Why You Don’t Owe the Money

OK it’s complicated. But I have distilled it down to a few sound bites that more or less captures the basic truth of why you don’t owe the money on that mortgage note, credit card, student loan, auto loan, furniture loan etc. Even small businesses might not owe their small business loans. There are exceptions and you should consult with counsel licensed in your state before acting or making any decision on this. And the facts of any particular case do vary, but for the most part I believe the following list applies to nearly all debt in the U.S., secured, unsecured, guaranteed, not guaranteed. Nearly all of this is based upon the presumption of one or both of two factors being present: predatory loan practices and/or securitization of the loan. And you probably won’t be able to assert yourself properly without having a FULL review of your mortgage or loan circumstances (not merely the narrow TILA audit). Brad and I are putting together a plan to certify those people who are qualified who wish to do audits according to the Garfield Continuum Checklist. Without looking at the totality of the circumstances the TILA Audit is worth only a small refund and is not likely to get you rescission or a meaningful modification of the loan. Right now we only have one, soon, like with the lawyers, we’ll have dozens.

  1. You don’t owe it — you only think you do and THEY want to keep you thinking that way so you’ll sign a new deal (“modification”) and release your defenses and claims. Your “lender” was paid in full by the mortgage wholesaler, who was paid by the investment banker and investors who were bailed out by insurers and the Federal Government with your own tax money. There is no debt left. Zero.
  2. To enforce an obligation a creditor must prove the obligation. They can’t. But in non-judicial states, foreclosing parties get around it by NOT going to court — they try to put the burden on the homeowner to convert it to judicial. If you can get something filed in the property records, like a reconveyance through power of attorney (after presenting them with an extensive qualified written request), then you shift the burden back on them.
  3. It is highly likely that the bankruptcy code will be changed very soon: allowing judges to write down mortgages to reflect present fair market values in the housing market. Even that, though is a double payment to the people who sold you your mortgage or other loan, because they have already been paid.
  4. It is highly likely that with or without changes in the bankruptcy code, the modification of mortgages will be required — not with the current offers of increasing your enslavement to 40 years and lowering interest rates for a while, but with substantial reductions in the principal due on the note, the interest rate, 30 year fixed etc.
  5. We here at http://www.livinglies.wordpress.com have not seen a single case go to trial in thousands of cases we have tracked. The harder the homeowner fights the better the results. The “lenders” either disappear, dismiss their claims, or enter into settlement agreements satisfactory to the homeowner.

66 Responses

  1. […] Check out Jessen v. Pingel (1934), here. Ben Bernanke and the Wisdom of Parasites, here. Can a “wife” be considered property and thus the object of civil asset forfeiture? Is the entire U.S. court system a commercial fraud? Why You Don’t Owe the Money, Living Lies Blog. […]

  2. […] » Why You Don’t Owe The Money […]

  3. Why I own my home FOR REAL!


    please visit the website above for details.
    Of course, the bank denies this but they actually cannot PROVE that this DEBT even exists. One of kind scenario, that’s for sure!

  4. I have read through many of this site’s comments and I am yet to year of people that have had success stories. I am beginning to think that everyone is making money from this crisis.

  5. I would like to speak to someone that might clear up a couple of questions of which product that would be more economical to my wallet. I do not have your steady, standard job, where I can over spend and our family can not afford to over spend , any more then we can afford

  6. I have this page saved to my desktop. I live in NJ, and I’m already in foreclosure. I did try several times to get a modification with Citifinancial. A few years ago, they modified the agreement, and escrowed my taxes into the payment. Since I’ve lost my job, they are not willing to budge with any modifications now. They purchased my mortgage from The Associates, now The Associates no longer exists. When I contacted a bankruptcy lawyer about the produce the note strategy, he wanted to know what my ultimate goal was, because a judge wont just relieve my obligation to the loan. Any suggestions?

  7. I appreciate the information you share.I have a very serious situation with the loan servicing companies purporting to be servicing my loan on behalf of undisclosed investors.
    These companies ( ocwen and green tree) are not on my note or title. Decision ONE Mortgage is in my title and mortage, but Decision OneMortgage is no more.

    I want to know whether my mortgage is already satisfied while I still pay money to the loan servicing companies.
    I also want to know what to do to verify the above and what next.

  8. […] Why You Don’t Owe the Money […]

  9. As I read everything on line I have a question.

    When I refinainced my home loan in 2007 the previous loan with BOA was paid off with funds from the new loan. We now know both the paid off loan and new loan was securitized through MERS .

    How do we know BOA paid the proper party of interest when we completed the refi in 2007?

    I filed Chapter 7 and I am facing foreclosure. I feel safe from collections on the present loan since I received a discharge and did not reaffirm. I can walk away anytime if I can not determine the true party of interst to allow me to work out a win win for both of us.

    My concern is what about the true party of interest on the first loan on this home?

    Could I still be exposed for the first loan that was so called paid in Full?

    I do not see a PAID in Full document at the County Clerks office for that time period or creditor.

  10. I live in philadelphia,pa. please call me or e-mail me, if you know a just get it lawyer here or near. 215-3298595. thank you.

  11. I planned to retire so I pulled 250K on a HELOC out of my house which WAS paid for, to build a rural modular home for my retirement. During the couple of years I built the modular, both houses declined in value and I lost a bundle of my retirement money and all hope of ever retiring.

    I am not upside down on the house I borrowed on. Is there ever going to be a chance for me to recoup my losses using the concept that US Bank sold my loan and thus, has already been paid?

    I would love for someone who understands this stuff to hip me to it. First time home buyers are getting tax credits even though they didn’t lose anything and I got screwed and I get nothing. I think Obama is a Marxist and finds this a more pleasing method of wealth redistribution than “the courts” which he is on record as stating is not an efficient technique.

  12. Can Neil or anyone elaborate on the instruments that can be recorded as alluded to in “You don’t owe the money” #2:

    If you can get something filed in the property records, like a reconveyance through power of attorney (after presenting them with an extensive qualified written request), then you shift the burden back on them.

    An elaboration on the above would be appreciated. And can lis pendens be filed in California in the absence of a lawsuit?

    David davidwood100@yahoo.com

  13. Has anyone been successful in Illinois?

  14. For those of you that may need it the MERS address:

    P.O. Box 2026
    Flint, MI. 48501-2026

    Hope it helps!

  15. Dennis Steinke,

    Send me an email. I won’t
    be able to answer until after
    the holidays(Moday maybe);
    but I have googled MERS
    alot and could have something
    of help.

    Indeed you may also be able to
    help me.

