How to Deal with Motion for Substitution of Plaintiff in Foreclosure Actions

The single basic tool of the investment banks, who are secretly running the whole foreclosure show, is musical chairs. By rotating the players they can successfully bar the courts and the litigants from knowing or pinning down who is real and what is real. All of that ends if you sue the investment bank.

Look at any foreclosure in which claims of securitization are known or suspected and you will find “rotation”.

In nonjudicial states it starts with “Substitution of Trustee” on the deed of trust which can be done without any motion.

Before or after that there is a change in the name of the servicer, which has perplexed judges since I first entered the picture in 2006.

Then there was a change in the credit bid after the foreclosure was complete or during the foreclosure sale where a new party mysteriously ended up “owning” the property.

And now we see with increasing frequency, the substitution of a new claimant or plaintiff during the foreclosure proceedings.

Motion for substitution of Plaintiff are becoming the rage simply because most state courts require a wrongful foreclosure action to be against the party who initiated the action. So the investment banks simply took their cue from that. They designate a new Plaintiff or a new claimant during the proceeding. Presto there is no wrongful foreclosure action. But there still may be the normal abuse of process claim.

Either way, they have no right to designate the first or the new Plaintiff or claimant. 


I would say that the likelihood of successful opposition to the motion for substitution of plaintiff is very low, as long as some explanation is offered. But this should trigger aggressive discovery where you go after the transaction by which the new plaintiff became the designee.

In a nutshell no such transaction exists because there was also no transaction by which the first Plaintiff became a creditor. It is all smoke and mirror. 


I am not saying that you shouldn’t oppose the motion for substitution of plaintiff. What I am saying is that the judge will regard it as merely a housekeeping chore until you raise the central issues of your defense narrative.

The moral of the story is that if you are going to sue for wrongful foreclosure you should be naming the investment bank that was calling the shots. Everyone else is a moving target with plausible deniability. That may not always be so easy to determine, but it isn’t impossible. We can help with that.

If you go after the investment bank you will be able to overcome the plausible deniability and technical requirements of claims based upon wrongful foreclosure. You can say that the action was brought by them using the name of a sham conduit. The change in “Plaintiff” therefore changes nothing.

Neil F Garfield, MBA, JD, 73, is a Florida licensed trial attorney since 1977. He has received multiple academic and achievement awards in business and law. He is a former investment banker, securities broker, securities analyst, and financial analyst.*

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2 Responses

  1. So I was originally fighting BOA NA. Originator/Servicer…. Freddie Mac Investor. ..,,Then they switched to SLS. Servicer/Plaintiff…Freddie Mac Investor. Now they switched again to Rushmore Servicer…. US Bank NA Trustee for Truman SC 2016 Title Trust. Creditor…… SLS. Still remains Plaintiff (???)….. Freddie Mac allegedly sold to Truman Capital. Investor…..Attorneys have now just switched in middle of Fraudclosure complaint, although the original debt collector law firm has no clue they have been dropped and continue to contact me. And the new lowlife law firm had Rushmore charge my account $2500 for just showing up and doing absolutely nothing.

    Hard to believe. But true story !!!!

  2. My investment bank (at least the public face that issued securities) is Bank of America ,, and in reply to a TILA rescission replied that there is no note connecting them to the transaction… This is going to get good. They’re the certificate underwriter/issuer ; responsible for 25% of the selling syndicates sales and the financier of record that table funded Option Ones “loans”.

    Thanks Neil

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