BOA’s Recontrust Thrown Out of Washington State as Substitute Trustee

Editor’s Note: Same caveat as before — this consent ruling, although potentially persuasive to other courts is not evidence of the violations in and of itself, but provides a good pep talk to attorneys out there who are too timid to make statements about the treachery in the acts of the Bank of America, and all others who use the ‘substitution of trustee” as a vehicle to foreclose on properties.

Second caveat: this does not mean that the mortgages are invalid which is a separate subject. Nor does it necessarily mean that Joe Banker (see prior post) has problems when it comes to identifying the creditor and establishing the status of the loan receivable account (primarily because no such account exists, except at the subservicer level which is at best only a partial snapshot of the entire list of transactions concerning each loan subject to claims of securitization.

What it DOES mean is that Recontrust is not doing business in Washington anymore and can’t come back. If it wants to come back, and alternatively one might infer if ANYONE wants to be a substitute trustee or foreclosing trustee, they must meet the following requirements:

1. Maintain physical presence in the State with adequate staffing and knowledgeable people who can actually answer substantive questions about the loan status or so-called default status.

2. The office must be authorized to accept payments to reinstate a mortgage.

3. The office must be authorized in all respects to postpone, reschedule or cancel the foreclosures (this taking out the layers of corporate bureaucracy) which means that someone with real decision-making authority must be physically present in the office during normal business hours.

4. Discloses the contact information for the State office to the borrower.

5. Identifies the actual creditor with a loan receivable that is due and the same information for the authorized servicer for that loan.

6. Provides proof that the “note holder” actually has an enforceable interest. That means they must show and prove the existence of the actual loan receivable and the person or entity to whom the obligation is owed.

7. Applies fees and costs only as allowed by law.

8. Acts in good faith toward the borrower. “For purposes of this Consent Judgment only, it is a breach of good faith to enter into an agreement with a note owner, beneficiary or its agent wherein Defendant agrees to stop or postpone a foreclosure only when approved by the note owner, beneficiary or agent, or to defy solely to a single party when acting as a trustee.” [That is because it is a breach of the statutory duties of the trustee to bind itself contractually to following the orders of the beneficiary only and not include the duties of good faith toward the Trustor].

9. They cannot act as both trustee and beneficiary. [Implication: if the Trustee that is substituted is owned or controlled, contractually or otherwise, by the beneficiary they may not serve as Trustee.]

10. Trustees cannot only refer to defaults in fact, not as reported. What this means in terms the degree of due diligence required is yet to be determined.

see WA-Recontrust Consent Decree

17 Responses

  1. This is why the states are now infusing any MSD that is owed on the home, They intentionally band together with Credit Control – Steve Wideman ( President ) to foreclosue on homes under fraud and deceit.
    The Bankrupcy courts are allowing this type of fraud.
    Just see replacement Services , Illinios – Steve Wideman controlling the insurance on your home as well. He is aligned with the Private Equity forms that are buying these loans. They all have made certain this type of fraud is effective. They will steal copper pipes conduct damaghe to your home and vehicle. The goal is to financially strap you therefore you are unable to pay for an attorney or pay the bills.
    *** Governement Contractors used to do harm to the working , middle class lives at 141market Place. The entire Building these are all shell companies,

  2. Something that may be of interest…

    http://www.sec.gov/rules/ic/2012/ic-30174.pdf

  3. Yes you did and I will be calling.Thank you so much Shelley.

  4. Pam, this case helps all unlawfully foreclosed homeowners,not jsut MERS. This case specifically state no foreclosure can foreclose without hold the note and proving they hold the note not a photo copy or fraud assignmlent and not an affidavit of hearsay. This helps all of us. Quiet tilte should be easy now.Even by a pro se. However it can be lost by not knowing proceedure. So please get ahold of a pro bono attorney. I sent you a list of probono attorneys.

  5. IN Washington state their are representation estopple statutes. There are also statutes called statutes of limitation on contracts including promisory notes. Six years from the date breached. The day of inception the promissory note and deed of trust was breached my deceiption and undisclosed criminal activity on the loan, but bigges of all is the rigged LIBOR interest rate. Therefore anyone in the state of WA that has a contract that is over six years old and the proper party has not come forward to start a foreclosure or lawsuit against the homeowner, even if they came up with a valid note(which they have not and wont) would be uncollectable in this state after six years. It varies in each state, Some states are four years.

  6. Shelly

    You are right.

    How much is owed the single party who is the only party who can be harmed by the “breach”? If that party has been paid or made whole by any means there is no more obligation. That is what the docs including the note say. That is what got signed by the homeowner. If someone else got paid instead – the obligation still exists and someone else profited unjustly and there’s the harm.

