Originally a conventional lender, it switched business plans when securities brokerage firms on Wall Street (investment banks) offered them more money and less risk. The plan enabled the Wall Street firms to create the illusion of entering the lending marketplace while at the same time luring homeowners into becoming issuers in a new securities scheme.
*
Both investors who purchased “certificates” (unsecured IOUs) and homeowners who thought they were creating a loan account were duped. Eventually, the 2008 crash ensued, but the government failed to correct the conditions that made the mortgage meltdown and the 2008 crash happen. It is still happening.
*
The new securities plan enabled the Wall Street firms to effectively sell the same illusory transaction repeatedly without ever selling a unpaid loan account — thus avoiding statutes governing lending and servicing. It also served as the foundation for a new illicit scheme for foreclosure. In order to maintain the illusion of unpaid accounts, it was necessary to enforce the faux loan accounts.
*
In order to satisfy legal requirements for a judicial or nonjudicial sale, documents were fabricated and forged, using a history of unsigned documents, correspondence, statements and notices that were generated by remote third-party financial technology (FINTECH) companies.
*
Nearly all such foreclosures were successful because of the belief that the homeowner owed money to the party seeking relief. In virtually all cases, the party designated as seeking relief had no knowledge or control over the foreclosure proceeding — and it neither expected nor received any money from the homeowner at any time. It only received royalty fees for use of its name.
*
That party (usually US Bank, Bank of New York Mellon or Deutsch Bank National Trust Company) received only a fee for use of its name to make it appear that the process was generated by an institutional lender rather than private group of investment banks with no right, title or interest to any attributes of the orinngal transaction with the homeowner (having sold same repeatedly to third party investors). Said nominal parties received only their fees and never received the proceeds from the liquidation of property obtained through forced sale.
*
Homeowners seeking protection from federal and state agencies are consistently rebuffed, probably due to the unusual influence that the Wall Street firms have in federal and state politics. Accordingly it is up to the homeowner to obtain relief in private rights fo action under the statutes that ought to be enforced by agencies.
*
In your case and your friend’s case it appears that you both fit into the above description. Your forbearance agreement was a ruse to get you to admit to an unpaid loan account that does not exist. My suggestion is that both of you start sending qualified written requests (QWR) under RESPA and debt validation letters (DVL) (plural, meaning follow-up letters pointing out how they did not answer your simple questions about the existence, location, ownership, and authority over the alleged loan account).
*
They still will not answer. The issue in your case is whether US Bank maintains a trust account in which it holds the alleged unpaid loan account. If it does not have that trust account or if the trust account does not contain an unpaid loan account due from you as an asset, then the presence of US Bank is irrelevant.
*
That means it has no standing and anyone who designated US Bank as a claimant was lying. I can tell you from experience that the lawyers on the front line of these foreclosure schemes have no contact, no contract and no relationship with US Bank or any other designated claimant.
*
They get away with this by making certain legal arguments about possession of the promissory note you signed. But physical delivery of the original promissory note can never be established because it is custom and practice to destroy the physical note after it has been endorsed (usually by a broker with no authority). So possession is unlikely. And in order to qualify as a “holder” of the note, one must have received authorization to enforce it from someone who as authorized to enforce it. Ultimately such authorization must come from the party who owns the unpaid loan account, which as I have said, does not exist.
*
I am forwarding your request to an attorney who maintains contact with certain lawyers in New York. I would add two caveats: First, the battle against these forces is not easy and will meet with considerable resistance from the bench and the bar; second, the cost is often out of reach of homeowners, which is why the securities firms are getting away with pursuing groundless claims.
*
The cost tends to rise because the foreclosure lawyers hired through a string of intermediaries have specific instructions to conduct the litigation like a ground war and not to give an inch until the very end.
*
*
The last step is filing a complaint for breach of statutory duties under the FDCPA and RESPA.
*
The preparation of the statutory letters and administrative complaints is part of what we call our “Administrative Strategy.” The filing of a lawsuit requires you to either hire an attorney (highly recommended since most of these cases are decided on the rules of procedure) or proceed pro se, and we can assist in preparing the narrative of the complaint. The latter engagement is subject to an email retainer agreement that will include discovery requests, preparation for hearings, memorandums of law, etc.
*
If you want us to prepare the qualified written requests and debt validation letters for the Administrative Strategy, please click on the following link:
*
*
===============
DID YOU LIKE THIS ARTICLE?
Nobody paid me to write this. I am self-funded, supported only by donations. My mission is to stop foreclosures and other collection efforts against homeowners and consumers without proof of loss. If you want to support this effort please click on this link and donate as much as you feel you can afford.Please Donate to Support Neil Garfield’s Efforts to Stop Foreclosure Fraud.
CLICK TO DONATE
Neil F Garfield, MBA, JD, 75, is a Florida licensed trial and appellate attorney since 1977. He has received multiple academic and achievement awards in business, accounting and law. He is a former investment banker, securities broker, securities analyst, and financial analyst.
*
FREE REVIEW: Don’t wait, Act NOW!
CLICK HERE FOR REGISTRATION FORM. It is free, with no obligation and we keep all information private. The information you provide is not used for any purpose except for providing services you order or request from us. You will receive an email response from Mr. Garfield usually within 24 hours. In the meanwhile you can order any of the following:
Click Here for Preliminary Document Review (PDR) [Basic, Plus, Premium) includes 30 minute recorded CONSULT). Includes title search under PDR Plus and PDR Premium.
Click here for Administrative Strategy ANALYSIS AND NARRATIVE. This could be all you need to preserve your objections and defenses to administration, collection or enforcement of your obligation. Suggestions for discovery demands are included.
*
CLICK HERE TO ORDER CONSULT (not necessary if you order PDR)
*
CLICK HERE TO ORDER CASE ANALYSIS
*
FORECLOSURE DEFENSE IS NOT SIMPLE. THERE IS NO GUARANTEE OF A FAVORABLE RESULT. THE COMMENTS ON THIS BLOG AND ELSEWHERE ARE BASED ON THE ABILITY OF A HOMEOWNER TO WIN THE CASE NOT MERELY SETTLE IT. OTHER LAWYERS HAVE STRATEGIES DIRECTED AT SETTLEMENT OR MODIFICATION. THE FORECLOSURE MILLS WILL DO EVERYTHING POSSIBLE TO WEAR YOU DOWN AND UNDERMINE YOUR CONFIDENCE. ALL EVIDENCE SHOWS THAT NO MEANINGFUL SETTLEMENT OCCURS UNTIL THE 11TH HOUR OF LITIGATION.
But challenging the “servicers” and other claimants before they seek enforcement can delay action by them for as much as 14 years or more. In addition, although currently rare, it can also result in your homestead being free and clear of any mortgage lien that you contested. (No Guarantee).
Yes you DO need a lawyer.
If you wish to retain me as a legal consultant please write to me at neilfgarfield@hotmail.com.
Please visit www.lendinglies.com for more information.
Contribute to the discussion!