7 Years of Begging and Finally They See the Light

Back in 2007-2008 I told the State of Arizona and other states that inquired, that they were owed a lot of money because of the failure to abide by state law regarding the recording of instruments. Taxes, fees, costs and expenses were never collected because of MERS and lesser known similar systems (See Chase Bank), resulting in billions of dollars in lost revenue while the same offices got inundated with low cost (Lis Pendens) filings when the mortgage loans turned up in foreclosure courts. And that was just in the State of Arizona. Think about 50 States. The counties and states were hit with an avalanche, 6 million so far, of foreclosures and had to hire more staff, more  judges and adopt questionable “rocket dockets” and incorrect interpretations of non-judicial statutory schemes.

The result, according to some studies was that the states lost money, the banks made money through dubious foreclosures, and the investors who were the source of nearly all the money loaned on residential homes ended up suing or begging for settlements. Government was crushed under debts and expenses that could not be paid. Arizona Finance admitted that the total was about $3 Billion which was almost exactly the same as the State deficit. After months of wrangling my plan was adopted by the leaders of the State Senate and House of Representatives, and the governor’s office. Then suddenly it went dark and various orchestrations of “Neil Garfield doesn’t know what he is talking about” were played around the country, with the Banks footing the bill.

Now a Judge in Pennsylvania has stated the obvious (see below) and Pennsylvania will be the first state to recoup billions of dollars in lost revenue and expenses, fines, interest and other charges — without spending a dime on lawyers, who are all proceeding on a contingency fee basis. Those lawyers are going to make a king’s ransom in fees.

Now a Federal Judge has seen the light and expressed himself quite clearly. The whole point of the public records system is to provide confidence in the system of title and giving buyers or lenders the comfort of knowing that they had what they thought they were getting. The whole purpose of MERS and similar schemes was to avoid the public records system — until it comes time to use them to foreclose on previously unrecorded transactions involving the mortgage. Judges around the country have expressed fear that our entire title system has been compromised — both publicly in Bar seminars and privately to me in interviews.

All this happened because the decision was made to force borrowers to shoulder the entire burden of the mortgage meltdown. This country has a habit of relying on a “free marketplace” where it is OK to promote debt and borrowing, including a hard sell and then blame people when they believe the commercials and sales script. We blame them for being in debt! In so doing we got people to rely on easy credit in lieu of a living wage. We did the same thing with tobacco products where nobody cool would be caught dead (every pun intended) without a cigarette hanging from their mouth. But when they get cancer or COPD we blame the smoker. And not to get too political, we did the same thing with immigration. The “free marketplace” did everything they could with local, state and federal government to bring in 11 million people who would provide cheap labor, pay taxes and buy goods and services. Nobody cared whether they had papers and Reagan even granted them amnesty. Now we blame them all for being here.

The systemic problem is that we fail to match accountability with capability. Just because you can get a pension fund manager to part with $100 million doesn’t mean you are entitled to keep it. Just because you get a borrower to sign some papers that make no sense whatsoever, doesn’t mean the papers ought to be enforced — especially when it is at the expense of the pension fund. We have the intermediaries driving the train instead of the real parties in interest. The Banks are seen as too big to fail while the horrendous loss of confidence and net worth in most households (some of which are now under a bridge) is something we just need to suck up and get over. Our system was created to allow for plenty of room for chaos and even a bit of insanity. But when you have the inmates (Banks) running the asylum, then the benefits flow out of the system instead of flowing to those who are part of the society that is governed by our system of government.


19 Responses

  1. I agree. They definitely got the E-mail that said screw the homeowner! I will probably be appealing my case before December.

  2. UKG, it is hard to keep track of all the fraudulent and forged documents at this point. How many notes do you have? I have two so far.

  3. Ian,
    ya know, AMBAC and TRIAD and MGIC all hit a runoff situation years ago. I know they all entered restructuring, and they settled claims for discounted amounts. They probably emerged from bankruptcy with reduced capitalization.
    I received notice of a second anticipated foreclosure from We’ll Fuck’em. Different law firm. What was unique was that the certificate number from the mortgage insurance policy (found in the trust info) was listed underneath the old loan account number. TRIAD was the issuer. I can’t wait to see who the plaintiff is this time around…..

  4. louise, got the same kind of case going with a Fannie loan. gotta move for summary judgment when they default. and as always, thank you for staying in touch.
    after working with counsel on multiple cases, the common thread seems to be that the judges are deciding against homeowners, against the evidence and counterclaims, and entering default judgments in cases where there were hotly contested issues. It’s like they all got the same e=mail six years ago: “Rule against the borrower every time and cite the ‘free house’ argument. Fuck those people! We have banks to protect! It’s national security, I tell ya! Well…. uh… our security,,,that is.”

  5. Hey, UKG, I am still here. Judge has not ruled on Mot to Compel for over six weeks and hearing for opp. side’s summary judgment is scheduled for July 24 before a really bad judge. I filed a motion today for default against WFB as my master servicer who never answered the complaint and included motion for publication so they cannot come back later and filed another lawsuit. Judge for Mot to Compel said on the record that she would rule on the Mot to Compel. Not a peep!

  6. UHF- that would be 7 readers if you include me.
    I always meant to ask, since you’re in Wisconsin- when AMBAC tanked, since they are domiciled in Wisconsin, didn’t they cut a deal with either the state or one of the public pension funds so that they didn’t implode after their stock went from $77 to $1 due to MBS related losses? Just another detail in this web of deceit.
    Anyway I enjoy your comments and educated insight.

