ALL THERE – USE IT!!!

THE PLAIN FACT IS THAT NON-JUDICIAL FORCLOSURE WAS MEANT FOR UNCONTESTED FORECLOSURES. YOU ARE ENTITLED TO A TRIAL, TO BE HEARD ON THE MERITS, AND YOU ARE ENTITLED TO TRIAL BY JURY. BUT IN NON-JUDICIAL STATES THE BURDEN IS ON YOU TO FILE FOR A TEMPROARY RESTRAIING ORDER AND A LAWSUIT, COPIES OF WHICH ARE ON THE FORMS PAGE OF THE BLOG.

Each state and sometimes each judicial circuit within a state vary, so take this as general information that MUST be checked with local licensed competent counse. By competent counsel I mean someone willing to do a little research after reviewing my answer. Bring or send a copy to him/her.

  • THERE ARE NO GUARANTEES OF SUCCESS HERE, BUT FROM REPORTS WE HAVE RECEIVED, THE STRATEGIES EMPLOYED BY PEOPLE INVENTED ON THE SPOT OR TAKEN FROM THIS BLOG OR OTHER RESOURCES HAVE WORKED VIRTUALLY ALL THE TIME.
  • Neither the sheriff nor anyone else in government actually wants your property vacated.
  • Yet government is being used as a bludgeon against American homeowners resulting in the bailout (payment) of everyone in the process EXCEPT the borrower, despite a dominant method of “lender” operations that included intentional deceit,  theft, and tricking the homeowner into becoming the issuer in a vast securities scheme by which individuals and financial services industries reported huge profits that increased their stock prices by multiples varying from 12 to 20.
  • On the way down they get to write off the lossses at one-time events that are not technically treated as relevant in the earnings per share of each financial institution. 
  • So on the way up the firm reports a false profit of $10 billion, sees an increase in its market value of $150 billion, the smart insiders see a substantial amount of that increase realized in their pockets.
  • On the way down, after the bubble bursts destroying yet another Ponzi scheme, they write off a small fraction of the loss, get bailed out by the Federal Reserve, pay off the investors in mortgage backed securities whom they defrauded, and retain most of their profits.
  • The losses here actually came from financial institutions sucking on their own exhaust and getting to the point where they were inventorying these worthless securities on pools of notes and mortgages that were guaranteed to fail. Worthless securities backed by worthless mortgages and notes.
  • THE EFFECT ON THE NATION, AND THE EFFECT ON THE NUMBER OF AMERICANS DIRECTLY AND PROFOUNDLY IMPACTED BY THIS FRAUD EXCEEDS THE REACH OF OSAMA BIN LADEN. THE PATRIOTIC THING TO DO IS TO CHALLENGE THE LENDERS, CHALLENGE THE TRUSTEES, CHALLENGE THE COURTS, CHALLENGE THE SHERIFF, CHALLENGE THE TITLE, CHALLENGE THE NOTE, CHALLENGE THE NOTE, FIRING THE AMMUNITION WE HAVE FROM WHEREEVER WE ARE AND NOT NECESSARILY FOLLOWING THE “RULES” GUERILLA STYLE THE WAY WE DID IN THE REVOLUTIONARY WAR BECAUSE MAKE NO MISTAKE ABOUT IT, IF THE FINANCIAL SERVICES INDUSTRY SUCCEEDS IN LEAVING BORROWERS HOLDING THE BAG, THE COUNTRY WILL BE TAKEN DOWN MORE NOTCHES THAN IT CAN RECOVER FROM.
  • Comment:
    We are in a pretty urgent state right now. Home was foreclosed on in June & have just now received 5 day notice to vacate. Both my husband & I have been out of work recently due to health issues and so we have nothing to put towards moving or a rental. We also have 3 sons at home, one of which is disabled. Unbelieveably, we are actually looking at being out on the streets! We’ve been advised to file a motion to stay the notice to vacate, (based on financial hardship)but don’t have the necessary form to do so. Can they actually show up & kick us out? What will happen to our belongings if this happens? Will someone please contact us right away to give us some much needed advice? Our 5 days is up tomorrow! What kind of time line are we looking at? Thanks for your help, time & attention with this.

