TRUSTEE HAS NO WITNESSES WHILE SERVICER PURSUES FORECLOSURE

submitted by Anonymous

Most often Deutsche Bank is the trustee — not the servicer. In cases where the trust is named as plaintiff — ABC trustee for “certificate holders” to XYZ trust — they are the named plaintiff — not the servicer. But, it is actually the servicer that is proceeding against you. If goes to trial — the servicer will have difficulty getting a witness for the trustee because — as Ian states — . “the Trusts in many cases have absolutely no idea that a foreclosure is being brought in their names.”

If foreclosure plaintiff is the Servicer, the Servicer is not (most often) the real party/creditor — they must state on whose behalf they are acting. They will then name the Trust/Trustee — who is also not the real party/creditor since security investors are also not the creditor. If you challenge chain, transfer, assignment etc., the Servicer as plaintiff cannot testify to anything but payment history. Would need witness or affidavit from Trustee regarding the chain and mortgage collection rights whereabouts – and all documents — this is how Robo-signing fraud became rampant.

Also, even if it can demonstrated by a Mortgage Schedule that loans was originally “earmarked” for transfer to a Trust, this does not mean loan stayed in the trust. And, default loans are removed from trust after servicer stops advancing payments. So- you would need the remittance ledger from Trustee – to show trustee is still receiving advance payments from Servicer.

Mortgage Schedule should also be accompanied by a Mortgage Loan Purchase Agreement (which is also a Repurchase Agreement). Have not seen any MLPA that was actually legally executed
– only says “intent” to sell.

In addition, the chain of assignments and endorsements must follow the PSA. By PSA it is the Depositor that purchases loans from originator – and it is only the Depositor that can cause assignment/endorsement to the trust. By the PSA there is no Power of Attorney to trustee or servicer to cause assignment. Thus, really need affidavit/witness from the Depositor to testify. Since mortgages cannot be passed onto security investors — assignment/sale of mortgage stops with the Depositor — it is a Depositor owned trust.

At this time, for the subprime trusts only , payments for current borrowers are not being transferred by servicer to trustee — neither would a payoff by refinance be transferred. And, if those in default suddenly won the lottery and could pay loan in full — neither would this payoff be directed to the trust/trustee.

Foreclosure proceeds are not going to the Trust/Trustee — or servicer to the trust. None of these parties can be plaintiff in foreclosure actions – and cannot be stated current creditor in BK.

Tags: foreclosure, foreclosure defense, foreclosure offense, fraud, securitization, trustee
Posted in bubble, Corruption, Eviction, securities fraud |