ALERT: TRUSTEES SELLING LIENS NOT PROPERTY AND PROPERTY WITHOUT TITLE

Moving the Goal Posts Again

SELLING LIEN INSTEAD OF PROPERTY AT TRUSTEE SALE

When Will Judges Get It? There is NO Mortgage Lien

EDITOR’S ANALYSIS: A new instrument is surfacing masquerading as a Notice of Sale. This is going to be interesting. If you didn’t read it, as most of these were probably not read since they first surfaced earlier this year, you would think it said the same thing as any other Notice of Sale. But it doesn’t say the same thing and doesn’t conform to the statutory requirements and can’t be true since the trustee would not be the party who could sell the lien unless they owned it.

Apparently the Banks and servicers decided a few months ago that they really don’t have a valid lien on anyone’s property — like I have been saying for 6 years.

At the “origination” of the loan, the renting of a third party’s  name to act as lender made that party a pretender lender and not a creditor. Thus the mortgage secured a note to a pretender lender and not the creditor. Hence the the mortgage is naked in the wind, and yes there is case law on that all over the country. Keep in mind as well that the terms offered to the REAL creditor/LENDERs (investor pension funds etc) are far different than the terms of repayment signed by the borrower to the now non-existent pretender lender.

So the banks and servicers came up with a new bogus document that is no better than the forged, fabricated, bogus transfer documents designed to create the illusion of sale of the loan into the secondary market and the ensuing “Securitization” of that loan — all facts recited but which never occurred. Paperwork was used in lieu of actual transactions.

The new ones either expressly disclaim any warranty of title at the auction or expressly disclaim transfer of the property at all, claiming to sell the lien.

Now THIS is an auction of the lien. To say it is peculiar is an understatement. NOS selling just the LIEN not the Property

Here are my thoughts:
1. Does the trustee own the lien? Are they manufacturing yet another non-existent assignment. The trustee obviously did not buy the lien, nor would they allege they did. And discovery would show a lack of consideration and no assignment, endorsement or allonge.
2. Did the owner also get a notice of sale of the property? If so, the NOS for the lien mucks title even more than before.
3. What exactly IS this document? It appears to be in the nature of a quitclaim of the lien and expressly excludes the property. Is this an opportunity to buy the lien at cut rates with essentially a giant principal reduction. The Buyer is essentially buying a lawsuit. Where is the “lender”? Where is the “beneficiary?” What is going on here?
4. If the buyer is someone other than the borrower, are they going to set this up as a third party sale to a bona fide third party without notice?
5. If the buyer now attempts to foreclose, what are the rights, who is the trustee or substitute trustee, and what will the buyer be getting.
6. Does the transfer of this lien, even if valid, convert the deed of trust into a mortgage?
7. Is the sale of the lien a breach of the deed of trust?
8. The express disclaimer shows that not only is the buyer not buying the property, but they have no assurance that they can ever get it.
9. The express statement that the buyer might still be required to pay off senior liens indicates that this might be an attempt by a pretender lender to position itself as the holder of a second mortgage or second priority AFTER the primary deed of trust.
10. The express statement that the buyer is encouraged to investigate the existence and status of other liens before bidding is an express abdication of the responsibility of the trustee to perform that due diligence.
11. Keep in mind that Recontrust is wholly owned and controlled by BofA. As such it carries with it the taint of not being an objective disinterested third party without any stake in the property.
12. Also keep in mind the growing interest of cities and counties in exercising the power of eminent domain. This might be an attempt to rig the bidding such that a “market” exists (which is presently not the case) for these defective liens and using those market prices to force the city or county into paying more for the lien that it is actually worth.
13. Attendance by the owner is essential here and the objection should be lodged with the trustee stating that the owner Trustor never agreed to let the trustee sell the lien, and that the NOS fails to state the authority upon which it is selling the lien. If the lien is to be sold, the ONLY party that could actually sell the lien for VALUE is the party to whom the debt is owed, with a full accounting from the Master Servicer as to all money received and disbursed, and the current status of the account. What if the the loan has been paid off already?

SOMETHING IS ROTTEN IN DENMARK HERE. COMMENTS INVITED.

Tags: Notice of Sale, sale of lien, trustee, trustee sale without warranty of title
Posted in bubble, Corruption, Eviction, securities fraud |