ANSWER:
1. URGENCY: THE MYTH OF URGENCY: Take a deep breath. Things ARE moving and if you do nothing, the end will come sooner than later — and the end will be you moving out of a house that you actually still legally own, as a result of a sham foreclosure, with the appearance of judicial authority which the sheriff eventually enforces. There are many, many things you can do to stay in your home long after the sale is completed. WE HAVE READERS WHO HAVE TURNED BACK THE EVICTION AND ARE STILL IN THIER HOMES 4 MONTHS AFTER SALE, AND SOME WHO OVERTURNED THE SALE, AND WALKED AWAY WITH THEIR TITLE FREE AND CLEAR OF THE MORTGAGE.

2. 5 DAY NOTICE: Part of the procedure not the end. They must sue you in unlawful detainer or eviction and they must sue any tenant that was not previously named in unlawful detainer or eviction, although I am not telling you to create a back-dated tenancy to give yourself another 30 days to get your act together.

3. If you file bankruptcy, it is the opinion of many attorneys that the schedules should be filed showing the house as YOUR asset even if the sale has occurred, but without a value stated (unknown). Also the “lender” should be named as an unsecured creditor for an undetermined amount that is in dispute.

This way, the automatic stay is issued by the Federal Bankruptcy Court (immediately upon filing the BKR petition) and which stops sale, eviction or anything else they are pursuing against you. Filing the schedules properly and forcing the creditor into an adversary proceeding changes the game — the normal rubber stamp removal of the stay is avoided and kicked into an evidentiary hearing, where the “lender” or “servicer” must prove their right to foreclose  despite your defenses of payment, fraud, TILA violations etc.

11 Responses

  1. Reaching U Network a 501c3 licensed non-profit organization that is working on a NEW COMMUNITY OUTREACH PROGRAM for homeowners.
    888-841-5366 Ext. 8011
    Senior Case Manager
    http://www.reachingunetwork.com AGENT#8011

  2. 888-841-5366 EXT8011

    PAUL
    SENIOR CASE MANAGER

    Reaching U Network a 501c3 licensed non-profit organization that is working on a NEW COMMUNITY OUTREACH PROGRAM for homeowners.

    Our purpose is to educate homeowners and raise awareness about predatory lending, mortgage fraud, loan modifications and mortgage foreclosure defense so that you can make the right choice when it comes to saving your home.

    I’m sure you’ve seen on the news that recent government probing into some of the nation’s largest mortgage lenders has sparked an in depth investigation in fraudulent mortgages and foreclosure cases. You may be having some problems with your mortgage and might be in a predatory or fraudulent loan created by your lender…it’s not necessarily your fault you’re in this situation.

    My job is to help educate you as to the different options and avenues that are available to you and determine if I can assist you in qualifying for a program that may be able to resolve the mortgage issue you are currently experiencing. Based upon the answers you’ve provided about your current mortgage situation, you qualify for a Mortgage Assessment Program, which is offered through our sponsor Personal Financial Services of America that is a provider of American Legal Plans. American Legal Plans is an organization that works with a network of attorneys nationwide that concentrate in foreclosure matters and that have agreed to offer their services at a discounted rate.

    The first step of American Legal Plans Mortgage Assessment Program is the submission of a Qualified Written Request (QWR) to the servicing agent/lender which questions the validity and servicing of the debt as well as serves as a demand for the lender/servicing agent to produce all documents and accounting affiliated with your loan. Once the lender has acknowledged receipt of the QWR by federal law the lender must stop reporting late or missed payments to the credit bureaus. The next step in the program is a court record search to ensure that there is no active litigation pending against the homeowner. American legal Plans then performs a property appraisal report which may aid in the restructuring of your loan.

    American Legal Plans then executes a securitization audit. A securitization audit traces the note and mortgage or deed of trust from the original lender down the line of sales or other transfers. Odds are your loan has been sold and resold several times without the seller following federal assignment laws. In other words without the original note having a proper chain of assignment the party seeking to foreclose may not have the right to do so.

    Now let me explain how this will help you save your home. The network attorney may be able to utilize this information as evidence in an attempt to restructure your loan which means a possible reduction of principal to the current market value and/or lower the interest rate in turn giving you an affordable monthly mortgage payment allowing you to save your home. Once the mortgage investigation is complete, which will take approximately 45-60 days; the findings will be forwarded to you and your network attorney. Once your network attorney has had the opportunity to review the results of the securitization audit they will contact you to discuss the findings and develop a strategy based on your goals.

