Foreclosure Facts 101: Keep it Simple

Sometimes we need a reminder of what ultimately matters when fighting wrongful foreclosure. Most foreclosures are based upon false claims of securitization, but proving it can be a challenge.

Foreclosure serves the following purposes:

  1. The purpose is to convert the asset into (1) a legal document that makes it appear as though all preceding events were valid and (2) to steal the money.
  2. Virtually all foreclosures are wrongful — i.e., they are not filed for the purpose of getting relief to the equitable owner of the debt —- the investors who thought they had legal ownership pf the paper and the debt. They are filed to steal money from investors and to make it look official.
  3. Default: The debt arose when the homeowner got the money. No question about that.
  4. The homeowner was the obligor of that debt and the party whose money was used to fund the “loan” was and is the obligee.
  5. The obligee is an undisclosed group of investors that are most likely NOT tied to any one specific Trust.
  6. The money put up by investors was never turned over to the Trustee of the REMIC Trust, leaving the Trust as irrelevant.  So the cessation of payment by the homeowner was not a default as to the party claiming the default if they are: (1) not the obligee or (2) not the authorized representative of the obligee.
  7. That is because the party declaring the default has no financial or equitable interest in the loan. The homeowner owes them nothing.
  8. BUT it could be possible for a court to construe the smoke and mirrors as having been for the benefit of investors and therefore grant investors (in a separate proceeding) equitable ownership of the existing note and mortgage.
  9. If that were to happen the investors, if they can identified, would be legally entitled to declare a default relating to the cessation of payments, although in a court of equity it is likely that the unpaid money would be tacked on to the end of the mortgage.
  10. Thus the default period would be the point in time when the investors as obligees, were given a judgment by a court in which they were declared the equitable owner of the mortgage and note as filed.    Until then nobody owns the debt, note or mortgage.
  11. Successful judgements occur when you can bring the judge’s attention to the proper analysis and narrative.

Neil F Garfield



5 Responses

  1. This is precisely why pro se’s must get help to lay out the cornucopia of affirmative defenses…if you win on one…it can stop the entire foreclosure and render a verdict for the homeowner. We can assist with a free consultation if you call Consumer Rights Defenders at 818.453.3585 today!!!

  2. “Virtually all foreclosures are wrongful” This may be very true in Rhode Island, The sad part is that there are no lawyers volunteering to help homeowners. Lawyers say that some loan documents are fabricated but at the same time they don’t want to take up cases as they say courts are not giving favorable judgments to homeowners. This is very sad.

  3. I truely beleive in the near future… Folks will be reading about the wrong doings to me by Wells Fargo & 21 Mortgage .. Keep plugging away.

  4. Reblogged this on California freelance paralegal and commented:
    This blog post is an excellent example of the KISS principle. Keep it simple stupid. Otherwise you will just waste your time with minutiae

  5. Thank you, good summary. I’ll pass it on to others who are facing foreclosure right now.
    I had a written offer to buy my house but had to file bankruptcy mainly to avoid a foreclosure sale which was knowingly scheduled before the closing date.
    Now the servicer, Bayview, (via Kass Shuler law firm) is trying to get relief from the stay because they claim their interest in the house could be losing value and they will suffer financial loss. This is a frivolous claim but the judge granted a hearing for it anyway. I pointed out that their name is not listed anywhere on note, mortgage, or any other transfer document, so they could not provide even basic evidence that they have rights of a creditor. They have also not disclosed how much they paid, which would reveal the financial loss they would actually suffer.
    Additionally, I said they would get their money in a month. So why go through the trouble and cost of a foreclosure sale? Still waiting for response.
    Are these servicers really a bunch of morons? Or sociopaths who don’t care about money, just depriving others of it?
    Its already so irrational and now its getting diabolical.
    Thank you Mr. Garfield for all your diligent reporting of this twisted drama.

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