FDIC “endorsements” of Note or “Assignments of Mortgage”

Posted on February 15, 2018 by Neil Garfield

The FDIC does not want to get into the middle of a court battle over the validity of ownership claims etc. Most endorsements and assignments occurring while the estate of a failed bank is in receivership are of dubious validity and often outright fraud. Chase for example claims ownership of loans when it suits them but denies ownership — or any liability arising out of the loan ads service practices — when it would place Chase in a bad position.

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THIS ARTICLE IS NOT A LEGAL OPINION UPON WHICH YOU CAN RELY IN ANY INDIVIDUAL CASE. HIRE A LAWYER.
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Here are my instructions  to our paralegals who do there search for our TEAR (Title & Encumbrances Analysis and & Report) on a case involving the failed bank, BankUnited and the treatment of “loans” claimed to be within the estate of the failed bank. You can pretty much use this wherever the FDIC was involved.

1. Go to FDIC.gov
2. At bottom of page in small letters in FOIA — Freedom of Information Act
3. Then go to reading room
4. Look up BankUnited — find Purchase and Assumption Agreement by whatever bank took over the assets. You might find other documents of interest.

There are two types of note endorsements from FDIC receiverships

1. Execution of endorsement by actual FDIC person with authority — that would be the person who is the FDIC receiver for that particular Bank failure. This is rare if not unheard of. Technically the FDIC owns the estate of the failed bank but does not actually run it. It keep the people in place until it finds a bank to takeover the estate of the failed bank. SO you could have some hybrid, theoretically (I have never seen it) where a person who was working for the failed bank at the time of the receivership executes a document with approval from the FDIC receiver. So you would be looking for whether the endorsement was executed by an employee of thee failed bank while the failed bank was owned in receivership and with approval from the FDIC receiver. This is something that could be included in a report stating that there is no document or other evidence presented, thus far, indicating the endorsement was by someone with authority — and that research of the signatory indicates he/she was employed by whoever (someone else) indicating that there is at the very least an inconsistency between the execution of the endorsement and the employment record of the person who signed.

2. Execution by way of a power of attorney executed supposedly by the FDIC receiver. While some of these are real most are not. The actual person signing is an employee of say, Chase Bank, who claims to be agent for either the failed bank or the FDIC receivership estate. What is missing is a copy of the power of attorney. we are left with just the claim under circumstances where industry practice is to fabricate and forge documentation in order to push through a fraudulent foreclosure.

NOTE: The transfer of the estate of the failed bank does NOT mean that the loans were transferred. In the case of BankUnited it was securitizing the “loans” at a time that either predated the closing (i.e., upon application of the borrower) or the claim of securitization (a lie by the way) originates contemporaneously with the alleged closing of the loan. That means that the failed bank was deriving its income off of fees generated by originations and in some cases (I don’t think BankUnited was a servicer) retaining the servicing rights but not the ownership. AND THAT means that at the time of the failure of the bank it had few, if any, assets that were loans receivable. AND THAT means that their endorsement could be fake for lack of authority (see above) or simply void because at the time of the endorsement they didn’t own the loan.

The illusion of “ownership” is created by the self-serving execution of an endorsement where the courts often presume that the endorsement was real and authorized. THAT presumption leads to another assumption: that the endorser owned the debt and that a transaction took place in which the loan was actually purchased for value, making the endorsement EVIDENCE that the transaction took place. It is circular logic but it is working in the courts for the banks. Our job is to show that the endorsement and the ownership are, at the very least, suspect.

Keep in mind that the original “lender” (the originator) might not have have loaned any money to the borrower, but rather took credit for making the loan without objection from the parties who actually funded the loan. Under common law and the UCC the only party that owns the debt is the one who funded the loan. The endorsements and assignments contribute to the illusion that the originator was in fact the lender. Paper instruments are potentially evidence of a transaction in which money exchanged hands. All paper instruments are hearsay but many can be admitted under exceptions to the hearsay rule. The paper instrument should never be confused with the actual monetary transaction. If there was no transaction, then the paper instrument is a nullity as it refers to a nonexistent transaction.

Filed under: boarding process, burden of persuasion, BURDEN OF PROOF, evidence, FDIC, foreclosure, hearsay, legal standing, marketing, originator | 4 Comments »

Miami Sues JPMorgan Over Discriminatory Lending Practices

Posted on July 28, 2014 by Neil Garfield

As further corroboration of the articles on this site and an infinite number of mainstream and not-so-mainstream sites, the banks sold mortgage bonds to investors under the presumption that the risk of loss was nearly zero. If done properly, securitization works. It gives a greater opportunity to more people to get home loan and other kinds of credit financing. And we now know that the primary target of many campaigns was to get new “customers” to take a loan (even if the bank wouldn’t give them a bank account) and in a huge number of cases consisted of those people who were faced with language, education and cultural challenges. Any fool would know that if you are going to do business who are restricted by such challenges, things are not likely to turn out as planned. The City of Miami thinks there is something wrong with that plan. So do I.

