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Just because I publish someone’s article doesn’t mean that I agree with everything —- or anything in it. The way I see my mission is to get ideas out there and maybe spawn some practical strategies that will work, whether they involve “legal” documentation or not. Yes, there is a risk that some of the people who comment on the blog are scam artists. Use your head before you hire someone. If they can’t make you understand what they are going to do and provide you with some references, then they probably should be avoided.

The Banks are winning because the theories and strategies are scattered. But some homeowners “Wins” have occurred for the same reason. Judges are confused and overloaded with work. There is no one silver bullet that will end this — in the final analysis we must stop these foreclosures because it produces an anomalous result: banks, who are by definition intermediaries, are getting the houses or the proceeds from them. The investors who put up the money and the borrower who put up his/her credit gets screwed.

Too many people are trying to simplify what is inherently complex and intentionally so. If it was simple, the courts could simply penetrate the dense fog and reverse all of this stuff. Somewhere in that fog is an answer that BOTH satisfies the goal of stopping foreclosures that simply further a fraudulent scam and the goal of preserving the UCC — such that negotiable paper can be negotiated without producing witnesses who can’t be found or are dead. And lawyers must study all aspects of the UCC, property law, civil procedure and civil causes of action, as well as the very ripe area of administrative hearings for solutions for their clients.

Neither this blog, nor any course I have ever given, nor any course anyone else has ever presented nor anything else is a substitute for (a) years of law school and (b) years of experience in the practice of law — particularly in the Courtroom. AND there is no substitute for beginning at the beginning and analyzing each step up toward your goal, whether it is modification, discharge of indebtedness or otherwise.

Ultimately, we must accept the ambiguity created by Wall Street that they are using against us in the Courts, the legislatures and in law enforcement to avoid criminal prosecution and to achieve civil results that are absurd but nonetheless continuing. It is crazy to have a result where the check you write results in the bank getting your TV. Somehow, Wall Street managed to control the narrative such that this obvious absurdity is not obvious to the Judge, the media or policy makers.

They did it by putting the following in a food processor and now it is up to us to try to pick the ingredients back out, unless we convince ourselves and others that the RESULT is improper, illegal and just can’t be right — the same way that the Banks have controlled the narrative focusing on the obligation instead of the note, mortgage and the negotiability of the note, perfection of lien and enforcement of security interest. By focusing on the obligation of the borrower instead of the obligation owed to the creditor, the banks have made the story about allowing borrowers off the hook and getting a free house — “after borrowing the money they refuse to pay it back because things went bad.” That story is playing in the minds of even the prized gunfighters out there who are fighting for homeowners.

The REAL result of following the Bank narrative is that the Banks get to keep the property even though they didn’t write the check — you did and others (investors) did. That is crazier than the free house to homeowners. Even if the goal was free homes for all homeowners there could be a public policy argument (not a very good one) for pursuing that goal. But allowing Banks as intermediaries to claim the subject matter of the transaction has no public policy argument at all. Quite the contrary, it has drained our economy of all the lifeblood it needed to prosper and darkened the prospects and confidence of consumers and world leaders alike. If we were dealing with investors who put up the money then of course there would be a legitimate argument for establishing equitable solutions that fit the need to mitigate the losses on both sides.

The Banks are taking up the argument that belongs to the investors and then denying responsibility as the lenders when it comes to counterclaims and affirmative defenses based upon deceptive, predatory or fraudulent lending and especially when the topic comes up that the signing of the note was a sham and the signing of the mortgage was a sham and that in reality the homeowner was duped into issuing a security remotely, so the Banks could claim they didn’t do it. They achieve this by deftly maneuvering back and forth between the following:

  1. The representations and instruments signed or used for selling or “disclosure” at the closing with the homeowner/borrower.
  2. The representations and instruments signed or used for selling or “disclosure” at the closing with the investor.
  3. The representations and instruments signed or used for selling or “disclosure” at the closing with the “trustee” of empty or nonexistent trusts.
  4. The representations and instruments signed or used for selling or “disclosure” at the closing with the insurers, Federal government and counterparties on credit default swaps and other hedge products.
  5. The representations and instruments signed or used for selling or “disclosure” at the foreclosure with the homeowner, where only part of the accounting is used.
  6. The representations and instruments signed or used for selling or “disclosure” at the closing of the “Trust” in which the investor thought there was an investment in “assets”, where again only part of the whole accounting is used (leaving out what is happening with the borrower and what happened to the proceeds of insurance, bailout, and other third party payments).
  7. The actual money trail representing the WHOLE accounting for every penny that went in and every penny that went out that related to each loan or was attributable to each loan — for which there is no accounting in existence because if it existed it would need to be produced and if it was produced it would be discovered that two things are true (a) that the balance owed on the obligation of the homeowner had been paid down by resort to undisclosed funds created from the transaction between the borrower and the investor-lenders and (b) that as a whole far more money went into the system than went out, leaving the intermediaries richer and the investor-lenders and homeowners poorer.

