INVESTMENT OPPORTUNITY: Why Do Banks Walk Away When Proof is Required?






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Editor’s Analysis: If you loaned money to someone and you lost the note or correspondence reflecting the terms of the loan would you forget about getting the loan repaid? Of course not. You would sue anyway and proves that you either directly loaned the money to them or that you paid real money to acquire the debt. You would get a judgment and you would record that judgment in the county records as a lien against any real property in the name of the borrower.

In the states that have passed laws and regulations regarding the collection of debt and the foreclosure of mortgages requiring the party seeking to collect on the debt or foreclose on a mortgage to show that they in fact own the debt and requiring the attorney to verify the debt, note, mortgage, and default, foreclosure activity and collection activity has dropped like a stone. This corroborates the basic premise of this blog.  Despite all efforts to create the appearance to the contrary, there is no debt, note, mortgage or default —  at least in terms of seeking collection and foreclosure.

The apparent presence of money arriving at the loan closing is a red herring that has thrown off the borrowers, their attorneys, and the courts. But the money never came from anyone with whom the borrower was led to believe to be the source of funding of the loan. Therein lies the problem for the Wall Street banks. If you follow the money trail it simply does not and cannot match up with the paper trail. That is why we have consistently told attorneys to hit hard and hit fast with subpoenas directed at producing competent witnesses and real proof that the loan was funded or acquired by anyone in what we now know is a false securitization chain.

As a trial lawyer with decades of experience I can tell you with great assurance that most cases are decided on the basis of who controls the narrative. It is through that lens that all of the so-called facts are perceived by the court. If you failed to object or moved to dismiss pleadings that omit any allegations or attachments showing financial injury to the party initiating collection or foreclosure proceedings, then you are allowing the narrative to slip away from you. The pretender lenders will fill the void you have created with proffers of facts and conclusions that are unsupported by anything in the record.

Analyzing the foreclosure activity on a national basis clearly shows that those states which require the actual proof and verification by the attorney have eliminated the logjam in the courts because there are no claims. There is only one satisfactory explanation for this phenomenon. If the claimants had anything resembling a canceled check, a wire transfer receipt, an ACH confirmation, or a check 21 confirmation, the change in the laws and regulations of those states requiring proof of payment and proof of loss (which are the elements of proof of ownership) would have produced no result in terms of the number of foreclosures filed or the number of servicers claiming to have the authority to collect monthly payments.

Therefore the only logical conclusion is that they do not have anything resembling proof of payment, proof of loss or proof of ownership. This leaves them in the naked possession of attempting to collect or foreclose on a nonexistent or unenforceable debt, note, mortgage or default.  it looks like criminal fraud and civil fraud to me.

 As for collection, the servicers are clearly relying upon the paper trail in the so-called securitization chain.  If the debt cannot be established through proof of payment and proof of risk of loss than the paper trail in the securitization chain is  a sham.  If the debt is not established there is no payment due.  if the debt is not established and there is no payment due, the claim of status as a sub servicer or Master servicer is without merit.  For these reasons  it is incumbent upon the attorney for the borrower to submit a challenge either in court or in accordance with federal law governing collections,  mortgages and foreclosures.


This is why I have suggested the business plan wherein investors produce hard money offering same to the court registry in bankruptcy or civil litigation. The investor(s) would offer to refinance the entire mortgage balance if the claimant can prove title to the loan — which means that the claimant, starting with origination of the loan would be required to show proof of payment all the way through the assignment or “securitization chain” in order to determine which party should be paid off and which party therefore could execute a release or satisfaction of the loan and mortgage. It’s no bluff on the part of the investor or the homeowner who jointly present the offer to pay off the debt in full. It is calling the bluff of the pretender lender.

If the claimant is able to do so, then they get every penny demanded. If they are not able to produce such elemental proof, the case is still over because they have admitted lack of standing, lack of subject matter jurisdiction, and lack of a qualified party to submit a credit bid at auction. In that case, the homeowner’s agreement with the investor is to execute a note and mortgage in an amount not exceeding 50% of fair market value of the real property at a fixed rate with 30 year amortization.

The return on investment is nearly infinite. GTC|Honors, a trade name of General Transfer Corporation owning this blog, will provide the legal work and packaging of the loans for resale into the secondary market. Since no more than $3 million is required to start this project space is limited to only qualified investors. This is not a formal offering but merely a solicitation of those who may want to receive a prospectus which they can review and decide whether or not to invest. The name of the Hedge Fund will be revealed only to those who request the prospectus and those who demonstrate in advance that they are qualified investors. Management will be by and through GTC|Honors (“Workouts with Honor”) which will receive a fee of 20% of the net profits after payment of all legal, accounting and other professional fees, costs and expenses. By way of full disclosure, the law firm of Garfield Gwaltney, Kelley and White will be getting part of the legal fees.

