Foreclosure Offense: Notice to Title Agent and Carrier

The title agent that performed your closing probably was aware that securitization of your loan was in process and therefore knew that the real parties in interest and the fees paid between undisclosed parties had not been disclosed to you and in fact were actively hidden, because you would have known that the nature of the transaction you thought you were doing (a mortgage loan) was in fact only part of a fraudulent scheme to issue unregulated securities under false pretenses. Now you are in a position to assert a claim against the title agent for malpractice, assuming the title agent was also the escrow agent, and a claim against the title carrier because they issued you a title policy and now you have a cloud on title. (if you paid for and received an owner’s policy).

If those assumptions are true then you should send the following letter addressed to the title agent and to the insurance company that issue your title insurance (For example, Chicago Title and Guaranty).

Re: Escrow settlement Number (NOTE: this can be found in your closing documents and if you can’t find it you can call the title agent and ask for the settlement number)
Names of Buyers:
Names of Sellers:
Date of Closing:
Address of property:
Title Policy Number:

CERTIFIED MAIL RETURN RECEIPT REQUESTED

Dear Sirs or Madames:

Please be advised that we are the buyers in the above referenced transaction. At that closing it was represented to us that the name of the mortgage lender(s) was/were __________________. The loan closing(s) took place, and the deed was transferred. A policy of title insurance was issued to us as owners of the property, as referred above.

Subsequently, we have learned that the loan was not funded by the nominal lender(s) on the loan documents, that undisclosed third parties were involved and that undisclosed fees were paid to undisclosed third parties and to disclosed third parties in connection with our closing. In fact, we have learned that our signature on the promssory note was used without our knowledge or consent as a negotiable isntrument whose terms were altered without our knowledged or consent ultimately ending up in the hands of third parties that were not disclosed and owned by investors who were also undisclosed third parties. All of these facts were either within your knowledge or were accessible to you through due diligence.

The existence of various agreements, including assignment and assumption, pooling and service, credit default swaps, insurance, and cross collateralizaation agreements, casuses the allocation of the payments made on the notes to be contractually altered from the terms of the original note. Second, the nominal lender was, as you know, paid in full, plus paid a fee of 2.5% for posing as the real lender when in fact it was not the real lender. Thus the rescission rights are obscured and indefinitely extended. Through other correspondence we have communicated our declaration of rescission of the loan(s).

Based upon the equitable and legal interests of dozens, if not hundreds of third parties, in our mortgage and note, a cloud on title has existed since the moment of closing. Now we are seeking to modify the loan documents, but we need a new policy of title insurance or an addendum continuing the old policy. We have consulted counsel and we have arrived at the opinion that a cloud on our title exists becuase of the misbehavior and neglience of all parties at the closing. Under the terms of the policy, it is your obligation to clear the cloud and issue confirmation that the title to the property and the encumbrances are as represented at closing.

Demand is herewith made that you either cure the deficiency in title or pay to the undersigned all sums paid before, during and after closing pursuant to the flawed closing, includling the loan balance(s).

Sincerely

Signature of both borrowers

3 Responses

  1. I NEVER ISSURE A TITLE INSURANCE AT CLOSED.I NEED HELP IN FIND FEDERAL AND STATE STATUE FOR VIOLATE

  2. In our instance the agent issuing the title insurance was party to the forgery of my late mother’s signature, as falsely witnessed by the Miami real estate broker who provided the loan through her mortgage broker son as well a false work history (claiming at 84 she owned a successful hair salon netting $4,000/month) to qualify my incompetent (Alzheimer’s) mother (retired on social security and a small pension) for a predatory loan she could ill afford. 8.5% when the national average was 6.

    I noticed that in the coverage confirmation letter (separate from the ALTA policy) his fraud is one of the items covered to the full extent of the loss, possibly beyond the face amount of the policy. I am an insured because I’m an heir and was appointed personal representative.

    Got some title insurance war stories? RSVP bemoved@aol.com.

  3. Interesting idea, although flawed.

    Your title insurance company will only process a claim if there has been a loss (or an imminent danger of one. i.e., an attack on the title), and only then if it is not of the insured’s doing (or could have been prevented through action by the insured.)

    Since foreclosure is ostensibly always the insured’s fault (except of course in the rare case of forgery and intervening liens), you would be hard pressed to find any insurance company that would see it as an insurable loss or attack on title. The insured had an obligation to perform under the note they signed (ahem, which usually includes a “successors and/or assigns” clause), and failing to follow through on that creates an uninsurable loss – securitization or no.

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