    The next step in the Mortgage Assessment Program is really something the banks don’t want you to know about. It is a Financial Audit of your loan which may reveal that your bank has been over charging you on your loan and you may be entitled to a refund from your lender. There have been homeowners that have received as much as $30,000.00 back from their lender depending on how long you have been in your home. Government estimates show that roughly 50-70% of home owners are unaware that they are being overcharged on their mortgage payments. The auditors will look to verify the accuracy of your interest rate adjustments (if A.R.M loan); escrow account; current loan balance; monthly payment; principal pre-payments; PMI; and other variables. The auditors have been trained to determine all refunds that may be due to you. And will provide you with the assistance necessary to receive any refund due to you.

    Let’s get started today!

    The Reaching U Network: http://reachingunetwork.com/
    You can see a sample forensic audit on this, our website.
    If you receive a notice of foreclosure during this process, we will immediately assign your case to one of our prominent attorneys within 24 hours of notice to defend you at no additional charge.

    Watch this: http://news.yahoo.com/s/yblog_thelookout/20110404/bs_yblog_thelookout/the-foreclosure-mess-isnt-going-away

    Why Loan Mods Don’t Work!!!
    http://www.youtube.com/watch?v=HmodOyhAV68

    The Truth of Trial Loan Modifications BY: Lee Honish

  3. File a counterclaim and request a hearing. Then file a lis pendes against them

  4. To Neil and everyone else,

    CONNIE LIVES IN SACRAMENTO CA; SHE WAS PUT OUT OF HER HOME SOMETIME IN 2006.

    HER EVICTION WAS A REAL DISGRACE, ONE THAT I FIND SO HARD TO SWOLLOW.

    SHE HAS ASKED ME TO BRING ATTENTION TO HER AND I AM DOING SO.

    I BELIEVE SHE MAY BE IN CONTACT WITH BRAD FROM CA.SHE WAS EVICTED IN SPITE OF THE FACT THAT SHE HAD A PENDING CASE FOR FRAUD AS MOST OF THE LOAN DOCS WERE NEVER SIGNED BY HER.IN MY UNTRAINED EYE SHE WAS DEFRAUDED IN ITS BASIC FORM 101.

    SHE REALLY NEEDS HELP.

    THE ILLEGAL ACTION CASTED HER FAMILY OUT TO THE WOLVES TO DIE.

    I AM VERY TROUBLED TO ACTUALLT SPEAK ABOUT THIS SITUATION, BUT THIS IS SOMETHING THAT CANNOT BE HIDDEN.

    THE SHORT IS SHE LIVES IN HER CAR

    WITH HER FAMILY.

    SHE IS A VERY STRONG WOMAN, THE ACTION DID NOT BREAK HER AND I HAVE BEEN WORKING ON HER HEART, TO MAKE HER STRONG ENOUGH TO STAND AND PUT UP A FIGHT.

    SHE LACKS THE BASICS, IN RESPECT OF TOOLS TO FIGHT.I AM UNABLE TO HELP HER AS FIRST I AM NOT A LAWYER AND I AM NOT FAMILAR WITH CA LAW.

    NEIL SHE HAS ASKED THAT YOU ASSIST HER PLEASE.

    I AM SO HURT THAT SUCH A BLATENT MISDEED COULD BE COMMITTED ON A PERSON.
    I AM ASHAMED THAT WE ARE MADE TO SUFFER IN SUCH A DIRTY MANNER BY BANKS WHO COMMIT SUCH FRAUD UNDER COVER OF LAW.THIS IS A TERROIST ACT AND THE POLICE WERE THE FOOT SOLDERS IN THIS CRIME.

    HER CAR WAS TOWED AWAY.ALL HER CHILDRENS POSSESSIONS WERE PUT ON THE SIDEWALK AND WAS LOST SHE ENDED UP WITH NOTHING.
    AT PRESENT SHE HAS CALLED ME MANY TIMES REQUESTING THAT I POST THIS LETTER ON HER BEHALF.

    IN THE BEGINNING I WAS UNABLE TO WRITE THIS I DID NOT QUITE KNOW WHERE TO START, BUT THE INNER PAIN THIS CAUSED AND MOVEDME.