It is easy to see why scam artists would target such people. They are easy to convince because the con man convinces them he or she is trustworthy. The “customer” comes to rely on the seller for information about whatever it is he or she is selling. In conventional terms it might be selling insurance on a weekly payment basis or selling an annuity for a large down payment made from the proceeds of life insurance. The insurance turns out not to be real or, in less pernicious cases, the insurance doesn’t cover nearly what was promised by the seller. In any event the Seller makes money because the customer gives money to him or her. The money goes into his or her pocket and they are able to live off their ill-gotten gains.

All this gets a whole lot less obvious when the “seller” is trying to “give” money to the customer and have the customer sign loan papers. Why would anyone give up the money knowing that the loan has a larger risk of failing because the customer is challenged in some ways that make it less likely they will have employment, less likely they will have savings and less likely that they will be able to pay the interest, much less the principal amount “loaned?” It sounds like a fool’s errand — lending money to people who are not likely to pay the money back. And yet, the banks did exactly that and employed tens of thousands (10,000 convicted felons in Florida alone) to sell such loans.

The key question is not whether the banks did it to make money. The answer is obvious. Of course they were making money — but how when they were getting agreements to pay the loan from people who would never pay it back — often because after the teaser period was over it was obvious on its face that nobody in their financial circumstance could pay more than their entire household income? The only rational answer is that the banks had no risk and that they made all their money on the front end AND when the loan failed by betting against the loans they were selling to unsuspecting investors. And the only way they could pull off that maneuver is to intervene in the lending process such that the investor and borrower never meet up. And the only way they could avoid disgorgement of their illegally obtained profits from “proprietary trading” and “fees” is to foreclose on as many mortgages as possible.

So when you take the entire program on its face, you can see that foreclosure was an integral part of their profit model because it cuts off the rights of borrowers, investors, insurers etc. from demanding disgorgement of illegally obtained compensation that was never disclosed at closing — an absolute requirement under the Truth in Lending Act. And they knew the day would come when everything would collapse and the proof of that is that they were betting on exactly that to happen.

And they knew that they would be destroying documents, “losing” documents etc such that they would be fabricating those documents with such advanced technology that the borrower never realized that he was being shown a document he had never seen before, much less signed. And finally, they knew they would be fined and censured. No matter — they simply used investor money again to pay fines and damages that were caused by the banks put are being paid by still unsuspecting investors. (except for people like Vincent Fiorillo bond manager at DoubleLine who has had enough of this game).

The Miami suit needs to result in discovery that digs deep into the books of JPMorgan to see just how much money was made on each of those bad loans (bad for both the investors and the borrowers) to see just how much money they made, how they made it and how much they made. The results will astonish most casual observers. The bottom line is that the banks made profits that were higher than anytime in history but they weren’t really “profits.” They were proceeds of theft.

It should all be disgorged and the communities that were decimated by the Bank should be restored. That is the RIGHT thing, especially when you learn that many of the “loans” were the result of hard sell, midnight visits signing piles of documents the customer had no way of understanding and no opportunity to read even if they could understand them. Add to that the refi’s were really homes that were paid off or  nearly paid off. If they had just been left alone, the same people would have actual positive net worth and would never have faced foreclosure.

JPMorgan sued by Miami over mortgage discrimination

  • At issue are alleged predatory lending practices in minority neighborhoods since at least 2004 which Miami blames for causing waves of foreclosures in the housing bust. After issuing high-cost loans to minorities, JPMorgan (JPM -0.3%), says the city, refused to refinance on the same eased terms extended to others.
  • The lawsuit follows a similar one launched a few weeks ago by Los Angeles.  Wells Fargo, Citi, and BofA face similar charges.
 Read more at Seeking Alpha:

http://seekingalpha.com/currents/post/1802293?source=ipadportfolioapp_email

Filed under: AMGAR, CDO, CORRUPTION, evidence, expert witness, foreclosure, foreclosure defenses, GTC | Honor, investment banking, Investor, marketing, MBS TRUSTEE, MODIFICATION, Mortgage, originator, Pleading, Servicer, STATUTES, taxes, Title, TRUST BENEFICIARIES, trustee | Tagged: , , , | 19 Comments »

AFTER THE SALE: PART I

Posted on June 9, 2010 by Neil Garfield

Submitted by Charles Koppa. 6/9/2010

Editor’s Note: We are starting to look at events AFTER the sale has taken place and we are discovering a number of things:

  • CREDIT BID: Only the Creditor can submit a credit bid. All others must pay actual money. If a non-creditor submitted a credit bid (essentially bidding the “amount due” which as we have seen from the FTC action against BOA is incorrectly stated) then the procedure has been violated, the sale has not legally occurred. At least that is my interpretation.
  • Also the submission of a credit bid locks in the position of the parties. So if you are suing for wrongful or fraudulent foreclosure, they no longer have the option of fabricating documents as you raise one objection after another.
  • The obligation to return money rightfully owed to the homeowner continues but it is ignored. Thus even if the property is not sold to a bonafied purchaser for value without notice of defects, the net accounting due is the same. So the receipt of third party insurance, credit default swaps, or other credit enhancement payments is still required to be allocated to this loan. Hence there is a damage claim against the participants in the foreclosure and sale.
  • More later. For now read Charles’ comments below

REO’s and OREO’s have NO MERS Identification Numbers.