    Servicer/Collectors siezing payments and homes for themselves without passing the benefit to the owner of the secured interest (and in my state anyway the DOT is clear – there is no such thing as an unsecured debt – payments go to the guy who gets the house – no one else – no other debt exists – that’s what I think anyway) is theft.

    So how is the govt. doing the same thing not also theft? Govt has the power to demand the accounting don’t they?…. If they don’t do the right thing here…God only knows where we are headed.

    No more obligation does not mean a pretender of any sort has a right to be paid anything and it doesn’t mean a pretender of any sort has a right to take a house.

    Simple concept that the many powers that be just cannot accept. Imagine how fast the economy would heal if tons of people were revealed to own their homes free and clear which is now quite probably the case. They could sell them cheap and put the the money in savings or pay off other debts, downsize, upsize, buy things again, start a business, hire people again, borrow again even (God forbid)….lots of powers that be would benefit from the truth…..

    Just show the accounting and tell us what we actually owe today to whom exactly. If it is paid it is paid. If not – ok disclose the true amount left owing. I will take that deal and give up my house if I can’t pay. If the creditor can’t actually be identified – I will wait for that true disclosure until doomsday (there ought to be a time limit on it though – show and tell or lose the option to enforce) and rent out the house if I wish to move out but no penny is due any pretender in the meantime.

  7. Great now the Bains and RECONTRUST cases have been decided, the government is talking eminent domain, and legistlative changes to the law, due to the immenent threat of lawsuits by homeowners to recind the foreclosures, and due to the government can seize the houses for free. Doesnt that mean the homeowner owns the property without debt?

    However then the counties and government are emineint domaining homes owned out right by the homeowners that by laws own the house for free. This will cause litigation with the government. They are attempting to steal houses for free now.

    When the note is void, the debt is no longer against the house. As this artilce states their is no one to prove whom owns the note. With the note debt not secured to the house, the house being taken by eminent domaine looks to me that the property is being unlawfully seized by the the government when the property has no debt against it. No one taht can come after the homeowner for any part of the alleged debt. Therefore out right theft of the homeowners property the homeowner owns outright by the rule of law, by PSA void, by no fault of their own. Emenent domain due to the government does not want the homeowners to have a windfall. Unconstitutional law is what that is.When the note is void, the debt is no longer against the house. As this artilce states their is no one to prove whom owns the note. With the note debt not secured to the house, the house being taken by eminent domaine looks to me that the property is being unlawfully seized by the the government when the property has no debt against it. No one taht can come after the homeowner for any part of the alleged debt. Therefore out right theft of the homeowners property the homeowner owns outright by the rule of law, by PSA void, by no fault of their own. Emenent domain due to the government does not want the homeowners to have a windfall. Unconstitutional law is what that is.

  8. @Guest,

    “Stupid politicians!” is perfectly a propos anywhere on this site… 🙂

  9. Sorry, somehow I posted my comment on the wrong topic. Guess I’m as stupid as politicians. LOL

  10. Stupid politicians! They make me sick. Literally sick. This disingenuous political move is just another way of giving banks new signatures and small-print release to exonerate themselves from their fraud.

    Why use the same bureaucratic mess to delay relief for homeowners or any subsequent economic boost? Why new loan costs? Why not give near-instant relief with flicks of a few computer keys to change the interest rate? I would venture a guess that computer programmers nationwide would volunteer to help if this suggestion is too complicated for politicians to understand.

    Being so forward thinking, I am quite sure the banksters would understand the need to move into the electronic age to handle financial transactions, as they did when they came up with MERS.

  11. “That’s a big deal. That $3,000 can be used to strengthen the equity in the person’s home; that would raise the value of the person’s home.” The guy is delusional… I’m starting to think that he may even be dangerous.

    Once you get your $3,000 and you add it up to $1,800 you get from that OCC review, deduct the $11,273 in late fees and other, occult fees, and probably the little something the IRS will take out prospectively (as in next year, when the economy is much, much worse!) and see how much equity you’ve built all of a sudden!

  12. So…when pray tell do these Zombie Debt Collector “trustees” REALLY get revealed for what they are NATIONWIDE! STOP THE In-house ZOMBIE DEBT COLLECTORS – CA RECONVEYANCE CO, are you next? CA AG STAND UP! Hello? Anyone in there?

  13. Blah Blah Blah — How about fixing the the under water homes owners who are $ 200,000 plus upside down. Not to mention the destruction of these deflated neighborhoods. Obama can stick the $ 3000 bucks up DeMarco’s A$$ !

    http://thehill.com/blogs/on-the-money/1091-housing/244407-obama-pushes-congress-to-act-on-home-mortgages

    President Obama on Monday called on Congress to act on home mortgage relief when it returns for a brief legislative session in September.

