Wow, This was the week that was for the Pretender Lenders! The chickens have come home to roost. Let me give you a taste of the week from the first paragraph of my Tip of the Week for October 15th:
It has been an interesting few weeks as the Pretender Lenders and Wall Street took stock of just where they were in the foreclosure proceedings in hundreds of thousands of stalled cases before courts all over the country. The analysis was not good. The three biggest banks in the country stopped foreclosing in a number of states and Bank of America put a halt to the process in 50 states. Attorneys General in 50 states launch a massive investigation of the fraudulent lending and foreclosure practices that were and are continuing in their county courts.
From now through the end of the year things should get more interesting as the mid-term elections come and go on November 2nd, and Congress gets back into session and the banks will have pretended to study and rectify the problem and then go back to fraud as usual. The government will be applauding the efforts made by the Pretender Lenders (the Banks) and Wall Street. We are blessed to have such hardworking and dedicated businessmen (the bankers) attempt to resolve these complex issues in spite of how little compensation they are paid.
If only that were true.
The henhouse is once again protected and guarded by the foxes.
If, on the other hand, should the courts decide to bite the bullet and take each case seriously, judiciously, and be sticklers in applying the one-thousand-year-old laws on the books, we could feel our property rights were being treated faily and equally under the law. And we might even become true believers in the justice system of these United States, again. The paperwork and the cost in time and money to do all this corrective work is staggering. And for those reasons alone, justice will take a back seat to expediency. Hanging a man for murder is a true and just punishment, even if it is the wrong man, because the example had to be made, and it was, in spite of the minor error in justice. This seems to be the opinion of a number of those in Congress, the banks and the folks that brought you Wall Street.
Another scenario might be, we shall leave all those falsified, illegal, and fraudulent foreclosures alone, like water under the bridge and proceed from hereon out to do it correctly to the extent we are able. A major limiting factor that has been hampering the foreclosure process is the problem of “holder-in-due-course.” The rules of the law are fairly clear in foreclosures. The holder-in-due-course must be the entity taking action in the foreclosure suite as the plaintiff. If another person/entity holds him or itself out to be the owner of the debt and is, in fact, not the owner, that is a lie or as it is spoken of in hushed, courtroom terms, “FRAUD.”
Lying in to the court is really frowned upon by just about every judge I have known, seen and/or observed over the past forty-five years. Penalty for lying is to go to jail for contempt of court or worse.
Can you image if you went into court one day and said to the judge, “I wish to foreclose on my neighbor’s house because he owes a debt and there is a mortgage on his property, pledging the property as security for the debt.”
And the judge replies, “Are you the holder-in-due-course of this debt instrument we call a ‘note’? Do you have physical possession of the original note?”
You reply, “No; but I like to think I am entitled to the money.”
His Honor replies with a list of questions:
“Is your name on the Mortgage?”
“No,” you reply.
“Do you have an assignment?”
His Honor, “ So, you do not have the note; no assignment of note to you has ever been recorded in the courthouse; and your name is not on the mortgage?”
“That is all correct, Your Honor.”
But you have presented the court with an affidavit attesting to the fact that you are probably owed the money. Is that correct?”
“Well, you are a shame and a fraud and you are liar. Bailiff, remove the Plaintiff from the courtroom. This petition for foreclosure is denied.”
OK. So you were thrown out of court for very good legal reasons. You lied. You submitted fraudulent documents. And you had no standing, in the court’s judgment, because you were not the holder-in-due-course, and in fact, you never were. You were not entitled to the summary judgment for foreclosure; or any proceeds from a foreclosure sale; or any proceeds from any future sale beyond the foreclosure.
But, look what happens if an attorney for a Pretender Lender, or servicer, such as MERS, presents the exact same set of conditions and circumstances, under which you were rejected, justifiably, by the court.
The attorney for the servicing entity (which is not a holder-in-due-course; which is not a legal entity in the state, and which is representing no entitled party) enters the paperwork necessary. The attorney presents the same documents as well as an affidavit stating that the servicing entity was entitled to seek the remedy of foreclosure. And that, in the affidavit, the servicing entity swore and attested to the fact that the note was lost, misplaced or accidentally destroyed (neglecting to mention that they never had the note in the first place, because it had been sold.)
The judge spends between 30 and 90 seconds reviewing the case and rules for a summary judgment, allowing for the foreclosure date to be set and the property sold at auction.
How could this have happened so many millions of times over the past ten years? Simply, because judges reply to shoddy or dicey paperwork or messy procedure by the plaintiffs, “Banks don’t lie.” Borrows have no defense.
The judges then, automatically, rule for the big institution that have liar mills generating fraudulent documents by the millions, all in the name of greed for the large fees generated by the foreclosure mills.
Over the past decade, along with false testimony, the Pretender Lenders created and/or attested to documents, paperwork, transfers and the bundling of loan packages, totaling hundreds of billions of dollars, in order to win millions of foreclosure cases, they could not have won without the use of fraud and deception.
It is no wonder they put the brakes on the foreclosure mills. Time to stop and rethink their strategy. More about what is really driving the Pretender Lenders, Wall Street, and their faithful servant, the government of the United States on this shortly.