    THE DISGUST STAYED WITH ME FOR WEEKS AND DAYS ON END.

    THE MORE SHE CALLED ME AND TALKED TO ME MOVED ME EVEN MORE.

    WHY ARE WE FIGHTING OTHER PEOPLE IN OTHER COUNTRIES WHEN WE ARE DOING THE SAME THINGS TO OUR OWN PEOPLE HERE?
    .
    LIFE IS BEING MADE A NIGHTMERE FOR PEOPLE BY PEOPLE WHO COMMIT FRAUD ON THEIR OWN PEOPLE AND THEY DO NOT GO TO JAIL

    THE COOPERATIONS, BANKS, POLICE AND THE COURTS ARE ALL COMPLICIT IN THIS CRIME,

    THIS IS SOMETHING WE INVADE OTHER LANDS FOR BUT IN OUR OWN LAND WE TOLORATE IT AND CALL THIS SUCCESS.

    THE INCESTUAS RELATION THAT THE COOPERATIONS HAVE WITH BANKS,POLICE AND THE COURTS IS VERY SICK TO SAY THE LEAST AND THE TREE BRANCH WE ALL SAT ON WHILE WE WERE CUTTING IT AWAY, HAS FALLEN.

    I KNOW THAT CONNIE CAN BE HELPED AND HER STORY CAN BE TOLD AND BROUGHT TO THE FOREFRONT.

    TODAY I WEEP FOR MYSELF FOR CONNIE AND OTHERS AND STRANGE ENOUGH MANY PEOPLE ARE WEEPING TODAY AND I DO NOT KNOW WHY.

    I BEG PLEASE TO HELP CONNIE,WE MUST BE ABLE TO HELP THE MOST HELPLESS OF OUR PEOPLE AS THIS IS WHERE THE TRUE STRENGHT MAKES A DIFFERENCE.

    COMPASSION IS A SPECIAL GIFT THAT WISE PEOPLE HAVE AND THE STRONGEST OF PEOPLE WHO HAVE PASSION AND THE WISEST OF ALL.

    I FEEL SO HELPLESS AND SO VERY HURT.DEEP DOWN IN MY HEART I KNOW THAT THE SUSTAINER OF LIFE WILL TAKE CARE OF THE MOST NEEDIE OF PEOPLE,BUT WE MUST REACH OUT TO PEOPLE AND HELP TO FIGHT THIS ENEMY.

    AS I WRITE THIS LETTER THE TEARS STREAM ON MY FACE AND I AM UNABLE TO THINK STRAIGHT UNLESS I GET THIS OUT.

    SHE SEEM TO HAVE A FEW KIDS,AND HER CHILDREN HAVE DREAMS THAT WERE SHATTERED BY THE BANK AND THE POLICE.

    I DO NOT HAVE A TEL NUMBER FOR HER OR EMAIL BUT I KNOW SHE WILL RESPOND HERE TO HELP IF SO OFFERED.

    THANK YOU IN ADVANCE.

  5. Mary,
    Check out Judge Christopher Boyko’s rulings dismissing Deutsche Bank’s foreclosure suits for lack of standing. These rulings may have been appealed, but I do not know the outcome of that. The rulings took place in October, 2007, in Ohio. I don’t have the cite handy, but if you e-mail me I’ll find it for you.

    And to you that want to call me a vulture for negotiating short sales. Consider this, as I already stated, short sales aren’t for everyone, and if you have real equity, fight the foreclosure all the way. Answer every filing in the prescribed time period. Demand paperwork, documentation of each and every claim the plaintiff makes. If there was predatory lending at the origin of the loan, a judge has the power to apply all payments made to the principal.

    Some people owe more on the mortgage than their house is worth. Some people believed their mortgage broker and thought they would be able to refinance into a fixed rate. Some people cannot possibly afford their mortgage payments once their interest rate re-sets. Some people took out HELOC’s relying on their mortgage company’s assessment of their available equity, and later were informed that their house is worth less than the amount they borrowed. Some people have been denied any sort of mortgage work-out, loan modification or forebearance arrangement. Some people are not able to fight a foreclosure action, because of their lack of financial resources, health, or mental disposition.