  7. I had a Tonisha I think from Chase Loss Mitigation, sounded like a prison guard. LMAO Her and MY lawyer tried to double team me and made me a false offer. By some stroke of luck or divine intervention I missed our conference call and was connected to customer service and they told me they had no offer in their system! I think I remember my blood going cold. Then or when I got the reconveyance and it looked like it was made up. This feels more and more like a civil rights cause where in the past there were losses and people on the sidelines finally joined in for what’s right. All of their lies we put out there will knock down their big lie.

  8. 7 years of fighting, not begging. I begged for about 3 months, maybe four. They told me to spend less on food. I’d have liked to see what that bitch Lashawnda looked like.
    Guys, I’m kinda like one of the last men standing here in Wisconsin. I made a lot of mistakes. Mr. Fuckin’ Know-It-All though, all the way. Talked to many, tried to educate, tried to listen (have a 45 minute conversation with Soliman when he gets you out of bed at 2 a.m.,OMG!), and stay focused. Even the better attorneys have been shot down in flames. Barnes’ class action as dismissed. He didn’t pout about it on his web page for all to see, did he? Sometimes, even worse, homeowners settle after their bad decision was entered (In Re: Edwards, EDWI comes to mind) and leave the rest hanging out to dry. Not to slight the debtors; I’m sure they wanted to “get on with their lives”. I hope they’re able to keep up with the deal they made.
    At this stage of the game, I really think you have to embarrass the judges by exposing their extrajurisdictional rulings and being denied your due process. Denial of due process and willful blindness to the evidence does not a good judgment make.
    Michael Savage hit on it the other night: Once they stop enforcing the law against the biggest criminals, it’s open season on unilateral law breaking by the politically well-connected.
    Gene: you are correct. One decision (even a significant, published appellate decision, like GASKI) does not a tsunami of victors create. I am, however, happy to see the recorders get traction. Their claims are legit, as well as the homeowner/borrowers whose title as collateral was used (along with the note) to allegedly secure loans that were made upon the submission of loan applications of the borrowers, not just at closing. The “clone loans” are real, and therein lies the reason the securitized trusts are empty. The bank lawyers keep talking in circles to get to Article 9, but Article 3 governs, and there was never any endorsement, assignment, recording, acceptance, consideration, delivery, deposit, or fulfillment of any MLPA in any way, shape, or form. The sad truth is these cases may best be argued in New York State Federal court.

    And Deb. You know me. I like to think we’re “close”. Gene means no harm. A jaundiced eye on anything that comes down the pike that is not of appellate nature is appropriate. It means nothing. It represents only a spark of enlightenment based in logic far upon the horizon, not a national capitulation against the banks.

    These judges and Feds fill their retirement plans with mortgage bonds for a reason.

    And Shelly Erickson, thanks for your continued fervor in information gathering and distribution. Hat’s off to the warriors. There are too many to mention here. Not that anyone would notice.

    I hope somebody is reading this besides the six of us.
    LMFAO. This place used to be cool.

  9. @Deborah well said.., 6 years myself these foreclosure crimes and the theft of our nation’s economy are much more than the accounting and budget, it’s a cancer. But the budget, accounting WOULD BE CURED if not so corrupt so Garfield’s main point it makes no sense.

  10. That was foreclosed upon not fire listed. Just so you know.

  11. Gene re those of us fire listed upon,
    how about the fact that An action can be brought once and was fraud upon the court And how about harm to new purchaser who never had legal right to possession
    And how about no due process
    And how about lacking jurisdiction
    Thing is Gene all due respect to who ever you are justified or not to critique it’s your opinion which counts, however the thing is, each case has a storyline and the litigants who have endured for the number of years I have know all about the harm which cut
    deep and wide above and beyond my down payment my upgrades my “mortgage ” payments and identity theft and name slander.

  12. Time to hold government accountable? If they benefited from settlements etc while leaving us high and dry and sell stolen homes to boot. The bureaucracies that are the other middlemen are not sovereign once their hands are dirty.

  13. People,

    One State…..

    One Judge…….

    No Appeals yet……..

    NG is doing it again……..raising hopes.

    This will be appealed and who knows how higher courts will rule.

    PA has a law specifically requiring the Assignments of Mortgages but the majority of the states do not. So this would not apply to other states.

    Current foreclosures in process are stopped, case dismissed, and assignments made, then refiled. That solves the problem.

    For those who have been foreclosed upon, they would have to file lawsuits and prove that they had been “prejudiced”, meaning harmed. How does someone prove harm when they are underwater and late on the mortgage for many months? Not easy.

    Okay, you say that you lost your initial down payment. Well, if the home is sold for more than what is owed, you would get the difference back. So where is the harm?

    There are many arguments to be made that have not been presented in the lawsuit. These arguments will come to light in future litigation.

    Don’t hold your breath, especially if you live in other than PA.

  14. Java is right
    How can they make us ” whole” what they have compromised is not just land records but our trust in the legal system
    I appreciate the wordd of atty Matt Weidner – he calls it dignity , restoring dignity to the legal system,

  15. As for ” inmates running the asylum” more like the heroine addict given the keys to the pharmacy and the choice of discount for volume.

  16. I have the transcript whereby the judge stated the two most important things to a mortgage transaction 1. Appraisal 2. Clear title. Now years later.
    My Lis pendens was proper .

  17. My fearless forecast is that there will be a tsunami of wrongful foreclosure suits unless something is done to actually help the debtors/borrowers instead of the banks/servicers.

  18. About time

    Sent from my iPhone


  19. Great. How does that help the homeowner who was fraudclosed on ???

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