MERS/GMAC Note and Mortgage Discharged

If only all courts would entertain the possibility that everything presented to them should be the subject of intense scrutiny, 90%+ of all foreclosures would have been eliminated. Imagine what the country would look like today if the mortgages and fraudulent foreclosures failed.

The Banks say that if the mortgages failed they all would go bust and that there is nothing to backstop the financial system. The rest of us say that illegal mortgage lending and foreclosures was too high a price to pay for a dubious theory of national security.

Get a consult! 202-838-6345

https://www.vcita.com/v/lendinglies to schedule CONSULT, leave message or make payments.
 
THIS ARTICLE IS NOT A LEGAL OPINION UPON WHICH YOU CAN RELY IN ANY INDIVIDUAL CASE. HIRE A LAWYER.
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I received the email quoted below from David Belanger who, like many others has proven beyond any reasonable doubt that persistence pays off. (BOLD IS EMPHASIS SUPPLIED BY EDITOR)

Besides the obvious the big takeaway for me was what I have been advocating since 2007 — if any company in in the alleged chain of “creditors” has gone out of business, there probably is a bankruptcy involved or an FDIC receivership. Those records are available for inspection. And what those records will show is that the the bankrupt or insolvent entity did not own the debt that arose when you signed documents for the benefit of parties other than the source of funding. It will also show that the bankrupt or insolvent entity did not own the note or mortgage either.

This is instructional for virtually all parties “involved” in a foreclosure but particularly clear in the cases of OneWest, whose entire business plan depended upon fraudulent foreclosures, and Chase Bank who bet heavily on getting away with it and they have, so far. BUT looking at the bankruptcy and receivership filings of IndyMac and WAMU respectively the nature of the fraud was obvious and born out of pure arrogance and apparently a correct perception of invincibility.

All such bankruptcy proceedings and receivership require schedules of assets right down to the last nickle in bankruptcy. Belanger simply looked at the schedule, knowing he never took the loan, and found without surprise that the bankrupt entity never claimed ownership of the debt, note or mortgage.

The big message here though is not just for those who are being pursued in collection for loans they never asked for nor received. The message here is to look at those schedules to see if your debt, note or mortgage is listed. Lying on those forms is a federal felony punishable by jail. Those forms are the closest you are ever going to get to the truth. Odds are your loan is nowhere to be found — even if you did get a loan.

And the second takeaway is the nonexistence of the “trust.” In most cases it never existed. Your “REMIC Trust” was almost certainly formed under the laws of the State of New York or Delaware that permit common law trusts (i.e., trusts that don’t need to be registered with the state in order to exist). BUT uniform trust laws adopted in virtually all states require for the trust to be considered a “person” it needs to have these elements — (1) trustor (2) trustee (3) trust instrument (PSA) and (4) a “thing” (res in Latin) that is committed to the trust by someone who owns the thing. It is the last element that is wholly absent from nearly all REMIC “Trusts.”

And now, David Belanger’s email:

JUST WANTED TO TELL YOU ALL SOMETHING,  THAT I JUST GOT DONE , FROM MERSCORP!  ON OUR PROPERTY THERE WAS A 2d MORTGAGE ON IT, IT WAS A LINE OF CREDIT THAT WE DID NOT DO, AND WE DID REPORT IT TO THE RIGHT AUTHORITY’S, BACK IN 2006/2007. NOW THE COMPANY WAS GMAC MORTGAGE CORP.

OVER THE YRS, FROM 2006 TILL NOW, IT REMAINED ON PROPERTY, UNTIL JUST LAST WEEK, WHEN I DEMANDED THAT MERS DISCHARGE IT.  AND AFTER THEY FOUND OUT IT WAS NEVER ASSIGNED OUT OF MERS, THEY HAD TO DISCHARGE IT. BECAUSE GMAC MORTGAGE IS DEAD.  NOW THIS GO TO WHAT WE ALL HAVE SAID HERE.