    Deontos dot is @ gmail dot com

  16. Hello,
    I was surfing the web & found your site. I have read about Timothy McCandless & his plight with ‘MERS’. I filed my Chap.7 Bk. in Apr. 2, 2009 & received my “Discharge of Debtor” papers from the Court on July 30, 2009. I am still using the B.K. Court as a court of equity to continue my motion’s against attorney’s representing ‘MERS’. The attorney’s for ‘MERS’ filed a motion to lift automatic stay in my case in June 2009 & it was granted. I filed a motion to oppose & the (corrupt Judge) denied my motion because he said I file my motion late, after the 14 day period. I filed on the 10th of July, 14 days before the hearing & the judge said he needed it in his hands on the 10th & did not get it until the 13th. I am a pro-per in my case, litigating on my own & not an attorney, that is subject to the courts ruling. I found an address for ‘MERS’ in Sacramento, CA, then misplaced it. On Dec. 7th, 2009 I had a hearing on a motion 2004(b) for an examination of ‘MERS’ & attorney’s representing ‘MERS’. As of Dec. 8 the judge granted my motion to examine ‘MERS’ & their attorney’s. I have not yet had these alleged corps. served with subpoena’s. I have the address’s of the attorney’s & no address for ‘MERS’ in Sacramento, CA. I called phone directory & they had no listing for ‘MERS’ in Sac., CA or any other listing for them in the state of California. Do you have information of where I can serve ‘MERS’? I would appreciate forwarding this info to me. Thank you for your time in this matter.
    Best Regards,
    Dennis Steinke


  17. To apsmith and any other readers:

    I would like the same information. I have been to Fannie Mae’s website to look up information about their trusts, but I have been unable to determine which trust, if any, my loan is or was in. If you haven’t already done this, apsmith, go to the Fannie Mae Loan Lookup Tool. It will tell you whether or not Fannie Mae “owns your mortgage.”

    Or maybe you already know they do.

    The trust info I have been able to find does not classify the loans by anything other than state and amount in the documents. There are many criteria under which one can search, including the seller of the loan to Fannie Mae, but I still have a hard time finding results that would be meaningful in my case.

    All I’ve done so far is this:

    1. Go to Fannie Mae’s site
    2. Find the page that lets me search mortgage-backed securities
    3. Go to More Search options (since I don’t know the pool, trust, or tranche numbers)
    4. Get lots of results that pretty much only identify loans by state and amount (which doesn’t help if there’s more than one in my state)

    This is my first post. If this question is already answered somewhere on the site, just point me to it. I want to determine if Fannie Mae has or has not used my mortgage as security for a bond offering. How do I research this question? When I spoke with Fannie Mae they called themselves the investor, but would not elaborate. Thank you in advance to all responders. ap

  18. This is my first post. If this question is already answered somewhere on the site, just point me to it. I want to determine if Fannie Mae has or has not used my mortgage as security for a bond offering. How do I research this question? When I spoke with Fannie Mae they called themselves the investor, but would not elaborate. Thank you in advance to all responders. ap

  19. Saturday, April 04, 2009
    Why Go After Livinglies and Garfield Web Viewers
    Dear Attorney,

    You submitted the license concerns, Bar and practice issues. THANK YOU for championing a novel concept for never practicing law or interfering with an attorney client relationship. However, I do have concerns that ask why go after Livinglies website which has absolutely nothing to do with the promotion of practicing unlawfulness and the State Bar.

    This is not about trying to replace an attorney’s role. It’s about finding one and avoiding malpractice! It’s about the lack of knowledgeable for Mortgage Loan Hieroglyphics, Acceptance Zen and the Prospects of Underwriter Life Developing on Mars.

    So what do you know and are you the pro bono elixir each homeowner is waiting for?

    What is your email address for the readers suffering right now!

    The few who understand this toxic-thermal mortgage mess are gone and were hired up by the lobbying effort and paid for from institutional earnings stolen from cash strapped investors and borrowers.

    If you need medical treatment for an ailment – seek out a physician licensed by the appropriate medical board. What if for treating an immediate medical emergency or suffering brought by a cataclysmic destructive event such as an earthquake? A humanitarian view is to use any training (CPR) and resources around you (shirt of your back) to restore breathing, halt bleeding and save lives.

    Woe to the attorney that dare step forward and require a license of the party who saves a life in an emergency. It’s your kind however that will bring arguments and demands upon fellow men after the human condition is restored and suffering and bleeding are long forgotten.

    So will the Bar force attorney’s to get up to speed, stop taking money for nothing of value and to represent homeowners for a reasonable fee. Please Counsel, embrace this effort, jump in and Assist those who are suffering the humiliation and threat of loss from a foreclosure and that which does not what meet the eye.

    That loss is family, friend’s school and unfortunately identity. The compassion is felt by many notable past and current Attorney Generals who I am sure like I want to know your motivation.

    You need to help these people as a lawyer then and get going!

    The lender will not offer assistance without a calling card and that is a pleading. No one advocates practicing law where only an attorney can – but they do ask the attorneys of the United States to take the next 20 years to get up to speed.

    What do these people do? I am an expert who offers case management services and courtroom testimony to attorneys who can meet my stringent requirements for borrower eligibility.

    1) victim to a predatory loan
    2) Loosing their home
    3) Have nowhere to go
    4) Promise to detach*

    * That means they promise not to kill themselves regardless of the end result.

    At first glance and upon talking to lawyers on both sides, counsel will typically start with an insult and ask if I am an attorney. I say no sir, no apology necessary.
    An expert is not an attorney and really more an accountant (auditor) by trade. But I know this much. A lawsuit is a civil action brought in a court of law by a plaintiff seeking relief from the court against the party named as the defendant. And in most instances, a lawsuit contains a request for monetary damages.

    And lenders won’t talk seriously to you without your request being made in a pleading

    According to a random reference book I found, Black’s something or other, “lawsuits can be brought for a large number of reasons such as breach of contract, seeking damages from an accident or other incident, seeking punitive damages if allowed by law, seeking an injunction to stop an action, for real estate disputes, dog biting people, neighbors walking across my yard to create a shorter path to one another and so on. Do you agree the list is endless?

    SO WHAT!

    Counsel, I would be foolish to see a dentist for neurosurgery. Yet I submit here that a divorce attorney is no more or less skilled at defending a wrongful foreclosure than is a Probate, Contract, Securities or Real Estate attorney. Each can argue a tort or breech yet none can seem to find it.

    Your sector of society will step in and argue the window dressing and wrapper but where’s the beef?

    I have been there to testify and heard the lawyer’s gibberish responses. You see I was the one who would not agreed to allow a securities offering to go forward while working on staff with lawyers as a consultant. And under protest I held back another toxic offering usually at the expense of missing my payment due for services rendered. Concerns were for why the issuance would fail under certain FASB and GAAP stress tests.

    I have also thrown people out of there home and know the tricks such as waiting near a holiday, Thanksgiving, Christmas and Valentines Day to make my point clear. “Make your payment regardless of the Quality Control audited findings and exposure we see on your loan while trying to shield our firm’s massive vulnerability”.

    We lenders, as a sector mingled over cocktail and supper in the plush dinning halls of the Mortgage Bankers Ballrooms found across the country. I would ask questions and wow! If you could hear the responses, from the leaders of . . . well, never mind.

    From Sub prime misfits to the elite of the industry. Companies like Citigroup have established itself as a powerful player in subprime market acquiring competitors and employing its vast capital resources and its name-brand respectability. A report cites CitiFinancial, its flagship subprime unit, claims 4.3 million customers and 1,600 plus branches in forty-eight states, including nearly 350 offices across the South. Things don’t stop with CitiFinancial, however. The web of subprime is woven throughout Citigroup. Sandy Weill’s company has refashioned itself into a full-service subprime enterprise—one that makes high-cost loans and sells securities backed by the income streams from all these transactions. In 2000, one study calculated, nearly three of every four mortgages originated within Citigroup’s lending empire were made by one of its higher-interest subprime affiliates—nearly 180,000 loans out of a total of 240,000-plus mortgages for the year.

