Tuesday, December 08, 2009
SUBSTITUTION OF TRUSTEE
We have reviewed a multitude of files for Counsel and pro per (filings) over 24 months. We testify that not one foreclosure file is absent the argument the deed is defect from improper assignments, missing assignments, improperly endorsed instruments, lagging recordings, late substitutions and it goes on and on and on.
NOT ONE – GOT IT / If the deed causes a defect in Title the contractual obligation with all its rights are unenforceable. Where the deed is defect the sale must fail. If the defect appears from fraud perpetrated while executing a foreclosure under the authority of a trustee the sale to a third party must also fail.
Here is the latest – It is happening as I write and to a blessed and special couple of people in another chapter of “let’s steal your home!”
The Notice of default is filed on June 15th 2009. The Notice includes a critical component of our fraud investigation I will share with all of you tonight.
NOTE – Look at the far upper left hand corner of the NOTICES and always determine who is listed as follows-
with the NEW authority to execute on behalf of the beneficiary. It is near always left BLANK (Hmmm).
WHEN RECORDED MAIL TO:
Party (Trustee) with the VESTED authority to receive recorded information executed on behalf of the beneficiary. It is always completed. I now look to see where there is a “SUBSTITUTION OF TRUSTEE” that MUST predate the REQUESTED BY as shown above.
The SUBSTITUTION OF TRUSTEE is executed by notary and dated June 22, 2009 and recorded June 25th 2009. The Substituted Trustee requested a NOTICE OF DEFAULT 10 days in advance (June 15th 2009) of the required recording or before executing by signature the necessary substitution.
CRIMINAL INTENT -The act is likely something to be ruled negligent and needed for a judge to hear a claim of “Void” from the errors in executing the Notice of default improperly.
However, someone took a rubber stamp and placed the name of another trustee, a random title company on the area above “RECORDED BY”.
There is the deliberate attempt to circumvent the civil code mandating proper procedural requirements in a foreclosure under a Power of Sale.
Rebutable Defense – The stamped in Title Company was acting as agent.
Counsel – WRONG. We have a title company on the deed as trustee, then MES replaces the trustee, then MERS yields its rights to the title Company as trustee (stamp) then the Title company implies releasing its rights as a trustee to the recovery firm who executes and records it defect substitution well into the 10 days subsequent to the Notice of default being filed?
What the #+!!
Who owns your loan? And if “they” abandoned you home as securities written down or charged off….
who is stealing your home?
Experts Corner: Another FDIC Bank Failure
American Marine Bank
News of another FDIC member bank falling under the FDIC control was published late this week. The “
Our question is to whom? Who is the holder in due course?The purpose of this analysis and discussion of the FDIC are subject to the various parties’ who have interest in your loan. It’s about their representations, conduct and decisions made while enforcing a foreclosure. Making a bad decision or employing conduct viewed to be deceptive will cause any transaction or enforcement of a right to a security to be rendered voidable.
Furthermore the asset may suffer from malfeasance and willful error and omissions causing the loan to be valued far below its market value due to serious impairment. Successfully demonstrating in court the reasons why your loan has become so seriously impaired that the real security, a deed of trust or mortgage, will fall into a judicial abyss and subject the true holder in due course to lose its rights to in a recovery of the asset in a foreclosure. In other words the right to accelerate and foreclose becomes lost to the transaction
Your loan was likely sold after it originated. A sale of the asset versus a government backed insurance guaranty is the single most controversial component of the subprime lenders dilemma.
A bonifide sale and transfer must be evidenced which differentiates the private label loans from the GSE or Fannie Mae and Freddie Mac class of loans delivered to Wall Street.
In a true sale the lender who sold it is lost to the privileges and rights to the asset forever. So I guess the question is not so much about a foreclosure due to a breach and delinquent obligation. This discussion is for us to understand to “whom” you owe the money and what right do they have to enforce the obligation and right to foreclose? Lawful Transfers
A “transfer” is the “streets” vernacular for booking a sale of a loan or pool of loans. The transfer of an asset by the lender to a less than arms investor is routinely conducted solely for accounting purposes. None the less it’s a sale that is forever entered in to the books.
The purpose of this analysis and discussion of the FDIC are subject to the various parties’ representations and decision making that may cause the asset to become so impaired that the real security, a deed of trust or mortgage becomes lost to the transaction. My last sale as a trader was a transfer of a bulk pool of “toxic waste” was back in 2001. The loans acquired and sold under my direction were never really that bad as we had one of the lowest delinquency rates in the region for sub prime assets sold and serviced. What I do know or at least remember from my days of bulk whole loan trading was from selling to the same major market leaders who are in trouble today.
