WASHINGTON STATE AG NEEDS INFORMATION

Hello Neil,

Thank you for mentioning our investigation. Please update the contact information in your post..

As you’ve reported, the Washington Attorney General’s Office is investigating foreclosure trustee services. We would appreciate the public’s assistance by providing us with information that may be helpful to our investigation.

We have created a special online form to handle these complaints and tips. It is available at https://fortress.wa.gov/atg/formhandler/ago/ForeclosureComplaintForm.aspx. (You can also visit atg.wa.gov and click on “Consumer Complaint” from any page, then “Online” then “Foreclosure Trustee/Servicer Complaint Form.”) Additional information about our investigation is available at http://www.atg.wa.gov/foreclosure.aspx.

However, individuals should NOT contact Assistant Attorney General James Sugarman directly via his email or phone as these communication systems are not capable of handling the volume of inquiries and may interfere with AAG Sugarman’s ability to receive other important work-related communications.

Thank you.

Kristin Alexander
Consumer Protection Spokeswoman
Washington Attorney General’s Office

He is looking for information, even outside WA state, on the companies they have sent target letters to for potential impropriety.

http://atg.wa.gov/uploadedFiles/Home/News/Press_Releases/2010/Trustee%20Letter.pdf

HERE IS A LIST OF TRUSTEES AND THEIR ADDRESSES:

http://atg.wa.gov/uploadedFiles/Home/News/Press_Releases/2010/TrusteeList.pdf

10 Responses

  1. Select Portfolio Services AKA SPS… check this out:
    It explains what they do and why it makes the debt (mortgage) become UNSECURE DEBT as opposed to secure debt::

    http://www.theforeclosurefraud.com/uploads/FedCase3.AmendedComplaint.final.pdf

  2. If anyone ever had any legal documents signed by an Officer of MERS, please read the deposition below:MERS doesn’t have any real employees. It’s kind of a shell. MERS Treasurer William C. Hultman revealed as much during a deposition in Bank of New York v. Ukpe:
    Q I thought, sir, there’s a company that was
    formed January 1, 1999 [sic], Mortgage Electronic Registration
    Systems, Inc. Does it have paid employees?
    A No, it does not.
    Q Does it have employees?
    A No.
    Q Does MERS have any employees?
    A Did they ever have any? I couldn’t hear you.
    Q Does MERS have any employees currently?
    A No.
    Q In the last five years has MERS had any
    employees?
    A No.

    1. 1. Assignments were made by “officers” of MERS using delegations of authority of no longer existing MERS predecessor corporations.
    2. 2. The MERS Assignment is deficient because it omits an assertion that the assignor is the holder under the MERS registry for the MIN number of the mortgage being assigned and the transfer is being recorded on the MERS registry.
    3. 3. An interest in a mortgage cannot be conveyed by an endorsement of the mortgage note in blank.
    4. 4. The Officers of MERS who are allegedly authorized to sign documents on behalf of MERS are not “officers” of the corporation as the term officer of a corporation is legally defined.
    5. 5. Because MERS is a mere custodian with no legal or beneficial interest in the mortgage note, MERS cannot assign a mortgage note to an assignee.
    6. 6. Because MERS is a mere custodian with no legal or beneficial interest in the mortgage note, the mortgage has been divided from the note rendering the mortgage unenforceable.
    7. 7. MERS holding of the note endorsed in blank as nominee of a mortgage sold to a mortgage backed securities trust is a violation of REMIC requirements.
    8. 8. MERS holding of the note endorsed in blank as nominee of a mortgage sold to a mortgage backed securities trust is a violation of warranties and representation contained in the master pooling and servicing agreement and prospectus.
    9. 9. MERS was created to perform a service with an illegal purpose, namely to circumvent the recordation of assignments and payment of recording fees. The issuance of assignments in furtherance of such an illegal purpose is unenforceable.
    10. 10. An assignment of the mortgage note from MERS to the servicer of a note is of either of no legal effect or an illegal conversion of the note.
    11. Since no evidence of MERS’ ownership of the underlying note has been offered, and other courts have concluded that MERS does not own the underlying notes, MERS did not own the underlying note, it could not transfer the beneficial interest to another. Any attempt to transfer the beneficial interest without ownership of the underlying note is void law.
    Critically, as noted, the PSA provided that for a MERS mortgage such as this, assignments of mortgages did not have to be prepared or delivered to the buyer of the loans. As is endemic with most securitized mortgages, the participants in the securitization did not deliver and record any assignments documenting such transfers, instead, relying on the internal MERS registration system, which is out of the public records view. Throwing this provision back in the lenders’ faces, the judge basically said “you can’t have your cake and eat it too” — rendering his ruling that the mortgage itself (as opposed to the underlying loan) was never transferred through the securitization system from entity A, B, C, to Deutsche Bank, and that MERS had always held, and never relinquished, “legal title” to the mortgage. Accordingly, the judge held, Deutsche Bank was never the owner of the mortgage in the first place, could not foreclose in its name, and its foreclosure sale was null and void

    1. MERS, which is the acronym for Mortgage Electronic Recording System, is a total fraud and is completly illegal and decoupled from the legal system of recording property transferrs in the local court house as required by law!