So like the magician who distracts you from what he is doing while he is doing it, the Banks are successfully redirecting our attention to the details and arguing about splitting hairs when in fact we should be talking about whether it makes any sense at all for the Banks and servicers to get these homes. And if the investor-lenders feel they must abandon their rightful claims for repayment, to the extent that it involves the homeowners, then we should be finding ways for them to get together with homeowners, nearly all of whom want modifications not a free house, so that the investors and homeowners can preserve their claims against culprits who are screwing the investor source of funds and screwing the homeowner source of paper and credit, and then taking the spoils as well.

16 Responses

  1. Desperate to save banks — at your expense.

  2. I agree. If they can quiet the title for the Banksters why not the homeowner who, as a %age of investment to asset base sure have them beat there, as well as hard labor invested in their homes.

  3. Does anyone remember Enron???

    Attorneys for Enron actually stated that they “banked” on the courts not understanding what actually happened.

    That is what happens in court. And technicalities will get you tossed in an instant.

  4. YEAH…A GOOD WORD!

  5. “Somehow, Wall Street managed to control the narrative such that this obvious absurdity is not obvious to the Judge”

    PUBLIC PENSIONS THAT HOLD BANK STOCK AND MBS CREATE A BIAS IN FAVOR OF BANKS

  6. @Linda,

    You are absolutely right: by the time most people gather the strength to fight, they’ve exhausted all their resources trying to stay afloat for so long and they no longer can pay for an attorney. That’s why I quit paying and then, I got an attorney to go on the attack. I wanted to make sure that I was financially able to initiate an action before it was too late.

    I have neighbors who’ve been selling everything, bit by bit, in order to keep paying their mortgage, even though they can’t know for sure they’ve been paying the right party. They sold their past, their heirlooms, their security, their furniture, everything they had gathered over 20 or 30 years. Now, they’ve got nothing left, they can’t pay anymore, they sold their good memories and they can’t fight. And to top it off, they have kids with college loans and no job. There was a time when our parents were there and could bail us out of trouble. Kids nowadays have to survive and try bailing out their parents.

    It’s horrible!

  7. Anonymous—

    You hit the nail on the head for me with this statement:

    “Homeowner victims should NOT be bearing the burden of presenting their case to a court of law.”

    This court stuff is way too much grief even for an educated person, let alone someone who gets involved in the legal system by the sheer motivation of saving his/her home and the anger that propels that action forward. Especially, in southern California. My friend’s case was thrown out on a technicality. He re-filed it, then he did an ex parte, TRO, etc., and a little error on that paperwork, so judge threw that out.

    Longer story, of course. Then had had it. He had spent literally thousands over a couple years and had studied Jurisdictionary.
    That was it for him and he just got evicted. Couldn’t take it anymore.
    And then, it costs at least 5 grand now to get into a decent lawsuit…and now we don’t have the funds!!

    If anything, I feel angry because I am forced to stand up to the big corporate machines. I do admire those with the iron guts to after these banksters.

  8. @Nora,

    If the judge’s pension fund is invested into mortgage backed securities, the judge ain’t gonsa be retiring anytime soon any longer… and the judge’s gona get religion soon enough.

  9. I have a simple way to analyze your strategy: If the judge’s pension fund is in Mortgage Backed Securities, you’re wasting your time & money taking the bank to court for obvious reasons.

    Research your judge first! Everything else is cardio futilitious!

  10. The fraud is so wide-scale and yet it is no where near fully disclosed. Homeowner victims should NOT be bearing the burden of presenting their case to a court of law. Courts are extremely technical and even one slight mistake can cause dismissal. The burden should be with the US Government and Department of Justice who have failed to do their job.

    Quote from above — “the investors who put up the money and the borrower who put up his/her credit gets screwed.”

    I have stated numerous times here that the security investors and the “investor” are not the same. And, will add, that any “investors” that put up money to purchase collection rights related to subprime refinances were banking on either unjustified high interest payments, or in the case of default, foreclosure. That was the goal — at the borrowers expense. Subprime refinances were not mortgages.

    Unless there is a complete investigation by those in authority, homeowner victims will continue to battle adversaries in court that are far more adept and powerful than they are in legal maneuvering.

    “Investors” who put up any money deceived the victims. Time to expose those “investors.” Problem is that the those “investors” were, and remain, powerful institutions.

  11. Banks should count their lucky stars that homeowners are even willing to modify that which does not exist—these phantom loans (debts).

    Banks would rather steal the same phantom loans several times over rather than have us live in our own homes…the very same folks that have supported the banks by our deposits, paying of bank fees, interest on credit, and the paying of taxes.

    It should be obvious by now that reasonable doubt exists to the fact of fraud in these transactions. And that is a SIMPLE fact, NOT a complex one. All foreclosures should have been stopped the minute investigations were opened and should not resume, if at all, until investigations are concluded!

    Thus, after so much time there is no doubt in my mind now that a plot exists and continues to be executed to the detriment of our economy, the livelihoods our peoples, and that further compromises our national security and puts the world at risk. There is nothing else to my mind that can explain such a travesty on humankind.

    I am sorry I cannot buy into the crap that the actions of the mega-corporations are too big or complex for them to understand or that they have merely outgrown their britches and are now too big to fail.