Proceeds of investment will be used strictly for formation and operation of the Hedge fund, and shall not be used for any salaries paid to management directly or indirectly. Management includes Neil F Garfield, and such other persons designated by him to share in management responsibilities. Do not send money without first receiving the prospectus and consulting with an attorney, accountant or other professional trusted adviser.

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59 Responses

  1. Maybe 1 or 2 out of 100 will verify correct and true. I am sure these files will be thoroughly reviewed.

  2. There are no small town banks. If they are FDIC insured, the U.S. TAXPAYERS FUND THEM.

  3. Neil please e-mail me information to obtain a preliminary prospectus. i may fund the entire deal.

    I need one thing explained though. If a small community bank provided the loan and it was funded by the FHLB, and they can show a valid chain of title from the funding to their HTM Portfolio (still FHLB Owned) do I as the investor have to absorb the full UPB plus interest arrears, penalties and fees. If the collateral value is 60% of the total balance due – it seems like a risky business model with no exit strategy.

    I am truly interested though…


  5. The people in charge of being the gatekeeper’s are all corrupt and useless so it is now up to all of us to be the gatekeeper’s.

  6. Bloody iphone. Sorry typos. I give up

  7. So the one thing that i see as crucial is the toled if the GATEKEEPERS. And regulatory integrity. Here is where we also nerd to vkean house, its deep and wide the wound of society today but it can and will heal with the right treatment.

  8. … still getting ‘page cannot be displayed’ on the interview.

  9. I personally don’t believe in looking for the hair in the egg Deborah. We are becoming a nation of hypochondriacs. OBAMACARE and their wellness checkups are investor control freak bullshit. These people are dictating our lives. This is wrong on many levels. No one should tell anyone what to do esp when it comes to healthcare. Forced compliance is Nazism.

    My sister in law told me that her M.D. left the Medical Establishment to become a Natural doctor because there are going to be diseases that the Medical Establishment will refuse to cure. To me, that is heroic.

  10. I agree, it is all about personal choice Deborah but, the difference here is, it seems like the media are trying to sell this to people like gay marriage, I don’t give a darn what these people do. The media are just tools for the Corporate America agenda. Why do I care if Brad Pitt thinks his wife is being heroic by being a hypochondriac. The sad thing is, people will buy this depressing crap hook, line and sinker. Let me tell you both of my grandmas had breast cancer and one died from it and my mother never ran to get genetic testing to see if she would get it. She is now 70 years old.

    I really wish the media would quit talking about depressing shit and trying to sell us their corporate crap. We are only one of 2 countries who BIG PHARMA sells their drugs to on Tv. The other being New Zealand. That tells me the investers have way too much control in this country. I hate their commercials. They suck, they are depressing and no one wants to hear them.

    As far as talking about things of the spiritual realm & the Medical Establishment, I see the tie in to fraudclosures and everything having the same common denominator …… the investers. This evil is rampant in everything we do. You gave the perfect example of the tie in talking about disclosure.

    The problem with these people is what they don’t disclose. They already have the cures for everything but they make more money off the treatments than the cures.

  11. I wish you would leave medicine out of this blog stripes, but then I should maybe leave spirituality out of this blog site, but I must answer having been in healthcare for over 30 years as a nurse working across all disciplines, screening is very important, but it boils down to personal choices, consider this, if the originator had given us all the material info necessary for us as borrowers to make an INFORMED DECISION about signing- would we have signed, parallel to this fundamental point I make is a physician has a duty to tell the patient why screening/ surgery whatever is important to them, but also the options, including opting out and doing nothing. my second point is as I see with you is you can read so much stuff and the line is blurred, its the trust- the trust has gone. Im not discrediting what you know, because I don’t,
    but I know my industry intimately.
    .someone else said when you cant tell the truth from the lies we are in trouble. and that’s all I have to say about that.

  12. Regarding the Angelina Jolie story..the local media also reporting most insurance companies pay for the $3,000.00 test to find out if you have the genetic markers for breast cancer. Oh jump for joy! Of course we should have known this was another OBAMACARE scare tactic. This is getting more nauseating everyday. Like someone said if Romney got elected woman would not be able to get another breast exam. To that I say who in their right mind would really want these bank investors going up our keisters with microscopes? Yuck..

