The continuing bias in favor of the banks’ fraudulent scheme of mortgages and foreclosures gives rise now to a nutty theory. The logic seems so obvious to the courts and yet it is erroneous. In a nutshell the theory goes, if a homeowner eventually proves that the parties attempting to foreclose have nothing to do with the loan, then the homeowner is barred from receiving fees under the contract.

The fact that the foreclosing party represented and fought for status as a party with standing and was entirely dependent upon their ability to enforce contract (note and mortgage) means nothing to the courts. They want to set up whatever obstacles they can to valid defenses  showing the homeowner owes nothing to the parties who are foreclosing.

Let us help you plan your narrative and strategy: 202-838-6345. Ask for a Consult.

Register now for Neil Garfield’s Mastering Discovery and Evidence in Foreclosure Defense webinar.

Get a Consult and TEAR (Title & Encumbrances Analysis and & Report) 202-838-6345. The TEAR replaces and greatly enhances the former COTA (Chain of Title Analysis, including a one page summary of Title History and Gaps). to schedule CONSULT, leave message or make payments. It’s better than calling!

see 4th DCA Reaffirms No Fees to Prevailing Homeowner

Essentially the courts are punishing homeowners for winning the case and letting the real offender go free without any form of sanctions or payment to the homeowner. By disallowing fees to the homeowner they make it less likely for homeowners to raise meritorious defenses including the key defense that the parties seeking foreclosure are scamming the court.

The logic of the court is that once you prove that the foreclosing party has no factual or legal relationship to the loan, you have destroyed your claim to enforce fees via statute, contract or both. This is also in keeping with the finding that fraud, forgery and fabrication once proven, means nothing in terms of clean hands.

The Courts could have shut down the flood of foreclosures that started 12 years ago and continues to this day. All they needed to do is continue their procedure of making absolutely certain that the foreclosing party actually had a right to foreclose. Instead of being worried about fraudulent claims, the courts are worried about meritorious defenses. THAT is the opposite of due process. It is a political decision instead of a legal one.

First the basis of this modern “doctrine” is that proof that the forecloser is a stranger means that there are no remedies to the victim of fraudulent behavior. That is simply due process in reverse. Once someone files something in the courts or county records, they are submitting themselves to the jurisdiction of the court, even if it is based upon fraudulent claims based upon forgeries and fabrications. If this “doctrine” were true and sustainable it  would present an optional basis to avoid penalty for lies told in court. They can do it and if they are caught they pay nothing.

Second, the forecloser has hoisted itself on its own petard. By proclaiming that it is the only party to a contract entitled to enforce it, it must suffer the consequences of failing to prove that — especially if the evidence shows, as in the case cited above in the link, that the failure was not just wrong or negligent, but rather intentional and fraudulent. The courts are rewarding bad behavior.

Third, fees, costs and other sanctions should be available against a party who lies to the court about a transaction and loses the case because they were found to be lying.

The entire concept of denying the existence of a contract when both parties agreed in court that the contract existed, is out of Gulliver’s Travels. Perhaps what is needed is some pleading in affirmative defenses or counterclaim that the action is frivolous and fraudulent, seeking fees for abuse of process or wrong full foreclosure. But that again puts the intolerable burden of litigating the right to title and possession of a homestead on the homeowner.

The courts are interposing an issue that should never come up, to wit: if you own your home and you have obvious defenses against foreclosure that shows that the party attempting to foreclose is lying to the court, you need to factor in the high cost of litigation before you defend — or get out and let the the liar enter the house.

7 Responses

  1. The BAR legal system and the banking system are the two pillars of the temple of Saturn; to keep colonial feudal imperialism in place; the BAR is a secret society; it recognises mystery titles;

    The BAR uses semantic deceit under color of law to garner semblances of consent; they are ACTors making ACTs; black magic dark arts occult; eg. magi-strates;

    Take a look at your title deed; it puts you as “tenant”, not the owner;
    So, who is the owner? The Crown; London; in turned controlled by the Vatican since 1215;

    You do not own a home; you are feudal tenants; enemies-in-the-field;

    And, it claims to give you right to title of “property”; its not speaking about real buildings, tenements or land; it is in fact referring to pieces of paper; legal fictions; all imaginary and conjured;

    Download a Black’s Dictionary 4th Edition; read the definition of each word used and then you will awaken to the truth;

    This is why common law jural assemblies are springing up; also read the articles of Anna von Reitz, a non-BAR Judge; only we can save ourselves; in peace

  2. If judges system court r not corrupt, the bank wouldn’t dare to fabricate Robo sign and lie! Politics problem

  3. Fraudclosure is still going on all over the country. Millions of home down the tubes and millions of documents which are forged and fraudulent.

  4. We need a national homeowner bill of rights. Still in CA w a hobr we have denial of basic facts and mentality that homeowner can’t benefit in courts and agencies. Corruption of courts and capture of agencies. They all need to be called out outside of court like lawyer Rosen is doing in FL.

  5. Agreed. But 10 years later and millions have been and will continue to be fraudclosed upon. Mainly because the people are afraid to use their rights given in the 2A. And most of the lawyers are more useless than the judges. It’s a WAR and the people were crushed.

  6. Excellent point.
    In addition, these decisions expose the court’s bias for the grossly corrupt and exploitive US mortgage system.

    As recently as the 1970s, US mortgages paid total interest amounts equal to about 25% of principal. So, MBS were barely a thing.

    Since then, borrowers typically pay interest amounts equal to 100-300% of the principal. This makes borrowers the best global profit sources on the planet.
    Its understandable why no one wants this MBS cash cow die.

    So their solution is to deny the ‘cow’ any rights to their own productivity and deem the exploiters victims of the ‘cow’.

Contribute to the discussion!

%d bloggers like this: