Rescission: The Wheels Are Turning

Click in to tune in at The Neil Garfield Show

Or call in at (347) 850-1260, 6pm Eastern Thursdays



We continue answering questions tonight on rescission and legal strategies that lawyers should be thinking about. It’s all about the lack of meat in the sandwich — there is no underlying transaction IN THE CHAIN CLAIMED BY FORECLOSING PARTIES — no money exchanged hands. There is no loan at the base of all that paper that banks are fabricating for court. Money was loaned — but not by anyone in the chain that claims rights to the loan. They have no rights and the judicial system needs to scrutinize these transactions and the foreclosures initiated by parties who have no ownership, no authority and cannot prove the balance of the loan.

The question is whether the courts will realize that this is about money, not paper.

17 Responses

  1. holder to title – it happened to me.

  2. The depositor will cause the trust assets constituting each pool to be assigned without
    recourse to the trustee named in the accompanying prospectus supplement, for the benefit of the holders
    of all of the securities of a series.
    The trustee will not have physical possession of the mortgage notes related to the mortgage


    iii. Impact of Monoline Insurance and “Recognized” Claims
    55. Insured RMBS Trusts (other than those insured by FGIC and Ambac) have
    received, and in the future are assumed to receive, payment of their losses to the extent necessary
    to pay the principal and interest due to the insured tranches of such trusts directly from the
    applicable Monoline, which in most cases eliminates the need for any distribution to those
    RMBS Trusts given the structure of the Plan and the inter-related settlements contained in the

    38 See, e.g., Annex III to the Plan Support Agreement [ECF No. 3814].
    12-12020-mg Doc 5675 Filed 11/12/13 Entered 11/12/13 18:41:11 Main Document
    Pg 20 of 2421
    Plan.39 In such cases, the “recognized” claim of the RMBS Trust is set to zero, or is reduced, to
    take into account the full or partial payment of claims by the applicable Monoline, unless an
    exception applies.40 The rights of Insured RMBS Trusts are reserved in the event that the
    applicable Monoline does not honor its obligations.41
    P. Notices to Holders
    56. Law Debenture and/or Wells Fargo have, in their respective capacities as Separate
    Trustee, trustee and indenture trustee, regularly provided notice of matters related to the RMBS
    9019 Motion and other significant events in ResCap’s Chapter 11 Cases to the holders in the
    Law Debenture RMBS Trusts.
    57. I further understand that certain of the RMBS Trustees, including Wells Fargo,
    jointly retained The Garden City Group, Inc. (“GCG”) to provide certain administrative services
    in connection with noticing various Holders, including the facilitation of the dissemination of
    notices to the various Holders at the direction and on behalf of the RMBS Trustees and the
    creation and maintenance of a website for Holders that provides contact information for the
    RMBS Trustees, recent developments in the Chapter 11 Cases, links to relevant documents filed
    in the Chapter 11 Cases, and upcoming Court deadlines and hearing dates (the “RMBS Trustee
    58. As further described in more detail in the Affidavit of Jose C. Fraga (“Fraga
    Affidavit”), which is being filed concurrently herewith, GCG has distributed to various Holders

    39 In consideration for these payments, the Monolines are allowed significant claims against the applicable
    Debtors, on account of which they are anticipated to receive substantial distributions from such Debtors’
    40 The exceptions are described at Art.IV.C.3.(a)(iv) of the Plan.
    41 Art.IV.C.4 of the Plan.
    12-12020-mg Doc 5675 Filed 11/12/13 Entered 11/12/13 18:41:11 Main Document

  4. 424B5 1 gmacm2006-j1_prosupp.htm

    Prospectus supplement dated October 25, 2007
    (To prospectus dated April 17, 2007)


    Seller, Servicer and Sponsor

    Issuing Entity

    Residential Asset Mortgage Products, Inc.

    GMACM Mortgage Pass-Through Certificates, Series 2006-J1

    The trust holds a pool of one- to four-family residential first mortgage loans.

    The trust issued the Class PO Certificates that are offered under this prospectus supplement
    on February 27, 2006, as more fully described in the table on page S-7 of this prospectus supplement.

    Credit enhancement for these certificates is provided by subordination.

    Purchasers of the offered certificates will receive distributions on the 25th day of each
    month, or, if the 25th is not a business day, on the next business day, beginning November 26, 2007.