1.  Loan Servicer (as a MERS member) initiates the NOD and NOTS.
2.  When the auctioneer pronounces “Back To Beneficiary”, the securitized bond trust receives the MinBid at averages of 46% below the NOTS amount posted the day before.  Bondholder “paper certificate losses”  are unconscionably assigned against the Real Estate asset. “The Paper Trust” gains an untitled transfer of the Real Estate Asset which it NEVER Wanted!
3.  The Auction extinguishes the Toxic Security on Wall Street.  Counterparties collect on their bets.  Investor lose their investments” and the monthly cash interest streams are terminated.
4.  Simultaneously, the Servicer (and MERS) are extinguished from all public records.  Servicer collects on MGIC or other mortgage insurance to cover ALL their contrived losses and costs.
5.  When the re-sale is completed, “The Bookkeeping Trust” ALSO disappears from County Property RECORDS!!!
6.  Until re-sold, the real property travels at ZERO book value into an off balance sheet private entity (mostly controlled by the BHC) which was the SIV “depositor” (as an off balance entity) in setting up the REMIC and/or the Investment Trust in the first place.

Filed under: CASES, CDO, CORRUPTION, Eviction, expert witness, Fannie MAe, foreclosure, foreclosure mill, Forensic Analysis Workshop, GTC | Honor, HERS, investment banking, Investor, marketing, MODIFICATION, Mortgage, Motion Practice and Discovery, securities fraud, Securitization Survey, Servicer, STATUTES, trustee, workshop | Tagged: , , , , , , , , , , , , , , , , , | 7 Comments »

Identity Theft, Mers and Other Issues: Great Post from James

Posted on December 10, 2008 by Neil Garfield

James

Henderson, Nevada
Editor’s Comment: At the heart of the entire mortgage meltdown is identity theft by the banks and investment banks. They take your identity, merge it with the identities of thousands of other people and sell it to investors under false pretenses leaving you holding the bag not knowing who to pay or if you still owe anything after the insurance, bailouts and cross collateralization.)

Ripoff Report Verified Safe

Who owns your house???
Forecasting the future of any market whether it’s real estate or the stock market requires good financial analysis and a little bit of luck. Not if you are on the MERS Bandwagon, the real estate market changes every the day…. Even the Past..

The Mortgage Electronic Registration System, asset backed securities and trustee deed foreclosures are the name of this game. First In………First Out………….! In Clark County Nevada, (Las Vegas) and Maricopa, Arizona, an average of five thousand documents are recorded every day. The two municipalities even brag about the ‘State of the Art’ of their recording technologies. Online, Anytime.. In Maricopa County you can view the Unofficial Documents to any public recording on line. If you want the official document, you will have to order it and they will mail it to you. Chances are, it’s not going to be the same document you viewed on line. Remember, it’s the unofficial recordings as opposed to the Official Recording. Good, but not as good as Clark County Public Recorders Office. They will record any document as long as the paperwork is filled out per their instructions. Public beware since they record documents back in the time as well. Recordings are posted back in time superseding or outright replacing what really happened. Once the transaction posts, its official. Hindsight is 20/20 and in Clark County, Nevada and Maricopa County, Arizona, the past is never really history since it could change tomorrow. Confused?? So was I until I researched the fraud that has perpetrated my life. Only after hiring professionals whom I paid to uncover and identify these fraudsters, did I realize how big this criminal network really is. The professionals came in and covered up the past fraud and set me up for another round of financial loss. Don’t think it affects you, check it out for yourself. You can find out by checking your assets online @ www.knowx.com. Your lender’s trustee has probably already foreclosed once on you at least once without your knowledge.

WHO OWNS YOUR HOUSE????
The scenario reflects my personal experience with Wells Fargo Bank over the last several years. After banking with them for over 16 years, I realized that I was a victim of identity theft, which was controlled and perpetrated by the bank.

On my search for my stolen identity, I discovered a ‘ring of fraud’ involving several reputable companies who I discover all are under the umbrella of Wells Fargo Bank. If the bank owns the mortgage company (Wells Fargo Home Mortgage) and is also the trustee for the loan (American Securities Company of Nevada) and the title companies (pick one), and the insurance company, the only thing they need to make a deal is the consumer. They issue one loan to the consumer and one to themselves. One is recorded in the county the property is located with the lender as the beneficiary; one is recorded with MERS with MERS as the beneficiary. Since the consumer only pays on the loan he signed up for, the second loan eventually goes into default because of non-payment, which activates the foreclosure process by the trustee. These non-judicial foreclosures are kept in-house and are only known about by the insiders (the MERS network). This includes the lenders, real estate brokers, lawyers and title companies and other criminals, all of whom are breaking the law. Three months later the non-judicial foreclosure takes place without public knowing about it. The trustee for the lender adds the outstanding debt on the second bogus loan to the bid price for the property. Since the bid is now 80% +(typical value of second loan) of the original appraisal, the lender is able to clear the first and second loan off their books and now owns the property. The owner never knows what has happened but technically, the real first loan and bogus second loan is cleared by right of the non-judicial foreclosure, the lender now owns the property free and clear and the owner becomes a renter. If someone other than the lender buys the foreclosure, they are issued a Substitution of Trustee and a Deed of Reconveyance from MERS (Mortgage Electronic Recording System). The payment for the foreclosure (generally the amount of the borrowers loan balance at the time) is the price of admission into the loan pool of funds. Instead of getting to take ownership of the foreclosure property, they now have an investor number and an investor loan number which puts them in the real estate investment trust and secures there position in line to collect. It’s a pyramid. First in………First Out……….There is always the title policy that is often time collected on by the group as well since most of the title policies issued pay the lender for the property because of unmarketable title either because of easements, restrictions or other title flaws that are placed on the property using DMS Order Management Software. The title company can pick a start date and a plant date to insert negative history on the property that never really happened but clouding the title so they can collect once the home has closed. These encumbrances are added to the property history after the preliminary title report is issued but before the property closes escrow. The public doesn’t know about any of this or else it would be anarchy. To add injury to insult, the government ends up paying for the fraud as well through RESPA, HUD claims and through a Federal Reserve bank account held by Wells Fargo unbeknownst to the Federal Government. The RESPA and HUD claims are made possible by keeping the limit of the transactions below the HUD insured thresholds. The Federal Reserve account is an retired payroll withholding account Wells Fargo was supposed to close when Bank of America took over payroll (EFTPS) withholding electronic transfers for the government in the early 90’s.