ANY ASSIGNMENT THAT HAS NOT BEEN DONE, OR RECORDED AT REGISTRY OF DEEDS, OUT OF MERS, AND THE MORTGAGE COMPANY IS A DEAD MORTGAGE COMPANY. THEN MERS WILL DISCHARGE IT . I HAVE A COPY OF THE DISCHARGE IN HAND.

AM STILL FIGHTING, BECAUSE OF THIS NEWS,  I HAVE ASK MY ATTORNEY TO NO AVAIL TO DO A QWR ON THE COMPANY THAT RECORDED AN ASSIGNMENT IN 2012, EVEN THOUGH GMAC MORTGAGE CORP WAS IN BK AND AFTER GOING THROUGH ALL BK RECORDS OF EACH ENTITY, THAT HAD TO FILE ALL ASSET OF THERE COMPANY, AND FOUND THAT NO ONE IN GMAC HAD THE MORTGAGE AND NOTE, 3 MONTHS PRIOR TO THE ASSIGNMENT BEING PUT ON MY RECORD.
https://www.kccllc.net/rescap/document/1212020120703000000000033

UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW …
http://www.kccllc.net
Southern District of New York, New York In re: GMAC Mortgage, LLC UNITED STATES BANKRUPTCY COURT Case No. 12-12032 (MG) B6 Summary (Official Form 6 – Summary) (12/07)

THIS IS AGAIN THE REASON, THIS FRAUD TRUST  DOES NOT EXIST, AND I DO HAVE ALL SECRETARY OF STATES, INCLUDING ALL STATING THAT  THIS FRAUD TRUST IN FACT HAS NEVER
BEEN REGISTERED IN ANY STATE. LET ALONG THE STATE OF DELAWARE, THE STATE THEY SAY IT IS REGISTERED IN.  THE SECRETARY OF STATE SAID NO. AND HAS NEVER BEEN A LEGAL OPERATING TRUST, EVER. SIGNED AND NOTARIZED BY THE SECRETARY. THE FRAUD TRUST NAME IS AS FOLLOWS.
GMACM MORTGAGE LOAN TRUST 2006-J1,

Ally-Rescap Dispute Shows the Rest of the Story: Myth vs. Fact

CHECK OUT OUR EXTENDED DECEMBER SPECIAL!

“The true transaction is the one where investors gave money to borrowers and the borrowers agreed to pay it back either under the terms of the note, the terms of the bond or some combination of the two. That loan is NOT secured but was intended to be secured by both the actual lender (investors) and the actual borrower (the homeowners). ” — Neil F Garfield, Esq., livinglies.me

What’s the Next Step? Consult with Neil Garfield

For assistance with presenting a case for wrongful foreclosure, please call 520-405-1688, customer service, who will put you in touch with an attorney in the states of Florida, Tennessee, Georgia, California, Ohio, and Nevada. (NOTE: Chapter 11 may be easier than you think).

“RIFE WITH CONFLICTS AND INFORMATION GAPS”

Editor’s Analysis: It is still too much to fathom for most Judges, lawyers and even homeowners and investors. The scale of theft in the mortgage crisis is not accepted by government either, so it is being replicated by the banks in student loans and commercial loans to businesses where the spigot is wide open with crazy terms.

The Judges ask “where is your evidence” and the answer as set forth in Wigmore and other scholars on evidence is that where the information is exclusively within the care, custody and control of the party against whom the allegation is made, the burden shifts to that party to prove that the allegation is untrue.

But Judges don’t want to do that probably because they still think the debt is real and legitimate between the parties in front of him or her.

The diversion of funds and documents has been working very well for the Wall Street banks for years now and they have essentially stolen 5-6 million homes using sleight of hand financial maneuvers. But some Judges, like the one I was in front of yesterday in Tallahassee are getting on board at least in terms of acquainting themselves with the process of securitization. Most of them are still arriving at the wrong conclusion because the alternative seems preposterous.

But if you examine the disputes between the big boys, the truth is easy to discern. Here we have (see article below) Rescap and Ally fighting over what others regard as preposterous. But it is difficult to imagine a scenario in which the Rescap claims and other creditors of Ally Financial would not be true since they want to do the deal.

