Submitted by VivianJ

Finally got on the list. A servicer, (not on the deed of trust) tried to execute a power of sale. Thanks Neil for your wonderful posts. I’ve been reading for months.
I showed up. Spoke to the ‘appointed’ trustee. Said, according to your appointment you have the Deed and the Note? She said, “I don’t want to talk to you.”. I told her I had a complaint for identity theft and consumer protection in a real estate transaction with the Attorney General. She gives me the law firm she’s helping (in another city) and I told her, I was disputing the sale. It was fraud. I informed her I would capture the sale with my cell phone. Eventually I was told they would not call out my home for sale. I waited through all the foreclosures. Those she called out, she stated she was authorized to bid for the “lender” (term used loosely) and she’d place the first bid, and of course had the highest bid, and would say ‘sold’. She read mine, and I started recording, I spoke while she sold, and said I never did business with this company. They are not a lender nor a creditor to me. They are not recorded in the real property records. The title is clouded. etc…so on, and eventually heard her say, sold. So I stopped talking and asked what it sold for and a person sitting by her gave a value. I said, that’s all I need and stopped recording. The cell has my voice over hers, but the point is, I was there, and have video of a fraudulent sale. I waited. No filings yet to try to transfer the title from the original trustee to the ‘substitute trustee’ (term used loosely). The acceleration (power of sale) can only be done by the ‘lender’. That definition is in the Deed of Trust. Without an ‘Assignment/Transfer’ in the Real Property Records…no one else can claim the status of the “lender’. Only the ‘lender’ can appoint a substitute trustee. The entire process was flawed. I got information from the ‘lender’ I never paid, that should prove I owed them the money (without an assignment) but their note was a certified copy from a title company, their copy of the Deed is different from a certified copy I can get from the official real estate records. I got the law firm to send their proof they have the Note and Deed as per their appointment. Their note does not match what the ‘lender’ sent, and their copy of the Deed does not match what the ‘lender’ sent nor the copy on file in Real Property records. They made it easy for me to prove to the attorney general the fraud. Problem was the AG represents that ‘state’ whereas I needed someone to represent me. Attorneys in non-judicial states do not know this part of the process so they avoid it. I found one who was new to the state, needed clients, and said if I could tell her what was wrong she’d try to help me. Well I’m on my way to either ‘reverse the sale’ (if they file something to show it was done…seems there is a delay to complete that fraudulent process), and to seek quiet title to remove all claims to this property. Sad thing is the ‘lenders’ (that term will always be used loosely) only wants the legal title to the property. They could care less about me, my payment or the house. But they can’t get it from the Trustee on my Deed of Trust because they aren’t the original Lender. The original Lender was merged away into another entity, and the Trustee would only recognize the holder of the Note and Deed. Good luck with that.

America’s property is held by legal title by the origianl Trustees of our Deeds/Mortgages and the Bankers can’t get to these titles because they split the Deed and Note. A shame the fraud they’d go through to make sure an attorney is not the final holder of all the property titles. Makes it hard to flip homes over and over again as people buy, sell, or lose their homes doesn’t it. Can’t back out of the bad documents. They did get sloppy in their greed.
They assign a substitute trustee, then force a sale or foreclosure, then get the original trustee to transfer the legal title to the substitute trustee so the substitute trustee can transfer it to the banker. The fraud is deep, pretending to pay taxes so they can set up an escrow and charge higher mortgage, pretending to not receive payments, canned letters no matter how you communicate in writing telling you they didn’t get your documentation even if you sent it three different times and three different ways. Then if you refinance to get from under them, the bank that refinanced is bound to assign you to them as a servicer again to go through the same pains over and over until they get that title!
Good luck to all. I admit, stay in the language of Love, ’cause when you operate with Love in your heart, you can see through all the darkness and all the fraud and all the deception. With Love, your eyes are open and you see the slightest details in their fraud and can expose the evil side of the business. Stay in Love, that’s the language that will open the doors to victory. Forgive the players. They are working and earning a paycheck. A few at the top caused the problems. The rest of us on both sides are the pawns and expendable. Love your neighbor, they may be the very person to help you. Keep an amount of cash, (coins) in your possession for emergency situations. Lately, there has been interruptions weather related or not, where ATMs, gas stations, food services, etc.. have not been able to process credit and debit. Seems like a test for something later to come. Not fear mongering, just making an observation and giving a heads-up. Neil, keep up the good work.