    Why the attraction and what’s the best feature? High profitability or no downside in bad times?

    In similar situations our sub prime goal was maximize profitability by stimulating hyperactivity in good times and foreclosure trading in black markets in bad times. Point is do you really know the dirt in the detail and can you offer anything to a client who borrowers $5,000 for a retainer and has nothing to show for it at time of a trustees or sheriff sale.

    You’re the attorney! What class suits were you intimate or involved with? Want to talk about some of the questions surrounding Section 17(a) of the Securities Act of 1933 (“Securities Act”) and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 there under. If found violating the registration provisions, Sections 5(a) and 5(c) of the Securities Act.

    Help us, can you allow a plaintiff in a wrongful claim seek a judgment of permanent injunction, disgorgement and civil penalties against the Funding Entities, and disgorgement against certain Holdings, pending the matter?

    How about yours and my own experience or expert witness roles in case’s such as – FTC v. Associates First Capital Corporation, Associates Corporation of North America, Citigroup Inc., and CitiFinancial Credit Company (Northern District of Georgia, Atlanta Division). Civil Action No. 1:01-CV-00606-JTC; and Federal Trade Commission, Plaintiff, v. First Alliance Mortgage Company, a California corporation, First Alliance Corporation, a Delaware corporation, First Alliance Mortgage Company, a Minnesota corporation, and Brian Chisick, Defendants, and Sarah Chisick, Relief Defendant (Central District of California, Southern Division), Civil No. SACV 00-964 DOC.

    Counsel you’re offering nothing more than a argument to own a license to fall back on and window dressing here with a lack of direction for legal guidence to address the dilemma.

    Consider the following:

    1) The role of a CDO investment under an SEC Blue Sky for $300 million
    2) Why a financial publicly traded monster like B of A. will use a Reg. D private placement intended for a small guy who could not afford the cost to register a shelf
    3) Why the hell is Citi or B of A is accessing and investing capital in the name of a silly venture
    4) Why are institutional giants (ENRON in Reverse) subjecting liquidity which is an “Asset” to off balance sheet treatment? (What the F#$%)
    5) Does the behavior of a “Veg -O- matic” sliced and diced onion (I mean security) in a CDO really merit the highest rating possible by a rating agency
    6) Were the “X” Rated services of Moody’s and Duff wrongful and deceptive or simply pawns giving no concerns to the manufactured 680 borrower score?
    7) Why is the MERS and Lost Note gibberish continuing to smoke screen the role of principal participant involvement prohibited by FIERREA legislation
    8) Why are derivatives trading a smoking gun for misaligned acceptance practices to unqualified borrowers?
    9) How is GAPP and a ABA manifest the sole tool to bring down the structure big time capital investors are hiding under
    10) Why did AIG take the bonuses knowing the back lash was inevitable (ask yourself that one as I for one think they deserve every cent for buying into the lies)

    I believe every civilized government provided its land barons the right of counsel before the king where land was seized from peasants in exchange for economic support (bribery) under a monarchy. Counsel came at a cost as it does today and was afforded only to the aristocratic minority who garnered the majority of the land and who could afford the protocol. That is to lawfully argue the right to steal land from another who could not afford to be represented. Our first President ensured the subjects of the crown were replaced with the citizens of a government. Washington proposed the ideal of a presiding leader voted in by the people for a set term. The right to revolt was replaced by the concept of the right to vote. And here’s a brilliant novel approach to deter anarchy and threat of coup. By allowing the citizens of a nation to share in the ownership of the land you remove the motivation to rally one and other against those who control the land and govern by tyranny and threat of force.

    There is evidence the lobbying effort of the mortgage banking industry are becoming more organized, gaining clout in the courts and monetarily growing by the day. Politicians seeking to help constituents at this time are eventually going to need funding to remain in office. Cash strapped and broke homeowners are not the best capitalized population of voter revenue a politician will seek out for assistance. The fight is not so much about the fact people are losing their homes as much as it is the myriad of current and foreseen circumstances casing them to lose their homes.

    Your remarks are just what the lobbying effort will use over time to crush the homeowner’s chances to survive. Home owner’s rights and survival refers the unbearable cost of seeking out a high priced lawyer’s retainer and menacing obstacle for lawyers who do not fully understand. By understand I mean as Garfield say’s “in the know” about Nuclear Thermal Devices (Carl Kop ESQ) and advanced Quantum Physics and Mortgage Acceptance and Beneficiary Rights to Recovery.

    If the Office of the Comptroller is asking why organizations like “ACON and “DOPE” can’t seem to procure any modifications – well sir, what we have here is an inability to communicate.

    Sub prime is not a discrimination issue either! So is this the best our lawyers can do for the average guy? The NAACP filing of a discrimination charge using a suit filed back in 2007. Wells Fargo Corp. and HSBC Holdings PLC are the target of separate lawsuits being filed by the NAACP, which alleges the banks were engaged in “systematic, institutionalized racism” in their subprime mortgage lending businesses. The lawsuits, which the NAACP said would be filed in U.S. District Court in California, allege that African-American homeowners were frequently steered into mortgages with higher interest rates than other borrowers with similar credit histories. The two new lawsuits are related to a broader July 2007 lawsuit NAACP filed against some of the nation’s largest lenders for discriminatory lending practices. The allegations against HSBC and Wells Fargo were being filed as a result of subsequent investigations and calls made to the NAACP.

    Sub prime lenders are blind to color and racial profiling. They will rip anyone off with no certain preference!

    This is a Foreclosure crisis that has yet to reach maximum proportions and that will strangle out the cities of America with lost revenue from a dwindling tax base and add pressure to a country that now needs a socialist tax base in order to survive. A socialist tax base but without any of the programs one could expect in a socialist government.

    So, are you a divorce attorney? Can we get your license and ask you . . . what is it you mean to say?

  20. make your personal loss a driving force so others wont suffer the same path.

  21. Dear Neil and Brad,

    “Brad and I are putting together a plan to certify those people who are qualified who wish to do audits according to the Garfield Continuum Checklist.”

    Where/when can I sign up/start? Looks like a surefire growth industry.


  22. Robert, I’ve addressed your “practices and opinions” with the proper authorities. If you want to find out whether I’ve ever lost my home why don’t you check the Los Angeles County Recorder’s records and look up my name in the mid 1990s. You don’t know much about my personal life because I choose not to share it.

    I’ll ask that you not abuse the purposes of this website by airing your disagreements with my characterization of your practices and opinions on it. This is NOT the “Robert Tapia’s a great guy and shame on everyone who disagrees with him” website.

    These sorts of posts diminish the value of such sites. If you’re not man enough to meet with me face to face to discuss our disagreements,as I’ve asked you at least three separate times, then at least be man enough to keep it off of a website intended to help people, not stoke your ego.