The U.S. Government owns 74% of Ally and is offering to put up $750 Million to cover liabilities relating to mortgages. Why would the bank have liabilities? Because the loans don’t exist or are grossly overvalued and Ally and others shared in tier 2 yield spread premiums that were fraudulently taken from investor money to buy other investments for the banks including insurance payable to the banks and credit default swaps payable to the banks even though the banks were not putting up one nickle and were using the same system of fabrication and forgery to fool counterparties on guarantees of the loan pools which, it turns out, didn’t exist.

Dozens of writers including myself have looked at the settlements with law enforcement and regulatory agencies screaming that the settlements are rounding errors compared with the full scope of the fraud used to promote and cover-up the Wall Street Bank Ponzi scheme. We are ignored. But now the real creditors and the people who really lost money — the investors — are starting to peak under the hood of the brand new car they bought and are finding the shell of a 1965 VW bug with no engine or steering wheel.

They don’t like what they see and they want to know (a) where did all that money go if it didn’t go into mortgages and (b) why isn’t the government or Ally stepping up, facing the music and agreeing to cover the liability and losses that are already in the pipeline and likely to get much much larger as the next five years unfolds.

Unfortunately for Ally and the U.S. Government, the creditors are not stupid and unsophisticated. They understand what happened and are completely unwilling to cover losses that the banks caused by stealing money. For this one company, Ally Financial, whose size is barely comparable to the giants on Wall Street who engineered this catastrophe, Rescap and the other creditors say that the $750 million offer is “a drop in the bucket” compared to the actual liabilities and losses of Ally.

(Small wonder that the shadow banking system has over $700 trillion in nominal value cash equivalents that are not worth much more than $15 trillion. Every dollar reported on those instruments in the shadow banking system is rife with potential liabilities several times the reported value of the instrument.)

So finally we have a bankruptcy court examiner auditing the transaction and accounts and rendering a report in May, 2013. The report is likely to be stunning and will have far reaching effects as the asset side of the balance sheet of Ally drops to a small fraction of what is currently reported. It won’t take more than a few seconds for the high speed traders to crash the stocks of the Wall Street Banks because the accounting for non-existing and overvalued assets on their balance sheets is just as bad or worse than Ally.

And all of that adds up to a reasoning process that takes time, explanation and sometimes crayons in court to get across tot he Judge. The DESCRIBED debt never existed because the “lender” was actually a naked nominee just like all the other naked nominees in the whole mortgage meltdown. When the time comes that the pretender lenders are required to produce cancelled checks and wire transfer receipts and instructions it will be obvious that the paper in the securitization chains is worthless or worse carrying liabilities for fraud and statutory violations. It will be equally obvious that the subservicers, master servicers, trustees of empty pools, and others created an illusion that worked, receiving trillions of dollars in insurance type contracts on transactions that never occurred.

The true transaction is the one where investors gave money to borrowers and the the borrowers agreed to pay it back either under the terms of the note, the terms of the bond or some combination of the two. That loan is NOT secured but was intended to be secured by both the actual lender (investors) and the actual borrower (the homeowners). 

On the other hand neither the lender nor the borrower ever intended to do a deal that was guaranteed to fail — and that would have required true appraisals and true prices that were dead even with the actual value of the property — i.e. if the true value of the property was used, there would have no no crash, the loans would have been smaller and the ability to repay the loans would have been correspondingly enhanced.

In a giant piece of irony, realtors are complaining that appraisers are holding up deals (the way they should have during he mortgage meltdown period) with appraisals that don’t add up to the contract price. In the old days that was it — either the buyer came up with more cash, the seller reduced the price or the bank relented after being given additional collateral. Usually it was some combination of those factors.

By ANDREW R. JOHNSON, Wall Street Journal

Negotiations are breaking down between creditors of bankrupt mortgage lender Residential Capital LLC and its parent, Ally Financial Inc., making it likely the government-owned auto-finance company will face litigation as it seeks to sever ties, people familiar with the matter said.

The creditors, including Wilmington Trust Corp. and other members of a committee representing ResCap’s unsecured creditors, are pushing Ally to provide more money to settle potential liabilities it could face as ResCap’s parent.

