1st DCA CA: Not so Fast on Rubber Stamping Foreclosures

As we have seen for months there have been a steady stream of cases in which the courts have turned back to the fundamental requirements of due process and the rule of law. Here the court reminds (again) that judicial notice is not a substitute for foundation of facts in dispute AND that the homeowner’s right to sue for wrongful foreclosure is NOT to be dismissed even if it is poorly worded.

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See CUPP v FNMA 8/2/17

Cupp v. Fannie Mae

While once again we see the regretable tendency to keep essential decisions out of public records, we also see that the court now comprehends the basic fallacy behind “loans” subject to false claims of transfer, securitization, sale and purchase.

And once again the court states with clarity the basic elements of procedural law. The fact that you owe money doesn’t mean you owe it to anyone who sues you.  If the party initiates a nonjudicial sale they will subject to the same rigor as in judicial cases. Nonjudicial procedure was not meant to allow strangers to win cases they would lose if they were required to file suit.

Significant quotes:

The nonjudicial foreclosure system is designed to provide the lender- beneficiary with an inexpensive and efficient remedy against a defaulting borrower, while protecting the borrower from wrongful loss of the property and ensuring that a properly conducted sale is final between the parties and conclusive as to a bona fide purchaser.” (Yvanova v. New Century Mortgage Corp. (2016) 62 Cal.4th 919, 926 (Yvanova).)

The elements of a tort cause of action for wrongful foreclosure are: “`(1) the trustee or mortgagee caused an illegal, fraudulent, or willfully oppressive sale of real property pursuant to a power of sale in a mortgage or deed of trust; (2) the party attacking the sale (usually but not always the trustor or mortgagor) was prejudiced or harmed; and (3) in cases where the trustor or mortgagor challenges the sale, the trustor or mortgagor tendered the amount of the secured indebtedness or was excused from tendering.'” (Miles v. Deutsche Bank National Trust Co. (2015) 236 Cal.App.4th 394, 408.) Grounds satisfying the first element include: when the trustee did not have the power to foreclose, when the borrower did not default, and when the deed of trust is void. (Lona v. Citibank, N.A. (2011) 202 Cal.App.4th 89, 104- 105.) “A foreclosure initiated by one with no authority to do so is wrongful” and satisfies the first element. (Yvanova, supra, 62 Cal.4th at p. 929.)

our Supreme Court observed that the trustee of a deed of trust “acts merely as an agent for the borrower- trustor and lender-beneficiary” and, under section 2924, subdivision (a)(1), may initiate nonjudicial foreclosure “only at the direction of the person or entity that currently holds the note and the beneficial interest under the deed of trust—the original beneficiary or its assignee—or that entity’s agent.” (Yvanova, supra, 62 Cal.4th at p. 927.) “[I]f the borrower defaults on the loan, only the current beneficiary may direct the trustee to undertake the nonjudicial foreclosure process.” (Id. at pp. 927-928.) However, the court also recognized that promissory notes and deeds of trust are negotiable instruments that may be sold by a lender without any notice to the borrower and “that a borrower can generally raise no objection to the assignment of the note and deed of trust.” (Id. at p. 927.) The Yvanova court concluded:

“If a purported assignment necessary to the chain by which the foreclosing entity claims that power is absolutely void, meaning of no legal force or effect whatsoever [citations], the foreclosing entity has acted without legal authority by pursuing a trustee’s sale,” and the borrower would have standing to sue for wrongful foreclosure in the case of such an unauthorized sale. (Id. at p. 935.)