This country will not survive if the very people paid to properly transact and control the home buying process are double dipping. This is not an isolated case. It is happening everywhere. The only way to stop it is to make these institutions and their employees responsible for their actions. Because of the very nature of the fraud, the people in the network are not rookies. Most of them are educated professionals holding well paying, respectable jobs and position in their communities. Unfortunately, our local, state and federal government is infected with people that help facilitate the transactions of these fraudulent activities as well. The war is not in IRAQ. It is here in the United States. Where do you think the money goes? Hidden originally in a trust account that is not audited and then electronically transferred OFFSHORE. Out of the reach of our government. All tax-free. Money Laundering at the Speed of the Internet.

The situation is much like anything terrible that is this big. Eventually the truth will come out. How many years did it take for the Catholics to even admit there might be some truth to the sexual misconduct of the clergy? How many people had to lose their life savings in their retirement plans did it take for the public to find out about the accounting improprieties that Big Financial Houses were committing? How many people will have to die fighting a war half way around the world when the real war is right here in this country? It is time for the truth to be told and the cross collaterization of United States real estate to STOP. The future of our democracy is at stake. The alternative is nothing less than true Anarchy.

MERS
Mortgage Electronic Registration System
The Myth Exposed

The first time I heard the term “MERS” was in April 2003. Not one person I have asked since knows what it is even though a few people acknowledge hearing the term before. “MERS” is short for Mortgage Electronic Registration System. It has quickly become the single most threatening thing to Homeland Security along with the 9th Circuit Courts in the United States. Why? Simple, both MERS and the 9th Circuit Courts are being manipulated and used to commit fraud. Unfortunately, the uninformed public will be left to bear the burden if the insanity doesn’t end soon. In the case of MERS, when JQ public borrows money to buy a home, the lender takes a second loan for the exact same amount as well. Since the lender is generally a bank, as long as they can balance the collateral against their outstanding loan obligations, they take as much as they want. Effectively, doubling the consumer debt by 100% for each real estate transaction made in the United States today. The purchase contracts are written up on VPN contracts (Virtual Private Network) agreements, which look like a normal escrow form with VPN on the bottom left hand corner of each page. What the hell am I taking about? MERS………… Lets start at the beginning.

*Excerpt from CTA Federal Legislative and Regulatory Committee White Paper written by James E. Cornwall, Chairman (in italics)

In 1993, a ‘Whole Loan Book Entry White Paper’ was published jointly by the Mortgage Bankers Association of America, Fannie Mae, Freddie Mac, and Ginnie Mae. The paper outlined a concept for a national registry system for tracking mortgage loans. The original concept is now a reality and is known as MERS (Mortgage Electronic Registration System).

CTA’s involvement in MERS began in 1994 when they began monitoring various news releases concerning the subject of electronic loan registration. In November 1995, CTA hosted a MERS meeting, which was attended by approximately twenty-five of our members and featured Dr. Leilani Allen of Tenex Consulting, representing MERS.

WHAT IS MERS?

MERS is an industry-owned electronic registry and clearinghouse that revolutionizes the way the mortgage market works by eliminating paper, and cutting the cost of the mortgage process. A loan registered with MERS will receive a permanent 18-digit mortgage identification number (MIN) as early as loan application. The MIN will be a loan’s identifier throughout the life of the loan, even if ownership or servicing rights are transferred. Currently, a lender records the mortgage or deed of trust with the County Recorder and this step will remain the same. In addition, an assignment will be recorded with the County Recorder reflecting MERS as the mortgagee of record. The MERS database will reflect the name of the actual owner of the loan.

