Holiday Gift: Staying in Your Home — Priceless: Those Debts You Think you Have? — WORTHLESS

For all the hoopla about moratoriums on foreclosures and other debt collection, the reality is that the only reason they are doing it is to figure out a way out of a mess founded in one inescapable FACT: the mortgage, the note, the credit card, the student loan, the furniture loan and all other consumer loans are worthless. They are not enforceable. This is of course my opinion, but all indicators point in the same direction in the same way.

Whether you are paying on a “debt” or not, whether you have been foreclosed or not, the “creditor” (the one you have been dealing with and who is now trying to enforce the alleged obligation) has NO rights to collect, and in fact has been paid, in some cases several times over.

The reason you are getting offers of “modification” is that they all need new signatures on a new document that is executed in the proper way by real people and recorded in accordance with the laws of your state. They need that because the old paper was turned into toxic waste through their sales process to investors, and because in truth — they never lent you the money and virtually all the people in the securitization chain have been paid in part or in whole on YOUR loan.

They got paid from you, they got paid from insurers, they got paid from the mortgage wholesaler (aggregator), they got paid on your loan from other borrowers, they got paid from inestment banking bailouts, they got paid from the U.S. Treasury, they got paid from the Federal Reserve and they got paid from unwary investors, who have also in paid in part or in whole.

There is no debt in a legal sense anymore — but they don’t want you to know that. They want the world to think that if you escape without paying you are getting a windfall — but they don’t want the world to know they got paid and now they want your house anyway. Whose windfall is that?

Out of the thousands of cases we have tracked here, where the homeowner put up a real fight insisting on real proof, not one has gone to trial. Either the “lender” caved and let the homeowner or “debtor” walk or they settled with deep discounts on principal due, huge reductions in interest rates on thirty year fixed rate mortgages. Do your own research. Every word here is true. You don’t owe the money.

That doesn’t mean they won’t take your house. If they can get the money and your house too, they are going to do it. The only thing that can stop them is you. Use this site and others like it to inform yourself. Information is king. When they know that you know what you are talking about, teh nightmare will be over — no more foreclosure, credit cards, student loans etc. You are in a much better position that you ever thought — you have the property and the earning power. They have nothing unless you give them power over you by signing documents that put you at the same risk you are in now.

Change it. Demand reductions of 60% or more in principal — or go to the mat and fight them off completely. Don’t agree to pay one penny more than you can easily pay. 3% is fine. Second mortgages and HELOCs are being settled for 2-3 cents on the dollar. They have no choice.

So accept the FNMA and Freddie Mac moratorium but realize that come January 9, they will be back and you need to be ready for them. Hold your head high. You are not the bad guy. They probably sold your “loan” for an amount that would astound you, and they received insurance premiums and payouts that would amaze you and they received bailouts from the government that have dismayed all of us.

11 Responses

  1. MERS cannot be a beneficiary!!! MERS is nothing more than a clearing house for Notes and Mortgages (which have been bifurcated and sold into CDO’s qubed and synthetic asset securities) You better find out where your Note is. For vital info, please go to We have been fighting this since 1998.

  2. now that I have your attention if a loan with Mers as beneficiary sells the the loan to a non mers member then according to contract there is no successor with athority to foreclose right?

  3. Phillip, can you tell us the state law so that we can look it up. Thanks,

    Darrell McDonald
    Novato, CA

  4. Philip,

    I’d never heard that before, and I do live in California. My lender canceled my insurance after the Trustee’s sale. As far as the property taxes, as far as I know they’ve now gone unpaid.

    Steve Cisko
    San Diego, Calif

  5. Hey ins’t it California State Law that if a borrower is unable to pay for property tax & insurance then the lender must pay for it and lender will be in default if it fails to do so?

  6. I have a question & a contributable fact
    1st the contributable fact:We all know that Litton Loan Servicing has had no problem foreclosing on homes, well I just found out that apparently they sold my loan to Quality Loan Servicing & now they are trying to foreclose. My guess is that they sold it because they knew that I had figured them out. So spread the good word to anyone that has Litton resist them to the fullest, demand proof that they are authorized to collect the alleged debt for the holder in due course (with proper assignments) before making payments.
    Now my question: Seen as MERS was the only beneficiary on the deed of trust, the original lender has gone under and according to the MERS system website the loan is “Inactive” plus Litton sold it to QLS, that would meen that there is no longer any secured obligation giving them power of sale right?(even though they are trying). I’m already sending them a VOD certified return receipt but what other steps should I take?

