Livinglies's Weblog

If you are waiting for one of those “settlements” to mean something before your home goes up for auction, don’t hold your breath. Relief is not coming. The “simple” truth is that the investor is interested in the debt (i.e., the money owed by you) but everyone else is only interested in the paper. If you can absorb and accept this fact, you have a significantly improved your chance of successfully defending your home from foreclosure.

It’s all about the paper and fabrication of most of the paper. The puppet masters like Credit Suisse, Chase and others are taking credit for debt relief on debt they don’t own or that have been discharged in bankruptcy.

The banks get to write off the “loss” while investors and borrowers actually suffer the loss. The banks pay less in taxes. And then they “resecuritize” the loans they don’t own into “new” securitizations (like Metlife’s latest offering), sell the new “toxic” (i.e., bogus) bonds as “mortgage backed” securities. Neither the borrower nor the investor is informed of any of these paper illusions. The borrower still thinks he has a loan according to some paperwork and the investor has other paperwork causing him to think he is owed money by a trust that has no money and never will.

This explains why borrowers never see any significant results out of the 50 state settlements or any of the civil settlements with het department of justice. The banks are forgiving loans owned by other people who are actually suffering the loss, less any confidential settlement the investor or borrower has already received.

Those settlements and the conduct of the banks after the settlements merely provide cover for the banks that sold “toxic” mortgage bonds. Those bonds were worthless because they were issued by a trust that never received ownership of the loans. This pretense lies at the root of the foreclosure nightmare and at the root of the slow economic recovery. The banks literally took the money and ran.

Get a LendingLies Consult and a LendingLies Chain of Title Analysis! 202-838-6345 or info@lendinglies.com.

https://www.vcita.com/v/lendinglies to schedule CONSULT, leave a message or make payments.

OR fill out our registration form FREE and we will contact you!

https://fs20.formsite.com/ngarfield/form271773666/index.html?1502204714426

THIS ARTICLE IS NOT A LEGAL OPINION UPON WHICH YOU CAN RELY IN ANY INDIVIDUAL CASE. HIRE A LAWYER.

—————-

see https://www.nytimes.com/2016/12/23/business/dealbook/deutsche-bank-mortgages-justice-department.html?_r=0

see https://www.nytimes.com/2016/12/23/business/dealbook/credit-suisse-mortgage-investigation.html

See https://www.nytimes.com/2017/10/27/business/credit-suisse-mortgage.html

Once a homeowner executes “loan documents” they never go away because they have no relationship, in most instances, to the debt. The debt is owed, at least equitably, to other people who have no knowledge of your transaction just like you have no knowledge of the transaction in which they put up money in the first place.

The banks have been faking losses since the mortgage meltdown began. TARP was first designed to cover losses on loans, but the banks didn’t own the loans. Then it was redescribed as losses on mortgage bonds, but the banks were selling the bonds, not buying them. Then it was described with the general term “Toxic assets” with the worst being thrown into the Maiden Lane entities. The truth is that the banks didn’t lose money on loans or bonds. They made money all the way up and all the way down.

And now they are even making money on loans that either have never existed or which no longer exist. But add to that the 50 state settlement and the various settlements with the Department of Justice, to wit: the banks promise to “pay” billions of dollars that most borrowers never see. They get credit for their “payment” through “forgiveness” that is as fake as the foreclosures— frequently at the rate of $1.25 credit for every $1.00 forgiven. And they forgiving loans they never owned. So they take the “loss” of someone else and make money on it.

I know this is all terrible complex — but you need to know this stuff if you are thinking you can win that case defending against a foreclosure. You and your lawyer must know and believe that the detachment of the debt from the paperwork is not merely some technicality. It goes to the heart of whom you owe money to, if any, after deductions for settlements; and it goes to the heart of whether your application for a modification or work-out is really being reviewed by or on behalf of an investor.

The investor’s interest is in the debt whereas the servicer’s interest is in the paper. The Master Servicer (Bond underwriter) has an interest only in the preservation of the illusion created by the paper. The investor(s) are only interested in the money that was promised to them by a trust that had no business or assets, much less loans. When you apply for a modification, your are applying to parties that have an active interest in denial of your modification or workout. They are interfering with your communication with the actual owner of your debt.

If you think about it, this explains the zombie foreclosures and other apparently random acts committed by the banks that seemed so obviously against the interest of anyone concerned with actually getting their money back. Local governments still have not grasped the idea that the burden placed on their budget by demolition of neighborhoods and abandonment of property that could have been “worked”  out if the owner of the debt was involved — is just an illusion. But it is an illusion, just like the foreclosures themselves, that is all too real if people believe it.

Filed under: foreclosure |