TECHNOLOGY PARTNER

In April 1996, MERS selected EDS of Plano, Texas as its official information technology partner to develop the systems needed to make MERS work. MERS also held its inaugural meeting of the MERS Advisory Council in April 1996. The Council is made up of representatives from the broader real estate finance industry that is not directly engaged in originating, funding or servicing mortgage loan. (CTA is a member of the Advisory Council)

MERS TODAY

On April 28th, MERS production software was delivered to its first users, Norwest Mortgage, Inc. and Allied Group Mortgage Company. Both companies were the first companies to register mortgages electronically with MERS, Paul Mullings, Chief Executive Officer of MERS, said ‘MERS represents the culmination of a dream that those of us in the mortgage industry have long had, and that is to transform our business through the cooperative application of advanced business process and technologies. Many have been skeptical about our chances of bringing the entire industry together to create something that would be beneficial to all parties involved.
To date, more than 130 entities, including mortgage companies, data processing companies and trustees have signed on to become part or MERS. Several CTA members, including First American Title Company, Stewart Title Company, Cal-Western Reconveyance Corporation and T.D. Service Financial Corporation are listed as MERS members.

I’m not sure if this “White Paper” is accurate or not. I found it on the Internet during my research of MERS. Assuming it is accurate, than why hasn’t anyone heard about MERS? According to their website, MERS recently celebrated its 20 million recording. Twenty million real estate loans recorded and no one’s ever heard of it. I will tell you what it is. It’s white-collar crime. It is greed orchestrated through the use of technology unregulated and gone wild. It’s E-commerce controlled by imposters of our Federal and Local Governments in Cyber World. Every day of the business week, five thousand plus recordings are recorded with the County Recorder of Clark County, Nevada. This is the average per day, 5,000 recordings. That’s 25,000 per week, 100,000 per month, 1,300,000 per year. How is that possible? Its only possible if 50% of the recordings are fraudulent, and they are. Clark County is the center of the e-recording world where fraudulent transactions are recorded to offset the transactions taking place in Cyber Space. MERS is a major factor in these recordings. Still, no one knows what MERS is. Or do they? The only people that know about MERS are the insiders using it for ill-gotten gain. It is nothing more than a database of mortgage loans that are kept track of nationally in one place and are still recorded in the County where the property exists.

*According to the “MERS Quality Assurance Procedures Manual, Version 2.0 November 17, 2003: (in italics)

Legal title to the mortgage lien or the lien of other security agreements must be vested in the Mortgage Electronic Registration Systems, Inc.; a Delaware stock corporation with its principal offices at 1595 Spring Hill Road, Suite 310, Vienna, VA 22182.

The loans are vested in MERS recorded in the MERS database but not on the recordings in the County where the property exists. MERS is supposed to be the beneficiary on the note and not the lender. In my case, MERS is not listed anywhere on the title or note but apparently are listed as beneficiary on the MERS database for my properties. This double recording creates the opportunity for fraud. By changing the beneficiary on the MERS recording, they are essentially creating another record for the same loan. This enables them to issue two loans, one for the borrower and one for the lender. The second loan is collaterized by the same property as the first loan. Since the beneficiary is listed as the lender on the recordings made in the local County where the property exists, the borrower sees the lender or trustee listed as the beneficiary and has no reason to question the recording. At the same time, the mortgage is recorded on MERS with MERS as the beneficiary essentially creating two recordings for the same property. The MERS recording is used to keep up with the cross-collaterization that has just happened. Another place to track the double recordings is at www.knowx.com This is owned by Choice Point in Atlanta, GA. Know X is a national public records database open to the public. It is a fee based search engine and is used extensively by law firms and credit managers in the United States. The MERS recording comes up as a (trustee deed forclosure) on record with knowx if you have a loan that is recorded with MERS and with the county recorder. Essentially, it keeps track of the fraud. If you have a loan listed on knowx.com with (trustee deed forclosure) beside it, the property has been double-mortgaged. The second loan, which the consumer doesn’t know about, is a mirror loan. It will be exactly the same amount, issued the same date, etc. etc. as the originating transaction. This is done so that if there is a cross up and the consumer somehow gets a statement or invoice for the second loan, it appears to be information concerning the first loan. If the second loan is the same amount, same interest rate, issued the same day, then the amortization schedule will be exactly the same. This makes the second loan basically undetectable.

*Excerpts from MERS Commercial quality Assurance Procedures Manual Version 2.0 November 17, 2003
Obligations and Reliances:

Section 6.1: RELATIONSHIP OF BORROWER, MERS AND LENDER.
The relationship between Borrower and Lender is solely that of debtor and creditor. The relationship between Borrower and MERS is solely that of mortgagor and mortgagee. Neither the Lender nor MERS has any fiduciary or other special relationship with Borrower, and no term or condition of any of the Note, this Security Instrument and the Other Security Documents shall be construed so as to deem the relationship between Borrower and MERS to be other than that of debtor and creditor, and the relationship between Borrower and MERS to be other than that of mortgagor and mortgagee. The grants, assignments and transfers to MERS made in Article I are for the benefit of the Lender and its successors and assigns. Borrower understands and agrees that MERS holds only legal title to the interests granted, assigned and transferred by Borrower in the his Mortgage and Security Agreement, but if necessary to comply with law or custom, MERS (for the benefit of the Lender and its successors and assigns) has the right to exercise any or all of those interests, including without limitation, the right to foreclose and sell the Property, and take any action required of Lender, including without limitation, a release, discharge or reconveyance of this Mortgage and Security Agreement.
In the event of a sale, by foreclosure, power of sale, or otherwise, Lender, or MERS on behalf of Lender, may bid for and acquire the Property and, in lieu of paying c ash therefore, may make settlement for the purchase price by crediting against the Obligations the amount of the bid made therefore, after deducting therefore the expenses of the sale, the cost of any enforcement proceeding hereunder and any other sums which Lender, or MERS on behalf of Lender, is authorized to deduct under the terms thereof, to the extent necessary to satisfy such bid. Notwithstanding the provisions of this Section 11.1 to the contrary, if any Event of Default as described in the clause (i) or (ii) of Subsection 10.1 (g) shall occur, the entire unpaid Debt shall be automatically due and payable, without any further notice, demand or other action by Lender, or MERS on behalf of the Lender.

