2008 Schack Decision Reminds Us How Something “Nefarious” Is Happening

Without a party actually getting hurt by nonpayment, why should anyone pay their mortgage?

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see Deutsche Bank National Trust Co_Justice Schack

It is worth remembering when the foreclosure tidal wave began and the banks were at least as arrogant as today creating sham entities, sham addresses, sham  documents, fabricated instruments with sham people. And it is worth remembering several judges, Judge Arthur Schack among them, who stood up to the great powers of our nation and simply told the banks to follow the law or give up their claim.

  • This is the decision where Judge Arthur Schack stated his refusal to accept obvious irregularities as follows:
    • All at the same Suite Number at the same West Palm Beach address undoubtedly controlled by Ocwen subject to instructions from various investment bankers: Goldman Sachs, HSBC Bank, N.A., Ocwen Federal Bank FSB, and Mortgage Electronic Registration Systems, Inc.
    • Jeff Rivas signing affidavits on behalf of multiple entities all within the same time frame
    • only if it presents to the Court within thirty (30) days from the date of this decision and order: an affidavit from Jeff Rivas describing his employment history for the past three years; and, an affidavit explaining why it shares office space at Suite 100, 1661 Worthington Road, West Palm Beach, Florida 33409

Needless to say nobody ever heard from the lawyers again in that Castellanos decision. Why? Because they had nothing to say that would not have further undermined their scheme to defraud the country and homeowners.

If securitization was the actual game then a real group of investors would have purchased a real group of loans; but that is not what happened.

If a real group of investors had purchased a real group of loans then they, or their authorized representative would have had the right under the laws of every state to foreclose on property when the borrower ceased payments. But that isn’t what happened either. The investors didn’t buy the loans in either form or substance. They have no right to foreclose in law or inequity.

If anyone had paid money to anyone for ownership of the debts they would have paid value for the debts and be the owner of the debts and be qualified in every way to be called the mortgagee under a mortgage deed or beneficiary under a deed of trust. But that isn’t what happened either. Instead we have multiple parties fronting a crowd of rotating servicers whose sole purpose is not to allege the basic elements of debt collection and foreclosure but rather to obscure them.

If there existed any party who had paid money and had acquired the debts, then fabrication of documents and robosigning, the hallmark of the foreclosure crisis, would have been unnecessary. But it was necessary because there was nobody to sign any document declaring that they were the creditor — i.e., the party who had a financial interest in the debt such that they would lose money if the debt was not paid.

All those problems exist because the Wall Street Banks got greedy and created the holy grail of investment banking: what if you did an IPO and never had to account for the proceeds of the sale of those securities?

The real question is not why should you give homeowners a windfall over some technical problems with the paperwork; no, the real problem is why would you give the banks and all their affiliates even more revenue through foreclosure than they had already received, which was at least 10 times the principal of the amount of the loans?

The answer to the first question is that no, homeowners should not get a windfall because of technical problems with paperwork. Creditors, real creditors that is, should be able to execute corrective paperworks, affidavits and filings to correct merely technical errors.

The answer to the second question is that if the “loan transaction” was strictly a revenue deal and not a loan of money where someone would lose money if the money wasn’t being repaid, then commons sense and the law (UCC Article 9 §203) clearly stands for the proposition that nobody should be able to foreclose on a home in order to just receive revenue.

There simply must be a debt and a creditor who has paid value and owns that debt. The fact that the banks can’t come up with such a party is evidence that the law is out of whack with the innovations of Wall Street and malfeasance on Wall Street. But without a party actually getting hurt by nonpayment, why should anyone pay their mortgage?

Practice Hint: The problem is that the investment bank who advanced funds for origination or acquisition of the loan sold off everything about the loan. In the end it was left with nothing but profit.

But while selling off various attributes of the debt the investment banker never actually sold the debt, which enabled the investment banker to sell more and more “attributes” of the debt, both real and imagined, until the market was saturated with all sorts of certificates, contracts, insurance policies and bets and options organized as the securitization infrastructure.

And THAT is why we have $1 quadrillion in “nominal” value of instruments in the shadow banking market that is scaring the crap out of all central bankers who are in charge of the only actual currency which is worth a mere $75-$80 trillion.

So if people just stopped paying on their mortgage loan the securitization infrastructure built over each residential loan would collapse to something like 1/10 of 1% of the nominal value. And the next bailout would be to pension and related retirement funds.

So if you are a homeowner you are wondering the answer is yes. You were selected to pay for the wrongdoing of investment banks and basically nobody else. And when you lose your home in foreclosure those same players are laughing because although they turned your life into misery they just made another $300,000 in INCOME.

 

9 Responses

  1. Jan van Eck — how corrupt is that? And, our government does not care — as long as the stock market goes up – nothing matters. But that will not last. It will get worse. Everything in cycles – cannot cover it up with endless low rates. If that is were the easy fix – it would not be available.

    Thank you.

  2. Readers may note that, after Deutsche Bank took numerous hits in Judge Schack’s court, they issued an Instruction to all their foreclosure mill law firms to not bring any action in the Brooklyn Superior Court until Judge Schack was no longer on the Bench. Sadly, Judge Schack died, and now Deutsche Douche Bank is back in business.