13 Responses

  1. AG’s DO have the power to prosecute NA’s etc when it comes to consumer protection and fraud. Quote him Cuomo vs. Clearinghouse…this GAVE THEM THE POWER TO ACT AND YOU NEED TO CALL THEM ON THE CARPET FOR IT!

  2. TRUSTEE’S DEED- after foreclosure. MERS appoint debt collector attorney to substitute trustee which we all know cannot be. 3 months later a TRUSTEE’S DEED was filed stating debt collector atorney as substitute trustees states grantor Aurora who just collects payments, then fannie mae as a bidder. Does the TRUSTEE’S DEED come after substitute trustee? does anyone know?

  3. THE A MAN,
    Learn the Law & Do It Yourself. Remember, if you want something done right……

  4. FINAL UPDATE: The Original Trustee’s office called me back. I told her the reason for my call was to prevent them from giving the legal title to my home, to the company that did the invalid sale. She said they do not get involved in that, but that the original trustee was no longer the trustee, a substitute trustee was appointed. I went through the information stating the substitute can only be appointed by the lienholder of record, and there is no assignment so the appointment is invalid; otherwise anyone can point to my deed an appoint a substitute trustee and sale my home. I told her if I gave the original trustee legal title to my home, I don’t want the original trustee to give it to the wrong party. I reminded her that in a letter from the original trustee, he stated he represent ” the beneficiary ‘who is the holder of the note with a security interest in the home’ “. And said do not give it to the ‘pretender’ because they don’t have the Note and don’t have the Deed. Then she tells me the pretender is their client, and she has nothing to do with the dispute about who gets the legal title. They are no longer in the picture, because a substitute was appointed. I told her how wrong it is, that I have to defend my title I gave them while some other company appoints people at will and doesn’t follow the process and is not assigned the mortgage. I told her, I have a family involved here. This is not right. She said, I suggest you hire an attorney. I asked her this question, I said, if I had a legal title, was it a paper or something that is physically transferred from one party to another? And she mentioned something about the title company. I knew somehow it was transferred and now the title company is going to show the ‘pretender’ as having legal title to my home. I thanked her for her time, and didn’t go into the details of how wrong that was.

    So I’m back to the beginning. Was the entire Deed of Trust a farce. An original trustee by virtue of his position cannot allow a separate business relationship interfere with his duties to hold that legal title entrusted to him for the purpose of beneficiary in the Deed of Trust. He has a duty to qualify anyone who wants that legal title, and that qualification is by seeing original documents to support their claim. I had no idea that a ‘pretender’ can get around that requirement by bringing the original trustee into the fold. Banks have an endless supply of money, they can create it at will. So the success of these firms lie with a conflict of interest and the ‘borrower’ by definition, aren’t really the borrower, since they never loaned any money, so has it all been just one big extortion hidden behind an invalid contract filed in the public?

    All those provisions about selling the Note and the Deed must accompany it, and so on, and the original trustee breaches that trust and hands the title to his client, because his client appointed a substitute trustee, did a sale and said give it to me? where’s all this…holding someone’s property in trust to ensure whoever is supposed to get paid, gets paid?

    I wonder if this ‘private side’ (behind the scenes) information is what causes some people to lose their homes, even if their case is solid? If the goal of a Deed or Mortgage was to entrust the legal title to our property with an (untrustworthy) trustee, so it can be handed to any entity, then is the entire Deed a fraud?

    If people go to court disputing all these public shenanigans that happened with our Deeds in the public and don’t know about these behind the scenes arrangements and dealings, then for all it’s worth, a person may end up with a free home and still not have legal title to their property.

