Category: Fabrication of documents

Mortgage Servicer Boarding Records

August 13, 2026

Can a New Servicer Really Prove Old Servicer’s Records? Your mortgage servicing gets transferred. A new company begins sending statements. Years later, that company—or perhaps another company after it—appears in court with a payment history covering periods when it was not even servicing your loan. Its witness testifies about the account. The witness may tell the judge that the records are maintained in the ordinary course of the servicer’s business. But there is a basic factual question hiding behind all of this: How did the new servicer get the old servicer’s information into its computer system? The answer usually involves

The Foreclosure Business Records Trap

August 11, 2026

How Servicers Try to Get Computer Records Into Evidence There is a moment in many foreclosure trials that homeowners and even some lawyers fail to recognize as one of the most important moments in the entire case. The introduction of Foreclosure Business records. The foreclosure lawyer hands a stack of documents to a witness. The witness identifies them as records maintained by the mortgage servicer. The lawyer asks a series of questions about how the company keeps its records. Then the lawyer asks the judge to admit the documents into evidence under the Foreclosure business records exception to the hearsay

Possession of the Note Is Not Proof of Ownership

July 9, 2026

By Lance Denha esq. and Donna Steenkamp For more than twenty years, we have been saying possession of the note is not proof of ownership. This is something that many courts are only beginning to recognize. The foreclosure industry has successfully convinced courts to ask the wrong question. Instead of asking: “Who actually owns the debt?” many foreclosure cases begin and end with this question: “Who has the original promissory note?” Those are not the same thing. In fact, in today’s mortgage marketplace, they are often completely different questions with completely different answers. That distinction has cost thousands of American

Why Possession of the Note May Not Be Enough to Foreclose

June 9, 2026

One of the most common statements heard in foreclosure courtrooms across America is: “We have possession of the note.” For many judges, lawyers, and homeowners, that statement ends the discussion. The assumption is simple: If the foreclosing party has possession of the original note, it automatically has the right to foreclose. But that assumption is often wrong. Possession of a note may be important. In some states it may create presumptions. In certain circumstances it may establish a right to enforce. But possession alone does not always answer the most important question in foreclosure litigation: Does this party actually have

What Is Standing in Foreclosure? The Defense That Works

June 2, 2026

If there is one issue that can change the direction of a foreclosure case, it is standing. It is a defense we help homeowners use the most and it works. Here at LivingLies we talk about it a lot but realize not everyone understands what are Legal Standing foreclosure defenses. Most homeowners never hear the word “standing” until they are already in trouble. By then, the foreclosure papers have been filed, the notices have arrived, or the sale date is getting close. But standing is not a technical trick. It is not a loophole. It is one of the most

The Truth About Business Records in Foreclosure

May 19, 2026

Most foreclosure cases appear overwhelming because they come wrapped in business records. Payment histories. Affidavits. Default letters. Computer printouts. Servicing notes. And all of it is usually presented to the homeowner—and often to the court—as if it automatically proves the case. But here is the problem: Most foreclosure cases are built on what are called “business records,” and many of those records are far weaker than they appear. This is one of the biggest misunderstandings in foreclosure litigation concerns these business records in foreclosure. Homeowners often assume: If it is in the file, it must be true. That is not

How to Read a Foreclosure Complaint Like a Defense Lawyer

May 12, 2026

Most homeowners react to a judicial foreclosure complaint the same way. They panic. That reaction is understandable. A foreclosure complaint is intimidating. It looks official. It is filled with legal language, exhibits, signatures, and accusations. But here is the first thing you need to understand: A foreclosure complaint is not proof. It is a set of allegations. And those allegations must be proven with admissible evidence. That changes the way you should read the document. Most homeowners read a foreclosure complaint emotionally. Defense lawyers read it strategically. That is the difference between reacting and building a defense. Remember, if you

The Money Trail in Foreclosure Defense: Why Chain of Title is Not Enough

May 7, 2026

Most foreclosure cases are won or lost on one simple question: who owns the debt? Not who claims to own it. Not who services it. Not who has a paper assignment. Not who holds up a copy of a note in court. The real question is this: Did anyone actually pay value for the underlying obligation? That is the issue most homeowners miss. It is also the issue many lawyers fail to raise in time. And once it is missed, the court may treat the bank’s story as true, even when the real money trail was never proven. The Chain

How to Challenge a MERS Assignment in Court

April 23, 2026

By Donna Steenkamp Head of Research at Living lies/Defend the Foreclosure Few documents in foreclosure litigation are treated with more blind acceptance than a MERS assignment. That is a mistake. When a MERS assignment appears in the file, many homeowners assume it settles the transfer issue. Some lawyers treat it the same way. But a recorded assignment is not the end of the inquiry. It is the beginning of one. The real question is not whether an assignment exists. The real question is whether it proves a real transfer of enforceable rights by a party with actual authority actually took

What makes a Notarized Document Invalid?