Section 11.2 Application of Proceeds:

The purchase money, proceeds and avails of any disposition of the Property, or any par thereof, or any other sums collected by Lender, or MERS on behalf of Lender, pursuant to the Note, this Security Instrument or the Other Security Documents, may be applied by Lender to the payment of the Debt in such priority and proportions as Lender in its discretion shall deem proper. Upon any foreclosure sale or sales of all or any portion of the Property under the empower of sale herein granted (if any), Lender, or MERS on behalf of Lender, may bid for and purchase the property and shall be entitled to apply all or any part of the Debt as a credit to the purchase price.
This must be illegal. If a borrower defaults on his mortgage, the property goes into foreclosure and a non-judicial foreclosure sale takes place. This sale is supposed to be open to the public. The sale price is determined by high bid and once the bid is accepted, all encumbrances on the property including liens, mortgages, etc. are all wiped clean and clear title is presented to the highest bidder. If the Lender or agent of the lender is allowed to bid on the property and add the outstanding debt owed by the borrower as a credit to the purchase price, the lender is going to be the highest bidder every time. Basically, none of the money bid for the property goes towards satisfying the borrowers debt with the lender since the outstanding debt owed is factored in the bid by the lender. This effectively eliminates most or all-potential bidders from outbidding the lender since the lender is using the debt owed as part of the bid price. This must be illegal. Any vehicle such as this that makes foreclosure a more lucrative situation for the lender than actually servicing the loan as originally intended promotes fraud by design.

Problems:

· EDS was given the contract in April 1996, to create the software used for MERS. According to my research, (Exhibit ) All but 3 EDS companies located @ 5400 Legacy Drive, Plano Texas are foreign entities. I would be surprised if the Federal Government through Fannie Mae or Freddie Mac would award the software development contract to a non-US foreign entity. Where is official government endorsement of the MERS system? Nowhere to be found!

· MERS is an industry owned entity.

What Industry? The Real Estate industry? If there is no clear ownership defined and the industry as a whole owns the system, who is responsible for the monitoring the system for accuracy and possible fraudulent recordings? The only way a national registry database makes since is if the federal government is in control of MERS and to my knowledge, they are not.

Who Owns MERS?

The main reason stated as the benefit of MERS is that the recordings will be cheaper. If the property still records in the County where the property is located, and another recording is required in the MERS database as well, how could it save anybody any money? There are now two recordings required instead of one. How can two recordings cost less than only one?
·
I don’t believe that Fannie Mae or Freddie Mac or any other real government agency approved or endorsed MERS and agreed to include government subsidized loans in this registry. I believe the Fannie Mae referred to in the MERS documents is an imposter. “In the name of” Fannie Mae is whom these people are, not the Fannie Mae which is a division of Housing and Urban Development, an agency of the United States Government Where’s the proof?

Why is www.knowx.com listing thousands of trustee deed forclosures on properties where no foreclosures have take place? These foreclosures are not recorded in the county records where the property is located. Show me proof of these foreclosures and identify the new owners of these properties.

Twenty Million loans recorded to date with MERS and no one knows who they are. Who is MERS and why can’t anybody answer that question? Does MERS own our properties?

MERS Quality Assurance Procedures Manual contains language and instructions for handling mortgages that is against State and Federal Consumer Protection laws.

MERS is part of the Enron debacle. It represents the awards taken through the bankruptcies as unsecured debt. It represents recorded documents that generate the instruments to steal with. Essentially, they are borrowing from the past, debt registered owing in the future, collect the Money today.

Many major financial houses including Wells Fargo are included on the MERS memberships list (See Attached)

MERS is the master database tracking recordings that are offset for stolen loan funds.

MERS is recorded on loan documents that have VPN in the bottom left corner.

VPN stands for Virtual Private Network

MERS members are all committing fraud if they record the lender as the beneficiary on the county recorders office and MERS as the beneficiary on the MERS recording

IT IS TIME TO STOP THE CROSS COLLATERIZATION OF OUR MOST PRECIOUS COMMODITY
AMERICA’S REAL ESTATE

James
Henderson, Nevada
U.S.A.

Filed under: bubble, CDO, CORRUPTION, Eviction, foreclosure, GTC | Honor, marketing, Mortgage, securities fraud | Tagged: , , , | 23 Comments »

Economic Meltdown and Moral Constipation = POLITICS and MSM

Posted on April 23, 2008 by Neil Garfield

I would give credit for the term “moral constipation” but I can’t remember where I heard it. I invite all who read this to give me the creator’s name so I can correct this blog and give him the attribution he deserves. 