    The reason for all the Notice of Substitute Trustee sales, for MERs and others that lack standing, is beginning to make more sense now.

    Like I said, if I’m displaced temporarily or permanently, I am going to stay in the language of Love. I would never want to be corrupt. I will hand them the home, before I hand them my piece of mind. It’s only property. A good tent and a piece of land, is all our ancestors had anyway.

    Neil, Hopefully there are some nuggets in here as we search for a solution. I will be giving the AG a certified copy of the Trustee’s Deed I just found, and noticing them of what I consider is a gross conflict of interest that violated my trust, and many like it by that trustee. The AG only represents the state, so I get no warm fuzzy from my communications with them, (it’s an arm’s length transaction) but hopefully, enough is revealed to make a difference and put a halt to all of this for many in my state.

  5. This is a fantastic story

  6. UPDATE: Checked this evening, A “trustee deed” was filed by the substitute trustee to the ‘pretender lender’. ( I’d never done business with this ‘lender’]
    Trustee’s Deed is dated June 7. I just located it today.

    Problems with the sale that rendering it invalid and fuels my confidence I have a remedy.

    1. ‘Lender’ was had no Assignment/Transfer on file
    2. Statute of Frauds states certain contracts have to be in writing
    3. Real Estate laws require the Lender to be identified in public, by Deed or by Assignment.
    4. Only the Lender of a Deed, (or by Assignment) can appoint a Substitute Trustee.
    5. The Deed has to allow provisions of appointing a substitute trustee for the ‘Lender’.
    6. Substitute Trustee must be appointed before a notice of Acceleration or a foreclosure sale can be initiated. The notice was filed May 10, stating the trustee had been replace, listed 5 or 6 substitutes, all or any could do the sale. The appointment was Notarized May 17th, filed May 24th, So the appointment occurred after the notice was filed.
    7. If a trustee is appointed after a notice of sale is filed, the sale must be postponed until the next available sale date.
    8. The ‘lender”s copy of the Deed is different from the file in official Real Property Records.
    9. The Lender and their attorney “substituted trustee” both sent copies of a Deed different from each others copy AND different from the official certified copy. How can there be three variations of one original?
    10. The Lender got a certified copy of the Note from the Title company.
    Their ‘substitute trustee’ provided a different copy, to evidence they were the holder of the Note by virtue of their appointment; but it was without an allonge or proof of assignment to them. You have to ask yourself, if the Lender had the original to give to a substitute trustee, why would they indicate their proof by sending a copy from the Title company?
    11. With both entities stating a claim to the property and four varying pieces of evidence between the two of them, it will be difficult to back out of the evidence they provided indicating neither are the ‘real party in interest’ and both ‘lack standing’.
    12. I contacted the original trustee on the Deed, afterhours, and left a message. I plan to call and see if I can speak to him on the phone. In my message I told him, I conveyed legal title to him for my property for the benefit of a beneficiary, and that the sale that recently occurred was fraudulent, I gave the AG case number, and the file number for the appointment, file number for the notice of acceleration, indicated the date conflict between the notice and appointment. Informed him there is no Assignment. The substitute trustee appointment is invalid. Told him, neither has the note nor Deed. Asked that he not convey the legal title to an entity who has no standing. Informed him I’m attempting to reverse the invalid sale. I know the original trustee does not represent me, but he does represent the ‘beneficiary who has the Note and a security interest’ in the home. That’s not the ‘pretender lender’. So I hope my call will make him refuse to willingly hand over legal title to an ‘other than beneficiary’ (and ‘other than lienholder of record’ party). I’m hoping he’ll demand proof of their standing and not convey the legal title to them.

    I ‘m a member of a legal protection plan, I never used it the 5 yrs I’ve had it. When the ‘invalid sale’ occurred I called the plan and spoke to a Real Estate attorney. When I explained what happened, his first words were, (our state) may be a non-judicial state, but you still have to follow process. We are lenient when it comes to a foreclosure, but we are strict about the process you must follow to execute that power. He told me they performed an invalid foreclosure on me and I could reverse that sale’. He also told me to call them and tell them they can be sued for what they’d done.
    No. 08–1200. Argued January 13, 2010—Decided April 21, 2010

    Reversing the sale will be easy. Staying in the language of Love I will not sue. We must stop fighting each other.

