Home › Forums › General › EHTrust/EHT Topics and Creative Real Estate Financing › My Birthday present
August 10, 2010 at 10:30 pm #6388
On August 10 (the very day I fought my way through the yucky stuff and appeared, sans a suit and tie, much less socks, shoes and boxer shorts, upon this planet or yours), the following was published:
FLA State probes whether three law firms falsified foreclosure documents
August 10, 2010 at 10:41 am
The REAL BOTTOM LINE POINT here is not some pipe-dream technicality wherein the paperwork purportedly wasn’t done right, which frankly is reason enough to deny the foreclosure: it is that this “technical” deficiency is “derived” from the real fact that there is no note or mortgage or deed of trust that can be enforced. There might not even be any obligation at all if the creditor received payment in full.
LAWYERS TAKE NOTE: Go back to the law books. You’ll find that there are essential differences between the obligation that arises as a matter of law, the note that is offered as proof of the obligation, and the mortgage or deed of trust which is integrally incidental to the note.
Don’t dispute the obligation: It DID, in fact, arise by operation of law. And it is by operation of law that it may still exist or be partially or entirely extinguished.
The documents signed at closing of the “purchase escrow” were only PART of the deal in a securitized residential loan. The borrower signs a note and the lender (investor) gets a bond (or evidence of a bond). [THE NOTE AND BOND HAVE DIFFERENT TERMS AND PARTIES BUT THE BOND REFERS TO SECURITIZATION DOCUMENTS THAT IN TURN DESCRIBE LOANS OF WHICH THE BORROWER'S LOAN IS ONE CLAIMED TO BE IN A POOL FORMING THE SOURCE OF REVENUE].
The borrower then signs the note to a party whom the investor never heard of. And the investor could not have uncovered the payee on the note, because the information was withheld. The investor then receives a bond, which is an assignment of all right, title and interest to the receivables. However, the security instrument itself is left where it always was–with the mortgage originator (the only one in county records with a a real interest). The lender (investor) doesn’t know the borrower and the borrower doesn’t know the lender, while each of them receives different terms and [diffrent promises from different parties].
But by operation of law, the originator’s interest is actually extinguished at the same moment it arises, because it is in most cases a “table funded loan” in which the originator acted only as a broker: not a lender, and therefor performed no underwriting tasks at all. So the legal obligation itself is extinguished at the same time it arose (you gave me a check for a dollar and I gave you a dollar).
BUT that is not the end of the story…
The equitable powers of the court now come into play under the rueles of, and to prevent, Unjust Enrichment. So the next time a Judge says he doesn’t want the borrower to get a house for free, your answer should be you don’t want anyone to get the house for free. And if the Court wishes to exercise its equitable powers to allocate any equity in the home, after due consideration for the obligations of the borrowers and many others who promised to pay the bond holder, then the party seeking Affirmative Relief must make a short, plain statement of ultimate facts upon which relief could be granted…and then prove their case.
What these law firms and fabrication mills are doing is “fabricating” in the truest sense, and forging documents to create the illusion that those complexities don’t exist — a conclusion that every Judge would like to reach.
Ultimately, that “the die is cast.” The Courts are required to consider the complexity and force the real party in interest, the party with standing, to say they lost money on the deal and to show exactly how they did so–not merely point to the borrower’s non-payment as justidfication for any loss of money.
The non-payment by borrower comes into play ONLY if the payment is due and the “creditor” can prove their standing and prove the obligation, complete with an accounting from beginning to end. The fact that the note SAYS the payment is due does not make the payment due–not if the payment was made or the obligation has been changed or satisfied.The note is evidence that must be proffered though the rules of evidence with authentication from competent witnesses, or by admission from the borrower.
Don’t be too quick to admit that the ldner has the note upon their feigned proof. Even if it appears to be right in front of your nose, closer examination will probably reveal that it came off a color printer as a copy of a copy that very morning.
The reason the die is cast is that ultimately this comes down to plain Property Law. The breaks in the chain of title render every title in a securitized loan susceptible to being identified as unmarketable or defective. This threatens the entire marketplace. It is this issue that these firms and the large banks are continuing to finesse with their freshly color-printed “original” documents, endorsements, assignments and powers of attorney.
Regarding these matters, the Florida Attorney General’s office announced this morning investigations into the state’s three largest foreclosure law firms for allegations of unfair and deceptive actions.
The firms, sometimes called “foreclosure mills,” are the Fort Lauderdale Law Offices of Marshall C. Watson, Tampa-based Shapiro & Fishman, and the Law Offices of David J. Stern, based in Plantation.
Last month, a lawsuit seeking class action status was filed by a Fort Lauderdale attorney against Stern claiming the firm generated fraudulent mortgage assignments when pursuing foreclosures.
An assignment is held by the entity that has the right to receive mortgage payments.
Stern’s practice, which the lawsuit claims filed up to 7,000 foreclosure cases in Florida every month last year, also is alleged in the suit to have pursued foreclosures for lenders that didn’t own the debt on the homes.
Miami attorney Jeffrey Tew, who is representing Stern, last week said Stern and his company have done nothing wrong and that the foreclosure crisis was not created by David Stern. Its just that it is so huge and a lot of people are in very bad shape, so some of the finger-pointing has to go to him.
Tew called portions of the lawsuit that claims Stern conspired to confuse ownership of homes, “fantastical.”