  3. Java — I have been blocked from doing that.

    Judge Schack was a super smart judge – and he took it head on from the beginning – he was shut down.

    The mergers/acquisitions are massive, and beyond the ability of the “homeowner” to ascertain. Beyond ability for even attorneys to ascertain. Little names, little corporations, mergers, acquisitions – all is concealed. It has NOTHING to do with trusts and trustees — that is not relevant to the borrower. Not their problem — security underwriters’ problem. NO RELEVANCE.

    So – the maze – of acquisitions and mergers is massive. And, would you believe these occur as that entity is going bankrupt?. New Century, Wachovia, Countrywide, Indymac, Ameriquest, Argent, Bear Stearns, Lehman, Soloman, Goldman, Fremont, – I am sure I am forgetting major players.

    Your loan is NOT where anyone says it is. NOT there. And, courts? Hate to say — but the judges are not the brightest bulbs in the chandelier.-by far. They have no clue. And when YOU don’t provide the details – they claim — not good enough. But, it is up to the parties to disclose true identities, and path of the loan – including mergers and acquisitions. That is required under the law.

    Trusts and trustees simply have no relevance. We can argue to hilt – but – NO RELEVANCE to the borrower. True party concealed. Violation of law to not provide identity of the concealed creditor by the debt collection. Merger and acquisition included.

    The government knows this and does not want to fix it – so no one will ever know. Why? The economy is not good. Nothing to do with trade wars – a front – Those trade wars have been collapsing global economy for decades. Store after store closing. We cannot rely on “services.” That is a destructive economy. Worst is yet to come.

  4. I cannot find my Note.

    My Mortgage (aka Deep of Trust) was recorded without ANY assignment into any Trust.

    As of today the purported “buyer” PennyMac (aka Countrywide) who purchased my Note from Caliber Home Loan (aka Countrywide) has absolutely no records of my loan and sent me 20 runarounds “we need more time to research” since May.

    In the meanwhile my payments are collected by Bank of America who owns BOA Home Mortgage aka Countrywide……

    Caliber and PennyMac cover for BOA involvement like if I asked them for a password to CIA server and a fob key to Fort Knox. …

  5. Having scoured my “note” and “deed of trust” I haven’t seen any clause where I agreed to contract with a buyer of my debt for their beneficiaries. I fail to understand where the lawsuits are for using my credit score, personal information and payment guarantee, for the income of others.

    Where did this crap originate from? My paperwork appears to have been presented to three (3) lenders. I wonder if the company actually got loans from all of them, attempted to secure one lender on paper and then not pay the people “they” borrowed the money from? Even the “alleged lender” New Century took money from warehouse lenders, then filed bankruptcy. This has left me, spinning in the mud, getting relief.

  6. The problem is – too many borrowers do not know how to use the Law and banks do not want borrowers to learn how to use the law.

    Bankers and their affiliates deceive you telling that it is NORMAL to sell and resell your Note without any records and call all information “proprietory”

    You mortgage does not say anything that the information about the sale must be kept secretive from the borrower when lawfully demanded. No single word in the Mortgage “Information about sales of the Note is a highly secretive and will not be provided to the borrower under any circumstances” – because nobody will sign such mortgages.

    Yes, it can be sold without Notices – but when disclosures are requested, they must be provided. This is the LAW.

    It is NOT banks’ proprietory information. My Promissory Note is not a FREE GIFT for a banker who refuse to give me a copy with all assignments and proof of value paid.

    Yes, it will help if everybody will stop to pay their mortgages and demand a validation of Debt and send QWR and Letters for Adequate Assurances.

    USE THE LAW. Each sale and purchase requires a RECEIPT.

    Do not pay your mortgage until a bank or the Servicer provide you a receipt and a copy of your fully endorsed Note.

  7. I AGREE WITH THAT FIRST COMMENT

    Judge Schack, however, was in the Supreme Court of Brooklyn when he made that decision…I had exactly the same plaintiffs, signatories and more. Ocwen was sharing space right near me Of course the NJ courts ignored.

  8. This is what makes it so hard on former homeowners who lost their biggest investment in their lives to foreclosure. It is that it was due to fraud and malfeasance, NOT just to “nonpayment” of the mortgage debt that we homeowners should be so ashamed of ourselves for. There was manipulation of credit scores, lying to the homeowners about what they qualified for, putting them into subprime loans when they qualified for better, etc. I am not so sure that there was not also a conspiracy in conjunction to offshore so many of the jobs, that were held by the middle class, so that people WOULD get into a position that they could not pay their mortgages and the fraudclosure scheme could operate. What a windfall for the 1% and for those aspiring to join them! But we homeowners who have really been crime victims need help, we need justice, vindication, and to be made whole. The lid needs to be blown off the scam and the fraud, and it needs to be published in the mainstream media with the same frequency and furor that the Democrats vilify our President Trump!

  9. Yes….Been saying it for 10 years. EVERYONE needs to stop paying their mortgage at once. Revolution without a single shot fired. That’s why I laugh when I hear land of the free and home of the brave. Today. Nothing could be further from the truth.

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