    An internet poster had this to say in a blog:
    ————–beginning of quote—————————-
    ………..Another important concept in our legal system involves the concept of “discovery”. Its relevance in this particular situation is as follows.

    If Americans who have already lost their homes to foreclosure “discover” today that the party who was officially behind these foreclosure proceedings (which in many cases is MERS) never had legal standing to foreclose on their property (whether that took place five days ago or five years ago), this means that the foreclosure proceeding was legally invalid.

    What this means is that courts will very likely find that these “foreclosure victims” are still the legal owners of their homes. This not only is a crippling blow to the U.S. financial crime syndicate, but an even more serious blow to people who have been buying these “foreclosed” properties.

    If the bank who “sold” them the “foreclosed” property never had legal title then obviously that bank had nothing to sell to the “buyer”. In other words, many (if not most) of the people who have bought “foreclosed” properties in the U.S. over the last few years may own nothing.
    ————————-end of quote———————————-
    I have no concern regarding the final outcome, and I am not afraid to be displaced in the process be it temporarily or permanent.
    I found this document; it’s a useful addition to what I am learning here. Titled:
    A Homeowner’s Rights under Foreclosure.
    search these two terms together in a search engine texasforeclosurelaw.pdf
    “Only the party or parties designated in the deed of trust may appoint the substitute trustee.” Page 8 “Any action to recover damages must be initiated within four years of the sale. Because only one remedy may be pursued, the borrower must be careful to choose the correct one. The following example is based on an actual case. A Texas debtor sought damages for the wrongful appointment of a substitute trustee. The irregularity, but no resulting damages, was proven at trial. Consequently, the debtor recovered nothing. However, the court stated that the irregularity was sufficient to rescind the sale if such a remedy had been pursued first. Because it was not, the debtor was without further recourse.

    Page 9. “Did the deed records show a chain of title between the original beneficiary (the original lender or mortgagee) named in the deed of trust and the present lienholder conducting the foreclosure sale? Basically, the lienholder “of record” must be the same lienholder in charge of the sale. Most loans are assigned or sold to another lender. There must be a copy of this assignment or transfer recorded in the deed records. Otherwise, the wrong party may be conducting the sale and/or appointing the substitute trustee. This is a prevalent problem in today’s market.”

  7. Dave Krieger,
    First, I do not argue. Anger is a sign of fear.
    Second, I kept track of the process, my first complaint was with the FTC, my second was with the state AG. No, it never occurred to me a company I did not owe nor had ever done business with could sell my home. Never occurred to me. But did they sell it? Or was it smoke and mirrors, since I was there.
    I think you need to understand the law of contracts. That’s something not taught in school.

    You suggest I got to court to argue with someone over something I should not argue with. As I told the attorney general. You get an attorney when there was an agreement and the two sides disagree over the agreement. If someone you’ve never done business with, demands money or they’ll take your home, then that’s extortion. That’s why RICO has been an avenue for some in these situations. By having the complaint in the public, the fraud can be followed. I have no fear of losing my home. If stolen, I hope to get my stolen property back but it’s only property. Staying in the language of Love is more important to expose the fraud. If I tell you I’m stealing your car on Thursday, you can go to the police and report it, but until it’s stolen, no crime has taken place. Any movie of a bank robbery or whatever, the police stake out the place, watch the crime get committed, wait for them to leave with the evidence then step it. Always. So there is on ‘preemptive strike’ thing happening here. I went, saw, and documented the fraud, and waited. Now if they file something to transfer the Deed, ie Trustee Deed, then I can use the attorney, I found, to reverse the sale, but right now, there is no way to know what happened until something happens. The attorney will help me do a Quiet Title so there can be no more fraudulent claims. But I’ve always said, everyone’s solution is different. You do not know the evidence I have, you don’t know the evidence I gave the attorney general, you don’t know what information the attorney has that will make it ‘easy’ to reverse the sale and seek a quiet title. When you operate in the language of Love, everything is ‘easy’. Sure stuff happens, but evil cannot conquer good, and negative cannot overcome a positive.
    As far as your comment on yelling. I spoke over her, I didn’t yell, and it was more for witness and evidence. Everything has a purpose, and everything in its own time. I don’t need help writing briefs, and don’t need to defend a theft. The difference here is if I took your advice, I’d be arguing whether I owe them money in a court with a chance to ‘win’ (term used loosely) or lose. Now, I can go to court to reverse a theft. The burden of proof of the right to ‘steal’ my home falls back on the ‘lender’ and their appointed ‘substitute trustee’, (both terms used loosely). I’ve already won.