The logic of defendants’ no-prejudice argument implies that anyone, even a stranger to the debt, could declare a default and order a trustee’s sale—and the borrower would be left with no recourse because, after all, he or she owed the debt to someone, though not to the foreclosing entity. This would be an `odd result’ indeed.” (Id. at p. 938.) “A homeowner who has been foreclosed on by one with no right to do so has suffered an injurious invasion of his or her legal rights at the foreclosing entity’s hands. No more is required for standing to sue.” (Id. at p. 939.) The court disapproved a line of Court of Appeal decisions that had reached contrary conclusions. (Yvanova, at p. 939, fn. 13; see Jenkins v. JPMorgan Chase Bank, N.A. (2013) 216 Cal.App.4th 497; Siliga v. Mortgage Electronic Registration Systems, Inc. (2013) 219 Cal.App.4th 75; Herrera v. Federal National Mortgage Assn. (2012) 205 Cal.App.4th 1495 (Herrera); Fontenot v. Wells Fargo Bank, N.A. (2011) 198 Cal.App.4th 256 (Fontenot).)

The trial court appears to have agreed with respondents’ contention they could conclusively establish that RTC did hold the beneficial interest at the time of the 1995 Assignment. In its preamble, the 1995 Assignment recites that, in June 1993, the Office of Thrift Supervision appointed RTC as receiver for WFSL. It further recites that, in September 1994, the Office of Thrift Supervision replaced the conservator of WFSB with RTC. Finally, the preamble states that RTC, as receiver for WFSB, “is the current beneficiary under the Deed of Trust.”

The trial court could properly take notice of the fact the 1995 Assignment was recorded, the date of its execution, the parties to the transaction, and its legal effect if that effect is undisputed and clear from the face of the document. (See Intengan v. BAC Home Loans Servicing LP (2013) 214 Cal.App.4th 1047, 1055; Fontenot, supra, 198 Cal.App.4th at pp. 264-265.) However, contrary to respondents’ repeated assertion, we cannot take judicial notice of the truth of hearsay recitations of fact contained within the 1995 Assignment. (See Yvanova, supra, 62 Cal.4th at p. 924, fn. 1; Herrera v. Deutsche Bank National Trust Co. (2011) 196 Cal.App.4th 1366, 1369, 1375 [trial court improperly took judicial notice of truth of hearsay recitation, within assignment, that a particular entity held beneficial interest under deed of trust before its assignment]; Intengan, at pp. 1055, 1057; Fontenot, at p. 265.) Cupp clearly disputes the notion that RTC held the beneficial interest at the time of the 1995 Assignment. We conclude the trial court erred in taking judicial notice that RTC held the beneficial interest in the Deed of Trust at the time of the 1995 Assignment.[8]

OCC Announces EverBank Agrees to Pay $37 Million to Customers, $6.3 Million to Housing Assistance Groups

Internet Store Notice: As requested by customer service, this is to explain the use of the COMBO, Consultation and Expert Declaration. The only reason they are separate is that too many people only wanted or could only afford one or the other — all three should be purchased. The Combo is a road map for the attorney to set up his file and start drafting the appropriate pleadings. It reveals defects in the title chain and inferentially in the money chain and provides the facts relative to making specific allegations concerning securitization issues. The consultation looks at your specific case and gives the benefit of litigation support consultation and advice that I can give to lawyers but I cannot give to pro se litigants. The expert declaration is my explanation to the Court of the findings of the forensic analysis. It is rare that I am actually called as a witness apparently because the cases are settled before a hearing at which evidence is taken.
If you are seeking legal representation or other services call our South Florida customer service number at 954-495-9867 and for the West coast the number remains 520-405-1688. In Northern Florida and the Panhandle call 850-765-1236. Customer service for the livinglies store with workbooks, services and analysis remains the same at 520-405-1688. The people who answer the phone are NOT attorneys and NOT permitted to provide any legal advice, but they can guide you toward some of our products and services. Get advice from attorneys licensed in the jurisdiction in which your property is located. We do provide litigation support — but only for licensed attorneys.
See LivingLies Store: Reports and Analysis

In its never-ending quest for putting distance between the Bank and the Homeowners who have been misled into thinking that Bank of America has any servicing or ownership rights over their mortgage, BOA has been transferring any mortgage they can to other entities — perhaps even paying the other entities to “take” the mortgages, which BOA didn’t own in the first place.

