More Foreclosure Info… cont’d 1

DISCLAIMER: This is not, by far, an exhaustive compilation of information and it also is NOT legal advice. For that, contact a lawyer. All this is is a simple list of points and information that is readily available online.
(See my previous post for points 1-6)

7. Under the Uniform Commercial Code which governs negotiable instruments, the right for a bank to enforce the instrument and to foreclose, is subject to being a “real party of interest” or “holder in due course”. If the loan has been sold, as is the case of a secured trust, then the bank can no longer claim that they are a party of interest or the holder. They got paid for the loan twice already; the securitization of the trust and sold as stock and then paid by the appreciation of that stock. So, in trying to collect again without being a real party in interest or the holder and KNOWING they aren’t is a fraud. In filing this claim knowing that they are not a real party in interest, they have committed a fraud upon the court.

8. Once a loan has been converted into stock, it no longer is a loan. A negotiable instrument can only be in ONE of two states when it undergoes securitization, but NOT BOTH at the same time. It can be either a loan and treated and governed as such, or as stock and treated and governed as such. But once converted to stock, it is forever stock. When a promissory note gets converted into stock, that promissory note no longer exists. Because a Deed of Trust/Security Instrument, SECURITIZES a promissory note and if that promissory note is destroyed or no longer exists (as it is when converted into stock), then that trust is invalid. The trust secures nothing. “Mortgage is not a “debt”, but merely a security for payment of debt”- Maine vs Clack 33 P.2d 283, 43 Ariz. 492 (1934). And since the Deed of Trust/Security Instrument is what gives the bank the right to foreclose and that Deed of Trust/Security Instrument is invalid, then the bank loses their right to foreclose. In order to enforce a debt obligation secured by a mortgage and note, a party must be in possession of the note. See Premier Capital, Inc. v. Doucette, 2002 ME 83, ¶ 7, 797 A.2d 32, 34 (describing a note associated with a mortgage as a negotiable instrument). Once a REMIC is formed, its assets (your loan pooled with many others) are declared a permanent fixture to the REMIC. This is registered with the SEC. You can not register one thing with the SEC and stock market, and then after the money is transferred, switch out the asset. This is called “switch and bait”. In other words, once an asset is registered and traded as part of the security, you can’t just switch it out because it has become a permanent fixture of the traded asset. This is a permanent conversion. And this is also why it is so very important for the ORIGINAL “wet ink” mortgage loan note to be produced. If it got destroyed, by being converted into stock, then the loan has been paid for. It also breaks the chain of title. Because ONLY the original promissory note has the legally binding chain of title. When a loan goes into default, the REMIC writes it off. Once that happens, the REMIC gets tax credits from the IRS. This means it is settled. The note is gone and paid for. The only way the bank can now try to foreclose on a property is to buy it back from the open market just like any other debt collector does. And since the debt has been written off and is no more, the bank buys it for pennies on a dollar. They then try to reattach the converted loan to the Deed of Trust/Security Instrument and try to say that they are the real party of interest. In trying to foreclose on your property knowing this (or should know as it is basic banking and trading practices), the bank and their lawyer have committed fraud by submitting false documentation claiming that the Deed of Trust/Security Instrument is valid thus being the real party in interest and holder in due course. By reattaching the loan to the Deed of Trust/Security Instrument they have deceived the court and you by adhesion, (which you must object to) and both the bank AND their lawyer should be sanctioned for fraud by adhesion. Because your loan was securitized, it destroyed the note, so anything brought into the court as evidence by the bank and their lawyer is prima facie evidence of counterfeit fraud. They also are attempting to steal your home through these fraudulent means which is attempted theft. They also have committed securities fraud. Because if the loan and the stock exists at the same time it is known as double dipping. And double dipping is a form of securities fraud. All of this is clearly deceptive trade practices. “Fraud vitiates the most solemn Contracts, documents and even judgments” [U.S. vs. Throckmorton, 98 US 61, at pg. 65].

9. Look in the papers that the bank/lawyer filed in the court and see if there is something like a Notice of Important Rights. It is usually at the end of their points/reasons for their claim and what they want the court to do. It might look something like THIS. Notice in the very first line is the same exact line that all debt collectors use when contacting you. If you have ever gotten a phone call, this is usually the very first thing you hear. And it also states “the name of the original creditor is…”. A company may sell the asset (your loan) to a debt collector who will do everything in their power to collect on the debt. A debt collector is someone who (is not the original creditor) buys an offsetted debt and tries to collect on it. Debt collectors use deception to convince people (in this case, the court, the County Record of Deeds and you) that they were assigned the debt. (As proof by the assignments they are using as evidence in your case). Once a debt has been written off for tax purposes, it is discharged. It cannot be collected again. The individual shareholders of the REMIC are the real and beneficial interest holders of your promissory note. Since the many shareholders cannot individually endorse and assign their portion of the loss, they have to write it off as a bad debt. The trustee of the REMIC cannot do it either, because s/he is not the real and beneficial holder of the promissory note. The only way the bank can try to foreclose now is to rely upon the same deceptive practices used by all debt collectors. THEY ARE ONLY A DEBT COLLECTOR NOW. This is why they need to put a notice that they are attempting to collect a debt on their correspondence (the original creditor doesn’t have to do this), just as the bank did in their complaint. So this is FURTHER proof that both the bank AND their lawyer are well aware and KNOWINGLY committing frauds upon the court and you.

To Be Continued…..

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2 Comments »

  1. Dianne Wheeler Said:

    Hi, Just looking for help – again – have been fighting for this ______ modification on my loan for 26 months now! There has never been an assignment of deed filed at the courthouse , but my original note holder “Argent Mortgage” went belly up about 4-5 years ago.

    Anyway, I’ve printed out the foreclosure info here and gonna read it tonight . Would like to have the prior items – have printed items 7-12. Thanks for all your help,
    Dianne Wheeler

  2. teresa heffler Said:

    This is Great Stuff! I would also like the items 1-7.
    Thanks, Teresa


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