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Understanding the Assignment of Mortgages: What You Need To Know
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A mortgage is a legally binding agreement between a home buyer and a lender that dictates a borrower's ability to pay off a loan. Every mortgage has an interest rate, a term length, and specific fees attached to it.
Written by Attorney Todd Carney . Updated November 26, 2021
If you’re like most people who want to purchase a home, you’ll start by going to a bank or other lender to get a mortgage loan. Though you can choose your lender, after the mortgage loan is processed, your mortgage may be transferred to a different mortgage servicer . A transfer is also called an assignment of the mortgage.
No matter what it’s called, this change of hands may also change who you’re supposed to make your house payments to and how the foreclosure process works if you default on your loan. That’s why if you’re a homeowner, it’s important to know how this process works. This article will provide an in-depth look at what an assignment of a mortgage entails and what impact it can have on homeownership.
Assignment of Mortgage – The Basics
When your original lender transfers your mortgage account and their interests in it to a new lender, that’s called an assignment of mortgage. To do this, your lender must use an assignment of mortgage document. This document ensures the loan is legally transferred to the new owner. It’s common for mortgage lenders to sell the mortgages to other lenders. Most lenders assign the mortgages they originate to other lenders or mortgage buyers.
Home Loan Documents
When you get a loan for a home or real estate, there will usually be two mortgage documents. The first is a mortgage or, less commonly, a deed of trust . The other is a promissory note. The mortgage or deed of trust will state that the mortgaged property provides the security interest for the loan. This basically means that your home is serving as collateral for the loan. It also gives the loan servicer the right to foreclose if you don’t make your monthly payments. The promissory note provides proof of the debt and your promise to pay it.
When a lender assigns your mortgage, your interests as the mortgagor are given to another mortgagee or servicer. Mortgages and deeds of trust are usually recorded in the county recorder’s office. This office also keeps a record of any transfers. When a mortgage is transferred so is the promissory note. The note will be endorsed or signed over to the loan’s new owner. In some situations, a note will be endorsed in blank, which turns it into a bearer instrument. This means whoever holds the note is the presumed owner.
Using MERS To Track Transfers
Banks have collectively established the Mortgage Electronic Registration System , Inc. (MERS), which keeps track of who owns which loans. With MERS, lenders are no longer required to do a separate assignment every time a loan is transferred. That’s because MERS keeps track of the transfers. It’s crucial for MERS to maintain a record of assignments and endorsements because these land records can tell who actually owns the debt and has a legal right to start the foreclosure process.
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Assignment of Mortgage Requirements and Effects
The assignment of mortgage needs to include the following:
The original information regarding the mortgage. Alternatively, it can include the county recorder office’s identification numbers.
The borrower’s name.
The mortgage loan’s original amount.
The date of the mortgage and when it was recorded.
Usually, there will also need to be a legal description of the real property the mortgage secures, but this is determined by state law and differs by state.
The original lender doesn’t need to provide notice to or get permission from the homeowner prior to assigning the mortgage. But the new lender (sometimes called the assignee) has to send the homeowner some form of notice of the loan assignment. The document will typically provide a disclaimer about who the new lender is, the lender’s contact information, and information about how to make your mortgage payment. You should make sure you have this information so you can avoid foreclosure.
When an assignment occurs your loan is transferred, but the initial terms of your mortgage will stay the same. This means you’ll have the same interest rate, overall loan amount, monthly payment, and payment due date. If there are changes or adjustments to the escrow account, the new lender must do them under the terms of the original escrow agreement. The new lender can make some changes if you request them and the lender approves. For example, you may request your new lender to provide more payment methods.
Taxes and Insurance
If you have an escrow account and your mortgage is transferred, you may be worried about making sure your property taxes and homeowners insurance get paid. Though you can always verify the information, the original loan servicer is responsible for giving your local tax authority the new loan servicer’s address for tax billing purposes. The original lender is required to do this after the assignment is recorded. The servicer will also reach out to your property insurance company for this reason.
If you’ve received notice that your mortgage loan has been assigned, it’s a good idea to reach out to your loan servicer and verify this information. Verifying that all your mortgage information is correct, that you know who to contact if you have questions about your mortgage, and that you know how to make payments to the new servicer will help you avoid being scammed or making payments incorrectly.
In a mortgage assignment, your original lender or servicer transfers your mortgage account to another loan servicer. When this occurs, the original mortgagee or lender’s interests go to the next lender. Even if your mortgage gets transferred or assigned, your mortgage’s terms should remain the same. Your interest rate, loan amount, monthly payment, and payment schedule shouldn’t change.
Your original lender isn’t required to notify you or get your permission prior to assigning your mortgage. But you should receive correspondence from the new lender after the assignment. It’s important to verify any change in assignment with your original loan servicer before you make your next mortgage payment, so you don’t fall victim to a scam.
Attorney Todd Carney
Attorney Todd Carney is a writer and graduate of Harvard Law School. While in law school, Todd worked in a clinic that helped pro-bono clients file for bankruptcy. Todd also studied several aspects of how the law impacts consumers. Todd has written over 40 articles for sites such... read more about Attorney Todd Carney
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Mortgage Assignment Laws and Definition
(This may not be the same place you live)
What is a Mortgage Assignment?
A mortgage is a legal agreement. Under this agreement, a bank or other lending institution provides a loan to an individual seeking to finance a home purchase. The lender is referred to as a creditor. The person who finances the home owes money to the bank, and is referred to as the debtor.
To make money, the bank charges interest on the loan. To ensure the debtor pays the loan, the bank takes a security interest in what the loan is financing — the home itself. If the buyer fails to pay the loan, the bank can take the property through a foreclosure proceeding.
There are two main documents involved in a mortgage agreement. The document setting the financial terms and conditions of repayment is known as the mortgage note. The bank is the owner of the note. The note is secured by the mortgage. This means if the debtor does not make payment on the note, the bank may foreclose on the home.
The document describing the mortgaged property is called the mortgage agreement. In the mortgage agreement, the debtor agrees to make payments under the note, and agrees that if payment is not made, the bank may institute foreclosure proceedings and take the home as collateral .
An assignment of a mortgage refers to an assignment of the note and assignment of the mortgage agreement. Both the note and the mortgage can be assigned. To assign the note and mortgage is to transfer ownership of the note and mortgage. Once the note is assigned, the person to whom it is assigned, the assignee, can collect payment under the note.
Assignment of the mortgage agreement occurs when the mortgagee (the bank or lender) transfers its rights under the agreement to another party. That party is referred to as the assignee, and receives the right to enforce the agreement’s terms against the assignor, or debtor (also called the “mortgagor”).
What are the Requirements for Executing a Mortgage Assignment?
What are some of the benefits and drawbacks of mortgage assignments, are there any defenses to mortgage assignments, do i need to hire an attorney for help with a mortgage assignment.
For a mortgage to be validly assigned, the assignment document (the document formally assigning ownership from one person to another) must contain:
- The current assignor name.
- The name of the assignee.
- The current borrower or borrowers’ names.
- A description of the mortgage, including date of execution of the mortgage agreement, the amount of the loan that remains, and a reference to where the mortgage was initially recorded. A mortgage is recorded in the office of a county clerk, in an index, typically bearing a volume or page number. The reference to where the mortgage was recorded should include the date of recording, volume, page number, and county of recording.
- A description of the property. The description must be a legal description that unambiguously and completely describes the boundaries of the property.
There are several types of assignments of mortgage. These include a corrective assignment of mortgage, a corporate assignment of mortgage, and a mers assignment of mortgage. A corrective assignment corrects or amends a defect or mistake in the original assignment. A corporate assignment is an assignment of the mortgage from one corporation to another.
A mers assignment involves the Mortgage Electronic Registration System (MERS). Mortgages often designate MERS as a nominee (agent for) the lender. When the lender assigns a mortgage to MERS, MERS does not actually receive ownership of the note or mortgage agreement. Instead, MERS tracks the mortgage as the mortgage is assigned from bank to bank.
An advantage of a mortgage assignment is that the assignment permits buyers interested in purchasing a home, to do so without having to obtain a loan from a financial institution. The buyer, through an assignment from the current homeowner, assumes the rights and responsibilities under the mortgage.
A disadvantage of a mortgage assignment is the consequences of failing to record it. Under most state laws, an entity seeking to institute foreclosure proceedings must record the assignment before it can do so. If a mortgage is not recorded, the judge will dismiss the foreclosure proceeding.
Failure to observe mortgage assignment procedure can be used as a defense by a homeowner in a foreclosure proceeding. Before a bank can institute a foreclosure proceeding, the bank must record the assignment of the note. The bank must also be in actual possession of the note.
If the bank fails to “produce the note,” that is, cannot demonstrate that the note was assigned to it, the bank cannot demonstrate it owns the note. Therefore, it lacks legal standing to commence a foreclosure proceeding.
If you need help with preparing an assignment of mortgage, you should contact a mortgage lawyer . An experienced mortgage lawyer near you can assist you with preparing and recording the document.
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Prior to joining LegalMatch, Daniel worked as a legal editor for a large HR Compliance firm, focusing on employer compliance in numerous areas of the law including workplace safety law, health care law, wage and hour law, and cybersecurity. Prior to that, Daniel served as a litigator for several small law firms, handling a diverse caseload that included cases in Real Estate Law (property ownership rights, residential landlord/tenant disputes, foreclosures), Employment Law (minimum wage and overtime claims, discrimination, workers’ compensation, labor-management relations), Construction Law, and Commercial Law (consumer protection law and contracts). Daniel holds a J.D. from the Emory University School of Law and a B.S. in Biological Sciences from Cornell University. He is admitted to practice law in the State of New York and before the State Bar of Georgia. Daniel is also admitted to practice before the United States Courts of Appeals for both the 2nd and 11th Circuits. You can learn more about Daniel by checking out his Linkedin profile and his personal page. Read More
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In a Mortgage Foreclosure, Having Possession of the Mortgage Is Not Enough
By Jeffrey R. Metz
However intuitive it may seem that the party who controls a mortgage should have the right to foreclose, the courts are casting doubt on that assumption. The issue has come to light in connection with mortgages in the Mortgage Electronic Registration System (MERS), which has commonly served as a mortgagee for purposes of tracking loans, and in doing so takes possession of the note associated with a mortgage. In this article the author reviews key decisions establishing the principle that when lenders make such assignments, they may retain possession of the mortgage itself, but they have no right to foreclose because they do not also hold the note.
