The very title of the article in the Florida Bar News tells it all: “Faulty Filings Hamper Clearing Foreclosures.” by Gary Blankenship.  The state of Florida is stepping on a rake. Caving under pressure from the banking lobby, legislators are putting pressure on the Florida bar and the entire judiciary to “clear” the foreclosure docket. The presumption is that the problem is volume when in fact the issue is justice. The “rocket docket” is a vehicle by which pretender lenders can speed up the foreclosure process violating basic due process, laws of evidence, and the Rules of Civil Procedure. Retired judges with even less knowledge of securitization than the current judges sitting on the bench are rubber-stamping fraudulent foreclosures.

The issue is not whether there are faulty filings. The question, on the merits, is why there are faulty filings. If you read the concurrent articles published today on this blog it is easy to see that the reason for “faulty filings” is that they are fraudulent, fabricated documents designed to cover up fatal defects in the chain of title and the structure of what we thought was securitization of residential home loans. It is now apparent that while the securitization participants were splitting up the pie and sending money to multiple parties from multiple sources (only one of  which was the borrower), they abandoned all efforts to comply with basic black letter law on the transfer of negotiable instruments, the creation of negotiable instruments, the recording of interests in real property and the duties and obligations of entities and persons involved in the process of lending money.

The securitization parties, starting with the investment banking firm that served as the underwriter for the issuance of mortgage bonds or non-certificated mortgage bonds, failed to actually securitize anything. We are left with the same situation as the creation of a family trust wherein the trustors fail to fund the trust. The result is that the trust is useless. Any claims by the trustee that there are assets in the trust are not supported by the facts. In this context the beneficiaries of unfunded family trusts have attempted to invent a concept of “equitable assignments” which has been universally rejected in all states. The bottom line in family trusts is that if you don’t fund it you can’t fix it. The bottom line in virtually all cases in which a loan is claimed to be part of a securitization structure and thus an asset of a “trust” is that it is unfunded and cannot be fixed.

The “faulty filings” are merely evidence of fatal defects in what supposedly was intended to be a process of assignments. These assignments and endorsements never occurred in the vast majority of residential mortgage loans. The conditions under which an assignment could be accepted by a pool were never met or satisfied. Now pretender lenders are attempting to assign documents they created, fabricated and forged into a pool long after the cutoff date in the securitization documents, which merely track the requirements of the Internal Revenue Code for REMICs. They are trying to assign loans which they have already declared in default to investors who have been promised that their money would only be used to fund performing loans. There is no part of this scheme that is acceptable or legal. The faulty filings have always been vehicles by which the pretender lenders were perpetrating a fraud upon the court, upon the borrowers, and upon the investors whose money funded loans and fees that were exorbitant and unconscionable. These same parties, without having ever invested one penny in the funding of these loans or the purchase of these loans are attempting to obtain title to property that is clearly subject to the equitable and legal claims of real parties in interest.

The new rocket docket procedure attempts to sidestep these realities. By allowing the pretender lenders to proceed, the borrowers and the real lenders are prevented from even knowing the identity of the real parties in interest. This prevents any real modification or settlement of claims. Virtually all of the current “modifications” in process are a sham, involving pretender lenders who have no real interest or authority to modify anything.

I recognize the problem that exists by virtue of the volume of foreclosures. However, virtually none of these foreclosures should have ever been initiated in the first place. There are plenty of ways under current law by which the current docket could be “cleared” without stamping out the rights of the real parties in interest who were  defrauded by the participants in the alleged securitization scheme. The continuation of pretender lender foreclosures will only result in chaos. The chain of title on every property that has been the subject of a securitized loan or a foreclosure by a pretender lender is at best clouded and in my opinion fatally defective. The title companies are rapidly coming to the same conclusion. The economy of the state of Florida and every other state that is following this misguided policy will continue to worsen as victims of this fraud find it impossible to recover.

The merits of each case should be heard. It is upon those merits that the rights and obligations of the parties should be determined. No shortcuts should be allowed and no presumptions based upon relationships or name recognition should be allowed to affect the final result.

