ENTREPRENEURS: IF THE BANKS CAN DO IT WHY CAN'T I?

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I have held back on this report because I wanted to see what would happen with these entrepreneurs. The basic premise is this: Let’s say the banks are right and anyone can grab title once the investors abandon their interest in the property or the obligation of the borrower. “Why can’t I grab title, especially if it is consensual?”

The answer, I think, is that the entrepreneurs have it right and I think the banks know it. The servicers are sneaking wording into applications that is in the nature of a release and validation of a non-existent debt owed to the servicer, still without naming the investors. So the Banks and the entrepreneurs have the same thing in mind: GET THE HOMEOWNER’S SIGNATURE. Without that signature and release, title will be messed up forever. With the signature, it can be cleared in an instant.

So a new industry has been launched all over the country by people who understand the process and are even helping people fight off the banks. But when they encounter the vast majority of homeowners who don’t want to fight or who don’t have any fight left in them, they make an offer: “give me a deed, release, assignment of litigation rights and the keys and I’ll pay you.” The amounts vary from as low as $500 to as high as $10,000. Then the entrepreneur executes a number of documents, files them and puts up no trespassing signs. The property is rented and in some cases sold, with a reconveyance filed using tacit procuration.

Some of these people are making some serious money and the Banks are actually powerless to stop them except by going through the usual channels in court. It turns the tables on the banks because now they are must plead something affirmatively and prove it. This is working especially well for entrepreneurs in non-judicial states where the banks want to avoid the courtroom and requirement of proof.

I think these people are onto something and that they are ahead of the banks. As people become more aware of the value of their signature they will demand more money for the release, quit-claim, assignment and the keys. But the basic premise is completely correct. Tittle cannot be cleared without a court order OR a signature from the homeowners in the chain of title. The risk of loss for the entrepreneur is extremely low while the gains are obvious.

It all boils down to a contest who gets a free house — the bank who has loaned no money and has no money in the deal, the entrepreneur who beats out the bank for title and/or possession, or the homeowner who wants to stand and fight. This is getting interesting. The entrepreneurs may have the upper hand — the banks can’t contest the authenticity of the signatures because they are real — not robo-signed or surrogate signed, fabricated or forged with improper notarization.

AND THE ENTREPRENEUR CAN RIGHTLY CLAIM THAT AT LEAST THEY HAVE MONEY IN THE DEAL WHEREAS THE BANKS CAN’T SHOW THEY EVER GAVE ANY MONEY TO THE HOMEOWNER. All the Banks can do is claim they are a “holder” of paper that is dubious authenticity and dubious validity, while the real creditor, the investor has been paid off or is still “holding” the mortgage bond.

Tags: bankruptcy, borrower, countrywide, disclosure, foreclosure, foreclosure defense, foreclosure offense, foreclosures, fraud, LOAN MODIFICATION, modification, quiet title, rescission, RESPA, securitization, TILA audit, trustee, WEISBAND
Posted in bubble, Corruption, Eviction, securities fraud |