The recently decided case of Citi mortgage, Inc. v. Stosel, N.Y. App. Div., No. 2010–06292, 11/15/11,2011 WL 5588729 (2d Dep’t 2011), illustrates a fundamental, but misunderstood, tenet: in order to have standing to prosecute a foreclosure action, the movant must demonstrate that it is the holder of the note or bond to which the mortgage is attendant.
Background. In the case of a default in payment, the Court of Appeals of the State of New York has recognized that ‘(i)t is fundamental that the holder of a note(or bond) and mortgage has two remedies: one at law in a suit on the debt as evidenced by the note, the other in equity to foreclose the mortgage.’ Copp v. Sands Point Mar., 17 N.Y.2d 291, 293 (1966) (citations omitted). The note, the court continued, ‘represents the primary personal obligation of the mortgagor, and the mortgage is merely the security for such obligation.’ Id.Therefore, a mortgage ‘cannot exist independently of the debt or obligation’ Bank of N.Y. v. Silverberg, 86A.D.3d 274, 280 quoting from FGB Realty Advisers v. Parisi, 265 A.D.2d 297, 298 (2d Dep’t 1999).
The act of assignment reflects the interplay between the note and the mortgage. The appellate division has explained that ‘[a]s a general matter, once a promissory note is tendered to and accepted by an assignee, the mortgage passes as an incident to the note.’ Silverberg, supra, 86 A.D.3d at 280 (citations omitted). But it is ancient law that when a mortgage secures a bond or other instrument, the assignment of a mortgage without the assignment of the underlying note is a nullity. See Carpenter v. Longan, 83 US 271, 274 (1873); Merritt v. Bartholick, 36 NY 44, 45 (1867). And this holds true even when the Mortgage Electronic Registration System (MERS) holds close to 60 million mortgage loans. Silverberg, supra, 86 A.D.3d at 283 citing to ‘MERS? It May Have Swallowed Your Loan,’ Michael Powell and Gretchen Morgenson, New York Times, March 5, 2011.
What Is MERS? As explained by the court of appeals in Matters of MERSCORP., Inc. v. Romaine, 8 NY 3d 90, 96 (2006):
In 1993, the MERS system was created by several large participants in the real estate mortgage industry to track ownership interests in residential mortgages. Mortgage lenders and other entities, known as MERS members, subscribe to the MERS system and pay annual fees for the electronic processing and tracking of ownership and transfers of mortgages. Members contractually agree to appoint MERS to act as their common agent on all mortgages they register in the MERS system.
The initial MERS mortgage is recorded in the County Clerk’s office with ‘Mortgage Electronic Registration Systems, Inc.’ named as the lender’s nominee or mortgagee of record on the instrument. During the lifetime of the mortgage, the beneficial ownership interest or servicing rights may be transferred among MERS members (MERS assignments), but these assignments are not publicly recorded; instead they are tracked electronically in MERS’s private system. In the MERS system, the mortgagor is notified of transfers of servicing rights pursuant to the Truth in Lending Act, but not necessarily of assignments for the beneficial interest in the mortgage.
In Bank of N.Y. v. Silverberg, 86 A.D.3d 274 (2d Dep’t 2011) the appellate division was called upon to determine whether the Bank of N.Y. had the standing to foreclose on a mortgage where MERS ‘was listed in the underlying mortgage instruments as a nominee and mortgagee for the purpose of recording but was never the actual holder or assignee of the underlying notes.’ Id at 275.
There, the defendants took out two loans from Countrywide Homes Loans, Inc. Both were secured with mortgages where MERS was the mortgagee for purpose of recording but the underlying notes remained with Countrywide. Nonetheless, both mortgages contained the following provision:
‘[The Borrowers] understand and agree that MERS holds only legal title to the rights granted by [the Borrowers] in this Security Instrument, but, if necessary to comply with law or custom, MERS (as nominee for Lender and Lender’s successors and assigns) has the right:
‘(A) to exercise any or all of those rights, [granted by the Borrowers to Countrywide] including, but not limited to, the right to foreclose and sell the Property’; and
‘(B) to take any action required of Lender including, but not limited to, releasing and canceling this Security Instrument.’
The Countrywide loans were later consolidated. However, Countrywide was not a party to the agreement and the agreement, while providing MERS with the right to assign the mortgages, did not specifically provide it with the right to assign the notes. This was critical because the court found that any ‘assignment of the notes was. . .beyond MERS’s authority as nominee or agent of the lender.’ Id at 281.
Therefore, upon the assignment of the consolidated loan from MERS to the Bank of New York, the bank ‘gained only that to which its assignor was entitled’ and therefore, ‘did not acquire the power to foreclose by way of the. . .assignment.’ Id.
In so ruling, the appellate division contrasted the situation to the one it had before it in Mortgage Elec. Registration System Inc. v. Coakley, 41 A.D.3d 674 (2d Dept’ 2007). There, MERS commenced an action to foreclose a mortgage in favor of a bank in order to secure a promissory note in excess of $1 million. Coakley sought dismissal of the action, arguing that MERS lacked standing to commence the foreclosure action.
Unlike the situation in Silverberg, the note in Coakley had actually been tendered to MERS prior to the foreclosure. Following settled law, the court concluded that ‘at the time of the commencement of the action, MERS was the lawful holdover of the promissory note, and of the mortgage, which passed as an incident to the promissory note.’ Id. Parenthetically, the mortgage contained a provision expressly recognizing MERS’s right to foreclose in the event of a default.
Citi mortgage. These principles were reaffirmed in the recently decided matter of Citi mortgage, Inc. v. Stosel, 2011 WL 558720 (2d Dep’t 2011). In that case, Citi mortgage commenced a foreclosure action against Stosel. Citi mortgage sought summary judgment on its complaint and order of reference. Stosel cross-moved to dismiss the complaint on the grounds that Citi mortgage lacked standing to prosecute the action. The motion court found in favor of Citi mortgage but the second department reversed and found that Citi mortgage lacked the requisite standing.
The court explained that standing in a foreclosure action is demonstrated by a showing that the movant ‘is both the holder or assignee of the subject mortgage and the holder or assignee of the underlying note either by physical delivery or execution of a written assignment prior to the commencement of the action.’ (citations and internal quotation marks omitted).
The court also reaffirmed that an assignment of the mortgage alone is a nullity. The note or bond need to be assigned. Inasmuch as Citi mortgage could not establish when or how it became the lawful holder of the note to which the mortgage was incident, Citi mortage could not establish standing.
Conclusion. Because a mortgage does not act independently of the debt or obligation it secures, in order for an assignee to obtain standing to prosecute a foreclosure action, it must receive both the note and the mortgage.
- Jeffrey R. Metz
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Mortgage assignments as evidence of fraud, by lynn szymoniak, esq..
Posted on07 March 2010. Tags: assignment of mortgage , christina allen , FIS , foreclosure , foreclosure fraud , foreclosure mill , foreclosure mills , indymac , INDYMAC Bank Onewest Deutsche Neil Garfield April Charney Hamlet Paul Muckle Geithner Obama Mortgage Fraud Concealment Fraudulant transfer Assignment of Erica Johnson-SECK Law Offices Of David J. Ster , laura hescott , lender processing inc. , LPS , MERS , MORTGAGE ELECTRONIC REGISTRATION SYSTEMS INC. , mortgage note , note , onewest , ponzi scheme , roger stotts , short sale fraud
MORTGAGE ASSIGNMENTS AS EVIDENCE OF FRAUD
Lynn Szymoniak, Esq. Editor, Fraud Digest, February 9, 2010
In the past ten years, hundreds of thousands of residential mortgages were bundled together (often in groups of about 5,000 mortgages), and investors were offered the opportunity to buy shares of each bundle. This process is called securitization.
Each such bundle of residential mortgages was given a name, such as “Soundview Home Loan Trust 2006 OPT-2.” The name indicates information about the particular trust such as the year it was created (2006) and its contents (with OPT indicating that the loans in that particular trust were originally made by Option One Mortgage). Each such bundle/trust has a Cut Off Date identified in the trust documents (specifically, in the Pooling and Servicing Agreement). The Cut Off Date is the date on which all mortgage loans in the trust must be identified. In short, a final list of all of the mortgages in the bundle is set out. Each trust also has a Closing Date which is the date that the individual mortgages are transferred to the Trust Custodian, who must certify that for each mortgage, the custodian has a mortgage note endorsed in blank and proof that the ownership of the note has been transferred. This proof is most often an Assignment of Mortgage. Most trusts included the following or equivalent language regarding the Assignments: “Assignments of the Mortgage Loans to the Trustee (or its nominee) will not be recorded in any jurisdiction, but will be delivered to the Trustee in recordable form, so that they can be recorded in the event recordation is necessary in connection with the servicing of a Mortgage Loan.”
Title insurance companies issued policies guaranteeing that the trust had clear title to the mortgages.
When widespread defaults occurred, Trustees discovered that the laws regarding Mortgage Assignments varied significantly from state to state. Many issues regarding such Assignments were simply unresolved. One of the most significant issues was whether Mortgage Assignments could be back-dated or have retroactive effective dates. This issue arose because Trustees and their lawyers discovered in the foreclosure process that the Assignments could not actually be located, or that certain states did not allow blank Assignments.
