The fact is foreclosure will happen anyway, no matter who holds the note, Passidomo said. The reality is the borrower borrowed something from someone, and didn’t pay his debt, she said.

The most offensive thing about this quote is it’s coming from someone who wants to give away homes to banksters who are far more guilty than the homeowners they wan to throw into the street…

MORE HERE

Attorneys General from all across the country have been under intense pressure by the Obama Administration to accept the terms of the Very Bad Bank Bailout by tomorrow, February 6, 2012.

Word on the street is that there was a conference call scheduled this weekend between all of them to hammer out the details, twist arms, make promises, blackmail and extort.

It is also confirmed that the Obama Administration’s key man i the deal Shawn Donovan, aka Napolean Dynamite had a conference call with activist groups where he explained that the money to pay for the bank bailout bill would come not from the banks but from the investors in the mortgages, which means the 401ks, retirement and investment accounts of little folks like me and you.

HUH? Come again?

Wait just a cotton pickin’ minute here. How can ReTHUGliCON attorney generals like Florida’s Pam Bondi be screaming at other attorney generals like California’s Kamela Harris a Democrat to take a deal that amounts to nothing more than a federal taking of private property with no compensation?

Huh?  Come again?

I checked my “Being a Republican For Dummies” book and being opposed to things like that were covered in the first chapter.  Well, go ahead and read along here folks, cause this is really, really ugly….

In case you had any doubts about what the mortgage settlement was really about and why banks that were so keenly opposed to it are now willing to go ahead, the news of the last two days should settle any doubts.

As we had indicated earlier, one of the many leaks about the settlement showed that there had been a major shift its parameters. Of the $25 billion that has been bandied about as a settlement total for the biggest banks, comparatively little (less than $5 billion) is in cash. The rest comes in the form of credits for principal modifications of mortgages.

Originally, that was originally to come only from mortgages held by banks, meaning they would bear the costs. The fact that this meant that whether a homeowner might benefit would be random (were you one of the lucky ones whose mortgage had not been securitized?) was apparently used as an excuse to morph the deal into a huge win for them: allowing the banks to get credit for modifying mortgages that they don’t own.

The first rule of finance (well, maybe second, “fees are not negotiable” might be number one) is always use other people’s money before your own. So giving the banks permission to modify loans they don’t own guarantees that that is where the overwhelming majority of mortgage modifications will take place, ex those the banks would have done anyhow on their own loans. And the design of the program, that securitized loans will be given only half the credit towards the total, versus 100% for loans the banks own, merely assures that even more damage will be done to investors to pay for the servicers’ misdeeds.

Let me stress: this is a huge bailout for the banks. The settlement amounts to a transfer from retirement accounts (pension funds, 401 (k)s) and insurers to the banks. And without this subsidy, the biggest banks would be in serious trouble

Why? As leading mortgage analyst Laurie Goodman pointed out in a late 2010 presentation, just over half of the private label (non Fannie/Freddie) securitizations have second liens behind them (overwhelmingly home equity lines of credit). Moreover, homes with first liens only have far lower delinquency rates than homes with both first and second liens. Separately, various studies have found that defaults are also correlated with how far underwater a borrower is. If a borrower is too far in negative equity territory, it makes less sense for them to struggle to stay current, no matter how much they love their home.

FROM NAKED CAPITALISM

Some Key Excerpts From The Now Sure to Be Worldly Famous Case No. 5595.  I just got off the phone with Nye and he’s quite amazed at all this…amazed that it took the world so long to wake up to what he’s been screaming about for years.

Like every other whistleblower or advocate who has ever stood up for consumers and the Rule of Law, Nye has been attacked, persecuted, bullied, and yes, attacked again.

Nye has always been a tireless champion for honesty, integrity and the Rule of Law.  Just last week, Nye provided to me the Smoking Gun I needed in a case that I’m taking to trial next week.  He shared with me an affidavit of fraud that is mind blowing.

