Use AZ AG Goddard's Letter to Servicer in Discovery, QWR, DVL

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SEE AZ ATTY GENERAL ROBO-SIGNING Mortgage Loan Servicer Letter

People ask me what they should allege and what should they ask for when it comes to fabricated, forged documents. I was reminded this morning that Terry Goddard, the Arizona Attorney General sent a letter to servicers giving them a stern warning and demanding they respond.

My suggestion is that in addition to asking the same questions of the servicers or the pretender lenders, that you ask how they responded to the AG’s inquiry and demand a copy. Also, ask the AG office for a copy of the response as it would seem to be available as public records.

Again I remind the reader that this relates to transfer of the mortgage and not necessarily the note and mortgage itself nor the obligation that arose when the loan was originated. I remain steadfast in my belief that an attorney would find more than enough decisional law in every state — particularly when it is a case of institution v. institution — that where nominees are in use, very specific disclosures need to be made in order to perfect the lien. I am saying that the liens were never perfected and that therefore no lien attached to the property in the first instance. The obligation, while real, is not secured. Additionally, the obligation, although real, is not recited in the note as to terms of repayment nor the identity of the payee; hence the note should be challenged as to being evidence (or complete evidence) of the terms of repayment.

That distinction must be stressed in court to avoid the appearance of attempting to say “I know I got the money but here’s why I should NOT be required to repay it.” The confusion by pro se litigants and some lawyers as to this point has led them down a rabbit hole where no judge is going to rule for you. You must make the point that you are talking about priority and validity of lien rights, not the validity of the obligation. As to the obligation, you are only contesting the issue of the amount, since it is likely that the real creditor, when found, received undisclosed third party payments, as per the securitization documents that gave them the right to make a claim on the obligation of the borrower.

FROM THE OFFICE OF ATTORNEY GENERAL TERRY GODDARD: OCTOBER 7, 2010

This Office has learned of the practices that have earned certain mortgage servicer employees the title of “robosigner” in the press. These practices include the following:
␣    Signing thousands of foreclosure documents per month

␣    Signing notarized foreclosure documents without reading them

␣    Signing affidavits that falsely claim personal knowledge of facts

␣    Signing affidavits that falsely claim the affiant reviewed the attached documents

␣    Notarizing affidavits before the affiant signs them

␣    Notarizing affidavits when the affiant was not present before the notary

␣    Filing documents in court with records attached that do not correctly reflect loan payments,
charges and advances.

He also gives us some legal help by citing the specific laws that are violated, which are substantially the same in most states.

If your employees or agents utilized any of the above-described practices in connection with conducting a trustee’s sale or a foreclosure in Arizona, such use would likely constitute a violation of the Arizona Consumer Fraud Act, A.R.S. §§ 44-1521 et. seq. In that event, you would be subject to all of the remedies of that Act, including injunction, restitution, and civil penalties. Further, any trustee’s sale or foreclosure conducted without the actual right to do so as provided by A.R.S. §§ 33-701 et seq. or -801 et seq. would constitute a breach of your duties under the trust deed or mortgage and Arizona law. And any trustee’s sale continued or conducted after July 29, 2010 without having first attempted to contact the borrower to explore options to avoid foreclosure would constitute a violation of A.R.S. § 33-807.01. It is your responsibility to ensure that your employees and agents comply fully with these and all other applicable laws.

And then he goes on to demand information, which runs to the core of these foreclosures inasmuch as the pretenders go to great lengths to NOT allow discovery and NOT get into an evidentiary hearing in which they would have to prove they were in compliance with basic law.

1275W.WASHINGTONST.;PHOENIX,AZ85007 ␣ PHONE (602)542-3702 ␣ FAX (602)542-4377 ␣ WWW.AZAG.GOV
October 8, 2010 Page 2
1.    Identify all foreclosures or trustee’s sales in connection with which your employees or agents “robosigned” as described above, affidavits, Notices of Trustee’s Sale, Notices of Substitution of Trustee or other documents that were recorded or filed in the State of Arizona.
2.    Confirm that you are currently conducting a review or audit of affidavits, Notices of Trustee’s sales and other documents that have been “robosigned” on your behalf and used in connection with Arizona foreclosures or trustee’s sales to determine whether all such documents were legally justified. Explain the process of that review, the current status, and the results to date. Provide assurances that you will immediately rectify all foreclosures or trustee’s sales discovered to have been not legally justified.    Describe in detail corrective measures you have and will be taking. If you are not currently conducting such a review, we demand that you do so immediately.
3.    Confirm that you are currently reviewing your procedures to ensure that all foreclosure and trustee’s sale documents recorded or filed in the State of Arizona are legally justified and that you are in full compliance with Arizona law. Explain the process of that review, and identify any policy or procedure revisions resulting therefrom. If you are not currently conducting such a review, we demand that you do so immediately.
4.    Describe all measures you have taken to ensure compliance with A.R.S. § 33-807.01, effective July 29, 2010.
5.    Provide assurances that you will conduct all future foreclosures of properties in the State of Arizona in accordance with Arizona law.
Given the devastating effect of foreclosures on both Arizona homeowners and our economy, it is imperative that foreclosures that are undertaken are both truly necessary and appropriately carried out. Your prompt response to the demands of this letter will be greatly appreciated.

Tags: bankruptcy, borrower, countrywide, disclosure, foreclosure, foreclosure defense, foreclosure offense, foreclosures, fraud, LOAN MODIFICATION, modification, quiet title, rescission, RESPA, securitization, TILA audit, trustee, WEISBAND
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