  7. Interesting Read! Very detailed blog,thanks for sharing

  8. Harmon Law has been a defendant in several class actions. They once screwed me. I opted out because I want to go after them individually.

    If you get a chance, catch PBS’s NOW program Credit & Credibility this week. It turns on its head the notion that the financial mess we’re in was due to lending to bad risk borrowers. Rather it was corporate greed at its egregious worst, as Neil has correctly asserted. Rating agencies’ greed more specifically. They helped sell and cover over the toxic waste.

    Be sure to check out ALL the related hyperlinks!

    UPDATE on my FL foreclosure: A week before plaintiff’s motion for summary judgment was up for a hearing, I sent them a 19 page (84 items with subsets) Request for Production Of Documents. The hearing never took place (Judge requires the law firm to appear in person and not telephonically, and they couldn’t produce the note). Plaintiff’s counsel asked the court for more time to comply.

    I can’t wait to see what comes back. Probably in legal totes! Lawyers have complimented me on this comprehensive document I’m willing to share.

    This I’ll follow up with Interrogatories, Admissions, and another Request for Production.

    I get my ideas and inspiration from here but use pleadings from NCLC (National Consumer Law Center) books and their CDs on Foreclosures and Truth In Lending.

    If you can’t get to your local law library to use their NCLC CDs, TRY THIS: NORFOLKLAWLIBRARY Password: PATRON

    Please don’t abuse this.

    Let me know if this helps! Thanks!


  9. Oh my goodness!! It was as if you were writing directly to me as in a private message. I was able to have my T.S. date put off after weeks of wringing my hands and losing sleep. The date? January 9th!! Victory?? Yes! Due to my relentless onslaught of phone calls for days on end? No! probably not. But it certainly allows me additional time to build my case. Thanks for all the great info and motivation to keep on, keepin’ on.

  10. keep hitting them hard, they will not hesitate to steal your home.


    Lawyer to lenders: Prove you own mortgages
    By Thomas Grillo
    Friday, November 21, 2008 – Added 1d 1h ago

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    A class action lawsuit has been filed that could stop hundreds of foreclosures and reverse thousands of others.

    “The rush to foreclose has turned the process into a circus,” said Gary Klein, an attorney representing two Boston homeowners facing foreclosure. “We’re asking these lenders to prove they hold the mortgage.”

    The suit filed in Suffolk Superior Court alleges that since 2004 GMAC Mortgage, Deutsche Bank National Trust, Harmon Law Offices and Ablitt Law Offices foreclosed on properties despite the fact that they do not own or were not assigned the mortgages.

    Klein estimates that as many as 1,000 homes in Massachusetts could be affected and thousands more going forward. If the lawsuit is successful, foreclosures in the pipeline would be placed on hold until lenders can prove they own the mortgage. If a foreclosure sale has taken place without the proper authority, it could be set aside.

    Toni Simonetti, a GMAC spokeswoman, said she could not comment because she has not seen the lawsuit. Thomas Walsh, an attorney at Newton-based Harmon Law Offices, declined to comment. Officials from Deutsche Bank could not be reached for comment. James Rogal from the Ablitt Law Office in Woburn did not return a call seeking comment.

    Last year, a federal judge in Ohio ruled against Deutsche Bank, dismissing 14 foreclosures after the lender failed to prove ownership. But a Florida federal judge dismissed a class-action lawsuit that claimed that Mortgage Electronic Registration System did not have the right to initiate foreclosures.

    The lawsuit comes as the number of property deeds seized through foreclosure increased in the Bay State 34 percent last month to 993, up from 739 in October 2007, according to the Warren Group, publisher of Banker & Tradesman.

    But in a positive sign, foreclosure petitions, the start of the process, plunged 51 percent last month to 1,507 compared with 3,065 in October 2007.

  11. Dear Mr. Garfield

    You hit it out of the park, a massive outreach effort by everyone using this blog to spread the information is crucial.

    Keep up the good work

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