  13. There certainly are a lot of elements to this conspiracy. If I were to put my finger on one I would have to say this is a communist conspiracy though they are clever and wear many disguises..

  14. The local media reporting Angelina Jolie had a double mastectomy because she was at high risk for breast cancer. Some, including her hubby Brad Pitt are calling that heroic of her? What if you were at high risk for testicular cancer…would you cut your nuts off? We are all at risk for something but do we really need to be this panicky that people are hacking their body parts off to prevent something that may never happen? IMHO… these are very radical views the media are promoting as heroic.

  15. Thanks Deborah. I respect everyones opinion. I also do realize the seriousness of these matters. I really do believe we are on the threshold of our worst fears coming true if we don’t speak out and I sincerely mean that.

  16. I agree we are all on a journey Deborah. I sure hope we don’t lose our way and sell out like a bunch of cowards and accept these imposters, these communist criminal banksters as our Government and their fraud as our debt.

  17. have courage of their convictions that is

  18. you know stripes I have gained quite a lot of respect for you,
    despite many- including myself being rude as hell to you , you stood your ground, did your thing- whilst I cant appreciate much of what you go on a quite a bit about, I think you have courage of your convictions, I respect that, few in fact do. really and truly.

  19. FOX Business reporting Blackrock fund manager arrested in insider trading probe. AG Eric Holder said today he recused himself from the AP investigation last year. Why would the head of the DOJ recuse himself from one of his own departments investigations?

    Fox Business anchor Lou Dobbs asked why the American people are putting up with all this lying crap from these politicians. He said he fears the American people have lost their will to keep their National Sovereignty ….

    Well not me..!

  20. I respect everyones opinion, my opinion may change, that’s my right as is everyones- based on the information we have and how we interpret, thing is I know how a duck walks looks and talks (Quacks that is), and I accept that things are never what they seem, but as a truth seeker ill keep seeking until the day I die. its the journey. embrace the journey, as painful as it can be at times.

  21. That is the only explanation for so much evil in the world IMHO. It has reached biblical proportions. When people try to play God this is the result.

  22. I respect your opinion Deborah. I however, see this as a spiritual war that has manifested itself in the physical world. Maybe it was my Catholic upbringing or my superstitious Grandma. Whatever it is, I see it.

  23. I know off topic and im not affiliated with any “religion” consider this is the “antichrist” a consciousness, not an person /individual but a movement of a consciousness that is anti Christ. well they will be overcome, we will overcome .just gotta remind ourselves. so next- how to get the judicial system to work as its supposed to : )) over to the investors Neil.
    glad they have some dollars to invest, (serg- very funny) but if this carries on they will be the poor also – we will have the rich-very very very very (if we are talking money and power) , and the very very poor, very .if mob rules.
    its the greed stupid.

  24. These people are in fact communists. They have infiltrated everything and I am by no means blaming the Jews, Catholics or any religious sect or nationality. These people are frauds & imposters & are not who they claim to be.

  25. I think they are the Zionist movement. These elements never left they just transform themselves into other sects. They use religion as a distraction.

  26. let me share this- I met a young man the other day he was signing up for the marines, as pure hearted as you would ever se- i ask you, what will he be protecting.

  27. stripe I got to agree with you that there is this Mob, so where did the Jewish Mafia go?

  28. This isn’t even the Federal Government or the U.S. GOVT…..this is the international banking cabal that have hijacked the place. Nothing they do is legal.

  29. Bill & Hillary made a lot of money from this global bankster scam. Bill got $86 million for his last term for throwing us under the bus. The banksters like the politicians to be dirty. That’s how they control them.

  30. Ms Warren knows a lot. That’s why the banksters don’t like her.

  31. Radio show host Michael Savage said a while back, Chicago is running the world and was kicked off the air the next day. The Democratic machine is powerful.

  32. This banking mob is global in scope and Chicago may be worse than N.Y….All of the masterminds are here.

  33. stripe I agree the Clinton were not the masterminds, but Bill was need deep in do do, that he like Obama are these puppets for the New York banking Mob!

  34. The Clinton’s were perps and not the masterminds of this scam.

  35. If a judge does that he should be disbarred carie.

  36. Check out the books entitled “The Thunder of Justice” by Ted & Maureen Flynn..&….. “Enroute to Global Occupation” by Gary Kah. This was well planned. Watch the ex Kgb videos on you tube.

  37. Right back at ya elexquisitor….

  38. “…it is incumbent upon the attorney for the borrower to submit a challenge either in court or in accordance with federal law governing collections, mortgages and foreclosures…”

    What’s the point, Neil, if the judge just says:
    “Nope! No discovery! No due process allowed!! Dismissed!! Next!!”