    Issuing Entity

    The depositor established a trust with respect to the GMACM Mortgage Pass Through
    Certificates, Series 2006-J1 on the issuance date pursuant to the pooling and servicing agreement.
    The pooling and servicing agreement is governed by the laws of the State of New York. On the
    issuance date, the depositor deposited into the trust a pool of mortgage loans, secured by one- to
    four-family residential properties with terms to maturity of not more than 30 years. All of the
    mortgage loans were purchased by the depositor from the seller pursuant to a mortgage loan purchase
    agreement, dated as of the issuance date, between the seller and the depositor. The trust does not
    have any additional equity.

    Charge offs are taken only when the servicer has determined that it has received all
    payments or cash recoveries which the servicer reasonably and in good faith expects to be finally
    recoverable with respect to any mortgage loan. this would go to the affact the gmac mortgage,llc and res-cap did in 2009, charged off, its 22 billion in mortgages.
    so was our mortgage one of them??? should be question.

    Non-Recordation of Assignments; Possession of Mortgages

    The seller will not be required to record assignments of the mortgages to the trustee in the
    real property records of the states in which the related mortgaged properties are locate

    d. Other
    than with respect to the mortgage loans recorded in the name of MERS,

    this statement , says ( other than ) meaning- EXCEPT FOR THE MORTGAGES RECORDED IN THE NAME OF


    GMACM will retain record title
    to the mortgages on behalf of the trustee and the certificateholders. Although the recordation of
    the assignments of the mortgages in favor of the trustee is not necessary to effect a transfer of the
    mortgage loans to the trustee, if GMACM were to sell, assign, pledge, satisfy or discharge any
    mortgage loan prior to the recording, if any, of the related assignment in favor of the trustee and
    in some cases even after the recordation of any related assignment, the other parties to the sale,
    assignment, satisfaction, pledge, or discharge may have rights superior to those of the trustee. In
    a small number of states, including Florida, in the absence of recordation of the assignments of the
    mortgages, the transfer to the trustee of the mortgage loans may not be effective against certain
    creditors or purchasers from the seller or a trustee in bankruptcy thereof. If those other parties,
    creditors or purchasers have rights to the mortgage loans that are superior to those of the trustee,
    certificateholders could lose the right to future payments of principal and interest to the extent
    that those rights are not otherwise enforceable in favor of the trustee under the applicable mortgage
    The depositor will cause the trust assets constituting each pool to be assigned without
    recourse to the trustee named in the accompanying prospectus supplement, for the benefit of the holders
    of all of the securities of a series.
    The trustee will not have physical possession of the mortgage notes related to the mortgage
    loans in the trust. Instead, GMAC Bank, in its capacity as custodian, will retain possession of the
    mortgage notes, which may be endorsed in blank and not stamped or otherwise marked to reflect the
    assignment to the trustee. If a subsequent purchaser were able to take physical possession of the
    mortgage notes without knowledge of that assignment, the interests of the trustee in the mortgage
    loans could be defeated. In that event, distributions to certificateholders may be adversely

  5. Omg trespass there is remedy its called rule 60 – FRCP relief from judgement or order, thats the basis of my appeal and the judges “out” he gets to be wrong gracefully if you like. ( i hope hes not reading this- doubt it) we know federal judges are appointed for LIFE but they are human.
    timing 60b – you have no more than1 year after the judgement or order or date of the proceding, gives the court as i remember the term i think ” a grand reservoir”
    Also check out rule 56 FRCP. Re summary judgement ( violation of)
    Heres some case law cited in my appeal the ” test or burden of rule 60b is stated in:
    Magness v,0. Russian Federation, 247f.3d609- court of appeals 5th circuit analysing in light if 8 factors number 8 being “any other factors relevant to the justice of the judgement under attack” so rational is that therefore that judgement has to be disturbed, ok.
    You know i can almost cite my whole darn brief by heart!
    You know im not a lawyer but this would be good research that you must determind if appropriate for yourself. Oh and we are allowed to help one another and seek help with our cases anywhere we choose. because it’s not illegal. Get the nolo book ” how to represent yourself in court. I found it helpful and visit Cornell law. The best book is Thompson west for FRCP get the latest edition you can afford i git mine second hand a few years old for fifty bucks and i believe the judges refer to that partcular book.
    And now we have that US supreme court decision re rescission to consider, but carefully so.

