Get those Ledger Entries from everyone — they tell a long story

From M Solimon: {Editor’s Note: Lots more here than meets the eye. You want to know what ledger entries were made by each entity and by what individuals and under whose supervision or instructions the entry was made. Besides being able to trace the holder in due course you will probably eliminate most of their claims by their own “admission” by how they accounted for the transaction — and how they paid taxes on these transactions. For example, if an entity claims to have received an assignment, what did they receive, where is the assignment, and what were the agreements (Assignment and Assumption Agreement, Pooling and Service Agreement etc.) that accompanied the assignment. If the “handling” of the transaction shows up as a zero balance transaction on the balance sheet (or does not show up at all on the balance sheet) under assets and liabilities, and if the transaction shows up as a service transaction in which the entity took a fee and reported it as income, including the “gain” on sale, then you know this was merely a conduit with no claim to the note, mortgage or obligation. For them to take a contrary position would be to say they lied in their annual reporting to the SEC and they lied to the IRS on their tax return. They may also have forfeited their REMIC (tax-free) status, which could mean that they owe Uncle Sam money on “Gains” that were passed on to other entities. Ledger entries from the mortgage broker, appraiser etc. along with agreements concerning fees and correspondence will tell a similar story of undisclosed fees. Just asking for them will likely lead to early settlements with the errors and omissions carriers. }

A logical, traceable public record and chronological orderly chain of assignments is required to tract the transfers of an asset. The transfer, to be arms length, should conduct itself with consideration amongst parties and a clear intent as to benefit of each of the parties (no material misrepresentations).

Basis accounting under FASB rules and regulatory demand mandate proper accounting for companies and using gain on sale accounting methods. The assignment can be documented for tax reporting purposes from ledger journal entries by the purchaser and seller.

The 2007 Decision by a federal Judge stopping 14 foreclosures in Ohio was because the actual mortgage notes could not be produced in court. If the Lost Note is in fact really displaced, there will also be a lost attached endorsement, Notary Jurat and missing corporate assignments. The missing assignment if delayed and not verified by a recording will make a dispute difficult to prevail after transfers are alleged. It will not be hard none the less for the Juris Pro expert to locate the notes where I expect to find it if allowed under a subpoena. Boyko 2007 Foreclosure Decision — Deutsche Bank Nat’l Trust Co. v. Steele, 2008 WL 111227

UCC SECTION 3-309 qualifies arguments addressing a missing note, under UCC §3-309. California law does not provide the same simple solution. Under the UCC provisions a party entitled to enforce an instrument which has been lost, destroyed or stolen may enforce the instrument. If the court is concerned that some third party may show up and attempt to enforce the instrument against the payee, it may order adequate protection. However, Parties seeking to enforce a missing instrument must be a person entitled to enforce the instrument, and that person must prove the instrument’s terms and that person’s right to enforce the instrument. §3-309 (a)(1) & (b). To represent MERS as beneficiary or other interests in a lawful assignment at closing and through subsequent assignments is solely to shelter the FSB using multiple combinations known as SPV’s.

Regulatory requirements imposed by the IRS for avoidance of a debt structure, supporting a bankrupt insulate entity enable the Special Purpose Vehicle (SPV) to insulate the platform from federal regulatory restrictions imposed upon a Federal Thrift (see 1989 – FIRREA) Therefore you are working around the FSB or Thrift exempt from participating in high yield and high risk commercial lending or the equivalent known as Sub Prime. FIRREA created two new deposit insurance funds. It abolished the Federal Savings and Loan Insurance Corporation (FSLIC); the fund originally administered by FSLIC became the Savings Association Insurance Fund (SAIF). It also created the Bank Insurance Fund (BIF).

Both of these funds were to be administered by the Federal Deposit Insurance Corporation. This section of FIRREA was amended by the Federal Deposit Insurance Reform Act of 2005, which consolidated the two funds. Critics of FIRREA assert that, rather than respond effectively to the S & L crisis, the act actually exacerbated the crisis and made it a true disaster.