    And the above are the clear cut scenarios. Other people were flat out lied to by their mortgage broker or lender. These people didn’t even know that they had bought a home with an adjustable rate mortgage. Or worse yet, other people did not know that their interest only mortgage created negative amortization and that their principal was growing instead of diminishing.

    And Libra99, who do you think Deutsche Bank and HSBC are? Do you think those are American entities? Look in your county records and see if these lenders are common names in the Plaintiff column in foreclosure filings. Deutsche Bank is obviously a German bank. HSBC, I’m not sure. I know it took over Midlands Bank in England several years ago, and I’ve been told that the HSBC stands for Hong Kong Shang Hai Bank Company, and it also seems to have a huge presence in the United Arabic Emirates (UAE).

    So, it’s a little late to worry about foreign investors buying up short sales. Multi-national foreign investment banks are already in the thick of things, thanks to our government’s lack of regulation and the boys on wall street.

    I think short sales have a certain symmetry. For a change, it is the lenders that take the hit.

  6. The last time I emailed I told how I filed a motion to dismiss in a foreclosure summons, pro se, on my late parents estate.

    The attorney’s have filed an amendment to introduce an exhibit that they claim as a Assignment of Mortgage. Lost-note! It listed the successor’s in interest by merger from the original holder of the note, recorded at county clerk.

    The successor’s were wrong and the holder of the mortgage was wrong. It was cut and pasted by the attorney and then submitted as a legal transfer.
    I accussed the attorney’s of submitting a false document, committing fraud upon the court and negligence. Backed my side up with their own evidence and filed at the court.
    I took it a step forwarded and submitted a complaint to the President of the Bar Commissioner’s of the state Bar Association.
    Today I received an answer back from him and he has forwarded it to the State Bar’s General Counsel for review. The body of my complaint reported the attorney’s file many foreclosures and that rarely are they challenged.
    I challenged these attorney’s of being too “comfortable” and asked that their case’s be reviewed.
    I also informed the counsel that I was going to appeal to the state US Supreme Court, and if the Judge accepts the note as evidence I would file a equal complaint to the Cheif Justice of our District Court.
    This site made me aware of the actual ” legal stand ” and how it is almost impossible to find who has it. The older the note, the more the possibility it has been sold numurous times.
    The banks were not following the legal and the very real laws that are required in bank merger’s and buying the bulk mortgages. That’s on bothsides!The seller and the buyer of the securities.
    I have the paperwork of my parents mortgage and the banks that bought them. I spent two month’s reseaching the record’s as well as the laws.
    THEY HAVE SCREWED UP! Plain and simple!
    How the banks can think that they can sell, foreclose and then resell? If it was a car and Iwasn’t the registered owneron a title, recording, nothing but the original owner…. I would not beable to sell it. Why? Because it still belongs to the original registered owner and only that person has the “legal stand” to sell it.
    Yet the amount of money that exchanges hands without a recording…. makes me wonder if more fraud hasn’t been committed.
    The Fed’s have strict regulation’s and on top of the fraud upon the court during foreclosure, could they also have committed more crimes by not following the sequence of record’s when the securities are sold.
    I am researching all the UCC, State Statute’s, FHA insured, Federal rule’s on bank mergers and the transfer of assignments on securities.
    I promised to the counsel that I would fight to the very end and go through the legals and notify people of this practice. If I had the money to run a large notice in our local newspaper, it would be done!
    Personally, I hope these banks loose each foreclosure because of the way they, not the consumer, messed up.
    Bankrupt banks, bailouts, hundreds of thousands of homes being foreclosed. Everyday, people like myself, ask ” can you please work with me ” only to find that during the time your sending documentation for a “workable solution” they are filing foreclosure
    with no intent but to string a consumer on and then hit them with a short sale. Which is just as bad as the foreclosure.
    I only hope that ,as all of you have said, if you want your home, research and see what is recorded at the local county clerk’s office. Make sure that anything they claim as a fixture was a transaction perfected. There are a lot of obstacles that a person can throw in front of the foreclosure to get more time or to actually find no one actually owns the mortgage.
    The court has to listen to you just as they do an attorney representing the client. As Mario said, be ready, read and reread, know what you have and what it means. Challenge everything that the attorney can’t prove and ask for proof when they say they can.
    Good luck everyone.