  39. Look I don’t doubt the Fed benefited from this and yes the Rothschild families control, but I think at best this was a loosely base financial system that was created by Bill Clinton ending bank controls, which he has probably talked into by Greenspan who was stocking Clinton’s ego, and need to probably pay back somebody for him not getting kick out of office when he was impeached.

    But I think the Fed put money out there and let it do what it does and they knew that whatever would happen that they would be the best to capitalize on what they been doing for 100’s of years.

    It to me is why the Jewish people have handled this crisis the best is because its there business. It nothing they not seen but on a smaller scale than this.

    Example. I just got off the phone with Senator Warren office and the guy talking to me did not have a clue of financial matters he was just doing a curious call back from the letter and emails I sent. Because they are to overwhelm because the Nation knows Warren is the only one who is actual at least questioning the OCC & Fed, but there no way with the information coming into her office that she can handle the millions, that see her as the solution.

    So that the same with this crisis as the financial great minds do understand that the Federal Government is huge but they are incapable of specializing in these financial matters and about the time they caught of the statute of limitations is over or the victims don’t have the resources to fight these trillion dollar asset banks.

    How do you explain to a 60K a year worker what a few million dollar mind has put together? Just look on this site and we have started talking about there was no actual funding of originated loans as if the million of seller are all in contact with each other. This is no different than you think that you know more than the car dealer when buying and trading in your old car. The business is there to make money not to lose money.

    So the Fed and the people that own the Fed are playing the odds that we are stupid and if I give you a million dollars your going to spend that million and need more to maintain the million dollar lifestyle as it happens to these high paid athletes over and over again, just ask Jack Johnson, Joe Louis and Mike Tyson, as its nothing new is the cycle of financial life.

    They extended let say a $100,000 to 10 million families and placed insurance of those loan above the loan balances by $100,000 and when the loan went sour they collected, because in most cases the people lost there jobs, not it not different than the Great Depression which Ben Bernanke is an expert of and has wrote a book on the subject as to what he would have done if he were handling the crisis. Bernanke big things was he did not feel the bank were recapitalized and is the reason the Depression lasted so long!

    It a cycle we poor people never studied and our great grand parent were not in the good fortunes to have been home owners until the FHA was created in 1934 and for black it was not widespread ownership until the passing of the 1968 Fair Housing Act!

    Who does better on the stock market? Joe Blow or a trained financial guy who family for the last 300yrs has dealt in finance. So yes it seem like the Fed may have planned this, but I believe they played the odds!

  40. I am getting a ‘page cannot be displayed’ on that interview link.

  41. @Neil – you could make just as much money as the hedge fund if you only charged stripes for the wasted disk storage its comments take up.

    @stripes – blow it out your butt and strike a match

  42. The founders certainly never intended that a private international banking cartel such as THE FEDERAL RESERVE BANK should issue our currency. The creation of the FEDERAL RESERVE BANK was an act of treason against WE THE PEOPLE by the traitor politicians from within..

    The FEDERAL RESERVE BANK is no more FEDERAL than FEDERAL EXPRESS….They are not our Government and everything they do is illegal.


  44. This was well planned Charles. If you do your research you will find it has been this same cabal of families all through history trying to rule the world. These things do not happen by accident. The banksters planned all of these perpetual wars and financial crisises. Their ultimate goal is totalitarianism and they are patient about achieving this. OBAMACARE is their ultimate totalitarian endgame plan to microchip the people to their debt. The banksters want debt slaves from cradle to grave. I have a friend who is an FBI agent and he told me they want to microchip babies at birth….just like they do to our pets without our consent. This is their evil endgame Hitler Plan.

  45. I think we go to far in giving credit to bank for being that smart, as they were playing above our heads but and making money. It was only until thing got out of whack then they needed to screw everyone because it was everybody for himself.

    People needed to remold their kitchens or bathrooms or roofs because some of these house were built in 1901.

    There was steering, overcharging and a host of things, but also the increase of home ownership was great. If you did not have all that money put into the mortgage market we would not be having this situation because there was not enough investors wanting to take that risk. The Federal Government had to act as the money man.

    However now let deal with what we can prove and the after the fact, as to did you get an opportunity so confront holder of the debt, and if not then why not. Does the party bringing foreclosure have “Standing”……..just show the proof Mr. Bank and if not, what you think is not important in this matter!

