What do these case decisions mean?

First, you must realize that they are not “Law” with a capital “L”. Other jurisdictions could return opinions that are completely the opposite of the ones we have seen recently. I consider that unlikely. The reasoning is exactly what I have been saying for 2 years when I predicted the title issues, the enforcement issues, the money issues at origination and the money issues at foreclosure. Simply said the great fraudulent scheme is unraveling and that means that LEGALLY speaking virtually ALL foreclosures — past, present and future — are subject to reversal, dismissal and orders and judgments thereon vulnerable to being vacated or reversed. What it means is that the REAL LENDER must step forward and the borrower will meet the real lender for the first time. When they compare notes, don’t be surprised when they join hands and sue the intermediaries that made a fortune from the misfortune of investors and homeowners.

Second, it means that the shell game consisting of late fabrication and forgery of documents will end. The pretender lenders will be treated for what they are — impostors.

Third, it means that the encumbrance on your property might be vulnerable especially where the originating lender is out of business.

Fourth it means that attempted modifications, settlements, short-sales, resales, refinancing are all subject to title defects that must be corrected by a court order declaring the condition of title and any encumbrances that exist either by claim in equity (equitable subrogation) or law (unlikely to succeed).

Fifth, it means that in discovery either in or outside of litigation, you want to see the transmittal documents by which the foreclosure — judicial or non-judicial — were initiated. These “referral documents” contain information that will probably show that the would-be forecloser, the pretender lender, is attempting to sue in its own name, take the house, the proceeds and achieve a windfall, since the investors don’t seem to be getting any of the benefit.

Sixth it means that an indorsement in blank is no indorsement at all. And if it isn’t recordable or recorded, it will never count for anything, just as I have all along. There is no cure for a title defect of that nature. And it means that everyone up through the entire securitization chain is liable to the investors for improperly handling the transactions and hiding the promiscuous profits that were hidden from both the investor and the homeowner.

Seventh, it means that the pretender lenders cannot simply claim to be representing an unnamed actual lender and get away with it. This Ibanez case and others that will follow shortly, clearly puts that to rest. If the pretender have a case, they will need to prove it through evidence rather than assumptions and reputations.

Eighth, it means that if they finally give you the real documentation, you will see for yourself and so will the court, that the real parties in interest are not only not present in court but don’t even have actual notice of the proceedings, much less service of process.

Ninth, it means that there will be massive judicial and legislative intervention to clear up the title problems that currently exist on perhaps as many as 60 million properties.

Tenth, it means that every attempted assignment of an interest in an encumbrance on land is a transfer of an interest in that land and is subject to the state’s recording statutes, property laws, and contract laws. While MERS was specifically excluded from the Ibanez cases, the logic and reasoning are inescapable — a nominee that is strictly a straw man is no nothing for purposes of endorsement or transfer. It is a blank. As such it creates no encumbrance on the land. Combining the Kansas Landmark decision with the Ibanez decision it is an inescapable conclusion that MERS has already failed along with all deed and documents containing its name — subject to widespread recognition and acceptance by the courts across the country.

And finally, it means that if the current trend continues we will have a massive transfer of wealth back to the middle class whose vulnerability as targets for fraud was just irresistible for these schemers. It is the only hope for our society — to have a middle class that is strong and stable. Without it, history has shown, such societies crumble under their own weight.

Tags: bankruptcy, borrower, disclosure, foreclosure defense, foreclosure offense, fraud, Lender Liability, mortgage meltdown, rescission, securitization, trustee, Wells Fargo
Posted in bubble, Eviction |