    These facts do not make one a conspiracy nut or a terrorist; these facts should not subject one to incarceration by those naive goons who are willing to carry out the orders given by a few traitors to criminalize and to gas the resistors of these crimes against humanity.

    To you who carry out these orders for your “superiors,” ask yourselves if it’s worth it to do what you do every day–all for a paycheck, a black suit of armor to support your hero fantasies, and a phantom pension.

    Will you stop even when you are ordered to beat up your own family?

    I’d rather be homeless.

  12. Thank you NEAL!,
    WE are talkin law?-Are you sayin we get another “chance”?-If we lose our home we can try something or change something and get our home back?
    As “right” as we are, there IS no balance because whoever has the most money?
    WINS-

  13. Mr Garfield

    What is the point of haranguing the VICTIMS of this scheme?  Victims are by definition more or less helpless. Why aren’t you addressing the people who can fix this?

    Every  “expert” involved in this tragedy has a mercenary interest.   It turns the stomach.  You can’t expect those struggling to survive, mentally and financially, to lie awake worrying about the big picture.  Who cares.   When you’re drowning the only thing you’re thinking about is that next breath.   Get it?

  14. UC Davis police chief put on leave after spray incident
    Mon Nov 21, 2011 10:21am EST

    (Reuters) – The University of California, Davis has put the campus police chief on administrative leave while it probes officers’ use of pepper spray on students passively protesting last week that was captured on video, the university said on Monday.

    The announcement came one day after the school put two police officers who were videotaped deploying pepper spray on the seated protesters on administrative leave.

    UC Davis Lt. Matt Carmichael will serve as interim police chief, the school said.

    “As I have gathered more information about the events that took place on our Quad on Friday, it has become clear to me that this is a necessary step toward restoring trust on our campus,” UC Davis Chancellor Linda Katehi said in a statement.

    Katehi has also asked the Yolo County District Attorney’s office to investigate the police department’s use of force and will create a task force to conduct a campus review and report recommendations in 30 days.

    Video footage that showed a riot gear-clad policeman using pepper spray on a group of about a dozen student protesters in the university’s quad area spread quickly over the Internet, sparking outrage among students and some faculty members.

    Student protesters set up an encampment earlier this month at Davis as part of the nationwide anti-Wall Street movement against economic inequality and excesses of the financial system.

    Their demonstrations included protests against tuition increases and what they view as police brutality on University of California campuses in response to recent protests.

    Read more at
    http://www.reuters.com/article/2011/11/21/us-protests-davis-pepperspray-idUSTRE7AI0ZA20111121

  15. James Fink
    Buffalo Business First Reporter – Business First
    Email
    The embattled Steven J. Baum P.C. law firm is the closing its doors after a series of missteps that included mortgage industry giants Freddie Mac Freddie Mac cutting off Business with the firm.

    Baum has filed a Worker Adjustment and Retraining Notification notice with several government agencies, saying it plans on shutting its doors. The firm has 67 full- and part-time employees at its Northpointe Parkway offices and another 22 full- and part-time workers at its Long Island office.

    “We will fulfill all of our obligations under WARN and during this process we will also fulfill our remaining work on behalf of our clients,” Baum said in a prepared release. “Disrupting the livelihoods of so many dedicated and hardworking people is extremely painful, but the loss of so much business left us no choice but to file these notices.”

    The Baum agency focused on real estate foreclosure transactions.

    The firm has been under fire from federal agencies and the public, including members of the local “Occupy” movement, for its alleged business practices.

    Read more at http://www.bizjournals.com/buffalo/news/2011/11/21/baum-law-firm-to-close.html

  16. OUTRAGE! Paramilitary Forces Pepper Spray Students on UC Davis Campus
    Nhttp://mattweidnerlaw.com/blog/?utm_source=Matt+Weidner+Law+Blog&utm_campaign=28897e490c-RSS_EMAIL_CAMPAIGN&utm_medium=emailovember 19th, 2011 | Author: Matthew D. Weidner, Esq.

    College campuses are supposed to be places where young people go to learn and express themselves right?

    And is there any venue more appropriate for PEACEFUL, NON-VIOLENT protest than a college campus?

    I mean, I hear all the comments complaining about Occupy and how they’re interrupting business down on Wall Street and how you know, the cops should should just kill all those damn dirty hipppies, but isn’t a college campus a bit of a different situation?

    Parents send their kids off to college and hope they’ll learn, expand their horizons and come home safe.

    I don’t think any parent would expect their kids to be squirted like a cockroach with bug spray….and yet that’s just what the video shows.

    (And if these campus cops think these kids are difficult now, just wait until the kids find out they’re slaves to college debt and that they’re future paychecks can be seized with no hearing and with no judicial process, then they’re really gonna go wild.)

    Notice how the paramilitary forces with their helmets look more and more Nazi-like….then watch through to the end to see how the rest of the students respond…..

    VIDEO OF UC DAVIS COPS

    http://www.huffingtonpost.com/2011/11/19/uc-davis-police-pepper-spray-students_n_1102728.html

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