To solve the problem of the missing Assignments, new Assignments were made and recorded. Because the question of retroactive Assignments had not been 2 resolved, most of these Assignments did not set forth the actual date that the Assignment took place. The Assignments were signed and notarized as if the transfer took place many years after the actual transfer date.
The Assignments were prepared by specially selected law firms and companies that specialized in providing “mortgage default services” to banks and mortgage companies. In jurisdictions with a high rate of mortgage defaults, over 80% of the filed Mortgage Assignments in the last three years were prepared and filed by the same five or six law firms and default processing companies.
In many states, two such Assignments were prepared and filed. The first was prepared in the name of Mortgage Electronic Registration Systems as “nominee” for the particular bank or mortgage company. When MERS authority to file foreclosures and Assignments was challenged in most jurisdictions, with varying results, a non-MERS Assignment was prepared as well.
In all of these cases, the Assignment was prepared to conceal the actual date that the property was acquired by the Trust. An examination of the Assignments filed showing the grantee as the Trust – such as “Soundview Home Loan Trust 2006 – OPT 2” – shows that most of these Assignments were prepared and filed in 2008 and 2009, when, in reality, the mortgages and notes were actually assigned – albeit defectively – prior to the closing date of the Trust. While the exact closing date can only be determined by looking at the trust documents, any Trust that includes the year in 2006 in its title most likely closed in 2006.
If a Mortgage Assignment is dated, notarized and filed in a year after the year set forth in the name of the grantee trust on the Assignment, it is actually an Assignment specially, and in many cases, fraudulently, made to facilitate foreclosures.
These Specially-Made Assignments have created havoc in the courts. In many cases, the Specially-made Assignments are dated After the foreclosure action has been initiated, making it appear that the Trust somehow magically knew prior to the assignment that it would acquire the defaulting property several months after the foreclosure action was initiated.
Repeatedly, courts have asked Trustees to explain why they were acquiring nonperforming loans and whether such acquisition was a violation of the trustee’s fiduciary duty to the Trust. No Trustee has ever come forth and explained that the Trust actually acquired the loan years before the Assignment. As a result, there are many decisions with observations similar to this observation made by Judge Arthur M. Schack of Kings County, New York, in HSBC Bank v. Valentin, 21Misc. 3d 1124 [A]:
Further, according to plaintiff’s application, the default of defendants Valentin and Ruiz began with the nonpayment of principal and interest due on January 1, 2007. Yet, four months later, plaintiff HSBC was willing to take an assignment of the instant nonperforming loan. The Court wonders why HSBC would purchase a nonperforming loan, four months in arrears?
And in Deautsche Bank National Trust Co. V. Harris, Judge ARTHUR M. SCHACK Kings, New York, Index No. 39192/2007 (05 FEB 2008):
Further, the Court requires an explanation from an officer of plaintiff DEUTSCHE BANK as to why, in the middle of our national sub-prime mortgage financial crisis, DEUTSCHE BANK would purchase a non-performing loan from INDYMAC…
In Massachusetts in October, 2009, Land Court Judge Keith Long reaffirmed a March, 2009, ruling that a lender cannot begin foreclosure proceedings before the lender has filed and recorded the Assignment, stating:
The blank mortgage assignments they possessed transferred nothing…in Massachusetts, a mortgage is a conveyance of land. Nothing is conveyed unless and until it is various agreements between the securitization entities stating that each had a right to an an assignment and they are certainly not in recordable form. U.S. Bank National Association v. Ibanez, Massachusetts Land Court Misc. Case No. 384283, consolidated with two other cases.
Many authors expect the Massachusetts Supreme Court to reverse the Ibanez decision, but the uncertainty itself, as in the case of the MERS challenges, caused lenders to flood recording offices with new Assignments.
In cases where the Trust failed to get a valid Assignment, the problem is complicated by the bankruptcy of the major loan originators, including American Home Mortgage, Option One Mortgage, and Countrywide Home Loans.
When these big mortgage companies filed for bankruptcy, they did not disclose the mortgages already sold to the trusts as assets, because the transfers occurred months and years prior to the bankruptcy filing. Years later, when the Assignments were required for foreclosures, a bankruptcy court’s permission was needed to Assign billions of dollars in mortgages. Most likely in fear that a Bankruptcy Judge would not rubber stamp such a request, no such permission has ever been sought.
In lieu of valid Assignments, Trusts continue to rely on Assignments specially made by their own law firms and mortgage default service companies. Eventually, these fraudulent Assignments are being discovered by Courts, and the foreclosing trusts required to prove that they own the Mortgage and Note in the foreclosure action without reliance on Assignments that misrepresent the date of the actual transfer to the Trust the authority of the signers of the bankrupt original lenders. For thousands of homeowners, this realization has come too late.
Source: ASSIGNMENTS AS EVIDENCE
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17 Responses to “MORTGAGE ASSIGNMENTS AS EVIDENCE OF FRAUD, by Lynn Szymoniak, ESQ.”
I have been following your website for months. My assignment was signed by Diane Dixon, as VP of Fremont Investment and Loans, and notarized by Brenda McKinzy, from Harris County, Texas. Then Brenda McKinzy also has a notary signature, saying she is a notary in Florida as well. Diane Dixon is really a VP for Litton Loan Servicers in Texas. They are now the loan servicer and not the owner of my loan. Fremont Investment and Loans was located in California, had my mortgage in August, 2006, filed foreclosure against me with MERS as nominee in December, 2007. My loan is under the Pooling and Service Agreement of Nov 1, 2006. This paper I found on the Clerk of Courts website is called “Assignment of Action and Assignment of Final Summary Judgement of Foreclosure” and it is dated July 8, 2008. Meanwhile, Fremont was ordered to cease and desist by the SEC prior to filing for bankrupcy June 19, 2008. Also, I have a financial affidavit that was signed by a Christopher Spradling, Foreclosure Manager for Litton Loan. The fraudulent Assignment is trying to assign the foreclosure to HSBC Bank, Trustee. I have an attorney but can’t reach them, and I asked for mediation before the Judge before I got the attorney. Mediation was in March, 2010, Litton attended by phone, acting as the loan owner holder, with an attorney for Fremont in person. How do I get you a copy of my fraudulent assignement–I can fax it. Litton in form letter wants me to send financials by fax by the 8th, or says if I don’t, I will not qualify for HAMP. I think they should be contacting my attorney–I don’t feel I am mediating with the right person of authority, and I want to know what other homeowners are doing as far as Court motions to sue for fraud. Thank you for your diligence in uncovering the fraud–I just need to know if other attornies are going after fraudulent assignments in Court.
Do you have a copy of the documents notarized by Brenda McKinzy? I would like to compare the signatures and send you a copy of my documents so you can use it for your court action.
Brenda is also the notary that signed my recorded documents. I sent a certified letter to her at 11900 City Park Central Lane Apt 9303, Houston Texas 77047 ordering copies of the notary book pertaining to the signature on my recorded documents. The mail was returned to me as unclaimed.
So, the address she has on file with the State of Texas is not current to her notarized license specifications.
I don’t know what’s going on now. But, the notary looks fraudulent.
Lynn, how could a person go about figuring out which trust their loan was assigned and/or rolled up into a FNMA guaruntee and sold on wall street? [email protected]
Do you have a copy of your requesr letter to see the notary listings? maybe you could give me additional information on how to gather that information. thank-you , Carol
In Florida you can only be a notary if you reside in that state
I watched your interview on 60 minutes last night. I applaude your actions and your bravery. It is nowhere near the scale of your discovery but I have a case where police fabricated recorded evidence and used it to prosecute a misdemeanor. Like you, we cought them red handed complete with crime lab reports and affidavits. The problem is no police agency will file a report, no prosecutors office will prosecute and no attorney will take the civil case. Do you have any suggestions? Keep up your good works. Best regards,
I live in the state of Hawaii.How can I fight someone like Bank of America.They state they are the server of my loan from countrywide,but they don not own my loan.Who has my loan and how can I contact them for modication help??
Hi Lynn. We need to talk. Please contact me soonest. Scott at 208.699.3585
burt vincent you prosecute them yourself.. public policy demands fair & lawful actions by law enforgement ..hhahaha but that is what they are- a forgery http://en.wikipedia.org/wiki/Private_attorney_general
Wells Fargo is the originator of my son’s loan. They have not been helpful in re-financing his loan after losing his job and getting another one at a much lower hourly wage. They are planning on foreclosing. How can I find out if they are acting appropriately?? I don’t know where to start. He has received a letter of foreclosure if his payments are not brought up to date. Any help would be appreciated….
I also have an fradulent assigment of mortgage from new century mortgage to Bank of America National Association as successor by merger to lasalle bank as trustee for the c-bass mortgage loan asset-backed certificates series 2007cb2. Signed by Diane Dixon as vice president for litton loan and with Brenda Mckinzy as notary on behalf of new century mortgage on june 3 2009, two years after the BOA became the trustee for the trust account. What a FRAUD! can some one email me any copies signed by Diane Dixon and Brenda Mckinzy for my foreclosure defense case? I am collecting evidence of robo signing, and fraud.