    Walter Hackett,
    Attorney at Law

  23. just to remind us all:

    When in the Course of human events it becomes necessary for one people to dissolve the political bands which have connected them with another and to assume among the powers of the earth, the separate and equal station to which the Laws of Nature and of Nature’s God entitle them, a decent respect to the opinions of mankind requires that they should declare the causes which impel them to the separation.

    We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness. — That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed, — That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness. Prudence, indeed, will dictate that Governments long established should not be changed for light and transient causes; and accordingly all experience hath shewn that mankind are more disposed to suffer, while evils are sufferable than to right themselves by abolishing the forms to which they are accustomed. But when a long train of abuses and usurpations, pursuing invariably the same Object evinces a design to reduce them under absolute Despotism, it is their right, it is their duty, to throw off such Government, and to provide new Guards for their future security. — Such has been the patient sufferance of these Colonies; and such is now the necessity which constrains them to alter their former Systems of Government. The history of the present King of Great Britain is a history of repeated injuries and usurpations, all having in direct object the establishment of an absolute Tyranny over these States. To prove this, let Facts be submitted to a candid world.

    He has refused his Assent to Laws, the most wholesome and necessary for the public good.

    He has forbidden his Governors to pass Laws of immediate and pressing importance, unless suspended in their operation till his Assent should be obtained; and when so suspended, he has utterly neglected to attend to them.

    He has refused to pass other Laws for the accommodation of large districts of people, unless those people would relinquish the right of Representation in the Legislature, a right inestimable to them and formidable to tyrants only.

    He has called together legislative bodies at places unusual, uncomfortable, and distant from the depository of their Public Records, for the sole purpose of fatiguing them into compliance with his measures.

    He has dissolved Representative Houses repeatedly, for opposing with manly firmness his invasions on the rights of the people.

    He has refused for a long time, after such dissolutions, to cause others to be elected, whereby the Legislative Powers, incapable of Annihilation, have returned to the People at large for their exercise; the State remaining in the mean time exposed to all the dangers of invasion from without, and convulsions within.

    He has endeavoured to prevent the population of these States; for that purpose obstructing the Laws for Naturalization of Foreigners; refusing to pass others to encourage their migrations hither, and raising the conditions of new Appropriations of Lands.

    He has obstructed the Administration of Justice by refusing his Assent to Laws for establishing Judiciary Powers.

    He has made Judges dependent on his Will alone for the tenure of their offices, and the amount and payment of their salaries.

    He has erected a multitude of New Offices, and sent hither swarms of Officers to harass our people and eat out their substance.

    He has kept among us, in times of peace, Standing Armies without the Consent of our legislatures.

    He has affected to render the Military independent of and superior to the Civil Power.

    He has combined with others to subject us to a jurisdiction foreign to our constitution, and unacknowledged by our laws; giving his Assent to their Acts of pretended Legislation:

    For quartering large bodies of armed troops among us:

    For protecting them, by a mock Trial from punishment for any Murders which they should commit on the Inhabitants of these States:

    For cutting off our Trade with all parts of the world:

    For imposing Taxes on us without our Consent:

    For depriving us in many cases, of the benefit of Trial by Jury:

    For transporting us beyond Seas to be tried for pretended offences:

    For abolishing the free System of English Laws in a neighbouring Province, establishing therein an Arbitrary government, and enlarging its Boundaries so as to render it at once an example and fit instrument for introducing the same absolute rule into these Colonies

    For taking away our Charters, abolishing our most valuable Laws and altering fundamentally the Forms of our Governments:

    For suspending our own Legislatures, and declaring themselves invested with power to legislate for us in all cases whatsoever.

    He has abdicated Government here, by declaring us out of his Protection and waging War against us.

    He has plundered our seas, ravaged our coasts, burnt our towns, and destroyed the lives of our people.

    He is at this time transporting large Armies of foreign Mercenaries to compleat the works of death, desolation, and tyranny, already begun with circumstances of Cruelty & Perfidy scarcely paralleled in the most barbarous ages, and totally unworthy the Head of a civilized nation.

    He has constrained our fellow Citizens taken Captive on the high Seas to bear Arms against their Country, to become the executioners of their friends and Brethren, or to fall themselves by their Hands.

    He has excited domestic insurrections amongst us, and has endeavoured to bring on the inhabitants of our frontiers, the merciless Indian Savages whose known rule of warfare, is an undistinguished destruction of all ages, sexes and conditions.

    In every stage of these Oppressions We have Petitioned for Redress in the most humble terms: Our repeated Petitions have been answered only by repeated injury. A Prince, whose character is thus marked by every act which may define a Tyrant, is unfit to be the ruler of a free people.

    Nor have We been wanting in attentions to our British brethren. We have warned them from time to time of attempts by their legislature to extend an unwarrantable jurisdiction over us. We have reminded them of the circumstances of our emigration and settlement here. We have appealed to their native justice and magnanimity, and we have conjured them by the ties of our common kindred to disavow these usurpations, which would inevitably interrupt our connections and correspondence. They too have been deaf to the voice of justice and of consanguinity. We must, therefore, acquiesce in the necessity, which denounces our Separation, and hold them, as we hold the rest of mankind, Enemies in War, in Peace Friends.

    We, therefore, the Representatives of the united States of America, in General Congress, Assembled, appealing to the Supreme Judge of the world for the rectitude of our intentions, do, in the Name, and by Authority of the good People of these Colonies, solemnly publish and declare, That these united Colonies are, and of Right ought to be Free and Independent States, that they are Absolved from all Allegiance to the British Crown, and that all political connection between them and the State of Great Britain, is and ought to be totally dissolved; and that as Free and Independent States, they have full Power to levy War, conclude Peace, contract Alliances, establish Commerce, and to do all other Acts and Things which Independent States may of right do. — And for the support of this Declaration, with a firm reliance on the protection of Divine Providence, we mutually pledge to each other our Lives, our Fortunes, and our sacred Honor.

  24. Homeowners will benefit more if you focus on what you were trained for- getting those who broke the law and damaged lives rather than wasting precious time stopping people who you think is practicing law illegally.
    Come to think of it, if i actually did what you think I did then you would not see a single client referred to you at all.
    There is no question about how hard you work, the question is who you are working for.
    The homeowners from the Antelope Valley are asking you. Its about time the public should know so they can decide for themselves.
    Maybe the use of more common sense and less legal advice would have saved more homeowners.

  25. Livinglies. Neil, etc. had nothing to do with this. In fact 2006 when we fought New Century Mortgage, EMC, Encore, Ameriquest and Quick Loan Funding we had an Attorney who only sold us out. What would you do?

    You are absolutely right I am not an Attorney and I am very happy for you because you have not and shall never experience losing your home.

    Long before we met you, the fliers we used to give to people were final injunctions and permanent judgments along with the complaints and lastly showing people 2 ways to stop foreclosure- holder in due course and an audit.

    Since when did common sense become giving legal advice?

    “Loans originated with fraud and predatory lending should never be “modified or refinanced”.
    They should be repudiated.

    Violations of the FannieMae guidelines, which is not only the vast majority of all mortgages, but is also used as an industry standard. Any violations (FRAUD), means the lender must buy back the loan.”
    – Robert Tapia

    From Atty Walter Hackett:

    These statements are both legal opinions and, more importantly, they are absolutely wrong. Please do NOT tell anyone things like this. I found these statements at http://activerain.com/blogsview/836252/Forensic-Loan-Audit

    There is no such thing as a “violation” of Fannie Mae guidelines.

