How to Find “Who Owns The Note” – Who has an “Insurable Interest” !!!!

How to Find “Who Owns The Note” – Who has an “Insurable Interest” !!!!

It is basic insurance law that in order to become named as a loss payee – that is, to get an insurance policy issued to you to indemnify you against loss – you have to have an “insurable interest.” MERS doesn’t ( as far as I know). It is not a “loss payee”. Every assignment of a mortgage (when the mortgage is sold in the securitization process is insured:

http://www.eagle9.com/policies/Lender_Policy.pdf

(I think I posted this here before, because Eagle9 warns of a loss of assignment if the assignment or hypothecation (sale of chattel paper/mtg) is not recorded under state law AND there is an intervening BANKRUPTCY that supersedes UCC automatic perfection under UCC 9-301 – 304

(yes, I did:

http://livinglies.me/2008/05/23/foreclosure-defense-strategic-bankruptcy-options/ )

Follow the insured interest.

Then you will know who does or does not have an interest in your mortgage.

And thanks to Brad Keiser for reminding me of this again in our telephone conversation yesterday.

Steven K. Kop
Attorney at Law
bluejaylaw@gmail.com
(310) 721-8557

10 Responses

  1. I have an issue with my foreclosure, I found these names on my home owners policy and I financed through1st mortgagee Citi mortgage inc, mortgage servicing agency, citi mortgage inc, its successors and/ or asigns, PO box 7706 springfield oh, 45501.
    but on the next page says 1st morgagee; Weststar mortgage, inc. and mortgage servicing agency; Weststar mortgage inc, its succesors and/ or assigns atima/lender case 12XXXX, 3350 commision court woodbridge, VA 22192
    can any assist in what this really means/ Thanks

  2. For Bankruptcy Info and ideas, go to http://www.msfraud.org look for the threat Bankruptcy 101.

    For free Foreclosure Denfense Info, e-mail me at ocean11@the-beach.net. I will e-mail you all info I have.

    E-mail me your Foreclosure Defense info for Judicial States so I can learn too.

  3. Ann
    great advise & i might ad participate as if you were filing [pro se] do the work [research the laws & statutes] know your rights- otherwise you have none!
    i was Forced to learn [learn ..haha who am i kidding; learned limitedly] the laws by filing bk chapter 7 pro se [with questionable success I might ad] , now i have a righteous attorney & i am very thankful for her, she is a very rare individual , intelligent ,selfless , honorable.
    Ms. Chris Gardas in northern ca.
    Prior to this bk i knew nothing of my rights & laws ..really, although i could read most insurance policies [ legalese double speak ].
    Now I believe it is every Americans duty to read & know the laws that control [our rights] what many as myself have taken for granted…it is OUR responsibility [I am ashamed i had neglected this duty]

  4. Ann

    That is the best advice, that is exactly what I have done. That is what you pay for!!

  5. When you hire an attorney, writte in the Retainer Agreement that you REQUEST the attorney to e-mail and call you ALL Pleadings for you to review before file with the Court and you want to Participate at Hearings. This will avoid unpleasant mistakes and surprise. Reconfirm these requests in a formal letter to your attorney.
    Remember, you have only 1 case to watch: Your Case. Your Attorney has several cases to deal with and mistakes/omission can happens. Educate yourself with all laws, procedures concerning your case so you be knowledgeable and helpful to your attorney. Do reseach and e-mail your attorney any news, law changes, Appeal, Supreme courts decisions related to your case law i.e foreclosure, bankruptcy. Check your case docket online every 3 days and go to the Court House to look at your file once a week. When you’re at the Court House, ask the file clerk to give you other files to look at. They are public records. Believe me, you will learn a lot just by looking at other cases similar to yours handled . Sit in the Court room to watch foreclosure and bankruptcy proceedings. It will be quite an experience. Good luck.

  6. If anyone can answer a question for me-

    I received my note in the mail, with a stamp marked PAID IN FULL all over it, but on the last page there is a stamp that says PAY TO THE ORDER OF, with a companys name listed on the line WITHOUT RECOURSE and yet another companys name listed there and then signed by a person with the title DIRECTOR. The stamp has a line through it…Does anyone know why? or what does that mean?

    Thanks!
    Heather

  7. Catherine-

    Your story is typical – who can you really trust??

    Fighting hard – Lenders Title Policy is a insurance policy to protect lenders against unknown liens or claims. It is not the same as “credit default swaps” which are used to protect the rights of receivable pass-through security holders for CURRENT payment stream passed on by current mortgage payors.. They are two different things. Lenders Title policies have been deeply flawed as most of the mortgage originations were table-funded by the stated originator and the actual lender was not disclosed at origination.

    In addition, security holders for pass-through of receivable current cash payments were not your direct lender/creditor. They lent to the BANK – not you – by agreement to pass-through CURRENT payment stream. They were, at the very least, indirect lenders to fund the mortgage. The security holders funded the bank – the bank (undisclosed) funded mortgage loans – and, therefore, were the only (undisclosed) lender at mortgage origination. Only the bank, not security holders, is the creditor at mortgage origination- which was concealed by table funding of the named, or stated, mortgage originator. These table-funded mortgage originators were precipitated by pre-arranged agreements with the actual lender bank (Wall Street underwriter) who agreed to purchase the mortgage loans at or before mortgage closing. According to the TILA – only the lender at closing is the creditor. Subsequent securities have nothing to do with it – at least according to the TILA. This was the original focus of Judge Boyko in Ohio – securities are not the loan itself – they are 2 different things.

    Security investment holders in pass-throughs had nothing to do with the actual origination or qualification (direct) funding of the mortgage closing. The banks, after purchase of the mortgage loans, remove receivables from their balance sheet to an off-balance sheet conduit in order to pass-through a pro-rata share of “pooled” on-balance sheet receivables to subsequent security investors – and this is after the certificates to the off-balance sheet conduit are sold back to the security underwriters (as most prospectus state). Mr. Bernanke has made this clear. There is only a pro-rata share in pooled receivables that is passed-on to mortgage backed security holders. They own nothing more – and are not the lien holder or creditor to your mortgage. Once the receivable is in default – it is gone- there is no more security.investment. Security investors are compensated for bulk loss by payment in full by credit default swap enhancers to the trust. These enhancers are not the same as Lender Title policy insurers.

    Sorry to be repetitive. .

  8. Catherine
    Please post your lawyer’s info here to prevent another hapless victim from falling prey to the very heart of the mortgage problems .

    What is the difference between a sperm & attorney ??
    The sperm has a one in a million chance of becoming a human-being !

    No offense to the lawyers that really do have ethics & morals , they are credit to their profession and the only real help most homeowners will ever see.

  9. I am confused- Does the TITLE policy taken out at the orginal closing grant the lender the right to claim a loss if the plicy is foreclosed OR is the insurance policy for a default something different than a Title policy?

  10. I was in for quite a few surprises when my case was dismissed and i finally went to the Federal Court Archives and read my case files.
    For one thing the attorney who handled our Chapter 13 case, filed information and statements contrary to our interests,
    and in favor of the lien-holder’s interest’s .
    My recommendation is therefore
    Wherever you are in court, and who ever represents you , frequently go to the court and review exactly what has been filed by both sides!
    In plain language we paid a B.K. attorney $2,500.00 to compromise our interests.
    Thus the age old conundrum…just who can one trust?
    In Pro Per Plaintiff,
    Catherine

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