    GO ASK YOUR COUNTY RECORDER FOR YOUR ASSIGNMENT OF MORTGAGE … did someone sign it in the name of MERS???

  3. Has anyone received a response from the Washington Attorney General from their complaint filed on this website? I haven’t. I realize they are probably inundated, but an acknowledgement of receipt would be comforting.

    I hope they are responding to people.

    One of the complaints I made against Northwest Trustee Services was quite SIMPLE, the financial information on my CURE amount was blatantly WRONG, and I provided explicit PROOF/Explanation of that (which really is the TRUSTEES JOB to do, not mine, but I was trying to HELP). Northwest Trustees IGNORED my repeated efforts bring this to their attention, they should have at least CORRECTED the cure amount, or made an effort to LOOK LIKE they were looking into it, that is their DUTY according to trustee laws. They did nothing, and were not inclined to even look into it. That is called TRUSTEE MISCONDUCT. However, in order to be afraid of that, there has to be consequences for misconduct. In Washington State, that is very rare.

    Trustees appear to be operating unsupervised in our state. If you are fortunate enough in foreclosure to actually CATCH them in misconduct, AND have enough money to DEFEND a wrongful foreclosure, you will NEED it, because the ONLY way to slow them down is to pay an attorney (absolutely HOPELESS to think of going Pro Se, you have NO CHANCE of success.) Average cost to defend a wrongful foreclosure (and this is paid BY the borrower, whether they win or not, UP FRONT) Is between $10,000-$20,000. Oh, and you better act fast, because by the time you even DISCOVER that you are being hosed by the Trustee, you only have, at MOST, 90 days to file suit. In our attorney-deficient-state that means WARP SPEED like in Star-Trek.

    GOOD LUCK. They know this very well at Routh Crabtree & Olsen. It is their business model. Pretty safe bet that the homeowner on the doorstep of foreclosure won’t be legal-saavy-enough see the mistakes they make, have that kind of loot, and if they DO, they will NOT be able to gain an audience with one of the TWO attorneys that can truly help them, AFTER they spend weeks FINDING out who they are. It’s a travesty.

    It’s a foreclosure-free-for-all in Washington State. WHERE is our Attorney General??? Mr. McKenna, we are depending on you!! Give us a sign…

  4. SocialApocalypse- while I understand the lack of arms-length transactions between and among these 3 entities, a “trustee” is in name only. There is just a pile of “trust documents’, no employees, no daily work schedule, no nothing. The trust documents are warehoused by the custodial bank. So, while the NOD would list, say, USBank as Trustee for XYZ2005-2OPT Trust, if you check the addresses on the documents they all originate from the servicer’s address or addresses. This is even if the mortgage notes have been transferred to the Trust. As Neil says, the Trust is a holographic image of an empty bag.

  5. Just LOOK at this, EVERYBODY, and tell me if it doesn’t make you FURIOUS and FRUSTRATED:

    Stephen Routh Owns THREE Companies-and there is NO WAY anyone is going to convince me that someone has REALLY dropped the ball with regard to enforcement of consumer protection laws.

    He owns:

    Routh Crabtree Olsen. They are, by their websites description, lender and foreclosure advocates, they represent lenders, servicers and financial institutions in recovering debt from consumers and lifting bankruptcy stays. They PROFIT handsomely by successful foreclosures and trustee sales. They bill the trustee for their services, which are passed on TO THE BORROWERS DEBT PAYOFF AMOUNT on their home.

    He owns Northwest Trustee Services, Inc.:
    The consumers ONLY and FINAL gatekeeper between wrongful foreclosure and homelessness and catastrophic financial loss. In non-judicial states, the servicer simply tells the trustee to foreclose, and on their merits ALONE, the trustee forecloses.

    He owns Northwest Title.
    The title company that sells title insurance to the trustee for the purpose of foreclosure. Big profits there too.

    I am appalled at this blatant, IN OUR FACE dereliction of law enforcement. I know that our Attorney General Rob McKenna is supposedly conducting an investigation into the trustees. I sure hope he is addressing these unbelievable breaches-Hard to believe this is going on right under his nose.

  6. Before I was in f/c, I heard some questionable practices about NWTS. NW Trustee Services is doing the f/c on my home. I have an Appt. of Successor Trustee signed by Jeff Stenman, Atty in Fact, with no date he signed this doc. The only date is that of the notary. Have heard others have claimed the same situation.

