Comment #3

F4CLOSUREFRAUD — Wed, 18 Nov 2009 22:05:00 GMT

<br />Now that the bubble has burst, â€œlendersâ€ are trying to collect on loans they do not own, in most cases never lent a dime on the transaction, have no right to, or were paid 30 times over in bailouts, insurance, credit default swaps, etc.<br /><br />They are doing this because they can. They are steamrolling the courts rocket dockets because hardly anyone is contesting their foreclosures. Think about it. If you could go into a court and file thousands of foreclosures a week, and only a m... [ More ]

Comment #2

konane — Wed, 21 Oct 2009 19:35:35 GMT

<br />Thinking outside the box, my question would be, who owns the mortgage .... or is the mortgage instrument invalidated entirely by fraud? That thought makes me wanna go hmmmmmm.

Comment #1

Rick G — Wed, 21 Oct 2009 13:17:40 GMT

Anyone being foreclosed on should take the case to court. Most people are just moving out.

Original Blog Entry: ".. We have a real judge .. " (faulty lender chain of ownership in foreclosures)

konane — Tue, 20 Oct 2009 16:35:29 GMT

The MERShole Yawns Wide

Karl Denninger

Source MarketTicker.org

We have a real judge!

The foreclosure sales (in question are) invalid because they failed to meet the requirements of (Massachusetts law), Land Court Judge Keith Long wrote yesterday in reaffirming a decision he originally reached in March.

At issue is lost (or improperly endorsed) paperwork when mortgages are sold from party to party, as typically happens many times during a securitization process.

I have often argued that a lot of lost paperwork is in fact intentionally destroyed, as this is one of the few ways to cover up blatant fraud in the origination of mortgages - brokers putting the same application through with a half-dozen ever-higher claimed incomes, for example, until they get an approval. The original paperwork that is executed by the borrower, if it bears hand-written numbers that don't match the signature, could be a strong indicator of fraud committed by those brokers (and willingly ignored by securitizers.)

Judge Long wrote:

The issues in this case are not merely . . . a matter of dotting i s and crossing t s. Instead, they lie at the heart of the protections given to homeowners and borrowers,

Yep.

Banks have long run roughshod over the law. Indeed, their so-called profits virtually demand it in this world of lies, deceit and outright fraud. In several states, including Florida, judges have been nothing more than handmaidens of these enterprises , despite black-letter law in this state (and most others) that demand an unbroken chain of original, wet signatures in the assignment of interest.

If you can't produce the documents, by statute, you have no standing to foreclose.

Period.

As specifically stated:

The statute's commands are clear, the plaintiffs' own securitization documents show that they knew of those requirements, and if they failed to follow them, the responsibility for the consequences is theirs.

The willful destruction, non-retention, or improper (or no) recording of these documents makes all such affected securitizations fraudulent, as they were sold off to investors as being asset backed when in fact they were not, as being asset backed requires compliance with state law in the perfection of the security interest. No security interest, no asset backing, and the offering prospectus is representing that which is known to be factually incorrect.

Most importantly all of the actors involved, including the securitizing banks, MERS and similar institutions, were aware at the outset that they did not comport with the laws of these states, and this knowing failure is given formal judicial recognition in this decision. The offering documents as cited in the decision make clear that for each such tendered mortgage into the pool either a validly-recorded interest or transfer in recordable form was required, and such was warranted to have taken place. It clearly, from the record, did not.

This elevates these omissions from ministerial errors to something far more serious, in that if you sell something to someone knowing you are not complying with the black letter of the law of the state in which you operate in every line of business - save one - you'd find yourself on the wrong end of a criminal complaint from the State Attorney General.

We need 50 Andrew Cuomos to bring criminal and civil charges, and we need them now. This is a legitimate State Law issue in that The States have an affirmative duty to enforce the laws that protect their citizens, and in this regard the law is black-letter.

Can we find a (state) cop somewhere?

Oh, and for extra credit, does anyone care to take a wager on how much of the so-called Secured MBS that The Fed has been monetizing also has no valid assignment and thus has NO collateral, and in the event of a default, is WORTHLESS?

PS: Want to help yourself and others in your state? Raise hell with your State AG, starting with faxing this Ticker to him or her..... The PDF of the decision showing that the securitizers were in knowing breach of their own covenants and requirements is found here.

http://market-ticker.org/archives/1512-The-MERShole-Yawns-Wide.html

_________

Link to Pdf

Mass. Land Court ruling on foreclosure sales

Full text of the ruling by Justice Keith C. Long, which affirmed his own March decision that invalidated foreclosure proceedings involving two Springfield homes because the lenders did not hold clear titles to the properties at the time of sale.

http://www.boston.com/business/articles/2009/10/15/ibanezruling/

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