December 19, 2024

Understanding the Role of Notarized Documents in Foreclosure Defense When it comes to foreclosure defense, one critical area of focus is the validity of notarized documents. Homeowners facing foreclosure often encounter documents that appear official and binding simply because they bear a notary’s seal. However, not all notarized documents are created equal. In fact, many documents used in foreclosure cases may be invalid due to improper notarization practices. This can open the door for a strong defense. Let’s break down what makes a notarized document invalid and how it impacts your case. What is a Notarized Document? A notarized document

HEARSAY OBJECTION AND LACK OF FOUNDATION: How Lockbox and Separate Processing Agreements Divert Money and "Servicing" Functions to Undisclosed Third Parties Acting on Behalf of the Investment Bank Who Originated the Transaction with the Homeowner.

February 15, 2023

From LoanDepot quarterly report, 2022: The Company derives income primarily from gains on the origination and sale of loans to investors, income from loan servicing, and fees charged for settlement services related to the origination and sale of loans. Not one word about revenues or profits arising from the receipt of principal and interest from borrowers. But people who have done business with Loan Depot (and there are thousands of them) all think they borrowed money from Loan Depot. So when they see a document purpotedly endorsed or assigned from Loan Depot, it make sense. But it is a lie.

How Foreclosure Mills Win by Misusing "Judicial Notice"

February 10, 2023

Hat tip to summer chic Judicial Notice is a rule of evidence in which the court receives a written request to accept a document into evidence as proof of the truth of the matter asserted. In Foreclosures, the truth of the matter asserted is that there is an unpaid loan account, and the named plaintiff or beneficiary has the right to administer, collect and enforce it. If that is alleged in a form that is allowed by law, and proven in the manner allowed by law, the foreclosure will be granted. I might add, that it should be granted to

The irrefutable logic at the foundation of all successful foreclosure defense narratives

February 2, 2023

The mortgage lien is designed to protect against financial loss — not to promote financial gain. If Wall Street wants to protect the financial gains it created from its crazy scheme using weapons of mass financial destruction, then the least it should do is share a little of that with homeowners, consumers, the government, and investors. * I continually get the same question, mostly because neither the homeowner nor the “investigators” understand anything about being a licensed, educated, experienced investment banker, lawyer, or accountant. If they were any of those, they would not ask the question. * The latest question

TRID may be another easy win for Homeowners

May 5, 2022

since loss mitigation is a statutory condition precedent to foreclosure, there is a failure to comply with the condition that requires loss mitigation exhaustion before pursuing foreclosure, the steamrolling of homeowners is not just wrong, it is also a breach of statutory duty for which the homeowner can seek injunctive relief, damages, and attorney fees. TILA-RESPA integrated disclosures (TRID) is a series of guidelines that dictate what information mortgage lenders need to provide to borrowers and when they must provide it. TRID rules also regulate what fees lenders can charge and how these fees can change as the mortgage matures. But

Why the CFPB Announcement is Very Important

May 2, 2022

when the time comes that a judge enters an order or judgment containing findings of fact, for example, that the records of the designated “servicer” are not business records that are not exempt from the hearsay rule, the poop will hit the fan. I received multiple emails from lawyers and homeowners who were confused when I posted an article about the latest CFPB announcement. Most people are not clear on why this announcement is so important. I can say this — the lawyers who represent “industry actors” are sending up flares about this announcement. See the Troutman Pepper Analysis.