It appears that we can all agree on one thing regardless of which candidate, party or ideology we subscribe to — The United States of America is on a path of moral bankruptcy, where ethical concerns and choices between right and wrong have been shoved off the table and instead convenience and self-aggrandizement is accepted by “we the people” with far more tolerance than is acceptable to me.

There is practically nothing so dear to me as my own opinion of my own intelligence. And yet I am dumfounded by the lack of outrage as corporate America and Government join hands in our pockets, in our lives, in our families, and in our minds. Protests erupt about the Olympic flame — but where is the outrage, the “I’m mad as hell and I won’t take it anymore” about the following:

  1. Diesel fuel is $4 per gallon here but across the border in Mexico it is $2. Anyone care?
  2. Real inflation for the Average American is in excess of 15% and climbing. Anyone interested?
  3. Exxon made $11 billion last quarter. The rest of us made less at the end of the month because the money went to Exxon. Is there any connection between that fact and the Presence of an Oil man in the White House/ How about a vice President that headed up the very company that profited the most from the Iraq war? Is this so boring that MSM should be ignoring it just because nobody seems to want to anything about it?
  4. By 2009, 1 person in 10 will be on food stamps in the United States. Shouldn’t that be interesting to both sides of the “Aisle?”
  5. The average person in the United States is in debt on credit cards and other consumer and real estate loans in an amount that they can never repay, whereas no other modern country has that problem. Why?
  6. Interest on debt accounts for more expenditure by government and individuals than anything else in the United States. Trillions of dollars of transfered wealth from those who now can’t eat to those who don’t know what to do with the money. What is being done about interests rates that guarantee non-payment and assure financial enslavement? (By the way medical care is second is now touted to be the “employer of last resort”).
  7. Houses were appraised at $500,000 and within days were revealed to have values of less than 70% of that. People were prompted, tricked and coerced into signing mortgage documents they didn’t understand, in violation of law (not that anyone has been prosecuted), and now the borrowers are blamed for a scheme they still don’t understand. Now millions of American citizens are or will be broke, homeless and jobless. We know who did it and how it happened but MSM doesn’t care about that.
  8. All of MSM (Main Street Media) is now controlled by a handful of people who let us hear only the things they want us to hear and only in the ways they want us to hear it. If you want news, go to the Internet, if you want infotainment watch TV or listen to radio. 
  9. How many flag draped coffins can be hidden from view to keep the Iraq war “sanitary” and keep the public distanced from the gruesome reality of war, death, disfigurement, famine, disease and moral decrepitude? And why is MSM going along with  the ban on pictures of coffins? Isn’t the death of young loved members of families who made the ultimate sacrifice worth reporting?
  10. How many veterans need to be homeless and wandering through the streets with head injuries before we think to ourselves “you know, there is something not quite right about this.”
  11. We have outsourced the most sensitive manufacturing of top secret defense components to China which just happens to be the only real military threat to our national security. And we have financed their military expansion by encouraging their economic growth to the point where they now have a  stranglehold on our country — they own most of our debt, they manufacture most of our goods, they process most of our food, and they are the most prolific source of spying in the United States. Thus whatever they don’t get legally, they get illegally. 
  12. MSM (main Street Media) has virtually eliminated their staff of reporters, because they get everything off the newswires and they make up the rest. Most of the time spent on “news” channels consists of opinions about gossip. Interesting, perhaps, but useless for those of us who would like to evaluate our options on voting on issues and candidates.
  13. It is illegal to counterfeit money unless you are a foreign country (North Korea for example) or you are a Wall Street investment banking firm that creates money supply by calling them “derivatives, collateralized debt obligations” and such. Between North Korea’s supernote and and the $500 trillion (yes with a “T”) in derivatives, credit swaps etc. out there it can be no surprise that no government can control the effects on world monetary supply —- that has been outsourced to the private sector as well. 
  14. MSM (Main Street Media) now presents us with pretty faces, some nice looking legs, a tempting bust line, and a teleprompter written by people who have not researched the validity of the reports in 10 years.
  15. Prescription medications are “so dangerous” that you can’t get them without seeing a doctor, but they are advertised directly to consumers. Is this what we want our children to hear and see? You can get a Bud Lite or a Absolute martini without a doctor’s prescription and drink all you want. It’s only when you kill or main people with your driving or other physical abuse that you are held accountable. 
  16. MSM (Main Stream Media) provides us with pundits and moderators who are undereducated, and inculcated with the sole core value of saying something that will increase the ratings and thus revenues of the media in which their comments appear. 
  17. Prescription medications cost $20 per pill here and as little as $0.50 in other countries easily accessible from the U.S.
  18. The total expenditures for medical care, drugs, products and associated services is around 2-3 times the amount spent by any other country or group of countries. The average U.S. Citizen is in constant danger of dying for lack of medical care because he/she is probably not covered entirely for the medical event, because he/she was never given a preventative regimen that is regularly followed in other countries, or because they are simply barred from access to medical system. 
  19. Despite the amount we spend per person, we get less care, and suffer from shorter longevity, higher infant mortality, shorter height, than at least a dozen other countries and sometimes as high as 40 other countries depending upon which metric you are interested in. To say we lost our “lead” is not the point. 
  20. The average person educated in the U.S. has slipped from 1st in world ranking to around 20th. Does that bother anyone?
  21. Bullying has spread through every school, public and private and is spreading into the marketplace. Hello? Anyone there?
  22. We have lost our way. We worship money in all its forms more than we worship God. Every day we perform acts that involve our worship, use and belief in money. Most of us spend at best one day per week for a couple hours worshipping God.
  23. MSM (Main Street Media) thrives on conflict over minutia (bullets in Bosnia, a flag pin probably made with lead in China, and statements of “associates” that are made into controversial “positions”) rather than actual issues and characteristics about the candidates themselves. We allow this by talking about that the pundits tell us to talk about. And what we talk about causes us to vote against our own interests.  
  24. When we tried importing from China and India the prescription drugs at a fraction of the cost that the drug companies were charging us, the government stepped in and said it was unsafe and  could result in tainted drugs. Now the drug companies have eliminated American jobs and outsourced the manufacture of the drugs to where? — India and China — and we have what — tainted, deadly drugs of dubious value to begin with and with side effects that include anal leakage and death. 
  25. How many times do we need to hear that pharmaceutical companies spend $5,000 on every man or woman doctor in the U.S. to push their stuff before we make THAT an issue?
  26. The war on drugs is making a fortune for people on both sides of the law, including the privatization of prisons and huge profits from private ownership of prisons, 75% of the inmates of which are there because of minor drug charges. There is no war on drug use and there is no war on drug supply. That is why we have drugs in America.
  27. How many times do we need to be disappointed in a politician, whom we knew was taking money from the medical- pharma complex, insurance companies, oil companies and credit card companies? What makes us vote for these people?
  28. Where is MSM “keeping them honest” by reporting discrepancies between promises and action?
  29. How many dogs need to die before we accept that they are the canary in the mine shaft and that the rest of us are just as much at risk because the tainted, poisoned food is all coming from the same place now?