Lynn, have you ever served in the capacity as an expert or qualified as a mortgage audit expert in a case. I have a case pending in Georgia and I am interested in securing a mortgage audit expert. My email address is [email protected]
No one covers the fact when there are no assignments. wells fargo home mortgage servicer, wells farg bank NA foreclosing on me. fnm investor no assignments recorded???
can some one help me? Been discharged from13in 2012 we were forced into bankruptcy because the lasalle bank,to abnamro, were puting all my payments toward suspense or others so i looked late. Bank of america has it know the forclosed on me i found out after all the numbers didnt add up even after bankruptcy to look in to it closer. Found they r charging me arrears 2 times 33 k in misc postings. So i looked at the assignment of mortgage low and behold forged robosigned i found there names on docs from the lender services so they cant be asst vice president or vice presidents. Plus it would be immpossible to b a vice president of 4 different banks in different states on the same day! They also were trying to charge me all there fees for the bankruptcy that i already payedso i think this would be called mortgage serviving fraud on top of every thing else. The att. Said i cant do anything about this now because the bankruptcy is over but they robbed me of the correct required procedure! I think the promissary note has been altered. Iam so confused i have evidenct but now what do i do with it
Do you have information on First Union Home Equity Bank NC, sold their 1996-1 series to Contimortgage ?
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What Is an Assignment of Mortgage?
- Post author: Dean Adams
- Post published: December 3, 2020
- Post category: Real Estate Investor
A mortgage is a loan secured by a real estate investor to procure or buy a property. It is a debt instrument that the borrower is obliged to meet with agreed terms of payment. The collateral of a specific real estate property secures a mortgage.
In this article, we will be talking about the assignment of the mortgage. What does this term mean? How does it work? Is the assignment of mortgage important? These are some questions that will be answered as we proceed with this article.
Defining Assignment of Mortgage
Assignment of mortgage is defined as a document that transfers a mortgage from the original lender to another lender. Assignment of mortgage can happen more than once, even without the knowledge of the borrower. This may be done over again until the mortgage balance is paid.
However, the lender is required to send the borrower a notice to inform him of the sale and a copy of what the terms of mortgage payments are. Terms and conditions of the transaction may vary, depending on the agreement of the mortgagee, and the Assignments of mortgage are frequently seen when the lender sells a mortgage to another lender.
A reason for the execution of the mortgage assignment is when the mortgage becomes delinquent, and the mortgagee feels that the mortgagor has no interest in doing something about it.
How the Assignment of Mortgage Works?
As defined, the mortgage assignment happens when the original mortgagee (the assignor) transfers the mortgage to a buyer (the assignee), who will turn out to be the new lender of the real property owner. In other words, he sells the mortgage to another lender without letting the borrower know of his intent to sell.
However, upon completing the mortgage assignment with a third party, the mortgagee must let the borrower know about the transactions. He must send the necessary documents to the borrower indicating important details such as the name of the new lender, contact information, and their agreement regarding predetermined payments and other terms of the transaction.
Assignors can benefit from the assignment of a mortgage. Property taxes , occupancy fees, and closing costs may be too costly for the lender.
Benefits of Assignment of Mortgage
The mortgagor may be experiencing financial difficulties himself or is moving out; hence, the selling of the mortgaged property happens. Mortgage assignments can free the lender of these costs. For the assignee or the third party buyer, assigning mortgages would mean acquiring a real estate property at a discounted price.
The agreement can help the assignee save thousands of dollars, to his benefit, of course. Another advantage of the transfer of a mortgage to the third party buyer is aside from acquiring a new unit at a discounted price, and the maintenance fees may be lower, too.
Getting a land transfer tax benefit may also be among the advantages of the assignment of a mortgage to an assignor.
The borrowers cannot contest the sale or assignment of mortgage. However, if the borrower wants to stop or do something about the mortgage assignments, he can apply for a new mortgage and pays off the old one.
The transfer of mortgages may benefit the borrower, in a way. In cases where the borrower is under financial stress, his mortgage payments may be affected. If this happens, the possibility of foreclosure is high. Assignment of mortgage can prevent foreclosure because it will be like getting a new loan.
In other words, the amount of the balance of the delinquent mortgage of the original loan will be paid off by the transfer of the mortgage.
How Assigning Mortgages to Third Parties Work?
In simple terms, the mortgage assignment transfers a mortgage from the first mortgagee to a third-party mortgagor. In other words, the mortgagee sells the mortgage to another lender. This process may be done several times until the borrower pays off the loan.
A mortgage assignment must be recorded in the county record. This is made so the assignment of the rights under the mortgage of the original bank may be assigned. If and when the owner of the home does not meet the mortgage, then the foreclosure process may be initiated.
However, if the assignment of mortgage was not properly executed, the foreclosure can be challenged by the real estate property owner.
How will the borrowers know if the assignments of mortgages are valid or not? Borrowers must understand the necessary documents, basic terms, and the persons involved in mortgage transfers.
When making a loan, closing a deal with a lender would require the real property owner to sign documents. Such documents include a deed of trust (mortgage) and a promissory note. A deed of trust is an assurance that the loan is secured, the evidence of which is represented by the promissory note.
Assignments of mortgage is a common transaction with banks. Since the assignment of the mortgage refers to the transferring of a mortgage from a lender to another lender, the transaction must be supported by a document known as the “Assignment.”
This document should include important information like the names of the current owner and the new owner, the name of the debtor, the amount of the initial mortgage, records of the first mortgage containing pertinent information, and the legal description of the real estate property. The homeowner should be provided with the documents or a note to inform him of the assignment of the mortgage.
Seeking Legal Advice
Once the owner of the home has even the slightest hint of doubt regarding the transaction, seeking legal advice is recommended. Find the right lawyer, a lawyer whose expertise is on this subject. An attorney can help you determine the legality of the transaction.
Take note; once the mortgage assignment is not executed correctly, then the lawyer can help you pursue a case to challenge the foreclosure of your property. An attorney who is familiar with this subject knows the ins and outs of the process.
Therefore, hiring one to help you out with the case is essential. Make sure you make a note of important details and have a copy of every document. Among these documents are the deed of trust (assures the security of the loan), a copy of the mortgage assignment, a notice from the creditor that the mortgage has been transferred, and other necessary documents.
It is crucial to find the right lawyer to help out, not only if you are facing a foreclosure issue, but to guide you with the process. Finding an attorney who has enough knowledge about real estate processes can help you make sure that the assigned mortgage was executed correctly and that the transaction records are kept.
An owner of the home may not have enough information about mortgage assignments. Therefore, it is vital to find an attorney who can ensure the security of your property and the mortgage.
It cannot be denied that loans are part of our lives, especially during difficult times. It is also innate in humans to dream of acquiring a home or a real estate property. To realize this dream, people acquire properties through mortgage loans. Things can run smoothly at first.
However, a time comes when a financial crisis happens. In this case, loan payments, especially mortgages, might be affected. Is this the end of your happy life? Will your property be foreclosed? If you will not do something about it, foreclosure is possible.
However, there are several options to saving your property from foreclosure, especially if the lender demands that you settle your account. In this case, the mortgage is assigned to another lender. This process is called an assignment of mortgage, where your debt is transferred to another lender by the first lender. This is like restructuring your loan.
The only thing is, it happens with another lender. Assignment of mortgage is one way to pay off the mortgage on the first lender while extending the term of your mortgage, therefore, preventing foreclosure. As a lender, be responsible for executing the assignment of mortgage properly. It should appear on the county record and has to follow legal procedures.
This will not only free the borrower of his obligations to you but will also secure the transaction and the interest of the parties involved. As a borrower, take note of all the necessary information. Read related articles to make you more knowledgeable on the subject.
Once the a ssignment of mortgage is made, a borrower will be dealing with another creditor and not the one with whom the initial mortgage was acquired. To avoid encountering problems with a mortgage, make sure you settle your dues. If such situations occur, communicate with the creditor and discuss ways to resolve the issue.
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When an assignment of a mortgage is invalid, does it require a foreclosure case to be dismissed?
For more information on foreclosure offense, expert witness consultations and foreclosure defense please call 954-495-9867 or 520-405-1688. We offer litigation support in all 50 states to attorneys. We refer new clients without a referral fee or co-counsel fee unless we are retained for litigation support. Bankruptcy lawyers take note: Don’t be too quick admit the loan exists nor that a default occurred and especially don’t admit the loan is secured. FREE INFORMATION, ARTICLES AND FORMS CAN BE FOUND ON LEFT SIDE OF THE BLOG. Consultations available by appointment in person, by Skype and by phone.
There seems to be confusion about what is necessary to file a foreclosure. To start with the basics, the debt is created when the borrower receives the funds or when the funds are disbursed for the benefit of the borrower. This requires no documentation. The receipt of funds presumptively implies a loan that is a demand loan. The source of funding is the creditor and the borrower is the debtor. The promissory note is EVIDENCE of the debt and contains the terms of repayment. In residential loan transactions it changes the terms from a demand loan to a term loan with periodic payments.
But without the debt, the note is worthless — unless the note gets into the hands of a party who claims status as a holder in due course. In that case the debt doesn’t exist but the liability to pay under the terms of the note can be enforced anyway. In foreclosure litigation based upon paper where there are claims or evidence of securitization, there are virtually all cases in which the “holder” of the note seeks enforcement, it does NOT allege the status of holder in due course. To the contrary, many cases contain an admission that the note doesn’t exist because it was lost or destroyed.
The lender is the party who loans the money to the borrower. The lender can bring suit against the borrower for failure to pay and receive a money judgment that can be enforced against income or non-exempt property of the borrower by writ of garnishment or attachment. There is no limit to the borrower’s defenses and counterclaims against the lender, assuming they are based on facts that show improper conduct by the lender. The contest does NOT require anything in writing. If the party seeking to enforce the debt wishes to rely on a note as evidence of the debt, their claim about the validity of the note as evidence or as information containing the terms of repayment may be contested by the borrower.
If the note is transferred by endorsement and delivery, the transferee can enforce the note under most circumstances. But the transferee of the note takes the note subject to all defenses of the borrower. So if the borrower says that the loan never happened or denies it in his answer the lender and its successors must prove the loan actually took place. This is true in all cases EXCEPT situations where the transferee purchases the note for value, gets delivery and endorsement, and is acting in good faith without knowledge of the borrower’s defenses (UCC refers to this as a holder in due course). The borrower who signs a note without receiving the consideration of the loan is taking the risk that he or she has created a debt or liability if the eventual transferee claims to be a holder in due course. Further information on the creation and transfer of notes as negotiable paper is contained in Article 3 of the Uniform Commercial Code (UCC).