Ally, which is 74%-owned by the U.S. government, is working to cap its exposure to the subprime lender’s mortgage business so it can move forward on efforts to repay its $17.2 billion crisis-era bailout and focus on its core auto-lending and online-banking businesses.

At issue is a settlement Ally reached last year with ResCap in conjunction with the mortgage subsidiary’s bankruptcy filing. Under the deal, Ally has proposed paying $750 million to ResCap’s estate in return for a release from potential liability claims from outsiders.

But creditors have blasted the deal, saying the $750 million represents a drop in the bucket compared with what they say are Ally’s true liabilities. They say the parent company stripped ResCap of its most valuable asset, an ownership stake in Ally Bank, as part of a transaction completed in 2009. They insist Ally should retroactively pay more for the deal, among other claims.

A bankruptcy court examiner is investigating that transaction as well as others surrounding ResCap’s May Chapter 11 bankruptcy filing. The examiner’s report is expected to be completed in May.

“There is no support among the constituencies for the proposed amount of the Ally contribution because the amount is far too small in comparison to the value of the claims that have been and may be asserted against Ally,” Wilmington Trust, a unit of M&T Bank Corp., MTB -0.44% said in a letter to ResCap’s board this month. Wilmington said the negotiation process for the settlement was “rife with conflicts and information gaps.”

See full article at ResCap Creditors Press Ally for Larger Pact

Subpoenas Withdrawn: Ally (GMAC, owned by USA) to Pay Fannie (owned by USA) $462 Million for “BuyBacks”

COMBO Title and Securitization Search, Report, Documents, Analysis & Commentary COMBO Title and Securitization Search, Report, Documents, Analysis & Commentary

COVER-UP CONTINUES

EDITOR’S COMMENT: Confused? Ally, wholly owed by GMAC, which is 80% owed by our Federal government has agreed to pay $462 MILLION on “repurchase demands” (i.e. legal damages) to Fannie Mae (FNMA, wholly owned by our Federal Government) for losses attributable to $292 BILLION in “home loans.” There, that settles it. Any questions?

And by the way, those subpoenas that were issued last July, they are withdrawn because of this “settlement.” So any answers to the inside workings of Fannie or the transactions with Ally and “related parties” will forever be buried unless you know enough to subpoena them yourself. Find the subpoenas on the internet and plagiarize them to your heart’s content, there being no copyright protection on legal filings.

Are they kidding? That payment is 2 tenths of 1% of the home loans. Are we to suppose that those loans were 99.8% “OK”? SO here is a very good example why both lawyers and homeowners need litigation support in the form of analysis of title and securitization. Otherwise you are up against representations from the Federal government that ring with a presumption of truth instead of stinking with the mess of a lie. Pretender lenders will use it at leisure to smoothly show that your allegations simply have no merit and that you are wasting the court’s time on a  foreclosure that is right and justified and should not wait because creditors have a right to protection in the courts from unscrupulous homeowners who are out to undermine the system. Most judges WANT to believe that anyway because it seems like the fastest way to clean out their docket.

The government has settled with itself. It has taken the trouble to announce the settlement so presumably they are trying to make a point. I think the point is to minimize the financial crisis and hide the scope of crises that have not yet occurred but look like they are virtually assured. Because it isn’t just that all the mortgages are of dubious origin and authenticity, it isn’t just that the notes that are described in the mortgages fail to describe the actual obligation that arose, and it isn’t just that Fannie’s claim of ownership is based upon self-serving proclamations; no, the point here is that the mortgages are very probably unsecured, and the mortgage bonds based upon allegations of ownership of these loans are very probably worthless or nearly so.

Speaking to the traders out there who are not interested in any of the policy issues, some of us know that there is a hedge or bet here that is going to surface and sink this ship once and for all, while you guys make all the money AGAIN. And because nobody is looking, you can probably do so without fear of legal intervention or regulation because the old rules and laws probably exempt you and your trade as not subject to securities laws. At worst they will shut the barn door after the building is completely evacuated of all sign of life. I really can’t blame you for being so cynical. The only people who have a clue about what you are doing are not in any position to do anything about it except write lame duck articles like this one.

LLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLL

“Ally Financial Inc., the auto and home lender majority-owned by the U.S. government, agreed to pay $462 million to settle repurchase demands from Fannie Mae linked to $292 billion in home loans.”

Bloomberg:

By Hugh Son and Lorraine Woellert – Dec 27, 2010 10:00 PM MT Tue Dec 28 05:00:03 GMT 2010

Ally Financial Inc., the auto and home lender majority-owned by the U.S. government, agreed to pay $462 million to settle repurchase demands from Fannie Mae linked to $292 billion in home loans.

Ally, formerly known as GMAC Inc., said the deal covers loans serviced by GMAC Mortgage unit for Fannie Mae before June 30 and mortgage-backed securities purchased by the Washington- based loan-funding firm. The accord was reached on behalf of Ally’s Residential Capital unit and subsidiaries, the Detroit- based company said yesterday in a statement.

Chief Executive Officer Michael Carpenter is seeking to resolve claims tied to faulty mortgages as he prepares Ally for a public offering to repay U.S. bailout funds. Mortgage lenders typically promise to buy back loans sold to investors or cover losses if information about the borrowers or property later proves to be incorrect.

“At the start of 2010, we set a goal to substantially reduce risk in our mortgage operation,” Carpenter, 63, said in the statement. “We have successfully completed a series of steps toward that objective and are largely complete.”

The government took an almost 80 percent stake in Fannie Mae after it seized the firm in 2008.

Ally had settled buyback claims with six counterparties, the largest being government-owned finance company Freddie Mac, according to a November presentation. It agreed in May to make a one-time payment to Freddie Mac, without disclosing the amount.

Ally’s Reserves

Ally increased reserves for buybacks to $1.1 billion in the third quarter, from $855 million in the prior period. The original unpaid principal on loans involved in the Fannie Mae settlement announced yesterday was $292 billion, a figure that narrowed to $84 billion, Ally said.

Chris Katopis, executive director of the Association of Mortgage Investors, said his members are worried the Ally settlement might be too low.

The deal “may set a harmful precedent for mortgage investors and the public,” Katopis said in an interview. The Washington-based trade association represents state pension funds and other investors in mortgage-backed securities.

The agreement “modestly” exceeds prior reserves, Ally said. ResCap and Fannie Mae also reached an accord regarding ResCap’s payment of mortgage-insurance proceeds where coverage is rescinded or canceled.

“ResCap does not expect this exposure to be material,” Ally said.

Subpoenas Issued

In July, Fannie Mae’s regulator, the Federal Housing Finance Agency, said it issued subpoenas for documents related to private-label mortgage-backed securities in which Fannie Mae and Freddie Mac had invested. The agency, under pressure from lawmakers to stem losses to the two companies, is trying to determine whether misrepresentations or omissions might require lenders to repurchase failed loans.

The FHFA will withdraw subpoenas to “certain ResCap parties” that relate to Fannie Mae, Ally said today in a filing to the Securities and Exchange Commission. FHFA spokeswoman Stefanie Johnson declined to comment.

With more than $150 billion in taxpayer funds spent on bailing out Fannie Mae and McLean, Virginia-based Freddie Mac, lawmakers are pressing them to shift more of the burden back to the banks that created defective loans.

In an August letter to President Barack Obama, Representative Barney Frank, the Massachusetts Democrat who leads the House Financial Services Committee, said the battle to get refunds “should be fought with every tool.”

“We are pleased to have reached an agreement with Ally Financial Inc. and related entities which addresses our exposure on a portfolio of loans sold to Fannie Mae by GMAC Mortgage or serviced by GMAC Mortgage,” Janis Smith, a spokeswoman for Fannie Mae, said in an e-mailed statement. “The agreement also addresses Fannie Mae’s potential claims for losses on certain private label securities issued by GMAC entities.”

To contact the reporters on this story: Hugh Son in New York at hson1@bloomberg.net; Lorraine Woellert in Washington at lwoellert@bloomberg.net.

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