DEFAULT JUDGMENTS AGAINST ORIGINATORS, BANKS AND SERVICERS

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EDITOR’S NOTE: Reynaldo Reyes VP of DeutschBank Asset Management (he manages the “trusts”) said it best when he said that the truth is all very “counter-intuitive.” You would think that getting a default in a quiet title action (lawsuit) against the Banks and servicers is virtually impossible and unsupportable — especially when they come back into court and explain their “excusable neglect.”

Not so fast. You would think that once entered, the Judgment would be recorded and once recorded the Banks and servicers would AGAIN get notice, along with original summons, and notices of hearing. Once realizing their error, they would come to court, right? Not so much. There are many cases where for reasons that I have detailed elsewhere on this blog, in which the decision is to let the case go and allow the homeowner to have his house free and clear without any Bank or any servicer coming in to claim otherwise. Some do come in after default and some get the default set aside. But many defaults simply stand.

Here the homeowner got the ultimate nuclear option — free and clear title to a home that is reportedly worth over $1 million dollars even in today’s  market. Whether the obligation or note is still considered to be outstanding is another story, but the implication is that whatever was alleged in the complaint, if it included that the obligation had been paid off in its entirety by third parties to the original closing, then that is the end of the obligation and note if the party who was the creditor was served.

This is why you need the COMBO Title and Securitization report. If you were to conclude on the advice of counsel who was licensed in the jurisdiction in which your property is located that the creditor was still nominally the party with whom you closed the loan, then you wouldn’t need to sue or serve anyone else except by publication perhaps to John Does 1-1000, would you? (Check with lawyer). So the right allegations in a complaint against the party on record as the creditor might suffice……

Posted by reader:

Has anyone seen this? http://www.scribd.com/doc/74420941/Virginia-Circuit-Court-Order-nullifying-a-first-mortgage-Deed-of-Trust

I heard that the property involved was worth over a million. Can anyone confirm this? Maybe the courts will stop failing us and prevent the final stages of the huge transfer of wealth from citizens to investment banks and their cronies.

13 Responses

  1. @Shelley Erickson
    I would have gotten that attorney’s name and made a complaint to the state bar! At the very least, I would have pulled the homeowner aside and let them know what their attorney did!
    This is why stuff like this goes on…no one wants to get involved to do battle with the corrupt. Whether it’s because of fear or just not giving a damn about anyone else, we turn a blind eye and a deaf eye and walk away. Shameful behavior like that attorney selling out his client happens because we enable it, by not acting to stop it.

  2. Tuesday 7 December 2011

    Said Nancy Drewe:

    >Quite Title & Obligations
    >Original creditor did pay off in entirety during original closing
    >end of obligation ‘note’.

    Could you explain that or explain how to geet proof of such event?

    ty…

  3. @ Nancy Drewe….

    Kind Lady….I really have to agree with enrage.
    I’m sure you are “trying” to convey very very important information that we all need to know. But your messages information and instructions are not getting through because of the way you’re communicating. I sit for an hour or more trying to decipher what you’re telling me. When you speak, i just don’t “get it”.

  4. @Joann,

    “Anyone – thinking you cannot get a default judgement in CA for quiet title complaint – is that correct?”

    You are correct. Per CCP 764.010…..

    764.010. The court shall examine into and determine the plaintiff’s
    title against the claims of all the defendants. The court shall not
    enter judgment by default but shall in all cases require evidence of
    plaintiff’s title and hear such evidence as may be offered respecting
    the claims of any of the defendants, other than claims the validity
    of which is admitted by the plaintiff in the complaint. The court
    shall render judgment in accordance with the evidence and the law.