One such entity is EverBank which is a small thinly capitalized entity. The gimmick worked. Using the balance sheet of EverBank instead of Bank of America, the fine was probably one tenth or less than the the fine that would have been levied upon Bank of America. EverBank is getting paid to be thrown under the bus. The OCC used the EverBank Balance Sheet as a measuring stick and figured that $37 million fine for wrongful foreclosure processing was enough. If they had looked behind the curtain, which they most certainly had the knowledge about, they would have been fining Bank of America for the wrongful, illegal and immoral foreclosures.

And EverBank continues to file foreclosures that are riddled with obvious defects because they don’t have a real plaintiff, a real lender, a real loan, a real default or any real servicing rights. It is safe to say that they are so far removed from the realities of any actual transaction that it will be impossible to actually respond to discovery requests.

So I figured I would share with you some notes on a few of the cases with EverBank that you might find useful. As stated a thousand times before, do NOT use these forms or notes or anything else unless you ARE an attorney licensed in the jurisdiction in which the property is located or you consult with one.

NOTES ON EVERBANK FORECLOSURES

  1. The Plaintiff is self-identified in its own attachments as a servicer which means that judgment can only be rendered for the real creditor who under Florida Statutes governing credit bids can only be the actual creditor.
  2. The complaint is in rem and does not sue on the note, so there is no basis for the deficiency demanded in the wherefore clause.
  3. The servicing rights actually never existed because they would arise from a pooling and servicing agreement for a REMIC trust that was never funded nor was it able to purchase loans, nor were such loans transferred within the time limits prescribed by the REMIC laws and the terms of the pooling and servicing agreement. Since the REMIC was ignored, the terms of the PSA were ignored, no servicer could exist except with apparent authority. It remains to be seen to whom the the payments were made after receipt of payments from the Homeowner Defendant. despite the lack of any actual legal authority for servicing rights through any enforceable agreement to which the Homeowner defendant was a party  parties variously assigned servicing rights and endorsed the unenforceable note.
  4. Generally they were transferred by BOA as successor to BAC as successor to one of several Countrywide entities none of which were the lenders, servicers, or mortgage brokers for the loan. The reference to succession is false. Countrywide changed its name to BAC for a short while, following which Bank of America falsely claimed ownership, as successor to Countrywide despite the fact that the FDIC records show that a merger of some sort took place between Red Oak merger Corporation and Countrywide, but there is no indication that the agreement in the FDIC records shown in its “Reading Room” on the internet, that Bank of America ever acquired Red Oak or that Red Oak was a wholly owned subsidiary of Bank of America or anything of the sort.
  5. The mortgagee is named as either MERS as a naked nominee with no interest in the loan, or another entity that does not exist in the records of the Florida Secretary of state or anywhere else, and does not even pretend to be an entity organized and existing under the laws of any state. Hence there is no actual payee under the note and there never was, and there is no mortgagee under the mortgage, because the alleged party having an interest int he collateral is a naked nominee without any disclosure as to the true party in interest. This prevents the entire purpose of recording which is to allow for the complete transparency of ownership and encumbrances so that buyers and sellers can be certain that their transaction is valid.
  6. The complaint fails to state any loan or advance of money was ever made to the defendant Homeowner because the Homeowner has learned through hiring professional forensic auditors that none of the parties in the chain leading up to the Plaintiff Evergreen ever had ownership or servicing rights tot he loan. Instead, the loan came from the account of an investment bank that was used as a conduit for the money of investors who thought they were buying mortgage bonds from a REMIC trust organized under the laws of the State of New York. However the trust was never funded and the loan was never transferred into the trust. Accordingly the real creditor, with whom, the Defendant would like to engage in settlement or modification discussions, is a group of investors who might be loosely identified as a general partnership that does not qualify as a bank, lender, or even mortgage broker.
  7. The complaint fails to state any injury to any party in the complaint. his is because the money came from investors and on top of that, the intermediaries in the cloud of false securitization claims, received multiple payouts of the entire loan balance that should have reduced the account receivable of the investors who were the only parties who advanced money, to either zero, less than zero (with money owed back to the borrower) or at least less than the amount demanded  by Evergreen, who had no right to issue a demand letter since the actual owners of the loan had never given such an instruction.