    The guidelines ONLY apply to loans sold to Fannie which MOST subprime loans were not. Also, telling people that their loans should “never” be modified or refinanced is going to result in two things – they will lose in court and they will lose their homes. California law now requires lenders to negotiate with homeowners as a condition for a non-judicial foreclosure. Telling borrowers they should never negotiate is telling them to refuse the protections the law provides for them and will, in all likelihood, guarantee they lose their homes. Further, “predatory lending” in California is defined by statute. Regardless of anyone else’s personal opinion VERY few loans fall into this category due to a ruling from the Fourth District Court of Appeals in a case known by Wolski.
    You MUST stop giving legal advice and opinions. I’ve repeatedly offered to instruct you on the distinctions between giving personal opinions and offering legal opinions and advice. Unfortunately I can’t continue to make this offer. I will ask you one last time to setup a date and time to come to my office and I will help you understand what you can and cannot say to people facing foreclosure or who MAY be victims of fraudulent practices. I am having far too many of my clients tell me they don’t want to negotiate they want to sue DESPITE my professional counsel that they first try to negotiate. This is becoming a very real problem for my practice and is going to result in many of my clients losing their homes and destroying their chances of prevailing in court. Juries do NOT look kindly on unreasonable people. A lender that can prove it tried to negotiate affordable loan terms with a plaintiff that REFUSED to negotiate has an exceptionally good chance of winning in court. The law favors those who try to correct their mistakes and does not favor those who refuse to be reasonable.

  26. I’m unclear why Robert decided to post an email message directed personally to him on this blog. Robert is not a licensed attorney though he has repeatedly advised homeowners facing foreclosure that they don’t owe any money on their mortgage loans by quoting Neil. His use of Neil’s opinion can be found at several internet sites.

    I suggest ANYONE who uses this site also use common sense and reason. I’d further suggest people contact Neil directly BEFORE they start repeating his opinions, verbatim, as if they are black letter law in every state of the Union and offer them to people facing extremely difficult situations as such. I’m quite certain Neil does not intend them to be used in this fashion.

    Much of Neil’s legal work has been done in judicial foreclosure states. California is a non-judicial foreclosure state. A foreclosing party is NOT required to prove they are owed anything, per California Civil Code section 2924 et seq, as a condition for initiating a non-judicial foreclosure. That is why ANYONE facing foreclosure in California should seek out the advice of a licensed, California attorney.

    Keep in mind I wholly support and applaud Neil’s efforts however Robert’s post is proof that a little knowledge can be a dangerous thing. If you are or know someone living in California who is faced with foreclosure do them a favor – refer them to a licensed California attorney. I spent 27 years in the banking industry, primarily in the loan origination, documentation and servicing areas, MOST “forensic loan audits” I’ve seen contain gross inaccuracies, evidence little understanding of federal regulations AND overlook the substantive legal issues that MAY provide California homeowners with a meaningful way to fight back.

    Neil’s site is intended to help fight against an industry run amok, it is NOT a replacement for law school or a substitute for a license to practice law in California.

    Walter Hackett, Esq. California SBN230607

  27. ” If you are a victim of mortgage fraud and predatory lending- you don’t owe anything.”

    from Walter Hackett
    to avenue s mortgage document auditing inc ,
    Forensic Loan Auditor
    date Thu, Apr 2, 2009 at 10:25 PM
    subject ” If you are a victim of mortgage fraud and predatory lending- you don’t owe anything.”

    Robert and Karina,

    I strongly suspect the quote set forth in the above subject line is the reason several of my clients firmly believe they have no reason or obligation to negotiate with their lenders. Unfortunately you have repeatedly refused to stop issuing such opinions or to take advantage of my offers to instruct you on what you can and cannot say to individuals without running the risk of violating California law. I am convinced YOUR opinions are the reason several of my clients have REFUSED to accept very good offers that would have left them in their homes with affordable payments AND allowed them to then sue for damages. Because of such refusals the chances of them LOSING their homes has greatly increased. This is unacceptable and will not be tolerated. Do NOT tell my clients they owe nothing because you believe they don’t. You are going to cause them as much harm as the lenders who gave them unaffordable loans.

    One of the attorneys I’ve trained has advised me you are referring cases. I’ve shared your “opinion” with the attorney so client expectations can be better managed. I truly hope you’ll stop making decisions based on your “opinions” and realize the truth is not a matter of what you personally believe. Telling lies to try to right a wrong is still telling lies and makes you just like the people you claim to be fighting who, I assure you, justified their actions as strongly as you are justifying yours. Justice in this nation is not a given and telling people they’ll win because you think they will is doing them a tremendous disservice. Victims of mortgage fraud are entitled to compensation, they have not won the Lotto and they DO have to fight to be compensated. Convincing consumers they’re “entitled” to a free home is no different from Angelo Mozilo believing he was “entitled” to rip people off with “No Income, No Asset” loans and has exactly the same effect – convincing people that a lie is the truth.


    Walter Hackett

    Attorney at Law

    Ofc. 800-764-8138; Fax. 626-737-8553

    Mail: PO Box 1357, Walnut, CA. 91788

    Office: 20955 Pathfinder Rd, Ste. 100, Diamond Bar, CA. 91765


    “I would rather surrender my life in the pursuit of justice than save it and live under a tyranny of greed.”

  28. Hi Neil, I love the way the site looks.

    I responded to a post, but it quickly turned in to a lot of questions. I think maybe this is a better place for it. I have been planning how I am going to handle this most recent attempt at foreclosure by the lender. I rescinded my loan, have been involved in a law suit, for nearly 2 years. I had a lawyer, he really did not know the area though. I handled myself for a while, recently found a contingency attorney, but really have an idea for how he sees things going.

    Now I have discovered Popular going again to court to try foreclosure. I cannot afford this new attorneys fees for the foreclosure. I will do this myself. I know the case backward and forward. I have done a LOT of homework.

    I wrote a long letter filled with things I want to say in my answer to foreclosure, and was still working on it when I went on your site, I started talking, writing, and it occurred to me, I am saying too much, now after seeing the title above “why you don’t owe the money”
    I have added my response posted in anther area, would you take a look please?

    Site looks so good, and is easier to get around. You are growing leaps and bounds.

    Thank you, I appreciate your time so much.

    Juli, on March 31st, 2009 at 8:29 pm Said:

    so what ever happened to with Nye Laville? his client? Today is March 31, 2009. How did the story end?

    I rescinded my loan in June 07, Lender was non compliant, but then replied and agreed to the rescission. I have a suit filed and ongoing. They did not remove security note, they haven ‘t found the note?hmmmmmm
    Now they have filed foreclosure for a second time. Last year they filed and withdrew the complaint having agreed to NJDOBI they would not foreclose, they claimed they did not know they were foreclosing.

    If the borrower cannot tender, this is not a good angle if the borrower will be homeless?