    Here’s the link to the California Code(s) of Civil Procedure…..

    http://www.leginfo.ca.gov/cgi-bin/calawquery?codesection=ccp&codebody=&hits=20

  5. I had no idea what K. was up to as it has been months since the last time I communicated with her. S. M. keeps me posted on alot but theres only so much that anyone can do.After this lengthy break that I have taken it is now time to get back up to speed.My children say that this has eaten me up alive and I am entirely to focused.I tell them that it is job like any other and must be seen to with the same responsibilities that making a living comes with.After all the lawyers I can see why nobody wants to have anything to do with litigation.I stood outside a Pierce Co. courthouse last year and heard 2 lawyers wrangling over funds alloted to foreclose a house one was the homeowners lawyer the other one a lawyer for the bank the lawyer for the homeowner asked the banks lawyer how much he would pay him to stand in court and throw his client under the bus.The bank lawyer gave him a monetary figure,they shook hands on it and there you go a done deal.Does your son have a house here in Pierce Co. and is he still in it?
    Don’t know if I’m up for a protest yet but would love to attend one as soon as I am able. P

    This is a normal day of business amoung corrupt attorneys in Wa State.

  6. Tony,

    There is an attorney in Virginia who you could speak to, his name is I believe Gregory Bryl. He recently won a case in Virginia. He has a blog. I believe he commented recently on one of Neil’s post.

  7. RE: CA, I did not file a QT complaint. Wish I had, but it did not work out.

  8. Anyone – thinking you cannot get a default judgement in CA for quiet title complaint – is that correct?

  9. I have two notary defaults from an administrative process: Affidavit of Non-Response and Final Notice of Default.

    Is there any way to enforce those?
    (CA and UT)

  10. Dear Niel: If I collect you will be one of my first to thank. I have 2 default judgements so far. One called through a nasty lawyer demanding the date of service. The other has filed to set it aside on meritorious ground.

    I see that the rules bar both since they are both out of court. They are still have actionable charges if the court finds them other then TILA and RESPA grounds. I used the clerk with a sum certain and threatened Mandamas and they were issued.

    We will see.

  11. Quite Title & Obligations
    Original creditor did pay off in entirety during original closing
    end of obligation ‘note’.

    DEED ‘power of attorney’
    DEED OF TRUST (3) parties (TRINITY)

    TRUSTEE (neutral third party) think of as the Holy Ghost
    BORROWER (you) or (grantor) or (assignor)
    and for life of loan GRANTEE life of liability

    Truth ‘counter-intuititve’
    Beneficiary is lender’s servicer (unnamed third party as beneficiary c/o servicer with obligation – obligation you borrower in signing promissory note/mortgage which is not necessarily recorded in land records – you promised to pay the obligation of the original creditor who took a loan against the cash from the purchase of the note – and charges you thirty cents on every dollar you pay, for example, you agree to pay $1.00 and they agree to pay $.70 per dollar- who the real creditor – unnamed third party) and when you no longer are sending escrow for investment to title company … the ‘servicer’ will take over their obligation ‘advance funding’ you no longer are advancing. Why? They are the beneficairy and get the interest payments, dividends, rewards of taking your cash to market in an investments ‘undisclosed’ they hide who because they benefit otherwise would not be worth risk!

    TRUSTEE via ‘DEED’ power of attorney will then link ‘rights’ to Premier Asset Services list of private LLC’s that Premier Global Financial Services manages ….. see POA Letter available to all for DEED ‘RELS Title’ in which reverse remote repurchase c/o TRUSTEE’s to receive ‘benefits’ of lender as original creditor ….

    and/or trustee get notice. If Creditor served will instruct to let the case go.

  12. I am not behind on payments but I filed quiet title against the parties on the deed of trust (the original lender, who was out of business, and MERS). I did not include pretend lender/servicer in suit since they had filed no assignments and thus were not a party to the deed of trust.

    I was pro se because no lawyer was willing to take my case. I won default judgment because defendants failed to appear. I filed the judgment and quiet title decree with the county clerk. My debt is now unsecured. Pretend Lender has no idea.

    I’m willing to pay whom I truly owe, but I don’t think pretend lender is correct creditor for my debt. But if I stop paying them, I will be labeled a deadbeat. They could potentially sue me and I would be on the defense. I’m now sure how to resolve the issue of the note, whether I must continue pay pretend lender or not. I have not seen any other scenarios like this (unsecured note). I’m in a non-judicial state with no homestead exemption for bankruptcy. Any advice?

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