ROUGH DRAFT OF MOTION TO DISMISS

Motion to Dismiss:
a. The pleadings conflict with the attachments. Everbank is named as either servicer or holder but no party is named as creditor. The attachments show a different party as the lender.
b. The complaint fails to allege injury to Evergreen and a short plain statement of how EverBank was financially damaged. Plaintiff fails to attach cancelled check(s) or wire transfer receipt(s) or wire transfer instructions for an actual transaction — which is the essential element and foundation for use of the note and mortgage as evidence of the transaction and the terms of repayment depending upon whether Plaintiff is attempting to enforce the terms of the NOTE, MORTGAGE, DEBT, LOAN OR ASSIGNMENT.
c. Prior communications with Countrywide, BAC and BOA and the borrower indicate alternately that each of those entities was the holder, but then revealed the existence of a loan pool claiming an interest. Plaintiff should be required to attach a copy of the cancelled checks or wire transfer receipts to show which party is actually claiming injury and a short plain statement of why their claim is secured.
d. Plaintiff has failed to allege that it or any affiliate or predecessor or successor has responded to the RESPA 6 (Qualified Written Request) sent by borrower or the Debt Validation Letter sent to the apparent servicer which alternated between Countrywide, BAC and Bank of America.
e. Plaintiff has filed to allege and attach relevant copies of documentation demonstrating proof of ANY POTENTIAL OR ACTUAL LOSS nor any authority to represent the creditor(s) and identifying the creditor who meets the standard of a party qualified to submit a credit bid at foreclosure auction, execute a satisfaction of mortgage upon payment, or a a correct accounting of the loan receivable or bond receivable if the loan is in fact claimed by any of the above stakeholders to be owned by a loan pool, REMIC, Special purpose vehicle or trust.
f. Unless the Plaintiff can allege and attach documents showing financial injury to Plaintiff as of the date that the complaint was filed, it lacks standing in this case.
g. Since the case is essentially in rem with the requested relief being the foreclosure sale of the property owned by the Defendant, Plaintiff has failed to state a cause of action upon which relief could be granted.

h. Even if the court were to rule that the Plaintiff had standing to initiate foreclosure proceedings, the Plaintiff must identify the party in the Judgement who will be  named, and supply the accounting required to show the amount of  financial injury, produce and attach the required documents to the complaint and prove its allegations and exhibits by competent evidence.

i. It is apparent here that Plaintiff lacks standing and certainly has failed to plead and attach required documents demonstrating financial injury since according to its own pleadings and attachments it was neither the lender nor the purchaser of the loan according to the existing allegations and exhibits.

WHEREFORE, Defendant prays that this Honorable Court will dismiss Plaintiff’s complaint with prejudice unless Counsel for Plaintiff can proffer in good faith that it can plead and attach the required exhibits and grant Defendant reasonable attorney fees and costs for defending a patently sham pleading.

OCC Announces EverBank Agrees to Pay $37 Million to Customers

Aug 23, 2013 – EverBank was subject to a cease and desist order for unsafe and unsound practices in mortgage servicing and foreclosure processing.

EXCLUSIVE: EverBank takes flight as regular ‘jumbo’ loan RMBS issuer
http://www.housingwire.com/news/2013/04/01/exclusive-everbank-takes-flight-regular-jumbo-loan-rmbs-issuer

Everbank Exits Wholesale Lending to Focus on Correspondent

http://www.mortgagenewsdaily.comNews HeadlinesMND NewsWire Home

Federal Reserve Seeks to Fine HSBC, SunTrust, MetLife, U.S.