    This loan paid off the Mortgage Brokers loans to us, for construction, our previous mortgage, and of course a lot of fees, etc. what exactly does the lender have to return besides payments made, interest , fees, commissions? Don’t they just expect borrower to turn around and give it back? There is NO equtiy in the home, and Im sure way negative by now. What does the borrower end up with, no mortgage, but no home if we can;t tender?
    There are so many components to this case. I do not believe they have Original docs. Pretty sure they sold as securities, immed. Transferred last Oct. Nov. received a threat of foreclosure then, noitfication. it had been transferred back. On the 24th March, subsidiary of the lender filed foreclosure in State Superior Court. then on the 27th the subsidiary went to the county and filed a transfer of assignment to them, from the lender. Yesterday, the 30th the subsidiary went back to the County and filed Les Pendens. I am ahead of things, they have not served me yet. I found an attorney to handle the Predatory lending cousumer fraud, misrep, etc etc. plus, forgery adding my husband’s name and signature to Mortgage. And 4 variations of their poor accounting skills Five total, HUD 1 Settlement Statements, prepared, and forged in my name, on vairous dates, and back dated to closing date, 6 weeks earlier. They never asked me to come in and sign a new one.they paid off my mortgage to previous they made all payments before receiving or even executing all documents. Knowing they needed them. My income was multiplied by 100 Plus.by the broker. He handled our financial affairs, he knew what we had, yet instisted we could afford this, and pushed us into this and paying off other debt with our mortgage, many lies, many.

    ??Bankruptcy, or Defend foreclosure with the missing mortgage note? I am broke now, spent all my money on the case, all my time defending myself, now here I found a lawyer on contingency and they throw this at me. I need to work and have a life, but with out a home, things are much more difficult. Everything has spiraled as a result, business suffered because my husband was distraught. He is trying in this difficult economy, to pull it back together. and i am trying to make money, but I need the time, Catch 22. The lawyer wants, $2500 to defend foreclosure, and $500. per month for his effort. I will handle myself. Don’t have a choice.

    Thanks for your divine efforts, and for listening to me too.
    Many abundant blessings to you.

  29. Hi neil how are you? can you please provide with your phone number thank you or you can call me
    773- 269-9233
    I would like to do or to learn to do a forensic loan audit my self
    Well to do the whole thing you knwo a loan modification what I NEED TO DO AND ALL PAPER WORK OR DOCUMENTS

  30. I don’t owe money on my mortgage. I just found out last week that one of two brokers falsefied our signature on the loan application. The origional lender
    also falsefied our signature on a document but actually signed someone else name. I found paperwork in the file from 8.5 to the 11.275 they stuck to me. on top the notary took a fraudlent acknowledgement after removing the mortgage document from closing. the misconduct is a violation
    in the county and state i reside. I was never provided with disclosures at all. I have all my e-mails from the broker giving one excuse after another. Last October I
    sent a demand letter and they sent a copy of the three day notice to cancel. I have all my certified letters and returns. They have no security interest in the home and an invalid mortgage on record. I also have a copy on the notary sworn statement admitting to it. I could not find an attorney to take the case on consignment, so I reported it to my local FBI. A lot of people has to do a lot of explaining, fines and possible jail time. Did I do it right? I am not after money just honesty. Everyone out there pull your documents out and go over them.

  31. I have a countrywide loan also which I am sure was sold but they will not tell me who the investor is. I am in the processd of sending my demand letter. But I am in Illinois which is the 1 of 3 judicial states. As I have learned reading these blogs is good and bad. What can I do to get them to produce the note and prove my obligaton or get a quite title done. So far I am current but not for long. I am trying to save credit now 790. Can I stop paying once I start the dispute and not have them report. Need help in illinois.

  32. Mr Garfield,

    We are actively looking for a human cloning outfit. If any one knows of one let me know, we will need a DNA sample from Mr. Garfield and make as many of you as soon as possible.

    I hope that if the cloning is viable all the copies come out with a law degree and the same level of zeal and experience.

  33. I have a customer who has been served, she must vacate the house.

  34. Mr. Garfield Thank You for this blog! It is very informative, and gives struggling homeowners hope when we have no where to turn or no one to help us.

    Due to a hardship we are in danger of non judicial foreclosure. Our lender? or Servicer? has offered a bad modification. We sent a Qualified Written Request to them 2 weeks ago. We have until the 15th of this month to return modification. If we dont sign mod. can they start forclosure without answering the request? Do you have a sample request for mod. on your website? We believe we are also victiams of fraud and predatory lending, what should we do?

  35. I have a customer in Conn, who is being foreclosed on, she did the mod,. but that did not help her.
    There is no longer FHA Secure & to qualify for Hope you must be in FHA, Program!
    What can she do to stay in her house, she has already gotten an order to leave her home I have advised her not to do that!!!

  36. Todd: It isn’t up to you to prove that you do or do not owe the money and if so, to whom. It is ALWAYS up to the party seeking affirmative relief to meet their burden of proof which means the establishment of a prima facie case. In order to establish a prima facie case, they must have competent witnesses whose testimony will be admitted in a court of law. In Non-Judicial states the companies seeking foreclosures have no right to do so because they were not part of the loan transaction, they have no loss and they have no rights to the property or proceeds of sale. But they are getting it anyway because homeowners are walking away (57% now) rather than putting up a fight. Keep the pressure on them. Get a forensic review (see “In Trouble Now” on blog and download intake form). Send a Qualified Written Request. File a lawsuit if necessary but concentrate on forcing them to answer your interrogatories, requests to produce and request for admissions. Don’t try to convince a Judge in motion hearing that you should win the case. Convince the Judge you are entitled to complete discovery and to be heard on the merits.

  37. I am a couple of months behind on my first mortgage and several months behind on my second. My loan is through Countrywide but invested by Wells Fargo. Wells Fargo received 35 billion in gov’t bailout. If my loan was paid by that money, do I still owe it? What steps should I take to research this?

  38. Dear Neil,

    I live in Miami, Fl. I am currently in default of my loan. My refinanced my home in 11/2006 with American Lending Group, which they then assigned to Saxon Mortgage Services, less than 2 months later. I am currently in default, however i keep making partial payments with every paycheck to avoid hitting 90 days, which is when foreclosures start. After 30 days late, I received a certified letter from Saxon saying I am in default and may face foreclosure and offering to modify the loan, I sent all paperwork in Nov 2008, I was advised it would take up to 30 days to review the documents and assign an agent, when an agent is assigned for modification, it would take 15 days to contact me. After I called in Jan, I was advised they just received a memo and it can take up to 30 days for the case agent to contact me about modification. In the meantime, I am still receiving letters and such and have not been contacted by anyone at Saxon to modify. When submitting my documents, I was advised my income to expenses was too high, they said I would be a better contender for modification if I can show I can pay the mortgage if modified. Which I found fishy, I submitted documents similar to when I originally applied for the mortgage, I still have not heard back. I am wondering if I should pursue the modification or take my chances in court. Because the loan was assigned and the original owner of the note is bankrupt?? Also, I am filing chapter 7 soon, but I want to keep my house I am wondering if there is help for me in bankruptcy courts…

    In addition, I am a licensed mortgage broker and title insurance agent, I became licensed during the boom but because of my primary job, I never got around to doing nay mortgages, same with my title insurance license. I am wondering because I am licensed in Florida, if I can help people somehow with their foreclosure issues. I am in the same bucket, but I figure my license should be good for something, maybe I can help people with it.