Let’s back up for a moment to consider how accountants arrive at a specific value. A valuation is necessary for a foreclosure to take place just as it is for the original loan to be sold. A sale involves a contract and the essential elements f the law amongst the two parties. The first is consideration (money) and the second is the intent of the parties for lawful exchange and or transfer.
Consideration is required for transferring any good or service amongst one party to another, including a sale of a bulk pool of mortgage loan receivables.
If a mortgage is valued at par then you typically measure its worth at the combined cost to date or basis in the asset. A true and more accurate valuation is based upon the market and what one will pay assuming demand. It’s the true inherent value of a gallon of milk that will force someone to go elsewhere or not to drink milk at all. The same rationale holds true for an asset such as a closed mortgage receivable subject to its ability to attract a fair price in an open market. A mark to market value is entered by an accountant prior to sale if the owner is seeking to value the worth of the assets it holds.
Estimating value based on the future worth of an asset is something that continues to attract criticism whereby a historical valuation is entered based on a discounted future value. A presumption of value is calculated in a variety of ways sometimes using an internal rate of return offset by depreciation. In the mortgage industry I call this type of valuation complete lunacy. And this is where things get interesting with taking a look back at the cause of the mess we are now in.
Generally Accepted Accounting Principals aka “GAAP” allows us a standard to apply a historical value on a loan which is necessary for estimating consistency as with the life of a loan. The terms of the note say 30 years but we know that homeowners rarely keep a loan to term. Valuations use variables such as prepayment velocity or life based on a traditional or historic early payoff.
The CPR is the measurement of prepayment speed determine from reversion (sale of a home) refinance or the opposite end of the spectrum which is delinquency and default. Mortgages originated over the last decade were attributed an estimated holding time or CPR of say 60 months. Other things that influence price and for understanding the lenders desire to become fixated with the sub prime mortgage sector are subject to ethical scrutiny. I am referring to extreme maximum leverage used to buy loans and the introduction of something called accounting practices such as derecongnition. The latter is suspect, according to many accountants, as it offer no real value to a transfer and subject to entering a “gain on sale.”
The "streets" ability to substantiate its reporting methods. The Expert Witness must have among other things a legal understanding and verifiable accounting practices background. So figure an offshore investor will take a coupon of 1% at twice the current alternative which was a US Treasury. So I guess a WAC of 8% would yield on $100,000 certificate up to $800,000 in capital investment. Or is that $100,000 yielding 8 separate $100,000 certificates?
What ever it is its six of one and half a dozen of the other. It makes me want to run to the Hampton's and buy the biggest home they can offer. It makes me want to find the worse of the worse credit and put them into a loan.....any loan.
The problem with this madness conducted under the great GWB (and side kick “Don't call me Cheney call me "Dick”) administration is the regulatory absence for the bubble Wall Street elite would eventually pop.
The money raised was at a huge multiple and was causing CDO product to suffer from heavy demand internationally in a market that had long exceeded capacity. ( . . . .It makes me cringe and recall the old Keystone Kops silent flicks; remember the morons running around that said nothing and were always trying to help while and causing even more chaos …..Anyway!
I cannot pinpoint of fully grasp the role of the FDIC here but fear we may have an accounting play that shows the bank lines were actually used as “paid in capital” . It’s called derecongnition under GAAP and FASB accounting pronouncements for isolating the source and use of funds.
Will this help your arguments to save your home? YOU BET IT WILL! The big question is where the logic here is and why would the bank regulators let this happen? These Pretender Lenders were not pretenders at all. I call them “Tender Lenders” who tendered a note like currency instead of parking it in a vault like the asset it is. Therefore when tendered the check is electronically debited (hmm) and treated like a cancelled check.
The lost note is not a coat lost by a child at school. It’s lost to the payee who failed to deliver to the payor that check evidencing a debit stamped paid in full.
Hey, Barney just a minute . . . Hey, Wilma I’m home!!!!! So lets say these guys raised volumes of cash at huge multiples and did so with FDIC capitalization or tax payer insured capital contributions into a “NewCo” or De novo or S*P* E*.
If so, I feel the SPE is more like an STD and its all absolute "Bull Crepes". Where did these guys put all the capitalization anyway from money and stock…Huh? Especially with all these stringent FDIC risk weight capital set aside requirements. It’s a regulatory capital priority and basic fiscal mandate enforced by the OTS.
I got to know, where did they "Deposit" the money and stock ...do you know? I am referring to the "Deposits by the Wall Street “Depositors” you see. Deposited, Depositor, Depository, Restroom, tell me Wendy! Where’s the beef! Howard, who goofed I must known, who goofed!
Hey! ....wait a minute!!!....D*E*P*O*S*I*T*O*R*S! Yikes…OMG! How much more can we take!
