Foreclosure Facts 101: Keep it Simple

Sometimes we need a reminder of what ultimately matters when fighting wrongful foreclosure. Most foreclosures are based upon false claims of securitization, but proving it can be a challenge.

Foreclosure serves the following purposes:

1. The purpose is to convert the asset into (1) a legal document that makes it appear as though all preceding events were valid and (2) to steal the money.
2. Virtually all foreclosures are wrongful — i.e., they are not filed for the purpose of getting relief to the equitable owner of the debt —- the investors who thought they had legal ownership pf the paper and the debt. They are filed to steal money from investors and to make it look official.
3. Default: The debt arose when the homeowner got the money. No question about that.
4. The homeowner was the obligor of that debt and the party whose money was used to fund the “loan” was and is the obligee.
5. The obligee is an undisclosed group of investors that are most likely NOT tied to any one specific Trust.
6. The money put up by investors was never turned over to the Trustee of the REMIC Trust, leaving the Trust as irrelevant.  So the cessation of payment by the homeowner was not a default as to the party claiming the default if they are: (1) not the obligee or (2) not the authorized representative of the obligee.
7. That is because the party declaring the default has no financial or equitable interest in the loan. The homeowner owes them nothing.
8. BUT it could be possible for a court to construe the smoke and mirrors as having been for the benefit of investors and therefore grant investors (in a separate proceeding) equitable ownership of the existing note and mortgage.
9. If that were to happen the investors, if they can identified, would be legally entitled to declare a default relating to the cessation of payments, although in a court of equity it is likely that the unpaid money would be tacked on to the end of the mortgage.
10. Thus the default period would be the point in time when the investors as obligees, were given a judgment by a court in which they were declared the equitable owner of the mortgage and note as filed.    Until then nobody owns the debt, note or mortgage.
11. Successful judgements occur when you can bring the judge’s attention to the proper analysis and narrative.