16 Responses

  1. A little off topic, but I must express this occurrence I observed. I do believe that we as citizens are in serious trouble as sinister forces within our borders get traction. I witnessed an incident at a Social Security office this morning and was stunned by the attitudes of the security personnel towards a customer whose rights were clearly violated. Three burly security guards with guns handcuffed woman ,County police, Homeland Security police….I do believe the FEMA camp thing is real. Freedom of speech is disappearing. We better shut up and shuffle along. This is not the America I grew up seeing. Banks, MERS, Wall Street…..Beware of the enemy within.

  2. Not only are the Florida courts referring cases to Senior Judges, but in Lee County (Ft. Myers) I recently received a notice of hearing in front of a Magistrate, which completely goes against Florida’s Civil Rules of Procedure: Specifically, it violates the provisions of Rule 1.490(c), which subsection limits magistrate jurisdiction by stating “No reference shall be to a Magistrate, either General or Special, without the consent of the parties”.

  3. Agree with Lucy. Neil – and this blog – have been amazing. But, can never close our eyes for one minute. These guys will use every play in the book, and make-up their own plays to win. Have to always be- one step ahead – and never sleep..

    Special thanks to Neil. But, tonight, special thanks for the Chilean miners who have been rescued. This rescue was a global effort – which makes it all the more special. And, very contrary to the US media publications that called us “deadbeats” – who deserved to thrown out of their homes- children, sick, and elderly, alike. What kind of humanitarian efforts does the US really represent?

    And, to all those who say – “YOU DID NOT PAY – PAY NOW” – these mortgages were solicited by inflated home appraisals at INFLATED interest rates. All – who ever took out these mortgages relied on accurate appraisals – and the ability to refinance (or sell the home) in the future. When the crisis hit – the market collapsed. There was no longer an avenue to sell your home at falsified inflated price – and you could no longer refinance out of an adjustable high interest rate mortgage loan (procured with fraud). We were TRAPPED.

    Analogy to the Chilean miners. But, no one came to our rescue. in fact,we were labeled “deadbeats.”

    Thank God – the Chilean miners are saved (hopefully all will be risen to the surface shortly). And, for all those media correspondents and government officials who have told us we are worthless – not worthy of saving- —— I will let you add the rest.

  4. rocket docket…fast track to fraud,,, heres your paperwork
    karma’s a bitch huh!?


  5. rocket dockets are a way to clear out what the courts don’t want to hear–they have them from time to time in different states for different reasons–the courts are trying to force something. We need to consider these rocket dockets in light of the MERS problems arising today.

  6. Good.

    The pretender lenders have rubber-stamped everyone’s heads with the notion they are stable, rock solid, and trustworthy,…and we’ve all bought into their ads and believed them. That goes for title companies, insurance companies and so on. We jump through all these hoops to get their loans and supposedly go into debt for 30 years and we’re supposed to be humble and grateful that they gave us a shot at the American Dream. What a bunch of BS.

    Bring on the advertisements now to counteract all of that.
    That’s what we need. Stir up some doubt…and wake up our programmed gray matter to the realities of their systemic offenses and the true impact of their criminal conduct on the court and on every person in commerce…which is every single person in the world.

  7. I agree Pelucheven,

    Neil you’ve been at this for over 3 years now and it’s finally happened.

    You deserve our deepest thanks.
    You have been our mentor from the beginning, and I know you’ll be there till the finish line.

    It’s just a beginning, but it feels great that now “dead beat” homeowner is not dead,nor beat.

    Thank you

    Thank you.

  8. Is very sad to watch what is happening with this country,we used to be an example for the rest of the world in many fields of our life,where ever a disaster is happening we are the first to help,there are many american sponsoring foundations around the world figthing the hunger and the illnes,we even have troops figthing the tirany and spreading the democracy base in freedom.We are in crisis now our country is going down and we are figthing within us,against us,doesn’t matter who faults it is.we are all one country that need us together to refloat,in the last 2 years we could see that USA has 4 diferent class of citizens,
    1.- The goverment people
    2.- the bankers
    3.- the homeownwers that are paying their mortgage
    4.- the homeowners that could not paid the mortgage.
    The bankers created this situation so will be easy for them win the country,like the lions they must separated a buffalo from the herd to kill it and eat it.they created a situation that makes the defaulting people guilty of everything and sitting them in the bench, so the goverment and the homeowners that are paying their mortgage can freely blame the crisis on them.Lets see what the goverment will do,lets hope that they don’t make the same circus that they did with the CEO bankers in the Senate.