So back to the failure of another institution, one of Americas and Pacific Northwest’s finest! American Marine Bank. So who do we bring an action against now? FDIC say’s “for all questions regarding “new” loans and the lending policies of the new successor call Columbia State Bank, and to please contact your branch office.
They continue that shares of American Marine Bank were owned by its holding company, AMB Financial Services Corporation, Bainbridge Island, WA. The holding company was not included in the closing of the bank or the resulting receivership. So if you are a shareholder of AMB Financial Services Corporation, please do not contact or file a claim with the Receiver. You may contact AMB Financial Services Corporation directly for information. How convenient is that….a BK waiting to happen.
The FDIC claims it does offer a reference guide to deposit brokers acting as agents for their investor clientele. This web site outlines the FDIC's policies and procedures that must be followed by deposit brokers when filing for pass-through insurance coverage on custodial accounts deposited in a failed FDIC Insured Institution. Wait a minute here now just slow down. FDIC makes no mention of a lender consumer grievance, and tells us to call the broke parent of the bank. Now are these loans in question considered FDIC troubled assets? Okay, we cannot help you with a predator loan but we will be back to foreclose on you?
My heart is pounding right now and I cannot take anymore folks…..really! But on a more serious note, consider the following. A bad notary signature, broken promise by a “Tender Lender” or forged MERS document is not the argument to bet the house on (no pun intended) It won’t get you to the promised land so can the need for an audit. It won’t get you to the Promised Land, so here is my advice!
SAVE YOUR MONEY! . . . UNLESS YOU WANT TO BORE THE HELL OUT OF A JUDGE AND GET THROWN OUT OF COURT.
It’s time to step up or step down!
By "Toxic Waste Guru" (LOL)
REQUIREMENTS OF THE APPLICABLE CUSTODIAN .
(ii) If Custodian determines that the documents in the MortgageFilefor a Delivered Mortgage Loan conform in all respects with Section3(b)(i),and unless otherwise notified by Buyer in accordance with Section3(b)(i),Custodian shall include such Mortgage Loan in the CustodialMortgage LoanSchedule issued to Buyer.
If the documents required in any Mortgagedonot conform (except as otherwise notified in Section 3(b)(i)),Custodianshall not include such Mortgage Loan in any Custodial Mortgage LoanSchedule. Custodian shall notify Sellers and Buyer of any documentsthatare missing, incomplete on their face or patently inconsistent andof anyMortgage Loans that do not satisfy the criteria listed above.Sellers shallpromptly deposit such missing documents with Custodian or completeorcorrect the documents as required by Section 3(a) or remove therelatedMortgage File from the Request for Certification.
On or prior tothePurchase Date and as a condition to purchase, except with respectto aWet-Ink Mortgage Loan, Custodian shall deliver to the Buyer anelectronicCustodial Mortgage Loan Schedule to the effect that the Custodianhasreceived the Mortgage File for each Purchased Mortgage Loan on theMortgageLoan Schedule and as to each Mortgage File, specifying any documendelivered and any original document that has not been received, andverifying the items listed in this Section 3(b).(c) As required by Section 3(a), Custodian shall deliver to Buyer,nolater than 3:00 p.m. Eastern Time on the related Purchase Date(provided, thatthe
Custodian has timely received the items required in Section2(b) herein),electronically or via facsimile, followed, if requested in writingby Buyer, byovernight courier, a Custodial Mortgage Loan Schedule havingappended thereto aschedule of all Mortgage Loans with respect to which Custodian hascompleted theprocedures set forth in Sections 3(a) and 3(b)(i) hereof andcertify that it isholding each related Mortgage File for the benefit of Buyer inaccordance withthe terms hereof.
Pleading (Not for Use) Lenders egregious, ongoing and far reaching fraudulent schemes
Lenders who Lied about Loan Modification Programs
Jun 23, 2010 ... The attorney will be able to cut through the lender lies and review the true financial status of the borrower in order to paint
THIS IS NOT TO BE CONSTRUED AS LEGAL ADVICE!!
If you don’t file a timely response, the plaintiff can petition the court for a “default judgment” and possibly win the lawsuit simply because you failed to respond.
First call an Attorney Immediately. An attorney experienced in defending against the type of lawsuit you’ve been served with will undoubtedly be the best tool in your defense toolbox.
Lawyers are knowledgeable about the procedures involved in lawsuits and skilled at making persuasive arguments to a judge or a jury in your defense. An attorney can also help you try to settle the case out of court as an alternative.This blog only describes situational circumstances and no witness can offer legal advice. M.Soliman is an "expert witness" and not an attorney nor affiliated under a licensed prationer.
This web site does NOT advocate nor believe that modifications exist and will not be involvved in any modificiation or other short sale settlement offers.
Consult an attorney first for your specific problem. NO attorney-client relationship exists.
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