Winning Quiet Title Cases by Challenging ‘In-Blank’ Note Endorsements

By Donna Steenkamp, Head of Research/Quiet Title Expert  Living Lies/Defend the Foreclosure

Here’s how to win your Foreclosure defense case with Quiet Title Actions. Many homeowners are shocked to find that when they fight foreclosure, the court accepts a note with an “in-blank” endorsement (basically, a rubber stamp without a name or date) as proof that the bank owns their loan. But here’s the truth: that endorsement doesn’t prove ownership at all. Quiet title actions can stop a foreclosure before it’s too late. Ask us how.

What an “In-Blank” Endorsement Really Means

A blank endorsement only works once. It allows the loan to be transferred from the original lender to the first buyer—often Fannie Mae, Freddie Mac, or Ginnie Mae, the DEPOSITOR for a mortgage backed security or a private lender investor. After that, a new endorsement is required as endorsements can only be effected by a valid SELLER. After the first transfer is used by the single in-blank endorsement from the originating lender, the SELLER changes. But banks routinely try to use the same blank stamp repeatedly to claim ownership they don’t have.

Who Really Owns the Loan?

When Fannie or Freddie buys your loan:

• Your original lender becomes the servicer and custodian (they hold the papers, but don’t own them).
• The GSE (Fannie/Freddie) is supposed to transfer the loan into a trust that issues certificates to investors.

Most of the time, that second transfer never happens. So the trust doesn’t legally own the loan, even though Wall Street tells investors it does. Don’t believe everything you hear from any “pretend lender”.

Static Trusts: The Shell Game

You may see names like “Stanwich Loan Trust A” or “ARLP Trust 3.” These aren’t real trusts that own loans. They’re static holding entities—shells. Yet foreclosure lawyers file cases in their names anyway, using fake assignments. These assignments are not just flawed—they’re void, because they never reflected a real transfer in the first place.

How We Prove It

Here at Living Lies, we use our Non-Public access to Loan Level Data to show exactly where your loan is being reported on Wall Street. And it’s Not who you Think it is. We back this with sworn affidavits from experts who have direct portal access. That means:

• We can show which trust your loan is really in.
• We can prove if the foreclosure paperwork is lying.
• We can expose the false assignments banks record in county records.

Why It Matters

If the mortgage and the note were ever separated (which happens often), the loan became unsecured. Without the mortgage tied to the note, the lender cannot legally foreclose. The U.S. Supreme Court said way back in Carpenter v. Longan (1872) that the note and mortgage must travel together. And for some of our more dedicated and expert followers, here is a more detailed explanation of why this matters:

Under UCC § 3-205(b), a blank endorsement converts the note into a bearer instrument, negotiable by delivery alone. Courts have interpreted this as giving virtually unlimited power to anyone in possession. But the UCC makes clear: a blank endorsement can only be used once, at the moment of transfer from the original holder to the first transferee.

Once that transfer occurs, subsequent holders must have new endorsements to establish their rights. They cannot rely endlessly on the original blank stamp. In In re Veal, 450 B.R. 897 (9th Cir. BAP 2011), the court emphasized that possession by a servicer does not equal ownership, particularly where the servicer holds only as agent for another party.

This means foreclosure mills using the same “in-blank” endorsement multiple times are making a legally baseless claim.

Bottom Line

Don’t assume the court is right just because it accepts a blank endorsement. Challenge it. Ask us for help to determine exactly:

• Who actually owns this loan?
• Where is the proof of transfer into the trust?
• Why are static trusts being used if they never owned anything?

Quiet Title actions are one of the strongest tools you can use to fight back. They shine a light on the false paperwork, force the banks to prove ownership, and in many cases, stop foreclosure entirely.

Here at LivingLies we help homeowners and their attorneys fight with our Quiet Title  litigation support services. Contact us to see if we can help.

YOUR HOME IS YOUR CASTLE     WE HELP YOU DEFEND IT

Tags: foreclosure defense, foreclosure offense
Posted in Fabrication of documents, foreclosure defenses, legal standing |