I’m so glad that this American hero is finally getting the credit he deserves.

I find it most interesting, but not at all surprising, that Pinellas County judges are featured prominently in this report.  Think about it, there are untold tens of thousands of judges all across this country that have presided over millions of foreclosure cases, but a good judge long, long ago in Pinellas County first warned that all of this was going to come back to bite us all in the end.  Some of the best foreclosure scholarship in the entire nation comes out of the thoughtful jurisprudence of Pinellas County.  These judges are tough as nails, and even after all these years and all these motions years after years, they grab each file, and carefully examine each motion and each case, then rule as if each case was the most important one on their crammed docket.

Now, some keys from the report.  Keep in mind here that this is just the tip of the iceberg.  The thing that people won’t get is how those in power keep wanting to ignore all of this…to keep kicking the cow chip down the field. But sooner or later the cow chip breaks apart on your foot.

And now from the report:

Two Florida trial courts recently have criticized MERS for false pleadings in
foreclosure proceedings. Mr. Lavalle apparently approached judges in two Florida counties with
sufficient information to prompt the judges to call extraordinary hearings.

In MERS v. Cabrera, the judge started an extraordinary show cause hearing
regarding nine foreclosure cases by reading portions of inquiries from Mr. Lavalle and his
mother, Ms. Pew.47 MERS counsel was forced to concede that the complaints contained
inaccurate allegations regarding its interests in promissory notes.48 The complaints allege that
MERS is the “holder and owner” of promissory notes when neither is true. This allegation hides
the relationships of the parties who will benefit from the foreclosure and masks a serious legal
issue. The judge was troubled that MERS changed its stance after filing “thousands and
thousands of cases” stating that it owns the note.49

A second judge (who took the time to observe the hearing) criticized MERS for
routinely filing lost note affidavits and counts to reform the promissory notes. It appears the
notes are not lost but lawyers or servicers find it easier and quicker to claim the notes cannot be
found. The judge pointed out the inconsistency of the affidavit to the MERS complaint, asking:
Where is it at the time it is lost in all of these myriad hundreds of cases which alleged that it’s inour possession at the time it was
lost or destroyed?5o

The judge accused MERS of filing “false affidavits” and questioned whether foreclosures should
be allowed to go forward. 51 MERS’ attorney made the concession that “My understanding is lost
note affidavits and lost note counts are routinely filed by mortgagees and note holders … ,,52 He
acknowledged the practice should be “modified.,,53

In an order of dismissal dated September 28,2005, the court dismissed four
foreclosures as a “sham and/or frivolous pleading,” but dismissed them without prejudice so that
the true owners and holders of the notes could file their own foreclosure actions.54
The court also criticized MERS’ practice of certifying servicers’ employees as
certifying officers, saying: “[t]he use of designating employees of the servicer as officers of
MERS in order to circumvent the ‘technical’ requirement of law is transparent.,,55 He called the
practice a “charade.,,56

A judge in the Pinellas County, Florida, circuit court issued an order dismissing
20 MERS foreclosures for essentially the same reasons. Judge Logan noted the false allegations,
stating:

“The standard allegation in the Complaint alleged that … ‘Plaintiff
now owns and holds a mortgage note and mortgage … ‘ The Court
never found that allegation which is contained in all of the MERS
Complaints to be supported by a review of the documents within
the Court file. ,,57

Fannie Mae does not authorize attorneys to represent that MERS holds or owns promissory
notes. The Servicing Guide states “MERS will have no beneficial interest in the mortgage, even
if it is named as the nominee for the beneficiary in the security instrument. ,,58

We conclude that foreclosure attorneys in Florida are routinely filing false
pleadings and affidavits regarding the plaintiffs – MERS or servicers – interest in the
proceedings and regarding lost, missing or destroyed promissory notes. The practice could be
occurring elsewhere. It is axiomatic that the practice is improper and should be stopped. Fannie
Mae has not authorized this unlawful conduct. As a result of the MERS hearings in Florida,
Fannie Mae recognizes the issue and is taking action to correct it.