  39. I live in California and my mortgage was transfered to another bank which went belly up. I checked with county and the deed is still registered in the name of the original lender.

    My question is , if I were to stop paying my mortgage (due to job loss) can the new bank come after me for payment, even though they are on registered on the deed.

    Please help with your advise.

  40. I got my mortgage through American Home Mortgage just before they went belly up. My mortgage broker calls me I tells me I can sue them but does not give me enough information to follow up. Then he disappears and I have no contact with him. The note has been transferred to Central Mortgage and now HomEq servicing. I have an ARM and I am just paying the interest only and was told today that when I get to 110% or 115% of appraised value then my interest only option goes away. My question is how can I be proactive in this case before I am at the point where I cannot make payments? Should I go after the companies now by asking for relief or forgiveness of the loan? Thanks

  41. I currently have a defaulted student loan with department of education which I feel is my personal obligation to repay and I will do so as I am able in these tough times. My issue is that after completing and barely passing my last semester of college (single parent makes it hard) I was sent a letter by the university I attended stating that my professors said i was not in attendance in the huge lectures more than half the time which isnt true and they wouldnt know if i was in 200 plus people lecture halls anyway. Because of this they stated I owed them 2000 dollars in money that i was not obligated to pay back by the contractual arrangement. (i.e. grants). So now I got that university billing me and taking my taxes as well as dept of ed and both show as seperate entries on my credit report. the university refuses to provide me with documentation of any kind and credit report companies will not remove the debt even when i dispute it. WHAT SHOULD I DO NOW?

    I absolutely refuse to pay a debt to bsu which was given to me under the pretense of not having to pay it back.

    Thanks for the great blog May God watch over you for all you do for your brother.


  42. Great article, my loan was sold to a loan servicing company immediately after escrow closed 5 years ago. I have contacted Aurora several times to see if they could freeze or lower my interest rate or offer new terms, none of which they were willing to do. What should be the next step?

  43. I NEED HELP ASAP PLEASE!!!!!!!!!!!!!!!

    I am in a sticky situation in Ohio. I’m wondering if I might get some help. In August of 2007, I bought a house with my boyfriend of five years. To make a long story short, I found out (in March of that same year) that he was doing crack, cocaine and crystal meth. I have two children ages 16 and 8. Upon discovering this information, I felt it necessary to collect my children and a few belongings to go stay with my brother for the weekend. I then had to go stay with my cousin and his wife who kindly took us in. We had to commute to work and to my children’s schools. We were displaced for a total of two months before I discovered the fact that I could file a Civil Order of Protection to get him out of the house so that myself and my children could maintain some sense of normalcy. I cannot afford the mortgage payment on my own and have depleted my savings by paying the mortgage for as long as I could. The last payment I made was in July of 2008. I was in negotiations with Fifth Third Bank who granted me a forbearance. I thought that I had until the end of November to make a payment according to the agreement I had signed. I was unaware that he (ex boyfriend) had called the bank and put a stop to the forbearance which then put the bank in a position to file foreclosure. I was made aware of this at one of our many expensive and unproductive court appearances to try to work this thing out. My former attorney was worthless. This thing has been going on for ten months now. I used all the money I had to pay him and to pay all the bills that the ex had run up in the two months that I was gone and he was living there for free. I now have a new attorney by chance. He was a substitute hired by my attorney because he was unable to attend the status conference that was scheduled. A blessing for sure. This man has gotten more done in the past month than the other has in the past ten. At any rate, we are down to the last bit of negotiation and I think the ex may take a deal where I offered him $1400 to get lost basically. He will sign off and I keep the house. My father has moved in with me to help offset the cost of the mortgage as well as to help fix the damage the ex did on the house so as to be able to sell it once the economy turns around.

    My question is…the bank has offered a loan modification and I am wondering after seeing this article, if I should take it or if there is a smarter route to take. Can someone please advise me on this? The article is intriguing, but I’m no lawyer and my attorney is a bankruptcy attorney. Help. This is getting down to the wire, so if someone could respond asap, I would greatly appreciate it.

  44. I just read your commit.

    We have been victim of this predatory lending scam.

    For the past 3 years I have been feeling very uneasy about a home loan that requires my spouse to be home only on weekends just to pay this enormous debt.

    I had several agents look at it and shake their head but would tell us that we can refinance.

    The loan itself made it impossible to refinance.

    The Bank refuse our hardship letter and our quick sale offer.

    There were a group of people who look at out loan and found enormous amount of errors in the calculation but charge absorbent fees.

    We were told by our real state agent that title sales was eminent.

    They told us to seek a lawyer but we don’t know who to trust.

  45. Does anyone have Federal or California case authority or Reference Books on how negligence in the loan origination process in the failure to conduct a reasonable inquiry into “red flags” precludes the Bank from being a “bona fide encumbrancer”

  46. Florida doesn’t lose, there are millions of scavengers waiting for these tax sales. The county will always get paid. If there’s a Trust involved, then the loan servicer pays the taxes. (never the Trustee) The Trustee has nothing to lose here but a lot to gain.

  47. Ny,

    Normally the trust company pays the tax,but they may be in partnership with the city to plunder and steal the home.Florida will not sustain this disaster.

    What ever happens in the end it will not be good.
    786 274 0527

  48. IN RE: Leigh,

    My property taxes are due. Will Countrywide or its servicer pay these taxes so as not to lose the property.

    Port St. Lucie and Palm Beach Counties, Florida, have been very quick to foreclose and auction off property.

    QUESTION: How can I defend against PROPERTY TAX foreclosure?

    I will win against the Countrywide mortgage but am afraid I will lose to the town taxes before that! I heard that there was to be a moratorium on payment of property taxes in certain towns in Florida.

    Leigh, tecnically taxes in Florida do not become delinquent until after 2 years of not paying. And then, the county auctions of the taxes owed (not the property) the person that buys your taxes can get as much as 18% back from you to get up to date and if you don’t pay them off then, he can go request the clerk of court to foreclose. That doesn’t mean he’s going to foreclose and keep your house. The County will have to auction your property to the highest bidder, pay his money plus the 18% but the county is the one that profits from it. Read more on any real estate book in florida.

  49. I gene I have tried to search for someone in NY to no avail. I am currently going through a foreclosure for the past 41/2 years. I am at the the end of the rope. I am trying to fight eviction. I will see what happens. There is a guuy named JayFleishman in Brooklyn. Best wishes. Ledgister4@aol.com

  50. Leigh,
    I do not know about Florida but I was very surprised that my servicer just paid my property taxes and my hazard insurance. I really thought they would not pay it. I am in California.

    Dan Edstrom

  51. My property taxes are due. Will Countrywide or its servicer pay these taxes so as not to lose the property.

    Port St. Lucie and Palm Beach Counties, Florida, have been very quick to foreclose and auction off property.

    QUESTION: How can I defend against PROPERTY TAX foreclosure?

    I will win against the Countrywide mortgage but am afraid I will lose to the town taxes before that! I heard that there was to be a moratorium on payment of property taxes in certain towns in Florida.