  46. The banksters robbed us intentionally to make us more reliant on credit and build a credit bubble …… THAT IS WHY WE WERE ALWAYS BROKE…! They also inflated the prices of everything like healthcare and used PROGRESSIVE TAXATION POLICIES TO ROB US…Imagine if the Politicians were doing their jobs and told us THE TRUTH… the FED defaulted on their contracts with WE THE PEOPLE and were pocketing all of our payments….WE WOULD NOT BE HERE TODAY…! If we had known THE TRUTH….all of those years we were paying the FED money they weren’t owed we could have PAID CASH FOR EVERYTHING…like COLLEGE…CARS….WE COULD HAVE SAVED A TON OF RETIREMENT MONEY AS WELL!

  47. All of those refis and all of that credit lending was due to an INSIDE BANK JOB….ROBBERY OF OUR WEALTH….OUR TREASURY & OUR PAYMENTS BY THE WORLD BANKSTERS….

  48. Maybe if the banksters weren’t allowed by the Politicians to rob the Treasury and pocket all of our payments as usury and destroy our Securities by overissuing investments in everything we paid for upfront at the Origination…..WE WOULD NOT HAVE HAD TO RE-FINANCE OR TAKE LOANS OUT TO REMODEL OUR KITCHENS…!

  49. Most all the people involve in this matter was seeking the best deal available for their mortgage financing and did not have the ability dictate all these terms and where just happy when the receive the approval to buy the house or refinance to redo their kitchen.

    Now if you got another 10 tens to try and fish through bank that have billions or a trillion dollar in assets to just claim Wells Fargo, BOA, Chase or Citi did not fund their loans.

    Now its the next part of this deal where things get off track and because the lenders are turned into issuers and as they place the loans into the pools no money changes hands at that point, but in a very short period the issuer is drawing an advancement from the securities sales, and this is the deal that messes up the chain of ownership because the investors are not lenders and cannot purchase home mortgage loans, but are seeking something that had a lower risk that a home mortgage.

    Let take Ginnie Mae that offering 100% return of your principal investment, as oppose to holding a mortgage loan and that property now worth 50% of it old value and it foreclosed.

    We are getting off track instead of dealing with items that the borrower who be entitle to discover, like Note, Mortgage/DOT/Security Deed and proof of purchase!

  50. These banksters want to steal it all from us.

  51. So you see its not about the house ( unjust enrichment wise yes) but fundamentally we ate looking dead in the face at a situation that will decide whether its mob riule or we the people rule. No innocent man should be in jail
    And that is the result of bring denied due process of law and discovery when s case so demands.

  52. Carie
    There are innocent men in jail …
    We gotta hold the court/ judges accountable if they mess up on procedure and law. A mistake is a mistake but if it goes un corrected when raised – I have a huge problem with that

  53. The economy will never fully recover until the housing mess is addressed. What a worthless bunch of crooked boobs we have in Congress. They all need to be fired or worse not including Elizabeth Warren, Bernie Sanders and Alan Grayson.


    “…Colorado law allows foreclosure lawyers to sign a statement saying — without having to prove — that their client, typically a bank or other lender, properly has the note and deed of trust.

    It is that law Brumfiel is challenging in federal court, saying it violates her 14th Amendment right to due process…”

    California, too. Like Deb always says—it’s about our right to due process. Guess we don’t ever get that anymore.



  57. From what I can tell US Bank has anointed themselves as authority, nothing more. Haven’t produced one shred of paperwork to prove otherwise.

  58. Fraudclosure is robbery of our property by our foreign & domestic enemies, the FED banksters.

    The FED banksters did everything in reverse of the way it should have been done. That is their calling card. Just like what happened in Benghazi…what happened after 9/11 was they went after our freedoms and gave the foreigner’s our freedoms. The same thing happened with the quadrillikn bank fraud by the banksters….they came for our wealth and property. The FED banksters have hijacked everything, even the IRS according to FOX NEWS.

    OBAMACARE is a complete bankster takeover of our Constitutional Republic.

    Our Treasury…..our wealth & property has been hijacked by the FED banksters as well.

    The TREASURY should have been audited immediately upon discovery the FED banksters were $700 trillion in the red and put into receivership to the U.S. TREASURY DEPARTMENT……NOT VICE VERSA….The FED OWES U.S. TAXPAYERS GAZILLIONS reported CNBC…


    These maniacs have stolen $60.4 trillion U.S. TAXPAYER DOLLARS FROM US SINCE 2008 REPORTED CNBC….

    The traitor politicians need to be held to account…our stolen wealth returned to our Treasury and the FED banksters need to be thrown the hell out of here.

    We need to coin and issue our own currency as the U.S. CONSTITUTION requires.

  59. Is there a minimum $$ investment amount?

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