Beware of Bank and Foreclosure Mill Labels — That is where the lies start

BEWARE OF LABELS: THE BANKS AND THE FORECLOSURE MILLS GET AWAY WITH MOST OF THEIR DECEIT BY SIMPLY USING SELF SERVING LABELS.

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For example, by labelling something as a servicer advance it presumptively means that it was an advance by a servicer that is die back to the servicer because it was advanced on behalf of the owners and holders of certificates issued in the name of a labelled trust using a labelled trustee as its putative administrator.

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By reading the Prospectus and Trust Agreement you find that these labels

are used to create illusions.

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The labelled servicer to whom the money is paid has never serviced anything. The money was paid from a pool of money derived entirely from advances by the investors who bought certificates. Thus the receipt of money by the servicer is pure revenue under GAAP but treated as return of loan for tax purposes.

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So for example if the loan was $300,000,  and the property is worth $180,000 the Master Servicer continues to make payments to the investors even though no payments are made by the borrower up to the point of around $165,000, which is when they foreclose and claim all the proceeds as servicer advances. This is why ten year or twelve year foreclosures work to the benefit of the labelled “Master Servicer” who is actually the lead (bookrunner) investment bank.

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The labelled certificates convey no right, title or interest to the debt, note or mortgage and therefore are not “certificates” but only unsecured promises masquerading as bonds or debentures with no equity interest. They are called “mortgage-backed” but they are not backed by mortgages.

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The trust owns nothing and therefore with nothing entrusted to the trustee on behalf of named beneficiaries there is no trust.

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The labelled trustee has no powers of administration over the active affairs of a trust. Therefore it is not a trustee which is why they never appear in court.

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The sole beneficiary of the trust, which is a sham conduit for the investment bank, is the investment bank that sold labeled certificates to investors whose money was put in suspense and entirely controlled and owned by the investment bank.

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The labelled “Master Servicer” is the investment bank.

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The devil is in the details. Ask the right questions in discovery.

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An assignment of mortgage (or beneficial interest under a deed of trust) without a purchase of the debt is a legal nullity. The assignment is nothing unless and until the party claiming ownership of the mortgage has paid value for it. Calling it an assignment of mortgage does not make it an assignment of mortgage.

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An assignment of mortgage from a party who had paid value for the debt at the time of the assignment, is a legal nullity, and continues to be a nullity until payment of value for the debt is tendered and received.Calling it an assignment of mortgage does not make it an assignment of mortgage.

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Similarly, an endorsement of a note by a party who neither owns the debt nor represents a party who owns the debt and ahs paid for it is also a legal nullity. Calling it a note endorsement does not make it anote endorsement.

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Calling a separate piece of paper with no foundation an allonge does not make it an allonge. An allonge is part of the note firmly affixed ior written directly on the note.

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The most frequent successful objection at trial is lack of foundation.