Interpleader Might Be Useful in Revealing the Absence of Any Unpaid Loan Account

April 28, 2022

One of my constant comment contributors recently informed me and others that she was trying a new tack. She writes “My attorneys are making a demand that any refi money be placed with the Court and that the judge decides who he wants to pay.” This is very close to an Interpleader action which is virtually unknown amongst laypeople and many lawyers. In an interpleader action, a party says to the court I have this asset and there are two conflicting claims to get it from me. In its purest form, the Interpleader says that he doesn’t care who gets

How Evidence Works for and Against the Consumer/Homeowner

April 7, 2022

(Once again, because of minor medical issues I decline to do the Neil Garfield Show. I offer this instead) It is easy to get lost in the weeds. Don’t make up your own words or definitions because your definitions have no relevance to your case. Do hold the accusing side to their words and to the legally accepted definitions of those words as contained in statutes and cases. But above all, start at the beginning — a rookie mistake made by nearly all young litigators and pro se litigants who skip over the gold to pick up a few pieces

Why the UCC Matters in Foreclosure Cases

April 5, 2022

The problem as illustrated by many scholarly articles and articles on this blog is that courts are given to treat plaintiffs and claimants as holders in due course without anyone asking them to do so. The first thing you need to know about Foreclosure is that it is only about money. If you have the money and you pay it, there is no claim — or at least no claim against you. You might have a claim against a “debt collector” seeking to enforce a nonexistent debt for a nonexistent claimant. The second thing to remember is that, by definition,

Geoff Walsh of National Consumer Law Center (NCLC) publishes very informative article regarding foreclosure

March 29, 2022

Almost everyone writing articles about consumer finance, mortgage loans, and servicing is now in agreement that there are viable meritorious defenses for the consumer. True, they are not obvious to the casual observer, which is part of the problem. see NCLC Digital Library – 12 Ways to Fight Foreclosure of Zombie Second Mortgages – 2022-03-28 But the defenses available to consumers and to homeowners, in particular, are sufficient to defeat most attempts to administer, collect or enforce any alleged loan account receivable mostly because no such account exists on the books of the party named as the owner of the”note”.

The Payment History is not the Loan Account. Only the Loan Account Can show the Balance. If there is no Loan Account receivable on the Accounting Ledger there is no Balance. If there is no Balance there is no Balance Due.

February 15, 2022

The problem starts with the Homeowner, who thinks that because he or she applied for a loan, they received it. This assumption is completely unfounded. The law is mostly procedural and logical. It requires building a foundation for a fact to be accepted as true. If there is no foundation, there is no fact. Every case I have ever won has been based on a lack of foundation. * When money is paid to or on behalf of a Homeowner, a financial transaction has occurred. But the payment of money does not create a loan without a lender and a

Western Progressive LLC is named as Trustee or even Attorney on many forms, notices and recorded documents in foreclosures. Who is this Luxembourg LLC and Why do all paths lead back to Ocwen?

February 7, 2022

why such a company would ever be seen as a qualified party to (a) serve as a trustee on a deed of trust (b) make any claims whatsoever and (c) allow its name to be used by FINTECH service providers operating under contract with Merrill Lynch and its “successor” Bank of America. This is especially true because there is no beneficiary who executes the Subsitution of Trustee and no beneficiary named that is qualifeid as a beneficairy — i.e., the one to whom the udnerlying obligation is owed. And all this goes back to what I said somewhere around my

"Payment History" is not the loan receivable account

February 2, 2022

The payment history is not the loan receivable account by definition and it is never presented as such. Failure to recognize this obscure fact often results in failure. But those who do understand it, raise their chances of a successful defense from unlikely to very likely. A lawyer (Scott Stafne) shared with me a case that he is apparently working on. This case is interesting because the lawyer for the homeowner has filed the final round of motions in the discovery cycle, which is a Motion in Limine — i.e., a motion to limit testimony from the sole robowitness expected

Getting a piece of the pie: How securitization can work FOR homeowners and not against them

January 19, 2022

There is no sale of the obligation, note or mortgage and so there is no securitization of debt. By splitting the attributes of behavior from the provisions of the executed documents and changing the description of the behavior, an investment bank could, in essence, sell the apparent debt an unlimited number of times without ever recording the sale of the debt, note or mortgage. In most instances, the “closing” of a transaction with a homeowner results in the issuance of a note and mortgage promising payment that is not supported by any reciprocal consideration. In most of the other cases, the “closing” results in very

How Those Refi's Were Turned Into Gold by the Investment Banks

January 12, 2022

Most people cannot conceive of why they should have been paid more at the purported “Closing” of their transaction than what they received or what they think was paid on their behalf. * But the bottom line is that in most cases, whether the transaction involved a resale of the home or “refinancing,” only a fraction of the money you thought was transacted was actually present. It’s not just that they should have been paid more — it is that the homeowner did not receive the money he or she promised to pay back. This fact is part of a