JC question shows the way to recovery of equity and helping two or more homeowners for the price of one

JC question shows the way to recovery of equity and helping two or more homeowners for the price of one.

Seek damages under any of the theories we have suggested here or any one we have a not thought of and if you get a final judgment for damages it will either be paid by the pretender lender or not. First you send a demand letter demanding payment. If they don’t pay, they have opened the door for you to accomplish what Washington doesn’t seem to be able to do — return to reality.

Basically a party can’t have it both ways. They cannot seek to foreclose on a property claiming to the owner of the loan and then say they are not the owner of the loan when you garnish (take) it to satisfy your judgment. We now have hundreds of thousands of cases filed by pretender lenders against whom judgments are possible using any of the causes of action suggested in our forms. In addition, you have the possibility of a judgment for attorney fees, if you had one, or court costs. Whatever it is, even $1, you have the ability to levy on what they claim is their mortgage.

Here is the question posed to me:

“We have recently perfected a lien, through consent, on GMAC with a UCC-1 after sending notices of default and demand letter with an affidavit supporting the debt with no reply by GMAC. We are now seeking judgment to obtain an order for a writ of execution. Filing a complaint will gain the courts jurisdiction but instead we are considering filing a petition. With your thoughts and experience what would be the best way to proceed to collect on the lien? or how can the trust proceed to collect on the UCC-1 avoiding the courts as much as possible? The court case is now closed; should it be reopened? how without filing motions? Your time is much appreciated.” JC

ANSWER:

JC: If you have perfected a lien, then you need to go through post-judgment collection process. You will need to follow your state law and levy it or foreclose on it. If you don’t get paid, then levy on a GMAC mortgage that they claim to be the owner of. Just go down to the courthouse and see which cases have GMAC and of those which ones do they claim ownership.

Then assuming you have a judgment, you garnish the mortgage. Then you work out a new mortgage with the homeowner (assuming they have the means). I strongly suggest that the re-structured loan follow this model: 80% LTV (loan to value), 5%, 30 year fixed, 5-10 year balloon payment.

So say you have a $50,000 judgment lien perfected against GMAC. You find another unrelated case where they claim to be the “lender” or in any event the “owner” of the loan. Let’s say the note in the other case is $200,000 and the property is worth $90,000 now. After you get control of the mortgage, you execute a new mortgage with the distressed homeowner for $72,000, 5%, 30 year, fixed rate, with a 5 year balloon which means they need to refinance or sell their property within the 5 years. You ALSO file a friendly quiet title action against the homeowner and record a final judgment quieting title to the homeowner subject to your encumbrance (the new mortgage).

If the homeowner cannot qualify for any mortgage, then you work out a 90-day period for vacation of the premises in which they something toward rent and do the same deal suggested here with a new homeowner. By reducing the principal to reflect reality, sale the of the property is no longer impossible — it is likely.

Tags: foreclosure offense, Lender Liability, predatory lending, securitization, TILA
Posted in bubble, Eviction |