Thus the questions about enforceability of the note or recovery on the debt are fairly well settled. The question is what happens in the case where collateral for the loan secures the performance required under the note. This is done with a security instrument which in real property transactions is a mortgage or deed of trust. This is a separate contract between the lender and the borrower. It says that if the borrower does not pay or fails to pay taxes, maintain the property, insure the property etc., the lender may foreclose and the borrower will forfeit the collateral. This suit is an action to enforce the security instrument (mortgage, deed of trust etc.) seeking to foreclose all claims inferior to the rights of the lender established when the mortgage or deed of trust was recorded.
The mortgage is a contract that does not qualify as a negotiable instrument and so is not covered by Article 3 of the UCC. It is covered by Article 9 of the UCC (Secured Transactions). The general rule is that a party who purchases the mortgage instrument for value in good faith and without knowledge of the borrower’s defenses may enforce the mortgage if the contract is breached by the borrower. This coincides with the requirement that the holder of the mortgage must also be a holder in due course of the note — if the breach consists of failure to pay under the terms of the note. Any party may assign their rights under a contract unless the contract itself says that it is not assignable or assignment is barred by statute or administrative rules.
The “assignment” of the mortgage or deed of trust is generally taken to be an instrument of conveyance. But forfeiture of collateral, particularly one’s home, is considered to be a much more severe remedy against the borrower than a money judgment for economic loss caused by breach of the borrower in making payments on a legitimate debt. So the statute (Article 9, UCC) requires that the assignment be the result of an actual transaction in which the mortgage is purchased for value. The confusion that erupts here is that no reasonable person would merely purchase a mortgage which is not really an asset deriving its value from a borrower’s promise to pay. That asset is the note.
So if the note is purchased for value, and assuming the purchaser receives delivery and endorsement of the note, as a holder in due course there is no question that the mortgage assignment is valid and enforceable by the assignee. The problems that have emerged is when, if ever, any value was paid to anyone in the “chain” on either the note or the mortgage. If no value was paid then the note might be enforceable subject to borrower’s defenses but the mortgage cannot be enforced. Additional issues emerge where the “proof” (often fabricated robo-signed documents) imply through hearsay that the note was the subject of a transaction at a different time than the date on the assignment. Denial and/or discovery would reveal the fraud upon the Court here — assuming you can persuasively argue that the production of evidence is required.
Another interesting question comes up when you seen the language of endorsement on the mortgage. This might be seen as splitting hairs, but I think it is more than that. To assign a mortgage in form that would ordinarily be accepted in general commerce — and in particular by banks — the assignment would be in the form that recites the ownership of the mortgage and the intention to convey it and on what terms. Instead, many cases show that there is an additional page stapled to the mortgage which contains only the endorsement to a particular party or blank endorsement. The endorsement is not recordable whereas a facially valid assignment is recordable.
The attachment of the last page could mean nothing was conveyed or that it was accidentally done in addition to a proper assignment. But I have seen several cases where the only evidence of assignment was a stamped endorsement, undated, in which there was no assignment. This appears to be designed to confuse the Judge who might be encouraged to apply the rules of transfer of the note to the circumstances of transfer of the mortgage. This smoke and mirrors approach often results in a foreclosure judgment in favor of a party who has paid nothing for the debt, note or mortgage. It leaves the actual lender out in the cold without a note or mortgage which they should have received.
It is these and other factors which have resulted in trial and appellate decisions that appear to be in conflict with each other. Currently in Florida the Supreme Court is deciding whether to issue an opinion on whether the assignment after the lawsuit has begun cures jurisdictional standing. The standing rule in Florida is that if you don’t own the mortgage at the time you declare a default, acceleration and sue, then those actions are essentially void.
Valid assignment is necessary for the plaintiff to have standing in a foreclosure case. (David E. Peterson, Cracking the Mortgage Assignment Shell Game, The Florida Bar Journal, Volume 85, No. 9, November, 2011, page 18).
In BAC Funding Consortium v. Jean-Jeans and US Bank National Association , the Second District of Florida reversed summary judgment for a foreclosure for bank because there was no evidence that the bank validly held the note and mortgage. BAC Funding Consortium Inc. ISAOA/ATIMA v. Jean-Jacques 28 So.2d, 936.
BAC has been negatively distinguished by two cases:
- Riggs v. Aurora Loan Services, LLC, 36 So.3d 932, (Fla.App. 4 Dist.,2010) was distinguished from BAC, because in BAC the bank did not file an affidavits that the mortgage was properly assigned; in Riggs they did. The 4 th District held that the “company’s possession of original note, indorsed in blank, established company’s status as lawful holder of note, entitled to enforce its terms.” [Editor’s note: The appellate court might have erred here. The enforcement of the note and the enforcement of the mortgage are two different things as described above].
- Dage v. Deutsche Bank Nat. Trust Co., 95 So.3d 1021, (Fla.App. 2 Dist.,2012) was distinguished from BAC, because in Dage, the homeowners waited two years to challenge the foreclosure judgment on the grounds that the bank lacked standing due to invalid assignment of mortgage. The court held that a lack of standing is merely voidable, not void , and the homeowners had to challenge the ruling in a timely manner. [Editor’s note: Jurisdiction is normally construed as something that cannot be invoked at a later time. It can even be invoked for the first time on appeal.]
In his article, “ Cracking the Mortgage Assignment Shell Game ,” Peterson in on the side of the banks and plaintiffs in foreclosure cases, but his section “Who Has Standing to Foreclosure the Mortgage?” is full of valuable insights about when a case can be dismissed based on invalid assignment. Instead of reinventing the wheel, I’ve copied and pasted the section below:
It should come as no surprise that the holder of the promissory note has standing to maintain a foreclosure action.34 Further, an agent for the holder can sue to foreclose.35 The holder of a collateral assignment has sufficient standing to foreclose.36 [Editor’s note: Here again we see the leap of faith that just because someone might have standing to sue on the note, they automatically have standing to sue on the mortgage, even if no value was paid for either the note or the mortgage].
Failure to file the original promissory note or offer evidence of standing might preclude summary judgment.37 Even when the plaintiff files the original, it might be necessary to offer additional evidence to show that the plaintiff is the holder or has rights as a nonholder. In BAC Funding Consortium, Inc. v. Jean-Jacques, 28 So. 3d 936 (Fla. 2d DCA 2010), for example, the court reversed a summary judgment of foreclosure, saying the plaintiff had not proven it held the note. The written assignment was incomplete and unsigned. The plaintiff filed the original note, which showed an indorsement to another person, but no indorsement to the plaintiff. The court found that was insufficient. Clearly, a party in possession of a note indorsed to another is not a “holder,” but recall that Johns v. Gillian holds that a written assignment is not needed to show standing when the transferee receives delivery of the note. The court’s ruling in BAC Funding Consortium was based on the heavy burden required for summary judgment. The court said the plaintiff did not offer an affidavit or deposition proving it held the note and suggested that “ proof of purchase of the debt, or evidence of an effective transfer” might substitute for an assignment.38 [e.s.]
In Jeff-Ray Corp. v. Jacobson, 566 So. 2d 885 (Fla. 4th DCA 1990), the court held that an assignment executed after the filing of the foreclosure case was not sufficient to show the plaintiff had standing at the time the complaint was filed. In WM Specialty Mortgage, LLC v. Salomon, 874 So. 2d 680 (Fla. 4th DCA 2004), however, the court distinguished Jeff-Ray Corp., stating that the execution date of the written assignment was less significant when the plaintiff could show that it acquired the mortgage before filing the foreclosure without a written assignment, as permitted by Johns v. Gilliam.39
When the note is lost, a document trail showing ownership is important. The burden in BAC Funding Consortium might be discharged by an affidavit confirming that the note was sold to the plaintiff prior to foreclosure. Corroboratory evidence of sale documents or payment of consideration is icing on the cake, but probably not needed absent doubt over the plaintiff’s rights. If doubt remains, indemnity can be required if needed to protect the mortgagor.40 [e.s.] 34 Philogene v. ABN AMRO Mortgage Group, Inc., 948 So. 2d 45 (Fla. 4th D.C.A. 2006); Fla. Stat. §673.3011(1) (2010).
35 Juega v. Davidson, 8 So. 3d 488 (Fla. 3d D.C.A. 2009); Mortgage Electronic Registration Systems, Inc. v. Revoredo, 955 So. 2d 33, 34, fn. 2 (Fla. 3d D.C.A. 2007) (stating that MERS was holder, but not owner and “We simply don’t think that this makes any difference. See Fla. R.Civ. P. 1.210(a) (action may be prosecuted in name of authorized person without joining party for whose benefit action is brought)”). [Editor’s note: This is an example of judicial ignorance of what is really happening. MERS is a conduit, a naked nominee, whose existence is meaningless, as is its records of transfer or ownership of the the debt, the note or the mortgage]
36 Laing v. Gainey Builders, Inc., 184 So. 2d 897 (Fla. 5th D.C.A. 1966) (collateral assignee was a holder); Cullison v. Dees, 90 So. 2d 620 (Fla. 1956) (same, except involving validity of payments rather than standing to foreclose).