  8. Thank you for your great analysis Dave Krieger.
    The $1.29Million home in Los Angeles used to cost only $300K – 500K (already inflated) until the banksters inflated the prices. The houses in California have no reason to cost this much and will go back to their true price.


    The problem with walking away from your house arises when you have a family. when you have community ties you know normal human beings.

    What can you do when you get raped and the police man and judge that are supposed to save you. THE FIRST QUESTION THEY ASK IS DIDNT YOU ENJOY IT? (JUST LIKE THE JUDGE ASKING YOU DIDNT YOU TAKE THE MONEY?).

  9. Vivian J … the time to argue this sale is in court with an attorney … not at the day of the sale when a judge can’t be asked to render a decision. This is about as pointless as giving the lender the “produce the note” argument at the detainer hearing. There is a time and a place for everything and your statute of limitations and time for appeal may be running out. If you can’t write your own briefs and defend your own case, you needed to hire an attorney to do that, not yell over the auctioneer at the sale. Again, there is a time and a place for everything when it comes to justice.

  10. Sorry, Jan … I’m advocating in my book NOT to do class action suits. The only “similarly situated” concern is that all foreclosed homeowners are equal; it’s their individual situations that are different.

    I read the Lacy J. Dalton v. Citimortgage oral arguments from Nevada … the judge slam-dunked Dalton’s attorney, Bob Hager, on that point and told him all of his clients probably needed to retain bankruptcy lawyers to fight all their cases individually.

    A MAN … I am advocating in my book that if attorneys want to be retained to help solve this problem, they are probably going to have to take payments. I know already a lot of them are. Bravo for them in the fact they actually care about their client’s needs.

    In California, $150K spent fighting a home that’s worth $1.2 million is probably worth it, if it will produce favorable results. If not, I don’t blame you for your statement and the homeowner should probably just reevaluate (like Neil advocates, as do others) and just walk away!

  11. In Kansas, there is a Rule of Civil Procedure [60-260(b)] that allows you, the homeowner, within a certain time frame, to file a motion to vacate the judgment and sale based on fraud. Many states have this type of rule somewhere on their books. This rule is being used in a case right now in Kansas, because of Kesler and a number of other frauds the “attorney” didn’t catch on the homeowner’s paperwork that I caught (as a paralegal) and pointed it out to another attorney who is using it in his brief. This will make for appealable issues because the motion for reconsideration is based on fraud. This goes to prove Neil’s point that not every attorney knows this stuff enough to fight the lender; but when I can see that U.S. Bank filed suit September 1, 2009 when it wasn’t assigned the property until October 9, 2009, and the original attorney handling the suit couldn’t see that? [You can see where this is going!] They needed an evidentiary hearing and the attorney couldn’t be bothered … rather to commit malpractice because the attorney’s first duty is to the court, then to the public, then to his client, right? The attorney didn’t even show up the day the judge gave U.S. Bank the house! These are the injustices that have to be corrected!



  13. This is your opportunity to file a mega-suit, or several individual suits, against the players. What flows from those Judgments will dwarf the value of your house. Sock it to them.

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