Submitted by Charles Koppa. 6/9/2010

Editor’s Note: We are starting to look at events AFTER the sale has taken place and we are discovering a number of things:

  • CREDIT BID: Only the Creditor can submit a credit bid. All others must pay actual money. If a non-creditor submitted a credit bid (essentially bidding the “amount due” which as we have seen from the FTC action against BOA is incorrectly stated) then the procedure has been violated, the sale has not legally occurred. At least that is my interpretation.
  • Also the submission of a credit bid locks in the position of the parties. So if you are suing for wrongful or fraudulent foreclosure, they no longer have the option of fabricating documents as you raise one objection after another.
  • The obligation to return money rightfully owed to the homeowner continues but it is ignored. Thus even if the property is not sold to a bonafied purchaser for value without notice of defects, the net accounting due is the same. So the receipt of third party insurance, credit default swaps, or other credit enhancement payments is still required to be allocated to this loan. Hence there is a damage claim against the participants in the foreclosure and sale.
  • More later. For now read Charles’ comments below

REO’s and OREO’s have NO MERS Identification Numbers.

1.  Loan Servicer (as a MERS member) initiates the NOD and NOTS.
2.  When the auctioneer pronounces “Back To Beneficiary”, the securitized bond trust receives the MinBid at averages of 46% below the NOTS amount posted the day before.  Bondholder “paper certificate losses”  are unconscionably assigned against the Real Estate asset. “The Paper Trust” gains an untitled transfer of the Real Estate Asset which it NEVER Wanted!
3.  The Auction extinguishes the Toxic Security on Wall Street.  Counterparties collect on their bets.  Investor lose their investments” and the monthly cash interest streams are terminated.
4.  Simultaneously, the Servicer (and MERS) are extinguished from all public records.  Servicer collects on MGIC or other mortgage insurance to cover ALL their contrived losses and costs.
5.  When the re-sale is completed, “The Bookkeeping Trust” ALSO disappears from County Property RECORDS!!!
6.  Until re-sold, the real property travels at ZERO book value into an off balance sheet private entity (mostly controlled by the BHC) which was the SIV “depositor” (as an off balance entity) in setting up the REMIC and/or the Investment Trust in the first place.

7 Responses

  1. Stanley. You confirm exactly the Money Laundering Process which also stinks in San Diego.. As a trnsplant from Wausau many years ago, I say you need our Foreclosure Autopsy against those Bad Boys. Call Charles @ 760-787-9966 e-mail

  2. angry & NOT TAKING IT!,
    Email Me I have something you should love

  3. hmm..

    Accommodation – An obligation assumed without consideration.

    Accommodation Party – A person who signs a promissory note without receiving value.

    Accommodation Recording – The recordation of an instrument without consideration and without assumption of responsibility for correctness or validity.

  4. 2 weeks ago so called trustee took the property back ; as no bidders@ auction …pssst!

    the trustee’s deed recorded in northern Ca – i copied yesterday has this printed on the bottom of 1st page;

    “this instrument is being recorded as an ACCOMMODATION ONLY, with no representation as to its effect upon title.”

    with “ACCOMMODATION ONLY” in all caps…

    I smell a title issue here.. … anyone have an explanation?
    i noticed this same statement on other recorded trustee deeds as well.

  5. Excellent! Thanks for this information!

  6. Charles,
    Thank you for this interesting piece. I have a question.
    I have several non mers loans that were foreclosed by a local Bank that was taken over by the FDIC two weeks later. The deed went to Bank of Elmwood from me, Stan, to the Bank then sold to John Doe for $15K. At the sale the Bank opened with $130K. There were no bids. At the confirmation hearing the sale was confirmed by the judge. The default amount was $140K, sothe the Bank made a motion to subtract the opening amount $130K. That left me with a $10K deficiency judgement a docketed lien. Then the Bank sold my property for $15K to one of their friends for $15K. When I called I was given a lecture how I had to pay the full amount. Anyway after they sold the property to John Doe. The Bank was taken off the deed chain so it looks like title went from me to John Doe.
    I am in Wis and this stinks.

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