37 See Fla. Stat. §673.3091(2) (2010); Servedio v. US Bank Nat. Ass’n, 46 So. 3d 1105 (Fla. 4th D.C.A. 2010).
38 BAC Funding Consortium, Inc. v. Jean-Jacques, 28 So. 3d at 938-939 (Fla. 2d D.C.A. 2010). See also Verizzo v. Bank of New York, 28 So. 3d 976 (Fla. 2d D.C.A. 2010) (Bank filed original note, but indorsement was to a different bank). But see Lizio v. McCullom, 36 So. 3d 927 (Fla. 4th D.C.A. 2010) (possession of note is prima facie evidence of ownership). [Editor’s note: this is the nub of the problems in foreclosure litigation. The law requires purchase for value for ownership, along with other criteria described above. This court’s conclusion places an unfair burden of proof on the borrower. The party with the sole care, custody and control of the actual evidence and information about the transfer or sale of the ndebt, note or mortgage is the Plaintiff. The plaintiff should therefore be required to show the details of the transaction in which the debt, note or mortgage was acquired. To me, that means showing a cancelled check or wire transfer receipt in which the reference was to the loan in dispute. Anything less than that raises questions about whether the loan implied by the note and mortgage ever existed. See my previous articles regarding securitization where the actual loan was actually applied from third party funds. hence the originator, who did not loan any money, was never paid for note or mortgage because consideration from a third party had already passed.]
39 See also Glynn v. First Union Nat. Bank, 912 So. 2d 357 (Fla. 4th D.C.A. 2005), rev. den., 933 So. 2d 521 (Fla. 2006) (note transferred before lawsuit, even though assignment was after). [Editor’s note: if the note and mortgage were in fact transfered for actual value (with proof of payment) then a “late” assignment might properly be categorized as a clerical issue rather than a legal one — because the substance of the transaction actually took place long before the assignment was executed and recorded. But the cautionary remark here is that in all probability, nobody who relies upon the “Chain” ever paid anything but fees to their predecessor. Why would they? If the consideration already passed from third party — i.e., pension fund money — why would the originator or any successor be entitled to demand the value of the note and mortgage? The originator in that scenario is neither the lender nor the owner of the debt and therefore should be given no rights under the note and mortgage, where title was diverted from the third party who DID the the loan to the originator who did NOT fund the loan. 40 Fla. Stat. §673.3091(2) (2010); Fla. Stat. §69.061 (2010).-David E. Peterson, “Cracking the Mortgage Assignment Shell Game”, The Florida Bar Journal, Volume 85, No. 9, November, 2011.
I also came across a blog post from another attorney on how to argue Florida assignments of judges. I don’t know how reliable this is, but it does cite several cases, and may be a useful resource to you: http://discoverytactics.wordpress.com/tactics-strategies/how-to-argue-florida-assignments-to-judges/ . Someone also posted the content of the above link verbatim in a comment on my blog at http://livinglies.me/foreclosure-defense-forms/people-players-and-resources/state-laws/florida-laws/ .
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Filed under: AMGAR , CASES , CORRUPTION , escrow agent , evidence , expert witness , foreclosure , foreclosure defenses , GTC | Honor , investment banking , Investor , MBS TRUSTEE , MODIFICATION , Mortgage , Motions , Neil Garfield Show , originator , Pleading , securities fraud , Servicer , STATUTES , Title , TRUST BENEFICIARIES , trustee | Tagged: ARTICLE 3 , ARTICLE 9 , assignments , debt , holder in due course , Note and Mortgage , purchase for value , UCC |
Hello, Been reading your blog for years. quick question, re:the mortgage cannot be enforced.
“The problems that have emerged is when, if ever, any value was paid to anyone in the “chain” on either the note or the mortgage. If no value was paid then the note might be enforceable subject to borrower’s defenses but the mortgage cannot be enforced. Additional issues emerge where the “proof” (often fabricated robo-signed documents) imply through hearsay that the note was the subject of a transaction at a different time than the date on the assignment. Denial and/or discovery would reveal the fraud upon the Court here ”
Would that be a UCC rule, since no money transferred to transfer the contract/mortgage?
[…] When an assignment of a mortgage is … – When an assignment of a mortgage is … – 23.09.2014 · … before filing the foreclosure without a written assignment, … assignment of a mortgage is … […]
[…] When an assignment of a mortgage is … – 23.09.2014 · … before filing the foreclosure without a written assignment, … assignment of a mortgage is invalid, does it … Livinglies’s Weblog … […]
[…] When an assignment of a mortgage is invalid, does it … – Sep 23, 2014 · From Today’s LA TImes (online edition) 9/25/14. The jury in a mortgage case finally strikes back at fraudulent bankers. LOS ANGELES TIMES michael.hiltzik […]
Great info here! Is a deed of trust legal in the state af Florida? I thought it was not but have come across it in my document review. Thank you
The “bait and hook” Bank of America only bought serving rights to Countrywides’ “supposed” loans at approximately $450.00 a piece.
A shell game. There was no valid lien, per SEC files and no valid REMIC trust….I have the same paperwork and was told not to make payments for 2-4 months to qualify for a modification…have every piece of paper and communication. The only way they can get a judge to rule in their favor is the “illusion” of injury and a trust. That’s the biggest lie of all, non-lawyer.
UKG, Smart Attorney!
gotta go. working on a brief. somebody read this and comment.
From Today’s LA TImes (online edition) 9/25/14
The jury in a mortgage case finally strikes back at fraudulent bankers
LOS ANGELES TIMES email@example.com
Who were the real fraudsters in the mortgage crash? A Sacramento jury says: the bankers
Finally, a jury convicts mortgage bankers of fraud–in absentia Given the government’s failure to bring criminal cases against bankers and other Wall Street figures for collapsing the U.S. economy in 2008, it’s been left to the little guy to strike back.
To be precise, one federal jury in Sacramento, which acquitted four allegedly fraudulent mortgage borrowers of criminal charges after hearing testimony that the executives at their banks pulled out all the stops to make fraudulent loans for their personal profit.
Only fraudulent lenders would ever do stated income (mortgages). Period. Full stop. – William K. Black, former banking regulator We’re a bit late to this story–the verdict was handed up at the end of August, Salon’s Thomas Frank had a good analysis of the case a few weeks ago. But because of its potential significance for mortgage fraud prosecutions going forward, and because it happened in the federal district known for its aggressiveness in pursuing borrowers for mortgage fraud, the case is worth a closer look.
“The jury understood that these defendants were mice,” says William K. Black, a former litigation director at the Federal Home Loan Bank Board who oversaw the prosecutions of numerous savings-and-loan executives after that industry’s meltdown.
Black, who is associate professor of law and economics at the University of Missouri-Kansas City, was an expert witness for the defense in the Sacramento case. He may have delivered the key testimony blowing up the government’s contention that the defendants were the main fraudsters. His testimony was that executives at the lending institutions deliberately created a system to make fraudulent loans as a recipe for personal enrichment.
The government had charged Yevgeniy Charikov, 42, a Sacramento real estate agent, and three others with buying properties, flipping them at inflated prices, and submitting fraudulent documentation to lenders Aegis Wholesale Corp. (which filed for bankruptcy in 2007) and GreenPoint Mortgage Funding (now part of Capital One) to obtain loans on the properties.
Black testified that the very business model of Aegis and GreenPoint depended on their making fraudulent loans–their executives were determined to make the companies grow fast, to collect lavish compensation, and sell off the problem loans in the secondary market so they would be someone else’s problem when they blew up. Companies like like GreenPoint and Aegis couldn’t grow fast and book huge profits by serving the market of good borrowers with mortgages commensurate with their ability to pay–that market was too small and too competitive. So they chose to make loans that didn’t require verifying the borrowers’ incomes.
In the Sacramento case, the jury essentially found that the truth or falsity of the documentation the borrowers provided was immaterial–the lenders would have made the loans anyway.
During the mortgage boom, the incidence of fraud in “stated income” loans, in which the borrowers were taken at their word, was 90%, Black testified. It was well known in the banking industry, he added, that stated income loans were “an open invitation to fraudsters.”
Black explained to the jury that making such loans requires gutting the underwriting and appraisal departments, an honest bank’s bulwark against bad mortgages. Asked about the “quality” of the underwriting at GreenPoint, he replied: “Using the word ‘quality’ is an injustice to the word. This was an utter sham in which underwriters were instructed not to underwrite.” He pointed out that former underwriters at GreenPoint testified that “even if they called the (borrower’s) employer, had them on the phone, they were not permitted to ask about the (borrower’s) income.
“That’s insane,” Black said. “No honest banker would ever do that. No real underwriter would ever go along with it either….Only fraudulent lenders would ever do stated income. Period. Full stop.”
Where would the directives to underwriters come from? From the executive suite, of course. “The fraudster,” Black testified, “is the CEO or whoever controls the institution and decides, ‘We’re going to do loans that will be 90% fraudulent, and then we’re going to sell them to Bear Stearns through fraudulent representations and warranties.’…Nobody gets to do anything unless the CEO says, ‘Hey, let’s create a system that produces almost unanimous fraud.'”
That’s a key point, because the pattern of government enforcement post-recession has been to pursue corporations while leaving their actual managers alone. In the Department of Justice’s “historic” (DOJ’s word) $16.5-billion settlement with Bank of America this summer or its “historic” (again, prosecutors’ word) $13-billion settlement with JPMorgan last fall, how many executives were made to lose their jobs or face criminal prosecution or even civil lawsuits as a condition of the deal? Not a one.
The notion that bank managements are the victims of mortgage fraud is deeply ingrained in the prosecutor mentality. In 2010, Benjamin Wagner, Sacramento’s U.S. attorney, told the Huffington Post, “It doesn’t make any sense to me that they (bank executives) would be deliberately defrauding themselves.”
Wagner plainly doesn’t recognize that a corporation and its top executives are not the same thing, or that a CEO might defraud not himself, but his bank. “Despite what the Supreme Court says,” Black told the jury in Sacramento, “corporations aren’t really people. The reality is corporations have no soul, they have no mind…they have no ability to protect themselves from their senior officers.”