  7. The bad thing now are the courts and judges who, when presented with the consumers valid cases and TILA law and, who are cited the required substantive consumer provisions contained therein, proceed to commence an act of treason upon the very courts and judicial system they judges have taken an oath to uphold! These judges exhibit are flagrant disregard for the consumer provision under TILA to which they have no authority to deny the consumer their rights but, who, shockingly berate, chastise and beat up the consumer for even attempting to bring these VALID, COMPLAINTS, when forcing the consumer to file their cases over, and over again and, who in lieu of the consumer being EXEMPT normal pleading standards, force these helpless consumers to plead their claims to a legal standard to which the consumer is exempt! Judges who are turning the table and gun onto the consumer with their judicial snobbery in light of the current crises! Judges who are allowing vexatious lender pleadings that attack the consumer personally and do not attach to consumers TILA cases and are baseless devoid of legal merit and the judges who are enabling these pigs, the lenders, when the judge knowingly turns a blind eye to the congressional authority granted the consumer under TILA! These acts of treason upon the judicial system and the American public must be ceased!

  8. Mario,

    I agree. The vultures are out en masse.

    Steve
    99Libra@gmail.com

  9. Short sales, investors=====wow===== most people here already own their homes but are trying to get the Lawyers to do some work, to let the Law apply. We are trying to get to the judges to follow the Law.
    Your motions seemed really strong from the onset, congratulations, gosh most people here sometimes start so late, but we have been able to put up a fight, all the same.
    We have been ripped off so many times that we do not like it anymore.
    The predators just do not stop.

  10. “I do not want to list your property in the MLS and hope someone buys it. We have a group of over 4,000 private investors that are buying short sale properties.”

    This was likely a part of the overall “Master Plan” all along, to have our properties ultimately bought up at a fraction of the cost by groups of foreign investors. Consider how the rest of this country has been systematically sold out to foreign entities. Very soon, there will be nothing left here for us.

  11. I am now in the business of negotiating short sales for homeowners. I work with a group of investors that will buy the property once I negotiate the short sale. Short sales are not for everyone, and we also offer other means to assist homeowners. We also help homeowners stay in their homes by negotiating loan modifications for them.

    That said, I have been on the receiving end of a foreclosure action also. I filed a motion to set aside the lis pendens soon after I was served. In my answer and at the hearing I raised two defenses. One defense was that the Plaintiffs had no standing to foreclose. The Plaintiffs were HSBC as trustee for CDO asset backed securites … etc. My defense was that the property did not belong to HSBC, had never been transferred to HSBC in the county records. This legal theory followed Judge Christopher Boyko’s rulings in Ohio when he dismissed foreclosure filings initiated against homeowners by Deutsche Bank in October 2007. The presiding judge on my case, Judge Graham, Volusia County, FL, was very interested in this defense, and was prepared to order the Plaintiff’s attorneys to prove their standing prior to going any further with the foreclosure.

    I never had to see the ultimate outcome of my defense because my other defense was that the property had burned down. It was insured and the mortgage was going to be paid off anyway. The judge said that he would not do anything about a foreclosure until the insurance matter was settled. I had finally found a reasonable man.

    The property burned down in Feb. 2008; the hearing was in June 2008. During those months the foreclosure attorneys failed to grasp that they were going to get paid off anyway. And much quicker if they would just relax and wait for the insurance check. The foreclosure attorneys were like robots, cyborgs, terminators, and could only understand that their job was to foreclose. The law firm was one of the big foreclosure mills located in Tampa, Florida, Shapiro and Fishman. They wasted time, money, court resources, etc. by failing to use simple logic. There was no point in foreclosing the mortgage was going to be paid anyway.

    My advice to any homeowner facing foreclosure is first to take a deep breath and assess the situation. If you have equity, fight the foreclosure tooth and nail. Answer all court filings in a timely manner. If you can arrange a reasonable loan modification, do so, but do not accept one that you cannot afford. Use affirmative defense in your answers and in court. If you can question the plaintiff’s standing, do so. If you can allege predatory lending, do so. If you can allege illegal or predatory loan servicing procedures, do so.

    If you want to get out of your house and out from under the debt a short sale might be the answer. I do not want to list your property in the MLS and hope someone buys it. We have a group of over 4,000 private investors that are buying short sale properties.

    Good luck.

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