    Vonnie McElligott, employee of NWTS, signed as VP of MERS on the Assignment of DOT. Also she is assigning the note. Possible conflict of interest here and how can MERS assign the note they don’t have? There are more questionable documents and I believe that with these questionable docs there is a break in the chain of title.

    Routh Crabtree Olsen is handling the Motion to lift the Stay in my BK. Not sure if this means anything but there are 2 Allonges attached to the BK paperwork that are set up differently, but basically say the same thing on both: “Allonge to the Note is dated 00-00-2006, In Favor of XXX Mortgage Co and Pay to the Order of YYY Bank without recourse.” The first one was attached to the Note and it states that and is signed by the VP of the Mortgage co. The 2nd Allonge is signed by Herman John Kennerty, VP of Loan Documentation. Why would you need 2 Allonges that say the same thing? BK attorney knows nothing. Trying to do research on my own.

    I just sent these documents to the WA State AG office today and hope others do the same. WE need to stop the fraud and the only way to do this is everyone send in their docs that pertain to NWTS.

    BRING BACK JUSTICE TO THE AMERICAN PEOPLE!!!!!!!

  7. Hello Neil,

    Thank you for mentioning our investigation. Please update the contact information in your post..

    As you’ve reported, the Washington Attorney General’s Office is investigating foreclosure trustee services. We would appreciate the public’s assistance by providing us with information that may be helpful to our investigation.

    We have created a special online form to handle these complaints and tips. It is available at https://fortress.wa.gov/atg/formhandler/ago/ForeclosureComplaintForm.aspx. (You can also visit atg.wa.gov and click on “Consumer Complaint” from any page, then “Online” then “Foreclosure Trustee/Servicer Complaint Form.”) Additional information about our investigation is available at http://www.atg.wa.gov/foreclosure.aspx.

    However, individuals should NOT contact Assistant Attorney General James Sugarman directly via his email or phone as these communication systems are not capable of handling the volume of inquiries and may interfere with AAG Sugarman’s ability to receive other important work-related communications.

    Thank you.

    Kristin Alexander
    Consumer Protection Spokeswoman
    Washington Attorney General’s Office

  8. OMG, Finally! I wrote the WA AG almost a year ago about NW Trustee Services and got a “don’t bother us” response back.
    Did you know that NW Trustee Services has a web site http://www.usa-foreclosure.com that will show you the status of your foreclosure if you put in your trustee #. ALSO, they sell the title reports that are obtained by NWTS for the “benifiary” to anyone that pays $39.00. When I bought one and then called the title company, because on the face of the report it states “this report is solely for the use of the trustee and benificary” and ask how NWTS can sell these to any person, the title company said “they can’t do that!” Well apparently NWTS is attempting to make money off of us unfortunate homeowners any way they can. AND, the title company charges NWTS over $1000 for this report. When you order a title report for $39.00 it comes from Routh Crabtree Olsen (which is the law firm that owns NWTS and usa-foreclosure.com. They are all comingled together in their den of culprits.

  9. I am very happy to see that Washington State AG has seen the light. Much more transparency is needed across the nation, especially in nonjudicial states. Whether people believe it or not, the nonjudicial states have and will have more foreclosures than nonjudicial states. The people in nonjudicial states have very little to no protection from the servicers and their illegal debt collection practices. Make no bones about it, the servicers are all debt collectors. Debt collection is a huge business in the US and has been out of control for many years. http://www.challengingforeclosure.com Sirak@challengingforeclosure.com

  10. This letter is excellent and represents exactly what is going on in MOST non judicial states. The real tragedy here is that so many lost their homes in non judicial states because homeowners did not have the means to pay an attorney to represent them. It would interesting to know how many foreclosures took place in judicial as compared to non judicial states. Glad to see they are now working through the list of foreclosure groups that do not represent the big four banks only. It will be here that after the findings are known about how the people have been damaged that I believe the second real tragedy will have taken place. What will be the final analysis and what restitution will be provided to those who have already been foreclosed on? There are many things that can be done to compensate these homeowners and I hope that for the first time, the banks in particular are going to have to pay the price for allowing such practices. Secondly, Fannie and Freddie had the ability to know what was going on start to finish and they have always been the leaders of what practices are acceptable in this industry. There is no way they can get out of this because had they continued with their oversight which we have always had in place and which they seemed to have dropped the ball, were the law firms, servicers and other groups able to pull this off. Once has to ask the question, why? Why did Fannie and Freddie drop the ball. I can assure you they were the best of the best in early 1980’s to 1996, and then that is when they moved from what they have always known to be prudent business practices. They know it and we know it and it is not acceptable for them to lay the blame on the servicers and their attorneys.

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