4closurefraud.org/…/federal-reserve-seeks-to-fine-hsbc-suntrust-metlife-…

Apr 1, 2012 – Last week, a senior Federal Reserve official recommended fines for these Bank, MetLife, U.S. Bancorp, PNC Financial Services, EverBank, OneWest and in residential mortgage loan servicing and foreclosure processing 

Zombie Properties: Banks Don’t Want the Money, Don’t Want the Property: They Just Want Foreclosure Sale and Deed

The borrowers are for the most part willing to straighten this mess out if approached with fair terms that reinstate their credit and reinstate or create loans that are free from the myriad of defects in the falsely claimed securitization chains. The intermediate banks don’t want that because they would be facing liability for trillions of dollars they collected through fraud, deceit and identity theft. So if things keep going the way they are going, the ultimate effect is indeed going to be that the “free house” is going to switch from the intermediate banks who have no just or legal claim to the property to the homeowner whose signature was used in ways he never agreed and would never have agreed. — Neil F Garfield, livinglies.me

With 6.6 foreclosures and an equal amount to come, given 2.5 residents per household, more than 33 million people will be displaced— paying the price for the misbehavior of the bank and having been used as innocent, ignorant pawns in a PONZI scheme that has nearly perfected the technique of PONZI schemes. — Neil F Garfield, livinglies.me

Internet Store Notice: As requested by customer service, this is to explain the use of the COMBO, Consultation and Expert Declaration. The only reason they are separate is that too many people only wanted or could only afford one or the other — all three should be purchased. The Combo is a road map for the attorney to set up his file and start drafting the appropriate pleadings. It reveals defects in the title chain and inferentially in the money chain and provides the facts relative to making specific allegations concerning securitization issues. The consultation looks at your specific case and gives the benefit of litigation support consultation and advice that I can give to lawyers but I cannot give to pro se litigants. The expert declaration is my explanation to the Court of the findings of the forensic analysis. It is rare that I am actually called as a witness apparently because the cases are settled before a hearing at which evidence is taken.
If you are seeking legal representation or other services call our South Florida customer service number at 954-495-9867 and for the West coast the number remains 520-405-1688. In Northern Florida and the Panhandle call 850-765-1236. Customer service for the livinglies store with workbooks, services and analysis remains the same at 520-405-1688. The people who answer the phone are NOT attorneys and NOT permitted to provide any legal advice, but they can guide you toward some of our products and services. Get advice from attorneys licensed in the jurisdiction in which your property is located. We do provide litigation support — but only for licensed attorneys.
See LivingLies Store: Reports and Analysis

 

Zombie Properties got their name from being in a state of limbo. Broadly characterized, they include first homes abandoned my misinformed homeowners who believed their home was subject to a legitimate foreclosure. Second they include properties subject to foreclosures but where the bank has put off getting the final judgment or put off the sale. And third they include properties in which the foreclosure sale has occurred but the property was abandoned by the Banks.

Not surprisingly many schemes have evolved in which the renting of these properties has been accomplished by strangers to the transaction. Knowing that the property is temporarily or permanently abandoned, people are offering “deals” to renters, collecting rents on property they don’t own. In other cases the neighborhoods have become so blighted that nobody would move in there if you gave the house to them. So Detroit, Cleveland and other cities are bull dozing tens of  thousands of homes creating farm land and park land where businesses and residential housing had been.

It seems obvious now that the Banks want that foreclosure sale and that is the end of the story. They don’t want the money (we are trying to give them the money in several cases (1000 cents on the dollar) and they are resisting, they don’t want the house (we are actually deeding the house to them without prejudice and without an agreement to avoid a deficiency judgment), They don’t want reinstatement, they don’t want redemption, and they don’t want any modification or mediation except just enough to give the public relations impression that they are trying to work things out. In most modifications, even where the modification is approved and the homeowner complied with all terms including the payments, the Bank goes ahead and forecloses anyway.