  6. Thanks Deborah,
    I was shocked to see the article point to a case, the interviewee said he was there when a us attorney said it, and the case is still public, but the phrasing was, even if everything stated is true (undisputable fact is my addition), and if there is no remedy in law then they have to issue a summary judgment and dismiss the case.

    I know a lot of people bring things into court to dispute and it seems to me the judge picks what he can to botch the thing for appeal, (the ball was moved from one shell to the other when no one was paying attention), just me thinking this, then the one who brought the case appeals it on how the judge botched the original case, and the appeals court sees he botched it BUT the botching is based on his interpretation of an argument that was not brought up on appeal.

    So they do some mumbo-jumbo-sys-bam boom, move because they already moved the ball around under the shell and will either send it back to the prior court or make a determination.
    All deals are final folks!

    Thanks for explaining, but if one can bring a suit and there is no remedy in law, well what are they there for, it is not a victimless institution, as there are people who truly are outside their jurisdiction and they don’t even bother with them.

    When I was growing up, theft was criminal.

    You couldn’t tell me it was a legal process to steal homes and launder titles into someone’s ownership.
    Trespass Unwanted

  7. Npv
    No they dont

  8. Jg
    Plaintiff in the appeal ninth citcuit,
    defendant in state court of appeals
    Two separate problems – state refers to a default judgement in a forcible detainer/ unlawful detainer matter which i found out about after i was in ninth circuit – the material facts that came to light in that filing prepared by a foreclosure mill ( attorney/ attorney in fact, for and also for, )are material to the ninth circuit appellate case in order for justice to be served because its necessary to complete the record – cant cite my caselaw unless i go look but i have a couple or so to share if of any use.
    Its still being ajudicated. May i emphasise however that the state matter is about right to possession
    But the postures of the parties is contradictory and innthe light of all the evidence is compelling.

  9. Judge, i just found out that a undisclosed third party warehouse lender funded my loan and i want to rescind. The Judge quickly responds – you should get an attorney, not get out!

  10. dwynn – who is the plaintiff? I mean is it you or are you the defendant?

  11. Trespass unwanted
    Nolo books – represent yourself in court are great
    Re summary judgement there are rules that apply there must be no disputable material fact. you can cross motion also and i do believe the judge must give reason why it is or is not granted. Summary judgement is a mini trial, and the case is decided on the merits presented,if granted against you, you can move for reconsideration, they move as early as they can ifvthey think they can get away with it. Theres a very interesting spin on that motion in my case it got morphed from denied to granted, outside the rules, twice…. Long story. Im in appeals both state and ninth circuit. You chose not to go on with your case??? Not sure by your writings here but honestly i understand if you stemmed your bleeding. I am going as far as i can, US Supreme if necessary with my little pro se right.

    Not legal advice. Do your own research and seek best council if possible.

  12. Men appoint their self the right to harm other men, and when they die some other man take over and execute their will to continue to harm men in their name.

    That’s definitely a trespass unwanted.

  13. Here’s sometihng I didn’t know. Due to copyright restriction I can’t quote it exactly, so I wrote my own opinion of what was stated and I don’t know if I’d be allowed to post the link even thought the site gives permission to post the link over any other communication of the contents of the article.

    The statement discusses a motion for summary judgment.

    I did not know it was more than a motion for dismissal.

    No one ever revealed what grounds it was dismissed on, they always talk about seeking a summary judgment and whether it was granted or denied.

    if everything brought in the lawsuit is true and If there is no remedy at law there can be no lawsuit.

    ie. Dismissed.

    read it for yourself, search the words
    Is This The Most Terrifying Interview of 2015?
    after the heading
    market rigging

    And summary judgement is not available to the homeowner, why?
    That should be the reason for the appeal, but don’t know legal things things. I know nothing.

    Trespass Unwanted

  14. Regarding rescission, bank agreed to rescind loan but wants common law rescission so it gets it money back first after it violated Federal disclosure laws and did not enclose a mortgage rescission statement. Did this happen to anymore homeowners in a refi? More than 5 is considered predatory.

  15. On the Rescission matter. What do you do when company forged your name and are trying to say you owe the loan? Need help with a lawyer to fight this.

Contribute to the discussion!