LAWYERS GEARING UP FOR ASSAULT ON BANKS, TITLE COMPANIES, APPRAISERS

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DOZENS OF CALLS FROM ALL PARTS OF THE COUNTRY ARE POURING IN ASKING FOR OUR TITLE AND SECURITIZATION ANALYSES, EXPERT DECLARATIONS, AND CONSULTATION. I’M ALERTING ALL THE TRAINED EXPERTS IN THIS FIELD TO EXPECT A CRUSH FROM HOMEOWNERS AND THEIR COUNSEL TO SUPPORT THE BEST CAUSES OF ACTION AND TALLY UP THE COMPENSATORY DAMAGES.

THE ISSUE OF CLOUDED AND DEFECTIVE (EVEN FATALLY DEFECTIVE) TITLE HAS BEEN THRUST FORWARD IN ADVANCE OF WHAT I HAD PREDICTED. SOME PEOPLE WHO WERE EVICTED LONG AGO FROM THEIR HOMES MAY BE MOVING BACK INTO THEIR OLD HOMES. OTHERS WILL BE MAKING MONEY CLAIMS FOR THE WRONGFUL FORECLOSURE. SOME WILL DO BOTH. THE INSURANCE CARRIERS ARE BRACING THEMSELVES FOR CLAIMS FROM ALL SORTS OF PEOPLE — BUYERS OF FORECLOSED PROPERTY, HOMEOWNERS WITH CLOUDED TITLE FROM DUBIOUSLY DOCUMENTED SECURITIZED RECEIVABLE LOANS AND MANY OTHER VICTIMS OF THE GROSS NEGLIGENCE OF THE TITLE AGENTS, THE TITLE COMPANIES AND THEIR UNDERWRITERS. LIKE THE RATING AGENCIES AND THE PENSION FUND MANAGERS, THEY WERE ONLY TOO HAPPY TO TAKE THEIR EXORBITANT INSURANCE PREMIUMS, NEVER EXPECTING TO HAVE ANY SIGNIFICANT LIABILITY. OOPS, THEY WERE WRONG, AND POINTING THE FINGER AT THE BANKS FOR MISREPRESENTING THE FACTS IS NOT GOING TO HELP THEM.

Lawyers are looking of course at quiet title, recovery of homes that were wrongfully foreclosed, slander of title, identity theft (see other posts on this blog), TILA violations, RESPA violations, RICO, negligence, fraud and a variety of deceptive business and deceptive lending statutes. It’s like a smorgasbord for lawyers and they smell blood. The billboards are going up and the attack is starting. Judges who were completely unsympathetic to borrower defenses and counterclaims are now routinely issuing TRO’s in favor of the homeowner. The whole game has changed, the banks know it and there is nowhere to hide.

A promissory note executed in negotiable form is called “cash equivalent.”

• Why would you destroy a perfectly good and authentic $10 bill? Because you told someone it was a $100 bill and now he wants to see it.

  Because now someone wants to see the original. Better to say you “lost” it than to admit lying about the transaction. Besides civil fraud it is most probably criminal fraud.

• Why would you hire a company to counterfeit the original $10 bill you destroyed?

• Because now someone wants to see the original. Better to say you “lost” it than to admit lying about the transaction. Besides civil fraud it is most probably criminal fraud.

• What does it mean when someone in possession of the original note destroys the note (See Porter study from University of Iowa showing 40% minimum were intentionally destroyed). In most cases it is an act equivalent to writing “paid in full” on the note.

As stated 3 years ago on this blog, borrowers have the best possible defense to any enforcement of the note: payment in full, presumed under law. Whether that will also extinguish the underlying obligation and equitable rights attendant to enforce the obligation on behalf of the true lender that was never identified in the loan documents, remains an issue to be decided (or for that matter, raised).

Now everyone is on the band wagon. Now that we know the documents were fabricated, it is no stretch for anyone to wonder why documents were fabricated and forged when original documents once existed. In my opinion the BEST case scenario for the investor lenders is that they will have rights to receive some net amount of a yet to be computed obligation that is unsecured. (In other words, you owe the money, but your house is not encumbered by the debt and before they decide how much money you owe, there must be a complete accounting for all payments from all parties that were credits received or should have been received by the creditor from their own agents, less any other set off for affirmative defenses and counterclaims). The worst case for the investor lenders is that they find they have no claim against the homeowners at all and that their claim is limited to the intermediaries who sold them the fake mortgage bonds.

CAUTION: DON’T EXPECT THE PRETENDER LENDERS TO ROLL OVER AND PLAY DEAD JUST BECAUSE THEY ARE ON THE WRONG SIDE THE LEGAL ISSUE. THEY HAVE PLENTY OF POLITICAL AND FINANCIAL MUSCLE TO MITIGATE THE DAMAGES. YOU MUST PRESENT A CREDIBLE THREAT, WHICH MEANS THAT YOU ACTUALLY HAVE THE THE FACTS AND THE DAMAGES COMPUTED AND PROVABLE TO WIN A CASE. NOBODY IS GOING TO KNOCK ON YOUR DOOR ASKING HOW MUCH YOU WANT TO SETTLE. IF YOU WANT TO BE INCLUDED IN THE GROUP OF THOSE PEOPLE WHO MITIGATE THEIR DAMAGES FROM THE ATROCIOUS ACTS OF THESE BANKS, THEN YOU MUST ACT AND TAKE A STAND. YOU MUST GET THE FACTS AND ORGANIZE THEM FOR COURT PRESENTATION. AND AS I STATED IN A RECENT POST DIRECTED TO CERTAIN PEOPLE WHO KNOW WHO THEY ARE, THERE IS ALWAYS THE POSSIBILITY THAT WITH THE RIGHT LEADERSHIP THIS CAN BE CLEANED UP WITH AS LITTLE BLOODSHED (SYMBOLICALLY SPEAKING) AS POSSIBLE. IT’S NOT TOO LATE. BUT IF THE BANKS DIG IN THEIR HEALS AND THE ADMINISTRATION IS SLOW TO ACT, THIS WAR WILL ESCALATE INTO THE HISTORY BOOKS, OF WHICH THERE WILL BE HUNDREDS WRITTEN ABOUT THIS TIME IN OUR LIVES.

(AND JUST WAIT UNTIL SECURITIES LITIGATION EXPERTS REALIZE THAT THE FINANCIAL PRODUCT SOLD TO HOMEOWNERS WAS IN FACT A SECURITY PROMISING PASSIVE RETURNS FROM PROMISES OF INCREASING VALUES BASED UPON FRAUDULENT OR NEGLIGENT APPRAISALS. )

Posted in bubble, Corruption, Eviction, securities fraud |