I could go on, but I invite you to add your own comments to the list. And while you are at it, why not answer this question: What specifically are you going to say to your friends and family about these issues and how will you vote?

Filed under: alternative medicine, bubble, Bush, CDO, Chelation, community banks, CORRUPTION, credit unions, currency, education, Eviction, foreclosure, foreign relations, GTC | Honor, healthcare, inflation, interest rates, Investor, marketing, medical insurance, Medical Treatment, Mortgage, Obama, politics, securities fraud | Tagged: , , , , , , | 9 Comments »

Our Decaying Educational SYstem: An Answer from Cyberspace

Posted on February 1, 2008 by Neil Garfield

Several pilots around the country involving tens of thousands of students point strongly to a solution for education that is fiscally possible and could catapult this nation back into the forefront of innovation and education. It also presents a major opportunity for local American businesses to get involved in their communities, expand their revenues, increase their profits and boost employee productivity.

On-line education is being tested in several states with some interesting and very positive results. Criticism seems to come mostly on ideological grounds. But the home-schoolers already know that our education system as it stands is broken. Now comes a high tech solution to a low tech problem — parent – child involvement and bonding.

This is a possible way of sidestepping the high cost of renewing parts of our infrastructure while at the same time leaping ahead of where we currently stand in education, relative to our own past and relative to other countries. U.S. HIstory points to several seminal turns like this and I suspect that this is going to catch on BIG time.

Older facilities can be retrofitted cheaply to accommodate occasional classes and extracurricular activities, sports and social events while most of the schooling is done on line. Under the right direction, if the child is doing well, then the system is working. If the child is not doing well, tutoring can be offered at some local facility.

This leads to an interesting phenomenon. Only parents whose children are NOT doing well will suffer the inconvenience of taking their child for tutoring. 

For the first time, parents whose approach is based upon their own satisfaction and convenience and laziness, would have an active reason to make certain that the child is learning their lessons well at home. This in turn could lead to more parent-child interaction and thus the ultimate high tech solution to a low-tech problem — parent-child involvement and bonding. 

The financial savings would easily cover the re-introduction of arts, physical fitness, and all the things we were accustomed to seeing at school a few decades ago.  

It could also lead to high productivity of students, enhanced by greater knowledge, more highly developed analytical skills, more nourished creative impulses, and more rounded and complete understanding of world history, geography, culture, arts, sciences and of course the basics of science, math and communication. 

In turn, this means that baby boomers, like myself, would have a better chance of getting treated by a physician who is better trained and educated when we really need it, if we are still around, in 20-30 years. And it means that our children and grandchildren stand a much better chance in a highly competitive world to create entrepreneurial opportunities for themselves and get jobs that offer better lives than the generation before them. 

And here is a tip for the marketing savvy geniuses. If you assume that this IS going to catch on, you have a huge marketing channel for many services and products. So for example, community banks and credit unions who offer on-line banking could include tutorials on basic personal finance and let students manage virtual bank accounts. Hardware and software providers would have easy access into each of the homes of the students if they offered basic systems to the schools for nothing or next to nothing. Companies wishing to make a name for themselves and ingratiate themselves with a community could make donations that they know will result in better candidates for employment.

Filed under: bubble, Bush, community banks, credit unions, education, inflation, Investor, marketing, Obama, politics, Uncategorized | Tagged: , , , , , , , , | Leave a comment »

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