Tonight! Why the Bankruptcies of DiTech and Aurora Matters! Neil Garfield Show 6PM EDT

Thursdays LIVE!

The Neil Garfield Show — WEST COAST

with CHARLES MARSHALL AND BILL PAATALO

or prior episodes

Or call in at (347) 850-1260, 6pm Eastern Thursdays

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I get that the complexity of securitization and foreclosure litigation can be mind-numbing even to an experienced litigator. But once you start winning you get a rush. Tonight we talk about making some of the more tedious aspects of examination of the case productive for the lawyer and for the homeowner.

The continued appearance of DiTech and or Aurora is actually a sparkling example of arrogance emanating from the investment banks that too often control the narrative. If either DiTech or Aurora ever owned a single debt, it was probably one in a million.

With the bankruptcy petitions involving several entities bearing the name of DiTech or Aurora and additional bankruptcies involving closely related entities like GMAC and Lehman Brothers, somehow we have been led to believe that the investment banks were so negligent that they actually left the loans in the entities that filed petitions for relief in bankruptcy with schedules that were devoid of virtually any loans.

On the Show tonight Charles and Bill address the following:

How MERS misused the transfer of Aurora servicing rights to Nationstar, all starting out of the Lehman Brothers BK following the Mortgage Meltdown.

How borrowers can use these servicer bankruptcies, particularly the one of Ditech, to advance the following:

– Using notices (of the Ditech) of stay to manage litigation options;

– Ditech’s non-judicial foreclosure auctions are apparently on hold, due to the automatic stay rules and restrictions on recording documents, in their BK. Judicial actions by Ditech should be on hold too. These restrictions even limit Ditech’s ability to direct the removal of Lis Pendens in lawsuits in which they received a judgment.

How Ocwen may be using a recent merger with PHH to shore up their book of business, to ameliorate credit issues or avoid bankruptcy.

It is FACT not THEORY: Money Trail is a Trail of Facts; Paper Trail is a Trail of Lies

Neil F Garfield, July 1, 2013: Modification “experts” are criticizing what they see on this site. It gives them the willies to think that they are participating in a fraud or enabling a fraud when they modify a loan with someone who doesn’t own it. So lately they are saying that the articles here have been discredited in court decisions (not true) and that the “theories” described here lack credibility.

What we are talking about here is facts, not theory. Either the foreclosing party, modifying party, or party accepting the short sale owns the note or not — and the FACTS lead wherever they bring us, namely, that if they didn’t pay for the funding of the origination of the loan, they didn’t pay for the acquisition of the loan, and that they didn’t acquire servicing rights to the loan, the lack of standing (legal doctrine, not theory) is complete. The non-ability to submit a credit bid at auction is complete (state statutes, not theory). The liability for slander of title, abuse of process, fraud, forgery, and fabrication of documents describing non-existent transactions needs to be proven, and the damages must also be proven. But with a dismissal or judgment for borrower, the liability part of the case is fairly easy.

Whether you are buying, selling, refinancing, short-selling, modifying or in any way settling or resolving issues with a mortgage loan you do so at your own risk. Banks that offer refinancing are either part of the securitization scheme and are kicking the liability can down the road or they are ignorant of the risk elements of title and liability for a loan that is subject to securitization claims.

If you want to criticize, go ahead and do it. But all people need to know is they can ask the questions in litigation and get the answers and the facts are whatever they are — there is either a cancelled check or wire transfer receipt or there is nothing. If you want to know if it is hot outside, just stick your head out a window, if reading the thermometer is too theoretical for you.

It is often true that the borrower admitted the debt, the note, the mortgage and the default. The trial judge had no choice and neither did the appellate court. These cases come from the inexperience of the pro se litigant or the lawyer who has not researched all of the material.

Don’t get caught in a spitting match about my “theories” versus the rulings of some courts. This is all a work in progress and there are going to be conflict in rulings. One state may appear to give one set of rulings another state may seem just the opposite. the point is that if you are doing good lawyering you are following the facts wherever they take you. And what we are saying is that the money trail does not support the paper trail that the banks have fabricated forged or proffered.

For example: Go to eFANNIE site. They are boasting about funding even before allocating your whole loan commitment or MBS pool, so you can maximize your execution. TRANSLATION: we’ll give you the money before you have to come up with it in real time. The investors put up the money,then the loan applications are solicited, then the money is funded with investor money, then the originator reports the loan closing and assigns it without a paper assignment to the next party in the paper train (securitization) usually the aggregator who assigns them without an actual assignment to the CDO manager at the investment bank that created the mortgage bonds and sold them through a “third party” which was owned or controlled by the investment bank. The paper trail neither reflects nor follows the money trail.

Full Deposition of Angela Edwards “Robo-Verifier” as Servicer for the Plaintiff for Verification of Foreclosure Complaint
http://www.zerohedge.com/contributed/2013-06-28/full-deposition-angela-edwards-“robo-verifier”-servicer-plaintiff-verificatio

 

 

Sales by Insiders AT BOA — RATS JUMPING SHIP? THE MARKET TRADERS ARE TAKING POSITIONS FOR A DEATH SPIRAL BY BOA: Somebody knows something… Rats are jumping ship  http://wallstcheatsheet.com/stocks/bank-of-american-corp-director-sells-580k-shares-and-4-insider-sales-to-note.html/?a=viewall

COURTS CAN RETURN PARTIES TO THEIR ORIGINAL POSITION: this would apply to cases where there is no default – through the “stop payment” script and through those who were actually paying. The Court can return the parties to the original position and wipe out arrears and fees.

INVESTIGATION: BOA TRIES SELLING OFF SERVICING RIGHTS TO AVOID LIABILITY (Remember just because they SAY they sold it doesn’t mean they did. We have seen several instances where BOA announced the loan or servicing rights or both were sold off but they were not and BOA ended up being the one “approving” the short-sale or modification).: GREEN TREE SERVICING AND BANK OF AMERICA
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