Wagner’s office prosecuted and lost the Sacramento case. In its aftermath he told the Sacramento Bee, “We respect the criminal trial process, and accept the jury’s verdict in this case. It will not dissuade us from pressing forward in the many other mortgage fraud cases currently pending in this courthouse.”
For the most part, they’re are cases against those Black defines as “mice.” The approach leaves the King Rats untouched. At least this once, a jury called foul. Wagner might be wise to recalibrate his guns.
As Black told us, “I certainly didn’t go out to ‘dissuade’ the prosecution of mortgage fraud, but to encourage it.”
Keep up to date with The Economy Hub by following @hiltzikm.
From today’s Seattle Times….
The Touchables: Holder and the rackets
Posted by Jon Talton
Wall Street must be relieved by the resignation of Attorney General Eric Holder, its fierce and unstoppable nemesis.
From their prison cells, Kerry Killinger of Washington Mutual, Lloyd Blankfein of Goldman Sachs, Sandy Weill of Citigroup, Stan O’Neal of Merrill Lynch, Hank Greenberg of AIG, Angelo Mozilo of Countrywide, Dick Fuld of Lehman Brothers, credit default swap-meister Joe Cassano, Ian McCarthy whose Beazer Homes violated mortgage regulations with its aggressive tactics, Frank Raines of Fannie Mae, Kathleen Corbet of Standard & Poor’s…and many more.
As they swab floors, serve slop in the penitentiary cafeteria and learn skills for the minimum-wage jobs that await them on the outside, they must be cursing Holder still. Even more so because the “clawbacks” he insisted upon ensured that these executives had to repay the hundreds of millions in compensation they received while setting the table for disaster. Mansions, yachts and expensive cars and jewelry — all sold at auctions.
“If a poor kid had robbed a liquor store of $10, he’d be serving time,” Holder said. “These people robbed the American people and economy of billions. They robbed the American people of hope.”
Holder insisted on applying the rule of law to the financial elite that brought down the economy, impoverishing millions of Americans and costing a trillion or more in lost output. This despite the “banksters,” as he called them, reviving a phrase from the Great Depression, owning the U.S. Congress and putting relentless pressure on President Obama to stop this new Untouchable.
Importantly, Holder and his U.S. Attorneys not only brought successful criminal prosecutions, he also explained to the American people how the hustles had been carried out and how the time bomb had been set that would bring the world economy to the brink of a second great depression. As a result, figures such as Alan Greenspan, Bill Clinton, Phil Gramm, Robert Rubin and former SEC Chairman Chris Cox are disgraced. Congress passed a new Glass-Steagall Act to prevent the criminal rackets that grew out of deregulation.
“Never again will profits be privatized while losses are socialized,” the Attorney General said. “Never again will the public good be held hostage by a gang of oligarchs.”
When Holder brought suit against JPMorgan Chase and Bank of America under the Sherman Antitrust Act, all the Too Big To Fail Banks entered consent decrees to voluntarily break themselves up. TBTF was over, as was the financialization that cost so many American jobs. After Holder, banking became a boring business again, lending money to help create and expand job-creating enterprises, and serving individual customers with integrity.
None of that happened.
They got away with it. Holder’s Justice Department at best extracted wrist-slap fines that are the corporate equivalent of a rich person flashing a wad of cash when being stopped for speeding…and the officer takes the money and lets the perp go.
Next up: Revolving Door Watch. Where will General Holder end up on Wall Street, in a highly paid sinecure? Eric Cantor and a host of others will be waiting for him. Or maybe it will be K Street.
The saddest lesson of Holder’s tenure was that there is indeed a different set of laws for the wealthy and well-connected. The buck stops with President Obama. A “liberal leftist socialist”? No, another neo-liberal status quo leader, enabler of the “quiet coup,” with an even worse record than his predecessor, who oversaw criminal prosecutions of the heads of Enron, HealthSouth, Tyco, etc.
mycookiejar did you see someone got $30 million from the SEC, from a 2011 whistleblower tip?
Report Away. If you only knew how relavent it is. Its Deadly Clear. ” GRINS”.
mycookiejarts: You are back to posting krap again and wasting people’s time. Post something relevant or I will report you AGAIN!
The Early Bird Gets the Worm. Sorry Charlie!
Ditto UKG. Its Been a Pleasure.
This Land is Your Land. This Land is My Land. From California to the New York Islands, from the Redwood Forrest to the Gulfstream Waters, this Land was Made for You and Me. As I was walking, I saw below me. . . The Green Greedieeees. I saw above me, the Golden Highway, this Land was made for You and Me. KC and the Sunshine Band. Let’s Ride!
I should have stated they stop all Fannie Mae non-judicial foreclosures in the states and DC!
Posted back on Jul 30, 2014 there was a message that all foreclosures in DC and Pennsylvania must be judicial and all non-judicial that have not been to foreclosure sale must be dismiss, and also Hawaii determine that judicial foreclosures be performed.
I believe that the lack of the law has cause first all these illegal foreclosures, and now millions of foreclosures later, the Federal Government is in cover up mod because it would cause such a mess to the housing market, not only because of the past homeowners and the new homeowners of these properties.
JPMorgan and Wells Fargo foreclosing Ginnie Mae with Washington Mutual Bank loans as the “holder in due course” when it so easy to prove they had no financial interest in these loans!
DISPOSITION The judgment is reversed. The order sustaining the demurrer to the cause of action for fraud is reversed as to BofA and respondents Williams, Smith, and Garnham and affirmed as to respondents Recon Trust, Moynihan, and Desoer. The order sustaining the demurrer to the breach of contract cause of action is reversed as to BofA and affirmed as to the other respondents. The order sustaining the demurrer to the cause of action for promissory estoppel is reversed as to BofA and is affirmed as to the other .
Foreclosure/Standing: plaintiff failed to demonstrate it had standing at lawsuit’s commencement and, further, assigned note after lawsuit but never received assignment of note back – Pennington v. Ocwen Loan Servicing, LLC, No. 1D13-3072 (Fla. 1st DCA Sept. 16, 2014) (reversed and remanded for further proceedings). Foreclosure/Contractor’s Lien: reversing final judgment of foreclosure in favor of entity that purchased loans because fact issue remained regarding whether entity created investors that controlled developers for improper purpose of extinguishing contractor’s liens – CDC Builders, Inc. v. Biltmore-Sevilla Debt Investors, LLC, No. 3D13-603 (Fla. 3d DCA Sept. 17, 2014) (reversing summary judgment and remanding for further proceedings). Foreclosure/Striking Pleadings: affirming striking of pro se defendant’s pleadings for willful and deliberate failure to comply with multiple orders – Ledo v. Seavie Resources, LLC, No. 3D14-21 (Fla. 3d DCA Sept. 17, 2014). Quiet Title/Amendment of Pleadings: property owners should have been permitted leave to amend before dismissal of their quiet title claim with prejudice – Ledo Unrue v. Wells Fargo Bank, N.A., No. 5D13-3443 (Fla. 5th DCA Sept. 19, 2014).
foreclosure reversed Foreclosure: trial court erred by entering judgment of foreclosure without taking testimony or considering evidence – Go Florida!
I forget who was recently talking about the far reaching consequences of “rocket docket” with court staff stamping stuff without reading anything more than the foreclosure mill law firm name in top corner requesting default judgement. Of course it’s a default judgement no one gets to show up to defend.
Charles Reed That is the issue – being unless you can evidence fraud in the inducement of the contract and appraisal negligence/fraud( which is in my appeal -( note we had a right to rely on the appraisal being honest and true reflection of a stable market value) it’s a case of ” you took out a loan bought a house and did not pay so you broke the contract” getting a judge to listen after that is the challenge we all face. So I lost my home to an entity that failed to disclose to the court the real material facts – then the “plausible deniability” game comes in and the switcheroo of transfers of the deed and authorized capacities in question of who is who as trustee and sub trustee atty for and atty in fact for, and the court goes along with it – so where’s the harm – for example I was deprived of my home under these maneuvers because power of sale in the contract was abused, in their haste they made mistakes that by their own hands show a fraud the documents they submitted I am using and as I said it shows I was forced out of my primary residence and had a judgement against me which never could happen under the law and rights to POSSESSION- they were plaintiff I was not served plus other unbelievable mis steps of law and I was harmed and I am harmed I have moved sticks 3 times since renting, they sold my home to a new borrower, it’s been 4 years and I found out a few moths ago about the judgement and the other problems thereto- that judgement is so void as a matter of law. Back to attitudes shall we say, the end result would not be the same because I prevailed on appeal and that is yet to be decided. What a predicament. Oh and the 1099a issue too. All adds up to a big ass mess legally. 5 years plus and counting that’s the harm.
Elexquuisitor I think that it is only normal that the judge would expect one to show what harm has been caused. If your going to court before you foreclosed what is the damage? There is none, but if you got documentation that the party issuing the loan due does not have a financial interest, and its all about an equity possession, is what needs to be presented.
Simply saying they don’t have a Standing should not get it, but providing a reluctant judge evident and he judges against you, if challenged in an appeal should bring the right result. I see a changing in thinking across the country, but these wild theories are not helping. But everybody not going to win because everybody was not harmed!
@ETolle – speaking of judges, this just in from a CA superior court tentative ruling … “[plaintiff must allege facts showing that they suffered prejudice as a result of any lack of authority of the parties participating in the foreclosure process.]”
In other words, if you were walking in a known criminal area of town and were robbed at gunpoint, this judge would likely say you were going to get robbed by somebody anyway, so you really weren’t a victim before letting the perps walk (again). And unfortunately, this judge is just reading from the judge’s playbook on non-judicial foreclosures in CA.
E.Tolle, the fleecing of America continues. I saw a post that said America was heading to be the new Gaza where we will be killed with impunity and all that we have is taken away from us. However, the only thing I can say of a positive nature about this is that if you kill off the golden goose, eventually there is nothing more to fleece. Self-limiting business plan.
