Deny and Discover Getting Increasing Traction

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The strategy is simple. Whatever can be denied with any colorable basis for the denial should be denied. That puts the burden on the other side to authenticate and validate the transactions upon which they are relying to foreclose. None of the foreclosers have competent witnesses to even provide foundation for the note and mortgage much less the assignments etc.

Followed by persistent discovery requests and motions to compel discovery as to the money trail, it is leading to settlement or abandonment of the foreclosure cases. I only have one case in which the other side attacked with a motion for frivolous pleading that is itself frivolous.

In other cases, we are getting reports of a surge in settled, modified or mediated cases with a beneficial result to homeowners, and one where it looks like 8 out of the 9 parties making claims are offering to execute documents in recordable form stating they have no interest in the note or mortgage, which makes it difficult for anyone to say they got the loan from any of these people.

I think we hit the Achilles heal of this whole scam. The money just never tracked any of the documents that were used to squeeze money from investors and the money just doesn’t track the documents signed by the borrower. The banks have been very adept at moving the goal post around, but I think we are closing in on them.

I must admit that even I was fooled by some of the moving shells. But eventually when I looked long and hard at the money, at the insistence of Dan Edstrom our senior securitization analyst, I finally got what he was talking about. Money continued to be paid to the investor lenders AFTER the declaration of default which obviously means there was no default. Between closing and the time when the documents were finally “assigned” to the pool, it was an offer of assignment that could not be accepted.

The investors were owed the money, but since the money was not sent thorough the pools no financial transaction supports any of the paperwork from top to bottom. The Banks were successful at papering over the defects for years — successfully stealing money in what can only be defined as a PONZI scheme.

With no money due to the forecloser and the creditor not stepping forward to try to collect because, (as they say in their lawsuits against the investment bankers) both the note and mortgage are defective nonnegotiable instruments that were not either underwritten nor assigned as per the requirements of the PSA, Prospectus, promissory note signed by the borrower or mortgage (deed of trust) signed by the borrower.

It is an intersection of the same conclusion coming from two angles: both the lender and the borrower agree that the encumbrance on the property was never valid. Both agree that there is no mortgage or deed of trust to enforce, and both agree that the recording of the encumbrance was a sham.

By demanding a look at the actual money transfers and accounting entries it is obvious that none of the parties who are foreclosing or supporting the effort to foreclose ever had a loan receivable from the borrower. Considering the $17 trillion given by the Federal government, the original obligations should be wiped out, the mortgage or other recorded instruments from these con artists should be removed, and the banks should be forced to pay back the money they received from investors.

Nobody gets a free ride and the government retrieves some of our tax dollars from the homeowners and some from the banks. The homeowners get a windfall that is taxable and should be subject to an installment payment for the income taxes they owe on their luck at getting rid of a debt. The government receives hundreds of billions of dollars or even trillions over time fixing the deficit and the banks who are reporting assets on their balance sheet that don’t exist should get resolved just like we did in the 1980’s in the savings and loan scandal.

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Tags: Deny and Discover
Posted in bubble, Corruption, Eviction, securities fraud |