A press release from Attorney General Bill McCollum’s office says because many mortgages have been bought and sold by financial institutions multiple times, key paperwork involved in the process to obtain foreclosure judgments is often missing.
“On numerous occasions, allegedly fabricated documents have been presented to the courts in foreclosure actions to obtain final judgments against homeowners,” the press release states. “Thousands of final judgments of foreclosure against Florida homeowners may have been the result of the allegedly improper actions of the law firms under investigation.”
Does anybody want to kick the crap out of some of these opportunists that not only caused this mess, but who also forced the government to take 25 million dollars from each and every citizen [divide 8,000 million dollars, by 312 million people to see what your contribution was for the 800 billion dollar bail out...a family of four paid 100 million dollars], but who also are now taking our homes away from us by the millions so they and sell them again for another giant profit (‘they were already paid once! Gdmit!!)…then on top of that, turn around and sue for a deficiency judgment while we’re on the street, unemployed and unable to feed our families .”
Am I upset about this? Nooooo…not me!! I love it when the poker table tips up sharply and all my hard-earned winnings slide into the table-tipper’s bucket, who then sues me for the hernia he gets from carrying the bucket outside.August 11, 2010 at 3:32 am #32650
Bill, it was about this time last year that you and I spent countless hours on your ranch working, planning, eating, laughing, crying, (mostly laughing at your bad jokes); arguing over the plausibility that the crime of the millennium may have been committed on the American homeowner by a ruthless and powerful banking cartel. “Could it be true?” “If so, how could it possibly have happened to this degree; of this magnitude?”
One year later, to read the words that you have just written makes me glad to have you as a friend; to be on the same page with you. I say this because it is obvious to all that you have the power of influence. You have the ease of eloquence. People believe you. People believe in you. We celebrate your birthday here on August 10, but we also collectively celebrate a renaissance of sorts. Bill Gatten has validated what we have been saying and feeling for months. We knew something was rotten in Denmark and maybe the time is ripe to do something about it. August 10 may be a new declaration of independence.
Although we were at one point polarized in our beliefs, we are now apparently one in purpose. You have done much. You have created much. But I wonder. Is the best of Bill Gatten yet to come? Knowing what you now know; believing what you now believe; how will you wield your sword? Is there an enemy within your sights? I stand ready to observe; ready to join in the battle. Again, from all of us, Happy Birthday Bill!August 11, 2010 at 12:20 pm #32651
Happy Birthday, Old Timer. 101?August 11, 2010 at 10:44 pm #32652
i my humble opinion there needs to be more clear discussion on how a homeowner can support the administrative process of challenging the loan on a his/ her property with simple, inexpensive and very effective legal steps in court to get the loan revoked;
i believe we may have to hire the attorney from new orleans who may simple ask the court “to give the damn houses back to the homeowners” once and for all!
happy birthday to bill!August 13, 2010 at 11:27 pm #32653
Thank you Bill for giving us your birthday present!
I am a victim of the Marshall Watson mill, and in deciding to fight it.. I contacted a larger law firm who told me that very few homeowners are still going to win, and that their firm is still not winning a case even when they present the judge with the foreclosure mill argument.
Now please help me to understand, we know, they know, everyone knows what has happened to cause the Mortgage crisis, so when will the judges figure it out?
still fighting, not backing down!
elisaAugust 17, 2010 at 3:45 am #32654
Sorry Scott, but I deleted your post re. LFC and this not being the place to discuss these things.
I don’t differ with you very often, but this is one issue I am adamant about.
Our poster, lurkers, members and students must know that there is more than one way to skin a Mugwump. I want EVERYONE to know that this IS the NARS and Bill Gatten Wealth Institute website and Discussion Group, and that I am only interested in making money for our members and followers, irrespective of how it’s done???as long as it’s done legally, ethically and honestly.
As much as I love the PACTRust??? and EHTrust???, over the last two years, I’ve had to acknowledge (and Dave Salcido is the one who opened my mind to it) that I and “my students” and followers have to get through this freaking economy. Period! And the3Arck program is one way to do that quickly and simply. To date this year I’ve pulled in about $70,000 for LFC (for which commissions I am very grateful) and another $165,000 or for 3- Arck in deals we’ve facilitated so far (another four checks arrived today totaling $32,000 in all and more are on the way.
Here’s the deal: Three Arck and us (NARS and you) make a ton of money on these deals and leave the homeowner with no equity at start (they just get 100% financing, complete freedom from their over-encumbrance, all future appreciation, all principal reduction, all income tax write-off benefits, any/all income from the property; a year’s moratorium on house payments , avoidance of a deficiency judgment, avoidance of taxes due on debt-relief, and a loan at only half of the property’s value.
We carry the other half without interest or payments. And on top of it all, we hold the properties in PACTrusts??? in order to shield them against other creditors, marital disputes, bankruptcies, probate, etc???.as well as shielding all the parties against untoward or illicit acts by, or against, each other.
All of that is pretty hard to beat for $7,995. However, if anyone would deem that to be just too much money for us (you and me) to make (i.e.,40% of all the equity in a free and clear property), then we refer them directly to the LFC program wherein they can do it all themselves and keep all the equity for themselves and not need us at all.
Understand clearly that this forum is for making money in the “creative” real estate investing business, NOT for isolating ourselves from the rest of the real estate investing industry.
If you have new ideas…we want to hear them.
If you want to make money, you want to hear us.
You must be logged in to reply to this topic.