Where is government when you need it?

In practice, the current foreclosure practices, which violate substantive, procedural, and evidentiary law at every turn represent a form of extortion upon the American homeowner. Government agencies continue to ignore the obvious and outright deceit and trickery involved in the sale of securities that do not sell loans, and the foreclosure of loans that no longer exist.

Why must consumers, with the least resources and the least access to relevant information, be required to litigate for months or years before the court acknowledges that the suit should never have been brought in the first instance? 

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The law in all U.S. jurisdictions is that a condition precedent to filing any enforcement of any mortgage lien is that the claimant must be a creditor who has paid value for the underlying obligation. In virtually all of the thousands of cases in which homeowners have prevailed in court, it was because the claimant could not introduce credible evidence that this had occurred.

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Why must consumers, with the least resources and the least access to relevant information, be required to litigate for months or years before the court acknowledges that the suit should never have been brought in the first instance?
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The government is tasked with the distribution of accurate information. It has previously entered into settlements with companies who admitted to using fake documents and who promised to stop using fake documents. The accurate information is that these companies have been using fake documents with forged signatures for two decades and that those documents are not entitled to legal evidentiary presumptions. Such an announcement of policy from government agencies would end most foreclosures and force the parties into a settlement.
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If claimants have not paid value for the alleged underlying obligation then their receipt of foreclosure proceeds is a windfall — possibly subject to other contractual obligations and possibly not. Most investigations post-sale revealed that the claimant never received any part of the sales proceeds from foreclosure sales.
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In the mythology propagated by Wall Street banks, the bending and breaking of the laws that are explicit and express (UCC 9-203 and Federal TILA Rescission) is excused under the erroneous assumption that someone who paid value for the debt will get paid through foreclosure. Nobody has ever presented evidence to that effect.
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The current policy unfairly delegates the burden of challenging illegal behavior entirely to homeowners who lack the resources and knowledge to do so and who are presently coerced into giving up the largest investment of their lives and their lifestyle to players who enjoy outsize profits in the process of foreclosure.
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In practice, the current foreclosure practices, which violate substantive, procedural, and evidentiary law at every turn represent a form of extortion upon the American homeowner. Government agencies continue to ignore the obvious and outright deceit and trickery involved in the sale of securities that do not sell loans, and the foreclosure of loans that no longer exist.

2 Responses

  1. This is a taboo subject by the government. They made decisions over a decade ago, and will never re-visit. The determination was — these loans were not qualifying loans, and shall not be treated as same. They did not tell us — well, if not qualifying loans — what kind of loan was it? The government will not fix the fraud of the past. They left homeowners to fend for themselves, and they watch the courts toss them – over and over and over again. Watched last night’s show. Excellent, but Neil is also correct here — most do not have the means to spend time and money in courts. Past case law discourages attorneys from even taking cases even when homeowner can pay. And, who does nothing about this? The same party who covered-up. The Government.

  2. Let take the 20,000 Dept of VA loans foreclosed in 2010, before they were underwritten for the HAMP and VA HAMP as what was required in the Jan 8, 2010, VA Circular 26-10-02 that said the loan “must” underwritten before a foreclosure could be considered!

    Understand that over 96% of all VA loans are placed into the banks Ginnie Mae MBS which all loans must have Blank endorsed mortgage Notes that are relinquished to Ginnie that transfers the ownership of the Notes. Once the Blank Notes are transfer there not transferring them as there was no sale of debt when initially transferring.

    There no statue of limitation agreement because it says that you cannot foreclose until you perform both the HAMP & VA HAMP. The loans are no longer owned by the originator and must under UCC9 provide proof of purchase to the court!

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