    The housing market is widely believed to be the most significant drag on the economy, and Obama was under fire in a New York Times front-page story on Monday for the inability of his administration to address the burden of homeowner debt.

    Obama sought to shift responsibility to Congress during a midday news conference.

    “We are going to be pushing Congress to see if it can pass a refinancing bill that puts $3,000 in the pocket of the average family that hasn’t yet refinanced their mortgage,” he said.

    That’s a big deal. That $3,000 can be used to strengthen the equity in the person’s home; that would raise the value of the person’s home. Alternatively, that’s $3,000 in a family’s pocket that they can spend on a new computer for their kid going back to school or new school clothes for their kids,” he added.

    Obama said that “interest rates are low, and the housing market is beginning to tick back up, but it is not at all where it needs to be.”

    White House spokeswoman Amy Brundage said that the White House is supporting a trio of Senate Democratic bills that streamline refinancing.

    Sens. Robert Menendez (D-N.J.) and Barbara Boxer (D-Calif.) in May introduced the Responsible Homeowners Refinancing Act of 2012. That would streamline refinancing for Fannie Mae and Freddie Mac borrowers by eliminating upfront fees and appraisal costs, among other changes.

    Sen. Jeff Merkley (D-Ore.) has a bill called the Rebuilding Equity Act for loans of 20 years or less. It would require Fannie Mae or Freddie Mac to pay all closing costs.

    Sen. Dianne Feinstein (D-Calif.) has a bill to aid underwater homeowners by allowing them to receive Federal Housing Administration mortgage insurance.

    While significant, the White House-backed legislation falls short of the extensive housing action urged by some. Liberal groups and unions want Obama to replace Edward DeMarco — acting director of the Federal Housing Finance Agency, which oversees Fannie Mae and Freddie Mac — to force the agency to approve principal mortgage reductions. Others want legislation to allow bankruptcy judges to approve principal reductions.

    Politically, such extensive action could risk angering homeowners who have not fallen behind on mortgage payments.

    Obama listed the refinancing bills when asked what can be done to help the flagging economy in the coming months before the election. In addition, Obama called on Congress to pass a continuing resolution to fund the government after the fiscal year ends on Oct. 1, to extend Bush era tax rates for the middle class, and to come together on a deficit grand bargain.

    House Republicans and Senate Democrats announced a deal in late July on a 2013 spending bill that would extend government funding at roughly current levels without modifications for six months.

    Any deficit grand bargain or movement on Bush era tax rates are generally considered unlikely until voters deliver their verdicts on the budget plans of Obama and the GOP presidential ticket of Mitt Romney and House Budget Committee Chairman Paul Ryan (R-Wis.).

  14. About time WA. state stood up and grew a pair.But as usual day late,dollar short.Great news for people that had Recon.What about all the people that didn’t?

  15. It does mean the foreclosures were done unlawfully by unlicensed foreclosures. My sons lawsuit is against RECONTRUST AND MERS AS WELL AS THE BANKSTER.The harrassment comeing from them was unlawful and the sales were all unlawful due to unlawful foreclosuer by unlicensed entitey. The credit bids were unlawful. All the assignments are unlawful fraud assignments by MERS, to RECONTRUST, whom BOTH ARE unlawful company in this state.. BOA & RECONTRUST assignments on all the foreclosures I have witnesses were assigned by MERS. None of them have the notes. Photo copies, and claims we only had to know by hearsay or affidavit by the crooks, that they own the note. This has been stopped in the State of WA now. Anyone from WA please note Dave Krieger will be in my little town of Auburn WA on Sept 8th 2012 at Green River Science Learning Center at Green River Community College at 12401 SE St Room SC-101, Auburn, WA 98092-3622 4 PM to mPM or when ever they are done. Cost $10.00 at the door. I am sure Dave will have his Clouded Title Book their for us to purchase, as I did at his last siminar, and he will sign it for you as well.. A must read book! Very important for everyone in the mortgage busniess and all homeowners not just the ones in foreclosure. See you there. Contingency and Pro Bono attorneys will be there that are helping homeowners in trouble, that can not afford the help. These are attorneys that are really trying to help and get it and this is the time to fight for your house after the MERS and RECONTRUST cases have been settled. .

  16. “5. Identifies the actual creditor with a loan receivable that is due and the same information for the authorized servicer for that loan.”

    “8. Acts in good faith toward the borrower.” HAHAHA!!! Good one!

    Can’t be done. I guess Washington will go the way of N. Dakota… Not a bad thing either.

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