  9. we need to start putting a human face on the media outlets. let us bring out the victims, their forged documents, let us flood the internet, TV, Radio, News Papers,

  10. this whole mess is going to hinge on the actual relevance of the US Constitution, and I am sad to say that when Money Talks the Constitution Walks and we all lose.

    These fraudsters are trying like hell to keep the story about the fact that almost all titles, home, commercial, automobiles, etc are clouded.

    they were supposed to have a DMV type system for the recording of the liens and ownership of these notes and they failed to do so intentionally.

    they have robbed our states of much needed tax income and deprived our kids, hospitals, police departments, etc of funding, tools and other necessary budget considerations.

    We need to push further, harder, stronger.

    we need to be more vocal, and sharper, more coherent and embrace the constitution and the laws.

    they will continue saying we all are dead beats, we will continue calling them criminals, felons, fraudsters, mobsters, and although still human beings they are acting as fascists.

    their concern is money and how to explain to regulators and their stock holders, insurers how they were able to keep lying.

    They are pouring so much money into the political campaign and they are having all their Obama and State administration minions doing the talking and they are also bringing the heavy hitters to the media outlets.

    i am actually pleasantly surprised that Bloomberg is keeping an open editorial attitude that is at times calling it like it is.

  11. Can a defendant in a Florida ROCKET DOCKET court ask for a change in Venue, like they do with criminal cases?. I hope you guys forgive my ignorance in this area.

  12. What can be done to stop this? can official grievances by Florida home owners be filed against any judge not following Florida Law?

    I would understand some steam rolling in Non-Judicial States where our politicians and judicial systems sold out to the banker giving the foreclosure Mill Lawyers a license to CHEAT, STEAL, FORGE, FABRICATE, LIE, CONCEAL, AND HUMILIATE THE CITIZENS OF THOSE STATES which decided to de facto secede from the Union By Violating the US Constitution at the moment they decided to deny due process to their citizens.

    This really sucks. I pretty sure they are hand picking the judges as well. The more obtuse and unlearned the better. The more shallow their thinking the better.

  13. Now we’re talking !!
    We need to go after the servicers, they are the real culprit that initiated the whole mess.

    Not to down size the rest of the fraudster, but these servicers, mines Ocwen, is totally whacked !!!

    They deserve orange suit with the word ” scums” embroidered in NEON color.


  14. The lenders are solidly in the camp that believe what they’ve done is OK and perfectly legal. Lost note affidavits are fine, they just need the right bank person to sign them, not the out of work beauty salon stylist they were relying on for that role. Here’s Jamie Dimon today:

    “We’ve delayed the foreclosure process in almost all of the states to make sure that we’ve got all of these affidavits done right, and it’s going to take a lot of manpower and a couple of weeks to do it,” said Dimon, 54. “At the end of the day, the underlying substance was accurate. There’s almost no chance that we’ve made a mistake.”

    The other camp says affidavits are only there because they’re covering up systemic fraud. Tip of the iceberg of deceit and the coming mayhem.

    Unfortunately, the white house and congress are obviously in the 1st camp, while the states appear be aligning in the 2nd camp, especially with the announcement just now of a 49 state AG probe.

    This is starting to look like 1776 all over again.

  15. just read on bloomberg that JP Morgan is withdrawing from MERS

  16. Yes, and then the tooth fairy and Loch Ness monster will appear and we will all have a tea party.

    I just love fairy tales. This one, unfortunately, is controlled by very powerful people – bankers. And we are in a very bad political climate where money is needed to wage tv advertisements by politicians so they can win. Who has piles of money? Bankers.

    Hopefully the judges cannot be bought. However, a lot of judges run for office and they need money too.

    This is getting depressing.

    The press is our only hope.

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