In a real mortgage situation, Banks will do almost anything to avoid foreclosure. If you review the literature on foreclosures prior to 2007 it is all based upon workouts in commercial and residential real estate. In fact “workouts” are an area of concentration for most law firms that engage in mortgage litigation whether they are on the lender side or the borrower’s side. Now now. The Bank wants the foreclosure sale and the borrower, investor who put up the funds and insurers who “covered” a “loss” and the counterparts who were covering announced losses, let them be damned.

Why do we have a pandemic of zombies and foreclosures when so many homeowners are actually eager to sign new document that would clear up the title problems caused by MERS, improper disclosure at closing as to who the lender was, claims of fraud, predatory lending deceptive lending etc.?

In the law we say look to the result to determine the intention. There is no doubt that the policies and procedures pursued by the banks, on loans they never owned based upon mortgage bonds that were issued by unfunded trusts, MINIMIZES the eventual monetary recovery and justifies the payment of insurance, payment of hedge contracts (CDS), and the reports to investors that there investment was lost because of foreclosures and expenses of foreclosure, leaving the Banks with the money and frequently the house too because they brought the foreclosure as a servicer without stating they were acting for a principal that had advanced the actual money for the loan.

Since the Banks are evading payment in full, evading receipt of the deed to the home, and evading workouts and modifications, the intent is clear no matter how logical the other alternatives appear to the advantage of all concerned. The intent is to get a foreclosure sale and deed on foreclosure which in most states starts a short statute of limitations ticking in which the deed on foreclosure cannot be challenged.

Of course there are possible remedies involving fraud on the court or the borrower that MIGHT change that but the foreclosure sale basically closes the book on the matter. What does this do for the banks? It ends the possibility of having to account for and pay back money received from investors, insurers, CDS counterparties, guarantors (Fannie and Freddie) and the Federal Reserve who has been buying the worthless mortgage bonds (that supposedly represent a claim of ownership over the loans) at the rate of $85 Billion per month apparently for years.

By getting a deed from a foreclosure sale, they put another layer of deniability between them, the Banks, and the parties from whom they took money on the announced failure of the loans, the bonds or the asset pools. The essential defect of the loans, that the payee and named mortgagee never loaned a dime to the borrower (unknown to the borrower) destroys the claim that the note and mortgage lien were ever perfected. This defect results in a finding of no valid mortgage, nullification of the instrument, and thus no security for the lending party — something that obviously smart Wall Street lawyers knew about but thought they could finesse — and they were right.

By having the information at hand in a title and securitization analysis, getting it explained in an Expert declaration from a credible source, and consulting with those who actually understand what happened here, the lawyer can feel confident that he is pleading and can prove that the entire transaction was a sham. Ask any professor of law who knows bills, notes, negotiable instruments, etc. If there was o underlying transaction in which value was exchanged both ways, no enforceable rights arise. There simply isn’t a transaction at all, and all the paperwork in the world isn’t going to fix that without getting a signature from the borrower — which most borrowers are willing to do if they get a fair modification based upon real values, instead of the artificially inflated values that were used for the loans.

The fact remains that virtually all loans were paid off in their entirety whether they ever went into “default” (which could not exist because the loan no longer existed), or whether they are performing loans in which hapless homeowners are paying monthly payments to a bank who does not own the loan, on a loan that either no longer exists or which has been paid down by actual payment from parties who waived subrogation, waived contribution and waived any right of action against the homeowner. If the account receivable is paid off, the banks’ claim for recovery one more time (after being paid several times over 100 cents on the dollar) in the form of a foreclosure is nothing more than looking for an official governmental action that cuts off the players who advanced the money on the same loan assets repeatedly.

Looking again to the result to determine the intent, it cannot be argued that the Banks pretended to issue mortgage bonds issued from a REMIC trust that was never funded and then did whatever they wanted to do with the trillions of dollars deposited with those investment bank for purchase of the bonds. The investors weren’t buying bonds. They were buying problems. They were, contrary to agreement with the investment bank, directly lending money to homeowners without a note or mortgage.