ET This is why I say our only hope is the few good men ( judges) that we have left. I think we do have cause to believe that it’s not over until fat lady sings. You are a lot more educated than I, being my whole working life I have taken care of sick people, that’s all I know, but I’ve seen plenty of miracles and although I understand what you are saying , for me personally they will have to shut every door and every window of my right to be in court Until then the fat lady does not have the right to sing.
E.Tolle: you are absolutely right. Our due process rights under the Constitution have been completely wiped out. This, BTW, is what happened in Germany after the Weimar Republic’s currency bit the dust and the citizens voted in Hitler and the Nazi party. Look out, we are already looking like fascism as the corporations run our country including the munitions manufacturing companies with perpetual war. What is wrong with the people of this country who want more war in Iraq of all places because of the lies they hear on the boob tube–just like the last time.
D. Wynn, while the date on that PDF might lead one to believe that that thesis is timely, as in from yesterday, it’s actually some 21 months old. The Cliff notes version would read, When the United States Government Forecloses On U.S. Citizens Is Due Process Really Necessary? The author argues adamantly in the affirmative, but what’s the outcome been in that time frame? A cacophony of crickets? Do any of our elected representatives give a shit? Hello Congress…is anyone home?
Oh I forgot, they’re all too busy out in the halls collecting their installment payments from their FIRE employers. Graft becomes them.
Am I the only one that can’t believe what is written when a scholarly paper asks the question of whether or not U.S. citizens should be afforded due process protections and adherence to constitutional law when legal actions are initiated by our very own federal government against us? Is this the fucking Twilight Zone?
It’s been that way on every front. Dual tracking? Still happening! But no one cares. As a matter of fact, I read where the courts in MN and AZ have even said that mortgagors have no standing to argue dual tracking infractions. Imagine that! Shut up bitches, do what you’re told. Pay your rent to your private equity landlord and give thanks.
In Wall Street We Trust
Deborah winn read that piece yesterday and felt such a great feeling of correctness. Not having really spoke on Fannie & Freddie, but taking what they put in this report on a quasi government owned agencies and saying what I been saying about a Ginnie Mae that 100% Government owned is icing on the cake.
A couple of year ago I started writing the Justice Dept about they illegal seizure of our properties with WaMu ex-loan being in the possession of Wells Fargo. If this does not make Justice move faster in resolving this injustice, I don’t know what will.
There is not government taking over the agency (Ginnie) in 2008 as with the other two (Fannie, Freddie) but they always been government owned so there is no gray area of publicly owned.
DwightNJ problem was an education for me because it exposed to a Fannie WaMu loan that had the same problems as the Ginnie loan I had, were Wells came to the court calling the loan due as the owner of the debt, but when challenged they admitted that they were only the holder of the Note. Now I though all the Fannie, Freddie WaMu loans were being handled by JPMorgan in the alleged sell of loan on Sept 25, 2008. But now everything is unfolding as with JPM how now admitted it did not purchase those loan and in fact is suing the FDIC as a result of the deal.
On Mar 6, 2012 I received a letter from Wells Fargo saying they were only working for Ginnie Mae in this matter, and I wrote the Justice Department’s Civil Right Division as to my Constitutional Right being violated with an illegally seizure of my property by the Federal Government in Ginnie Mae.
I look at it like that that Ginnie looked the other way as Wells & MERS carried out the act, while Ginnie played like they had no ideal what happen after this alleged “Repurchase” of loan out of the securities. Now Ginnie Mae is trying to say that Wells placed the loan in the securities instead of WaMu a full 3yrs before Wells said it have even knew the loan existed and provided a Welcome letter for the first payment they were to received as the servicer, plus writing that they have no knowledge of my loan before they took over serving on Dec 1, 2006. Wells says because they were not associated with the loan before Dec 1. 2006, they had no knowledge prior too!
I think we all might agree – it’s a due process issue at this point see link http://stopforeclosurefraud.com/2014/09/23/protecting-homeowners-from-non-judicial-foreclosure-of-mortgages-held-by-fannie-mae-and-freddie-mac-by-florence-w-roisman/
Deadly Clear! Its that Simple!
@DeborahW – your point on ‘for value received’ is illuminating. But even a stipulation of value needs a document to confirm the stipulation took place. CA judiciary adamantly denies homeowners discovery of that stipulation in order to hide behind its lack of jurisdiction to consider the consideration. Would a court consider a ‘credit default (swap)’ adequate consideration under UCC3? Or does the consideration have to be measured in the same units (dollars) as the original loan transaction?
I agree, you are so clever, E. I have found “word play” is also the game. Things are very much, not what they appear! David Copperfield would be envious.
From Neil’s post:
“But I have seen several cases where the only evidence of assignment was a stamped endorsement, undated, in which there was no assignment. This appears to be designed to confuse the Judge…..”
Bullshit. It allows the judge to proceed with seemingly clean hands and rule for the banksters. If this scenario happened only once in a while….on occasion, here and there, by happenstance, willy-nilly, a one-off, one might be confused by this sleight of hand. But it’s in everyone’s face by the millions. It’s a BUSINESS PLAN….a feature, NOT a bug!
It allows the judiciary to continue to rule in favor of their pensions and the rest of their brethren in the law community. It stretches out the “housing debacle”, allowing the banks to slowly recoup monies and right themselves, one by one. What are a few million mortgagors worth, against the stability of the (their) entire system? Cannon fodder. Chattel. TPTB have weighed heavily all the possible outcomes and feel that sacrificing the middle class, in order to maintain their system of ownership and rents is the only viable outcome.
Reblogged this on Deadly Clear and commented: Excellent post. A “traditional” mortgage loan never took place. These were NTMs (non-traditional mortgages) wherein there are no statute that governs quasi-securities transactions – are there?
You know if nothing else, this forum is good for brain storming and deciding what you want to pursue research wise according to our individual case (s) and arguments.
I’m finding that poppy.
I just got a nice link for clarification for that ” for value received” and the ” consideration “. A must read http://www.wisegeek.com/what-does-for-value-received-mean.htm
Debt collectors are not necessarily servicers. I have found a “servicer” should identify whom they are a “servicer” for and a real party of interest, where a debt collector can be servicing an account, be it written-off, charged-off, sold or a consignment (for a %), not collecting for the original lender or its assigns. Non-lawyer opinion only. Vastly different things and rules.
The suit is to enforce the Security Instrument. YEP! NeIl Got It Right! I will Enforce It Right Upside somebodys Head!
Debt collectors and servicers have a statement on your mortgage statement and in their correspondence which must say that they are debt collectors. They operate outside the law, and their business model operates outside the law. Look at Fair Debt Collections Practices Act lawsuits.
So many time I talked about “holder in due course” but as Neil does not get around to reading the posts, here we are two years later. But there is another main issue is that in owner to make or own a home mortgage loan one must be able to act as a home mortgage lender.
If your not regulated to lens like a loan shark who made the loan, but cannot come to court to have the loan enforce because the act was handled outside the law.
Who should not best about being license is an Attorney who has passed the bar and is authorized to practice law, while a lawyer with the same education but has not passed the bar, cannot practice law.
You cannot practice as a Pharmacy if your not license, you cannot act as a auto dealer as you sell to many auto under your tree. So if your an Retirement Fund, or Securities investor that have invested in securities or bond, who are not purchasing the debt but the performance of the pooling of the loan payments.
You must be practicing under the Fair Housing Act, and you must be able to service the loans, which cannot happen if your not the lenders. I believe the language in the Note says lenders or successors only applies for future lender successor who are qualified to lend.
Part of the scheme is to not let the homeowner know who is allegedly holding the Note as owner.
Here were I believe Neil goes down the wrong road is trying to prove that the funding is false, and it actually that party that makes the loan, when in fact a non lender cannot make the loans. But you need some documentation to proof that other than the wire can in the name of a bank instead of a mortgage lender who not going to have bank operation to wire the monies in. Now if it were a Wells Fargo, BOA, Citi or Chase with other banks providing a wire from a source other than them, then one would have to question that, but for a mortgage company to have funds delivered by a bank does not raise a question because this must occur as through the Fed the mortgage company is not a BANK!
Cookie you are way ahead of me. Stay parked sadly I was bullied out of my home with a note on my from door after a 12 hr day Friday said pack your stuff and leave your home was foreclosed. Attorney- whoosh no where to be found.
I am T.I.E. With R.O.S. Any Turkey that says otherwise is F.O.S.
I print the reports frequently, I mean really how much harm could it cause? Compared to a debt that I was not aparty to being on my report. I followed directions n played by the rules. I paid the taxes n ins. I kept my butt parked n the property maintained. I paid an Attorney. Soon what was stolen from me shall be returned clear of all forgeries and smudges. Many Blessings to All!
All this ” assigns and successors” don’t forget the predecessor(s) if a party is purportedly a successor in interest there needs to be a predecessor so if they are NOT the successor then who is the predecessor yet the non successor foreclosed as beneficiary and at the material time was under conservatorship, 1099a issued same day as trustee sale for amount of first lien loan ( loan 85/15 first money conventional loan) trustees deed upon sale has 90,000usd more added on claimed as debt owed. Explain that away if you will, anyone.
It was not the guy on the county land records! So assigns need to be shown to have legal force to collect the debt one would think. Also we have assignment by a well known Robo signer ( I have that deposition of this amazing person who is on so many payrolls I lost count) to a trust years after trust closed and during the servicers receivership/ conservatorship where these certain “assets” were sold but the new owner was not the successor in interest . As the natives say ” speak with forked tongue”.
Just looking at my credit reports.so look laterally against what the servicer did to you and look for controversies against the stuff reported to the credit reporting agencies you might find interesting stuff.nite dates amounts and account numbers etc.you might see ” transfers to another lender” like who
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