Questionable third party, less than arms trustee sales (California) by financial institutions, after a rush to foreclose, and where obtaining a default judgment after MERS has sat on the deed is wrong. MERS Execs who want to challenge this Juris Pro Expert are forewarned – I will demonstrate why you cannot prevail here.

M Soliman

10 Responses

  1. Any one know of a good foreclosure attorney in Pa?

    Looking for a foreclosure atty in Pa.

  2. Any one know of a good foreclosure attorney in Pa?

    Looking for a foreclosure atty in Pa.

  3. Steve & Maher

    I would like to thank you both for the invaluable information you have provided for me and (a few liberties here) other on this blog.

    Much to my surprise a present from you. As much as I like to give gifts, I like even more to receive them.
    So, I pulled off the ribbon , unwrapped your gift, opened the box and gast , WTF is this present. I have no idea what is in this box.

    Thank you both. If either of you can explain, I would appreciate it and probably others would also.

    I have a WFALT 2007 PA02 trustee HSBC


  4. A present from me (and expert witness Maher) to you all.

  5. I would like to post Bill Moyers interview with William K. Black that was broadcast on PBS April 3, 2009.

    Here is a link for anyone who is interested:

    Additionally, here is a an article on the George Washington Blog regarding the interview:

    SATURDAY, APRIL 4, 2009
    Senior S&L Regulator Says Government Engaging in Massive Cover-Up of Economic Crisis: “The Entire Strategy Is to Keep People from Getting the Facts”
    William K. Black was the senior regulator during the S&L crisis, and an Associate Professor of Economics and Law at the University of Missouri (bio).
    Black says that massive fraud is what caused the economic crisis. As one example, he explains that everyone involved knew that the CDOs which packaged subprime loans were not AAA credit-worthy (which means that they are completely risk-free). He also said that the exotic instruments (CDOs, CDS, etc.) which spun the mortgages into more and more abstract investments were intentionally created to defraud investors.
    Moreover, Black says that the government’s entire strategy in dealing with the economic crisis is a massive cover-up:
    [They] don’t want to change the bankers, because if we do, if we put honest people in, who didn’t cause the problem, their first job would be to find the scope of the problem. And that would destroy the cover up….
    Geithner is … covering up. Just like Paulson did before him….
    These are all people who have failed. Paulson failed, Geithner failed. They were all promoted because they failed….
    Until you get the facts, it’s harder to blow all this up. And, of course, the entire strategy is to keep people from getting the facts….
    [Question] Are you saying that Timothy Geithner, the Secretary of the Treasury, and others in the administration, with the banks, are engaged in a cover up to keep us from knowing what went wrong?
    [Black] Absolutely….
    They’re deliberately leaving in place the people that caused the problem, because they don’t want the facts. And this is not new. The Reagan Administration’s central priority, at all times, during the Savings and Loan crisis, was covering up the losses.
    [Question] So, you’re saying that people in power, political power, and financial power, act in concert when their own behinds are in the ringer, right?
    That’s right. And it’s particularly a crisis that brings this out, because then the class of the banker says, “You’ve got to keep the information away from the public or everything will collapse.”

  6. Hi, Mr.Soliman
    Please e-mail me the sample regarding the recording of issue of Title companies.I will get it done.

    Thanks and Be Safe

  7. Raja

    Title companies provide what as their core product? Get it NOW! If possible against any anticipated recordings.


  8. Raja:


    For the rest of the readers, please post details of your course, and case.

  9. great job Raja, blessings

  10. Hi Neil,
    wrote many e-mail response none.I had my BK 7 hearing today. (this was 3rd hearing).Judge ordered the lender to prove if it has standing to foreclose i.e real party in interest.This is first case in Virginia.My BK has been discharge including the mortgage on 03/30/2009. Certificate of Satisfaction with affidavit of non compliance already recorded in County lands record.

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