The actual closing procedure was a sham. The closing agent applied the money received from investors through one of the investment banks or an affiliate of the investment bank as though it was a loan from the named payee on the note and the named mortgagee on the mortgage or the named beneficiary on the deed of trust.

Thus the title, to which the investors were expecting and entitled was diverted from the investors to puppet companies who were already under contract to do what they were told — as in the Assignment and Assumption Agreement executed between the loan “originator” and the “aggregator” neither of whom advanced a dime, nor did they need to do so — the money from the investors being at hand in a commingled account at the investment bank who never followed through giving money or loans to the Trustee of the New York “Trust” thus creating a legal entity that had neither money nor assets.

The illusion is ONLY completed with an apparently legal “foreclosure sale” which creates a presumption of validity on the 6.6 million foreclosures completed thus far, and the additional latest estimate of 7 million more foreclosures). By fabricating foreclosure documents after the “trades” had been completed (i.e., the banks had received payment for the bonds and loans several times over that they never reported to the investors – but which still must be accounted for as payment to the investor because the investment banks were at all times acting as the agents of the investors).

Confused? Here is the easy way of looking at it. The Banks stole the identity of the investors and the REMIC trust by issuing the bonds into street name” but showing on end of month statements to the investors that they owned the bonds and loans. After selling the loans several times or receiving mitigating payments that were intended to reduce the loss, the loans were worthless to the Banks and now represented a liability to give all that money back because the underlying loans were fraudulent and defective and the trading profits declared by the banks was really the proceeds of theft. All the participants squeeze the last ounce of fees and profit from this PONZI scheme which was completely reliant on the continued purchase of the bogus mortgage bonds. When it was all over, they pitched the loan over the fence and said the Trust owned it but there had never been a transaction between the trust and anyone else in which the trust paid for and was delivered the loan according to the terms of the Prospectus and the Polling and Servicing Agreement.

Want it shown differently? The Banks stole the identity of the borrowers and traded on it knowing they would do anything possible to make the loan go into default and thus collect, in addition to the original money advanced by investors, insurance and other funds that paid off the loan several times over. Some enterprising Class Action lawyer who really knows what they are doing can lay claim to the vast pool of money that emerged from this scheme with the real parties in interest — the investor lenders and the homeowner borrowers taking the loss. The payment extinguishes the loan and the over payment collected by the banks is due back to the homeowner unless the investors intervene and assert claims to the pool of money that ultimately was held by firms that were at best only intermediaries and at worst (and usually) complete strangers tot he transactions with investors and complete strangers to transactions with the borrowers.

The borrowers are for the most part willing to straighten this mess out if approached with fair terms that reinstate their credit and reinstate or create loans that are free from the myriad of defects in the falsely claimed securitization chains. The intermediate banks don’t want that because they would be facing liability for trillions of dollars they collected through fraud, deceit and identity theft. So if things keep going the way they are going, the ultimate effect is indeed going to be that the “free house” is going to switch from the intermediate banks who have no just or legal claim to the property to the homeowner whose signature was used in ways he never agreed and would never have agreed.

When owners walk, ‘zombie’ homes become nuisance
http://www.usatoday.com/story/money/personalfinance/2013/09/01/foreclosed-homes-zombie-titles/2753385/

Zombie properties run rampant across Florida
http://www.housingwire.com/articles/26579-zombie-properties-run-rampant-across-florida

Jacksonville-Based EverBank to Pay $43.3 Million for Foreclosure Crimes
http://4closurefraud.org/2013/08/27/jacksonville-based-everbank-to-pay-43-3-million-for-foreclosure-crimes/

Southwest Florida riddled with underwater homeowners
http://www.housingwire.com/articles/26650-one-third-of-homeowners-in-southwest-florida-underwater

The Cautious Approach to Buying Foreclosures
http://www.realtytrac.com/content/news-and-opinion/the-cautious-approach-to-buying-foreclosures-7849

 

 

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