  52. Thanks Neil,

    In a general sense, can a defense be raised that TILA violations occurred on loans that were “table-funded” because even though you may have rec’d disclosure forms from the Nominal Lender, the “real” lender never provided those forms and in fact, you still don’t have them? If true, would that be a defense to any possible Statue of Limitations issues that arise on older loans? Thanks.

  53. i live in ny ,riverhead ny, do you know someone who knows there way around these matters,
    631 284 3328

  54. I would like to know more about how this idea can relate to credit cards. I had a discussion last week with Bank of America that basically locks me into a five year payment plan as my credit card debt was becoming astronomical due to penalties and high interest rate. I reached the point where I had to negotiate this or face a rising balance that was impossible to tackle.

  55. see above

  56. How can any borrower be in default if the Servicer is required to make the payment for the Borrower as stated in the Servicer Agreement??

    Monthly Advances
    If the scheduled payment on a mortgage loan which was due on a related Due Date is delinquent other than as a result of application of the Relief Act or similar state law, the applicable Servicer will remit to the Master Servicer on the date specified in the applicable Servicing Agreement an amount equal to such delinquency, net of the Servicing Fee Rate except to the extent the applicable Servicer determines any such advance to be nonrecoverable from Liquidation Proceeds, Insurance Proceeds or from future payments on the mortgage loan for which such advance was made. Subject to the foregoing, such advances will be made by the Servicers or related subservicers through final disposition or liquidation of the related mortgaged property, or until such time as specified in the related Servicing Agreement. Failure by the applicable Servicer to remit any required advance,
    which failure goes unremedied for the number of days specified in the related Servicing Agreement (or applicable subservicing
    agreement), will constitute an event of default under such Servicing Agreement (or applicable subservicing agreement). Such event of default shall then obligate the Master Servicer to advance such amounts to the Distribution Account to the extent provided in the Agreement. Any failure of the Master Servicer to make such advances would constitute an Event of Default as discussed under “The Agreements–Events of Default and Rights Upon Event of Default” in the prospectus. The Trustee, as successor master servicer, will be required to make an advance which the Master Servicer is required to make but fails to do so.

    All Monthly Advances will be reimbursable to the party making such Monthly Advance from late collections, Insurance Proceeds and Liquidation Proceeds from the mortgage loan as to which the unreimbursed Monthly Advance was made. In addition, any Monthly Advances previously made in respect of any mortgage loan that are deemed by the applicable Servicer, subservicer or Master Servicer to be nonrecoverable from related late collections, Insurance Proceeds or Liquidation Proceeds may be reimbursed to such party out of any funds in the Master Servicer Collection Account prior to the distributions on the Certificates.

  57. Very interesting case. I was lead counsel 🙂

  58. Enjoy the blog! If you ever get a chance, can you discuss AZ vs Father Nelson?

  59. Hebrews 6:1-12 Even though we speak like this, dear friends, we are confident of better things in your case—things that comes with salvation. 10God is not unjust; he will not forget your work and the love you have shown him as you have helped his people and continue to help them.
    11We want each of you to show this same diligence to the very end, in order to make your hope (goals or desires) sure.
    12We do not want you to become lazy, but to imitate those who through faith and patience inherit what has been promised.

  60. Had to provide proven income for “private lender hard money loan” Proven income was 1900.00 amonth, loan was 1700.00 through GAP LLC in California. No loan documents were provided at signing ast the “notary didn’t have another coy”. Still don’t have them , lost house in bk, they want me to buy it back but i only qualify for reverse mortgage and they will no cooperate by putting title in my name for 2 weeks. I a nd my disabled daughter [mental disability, signed documents not know what they were, going to court monday 12-15-08, i can’t afford counsel, i am 66 everyone says it was a predatory loan, they would not talk to me or friend of mine who was an attorney 6 months prior to going into foreclosure. What is available to me so that I am not on the streets?

  61. RE: “Why You Don’t Owe the Money”

    To give you an idea how foreign this novel line of attack may be to lawyers not conversant with it, I have a report from a friend who has the ear of many South Florida attorneys.

    He claims, to a soul, each came back with the response that if one were to prevail as a borrower using these foreclosure defenses, the plaintiff would likely counter with a claim for “unjust enrichment,” or the title insurance carrier would subrogate and take a position adverse to the borrower.

    Ironic, isn’t it? It’s the lender who is already unjustly enriched, and the very same title insurance company that won’t undertake a quiet title action on my (the Insured) behalf that might make a play for the property if the lender fails!


  62. Neil,

    As you know, money is currently tight to many, many of us.
    However, your website continuously helps many of us too.
    Thank you.
    It is for this reason that I would like to be one of your regular sponsor by contributing to your cause by way of monthly contribution. It won’t be a lot but I will make sure it’s consistent.
    Tell me how to do it…

  63. P.S.A Pool service agreement

    Is this being focused more by the judges in Orlando Fl. ? Are the foreclosing banks using this P.S.A. to their advantage .


  64. Loan modifications do no good for ailing homeowners.

    Quote from article:
    “After three months, nearly 36 percent of the borrowers had re-defaulted by being more than 30 days past due. After six months, the rate was nearly 53 percent, and after eight months, 58 percent.”


    Dan Edstrom

  65. Hello!

    Not knowing anything about all the issues presented in this awesome blog, I had signed a Loan Modification about a year and a half ago. I also did a Ch 7 BK before that, but without any reaffirming agreements. The Note was the usual Lehman securitized deal circa 2004 with MERS handling the “assignments”.

    (I’m not an Attorney.)

    Am I out of luck in proceeding with the legal challenges to my Note?

    The modification had the following elements:

    + Servicer was listed as holder or the authorized Servicer for the current holder. No additional disclosure of who that might be was given.

    + Release and waiver of claims.

    + Reaffimation of the negotiability of the beneficial interests of the Note.

    I signed the mod without consulting counsel since Chase scared me into believing it was sign within 48 hours or enter foreclosure.

    So at this point, I would think that I cannot challenge the Note. However, the main thing that Livinglies should teach anyone is that not everything is what you might think it is.

    Mr. Garfield’s comments on the issue of title:

    “The inclusion of language in various instruments of transmittal, modification or even satisfaction of the mortgage does nothing to resolve the issue of severance of the security interest from the note and the fact that the terms of the note were changed without the borrower’s permission. It is one thing to assign a note; it is quite another to add and subtract terms and parties to it.

    In my opinion modification is not possible without either producing a proper chain of title and all the required recorded instruments as per state law, or a title policy that is issued without exceptions AFTER disclosure to the title agent in writing regarding the issues raised by securitization.”


    Thus the modification agreement has problems for the “Lender” still.

    1) There is probably not a proper chain of title with the supporting documents.

    2) There may still be issues with Fraud in the original Note (Lehman subsidiary BNC was the orignal “Lender”). My wiki reading of the enforcement of waiver shows that you can’t waive fraud when you didn’t know about it http://en.wikipedia.org/wiki/Waiver#Enforceability_of_waivers

    3) There might be some ability to challenge the Servicer’s authority to enter into a modification agreement in the first place.

    Thank you Mr. Garfield and associates for all your work in this area!

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