It is axiomatic that the practice of submitting false pleadings and affidavits is unlawful. With his complaint, Mr. Lavalle has identified an issue that Fannie Mae needs to address promptly. For some time, the Legal Department has been working on a proposal for a new computer system to communicate better with and control attorneys working on Fannie Mae litigated matters. As a result of the Florida cases, the Legal Department is formulating a more immediate solution for the issues raised in those cases, including a directive to attorneys and Servicers in Florida directing corrective action.

Mr. Lavalle’s claim that large numbers of foreclosures – tens of billions of dollars
worth – could be unwound as a result of this misconduct likely overstates the risk to Fannie Mae.
Courts are unlikely to unwind foreclosures unless borrowers can demonstrate that the foreclosure
would not have gone forward with the correct pleadings, which is a difficult burden for most
borrowers to meet. Even the Florida judges who were very angry about the false pleadings ordered that the foreclosures could go forward with correct pleadings and the proper plaintiff.

Civil lawsuits would have a similar burden; the plaintiffs would have to demonstrate damages
arising from the false statements. Mr. Lavalle has not presented evidence that the borrowers
were improperly placed in default. Nevertheless, the issues Mr. Lavalle raises should be
addressed promptly in order to mitigate the risk of exposure to lawsuits and some degree of
liability.

Prior to the creation of MERS, the borrower could look to the land records to
follow the chain of servicers. If a mortgage is registered with MERS, however, MERS is the
mortgagee of record. Fannie Mae does not require lenders to register mortgages they sell or
service for Fannie Mae with MERS.

Mr. Lavalle questions whether Fannie Mae has adequate
procedures in place to keep track of 15 million promissory notes that it has in its possession or is
held for its account. 155 Mr. Lavalle claims that the endorsement-in-blank policy leads to trillions
of dollars of missing or lost negotiable paper. 156 Mr. Lavalle bases his claim that the problem is
widespread by extrapolating from routine filing of lost note affidavits in Florida foreclosure
proceedings. 157 He acknowledges that every entity operating in the secondary mortgage market
has the same policy.158 According to his calculations, about $6 trillion worth of bearer paper
exists due to this practice. 159 Since these notes are negotiable instruments, Mr. Lavalle contends
borrowers face dire consequences from their mishandling. 160 A holder in due course, for
instance, can recover even when the maker has defenses or has paid the note in full.

80495799-Confidential-Report

This weekend, attorney generals from across the country are being blackmailed, extorted, pressured into signing onto off of the settlements with the banksters.

Keep in mind folks, that we’re not talking about teensy weensy violations of itty bitty parts of the law that don’t matter like jaywalking.  These are crime scenes….

But while they sit on their secret phone call hammering out the details on how Americans are gonna get hosed once again, let’s just review some of the details that are part of existing lawsuits:

(Now there’s a real gem down there at the bottom. Let’s see who can pick it out.)

The lawsuit specifically charges that the defendants have engaged in the following fraudulent and deceptive practices:

• MERS has filed over 13,000 foreclosure actions against New York homeowners listing itself as the plaintiff, but in many instances, MERS lacked the legal authority to foreclose and did not own or hold the promissory note, despite saying otherwise in court submissions.
• MERS certifying officers, including employees and agents of JPMorgan Chase, Bank of America, and Wells Fargo, have repeatedly executed and submitted in court legal documents purporting to assign the mortgage and/or note to the foreclosing party. These documents contain numerous defects, including affirmative misrepresentations of fact, which render them false, deceptive, and/or invalid. These assignments were often automatically generated and “robosigned” by individuals who did not review the underlying property ownership records, confirm the documents’ accuracy, or even read the documents. These false and defective assignments often masked gaps in the chain of title and the foreclosing party’s inability to establish its authority to foreclose, and as a result have misled homeowners and the courts.
• MERS’ indiscriminate use of non-employee “certifying officers” to execute vital legal documents has confused, misled, and deceived homeowners and the courts and made it difficult to ascertain whether a party actually has the right to foreclose. MERS certifying officers have regularly executed and submitted in court mortgage assignments and other legal documents on behalf of MERS without disclosing that they are not MERS employees, but instead are employed by other entities, such as the mortgage servicer filing the case or its counsel. The signature line just indicates that the individual is an “Assistant Secretary,” “Vice President,” or other officer of MERS. Indeed, these documents often purport to assign the mortgage to the certifying officer’s own employer. Moreover, as a result of the defendants’ failure to track the designation of certifying officers and the scope of their authority to act, individuals have executed legal documents on behalf of MERS, such as mortgage assignments and loan modifications, when they were either not designated as a MERS certifying officer at the time or were not authorized to execute documents on behalf of MERS with respect to the subject loan.
• MERS and its members have deceived and misled borrowers about the importance and ramifications of MERS’ role with respect to their loan by providing inadequate disclosures.
• The MERS System is riddled with inaccuracies which make it difficult to verify the chain of title for a loan or the current note-holder, and creates confusion among stakeholders who rely on the information. In addition, as a result of these inaccuracies, MERS has filed mortgage satisfactions against the wrong property.

NY AG Lawsuit

This piece here is the GEM…..let’s see how many people pick up on how big this is.

And here’s the whole lawsuit

THE QUESTION NOW IS, HOW CAN ATTORNEY GENERALS SIGN ONTO DEALS WITH THE DEVILS?

So here’s the thing.  A foreclosure trial should be a simple matter.  An easy case for a big shot foreclosure firm….right?  Let’s take a hypothetical example.  The Plaintiff (or some version of the Plaintiff…we’ll get to that later) filed the Original Note years ago. They’ve got an Original, wet ink note that was taken out with American Broker’s Conduit in 2007.  The note file with the court in 2009 is endorsed in blank so any old person can come in court, file the lawsuit and throw my client out into the street…..right?

Well, hold on there Nellie. Slow down a bit.  Let me take you for a little trip down the rabbit hole.  First a little date to keep in mind.  American Home Mortgage filed for bankruptcy in August 2007, just a few days after my loan was closed.  According to pleadings filed in court, shortly after the filing 6,500 people were fired all across the country.  So a first question I have is just how did my little ole loan get endorsed by some employee of AHMSI in the few short days between when it closed and when AHMSI filed bankruptcy?  (More on that later too.)  You know how things are when the ship is sinking….I’d imagine everyone knew the ship was going down so were all these folks really Johnnie on the Spot and really dotting their i’s and crossing their t’s? I mean while the building was on fire and everyone was running up and down the hallway screaming, was my particular girl sitting there calmly endorsing away millions of dollars in promissory notes?(Stamp, sign; Stamp, sign; Stamp, sign)  I just don’t picture that and, as I’ll get to later, this probably was not happening.

AHMSI and CA case details – GOOD ref-2

AHMSI-1

American Home Mortgage bankruptcy questions and court filing

AHMSI-2

Next, I started carefully examining all these bankruptcy filings and litigation cases related to the AHMSI bankruptcy and it seems there’s real questions about whether and when and what parts of loans of these bankrupt companies actually were transferred out. You see the loans were like pigs that were sent off to slaughterhouses. Pieces and parts were chopped up and sent off to different places…the loans themselves were sold off to one group of investors (who knows if they were double sold?), then the rights to service or collect the payments on the loans were either retained by related entities, or those rights were sold off to other companies.  In subsequent lawsuits filed in federal bankruptcy court all sort of allegations are made about the improper transfer of these parts of the pig.

Another key part of this case comes in the name of the Plaintiff that sued my client to foreclose, American Home Mortgage Servicing.  Well, when they first filed the suit in 2009, I didn’t like the way the name was all loose and not pled in a proper legal fashion, so I demanded they give me the details that our pleading rules require….tell me what state of incorporation, tell me you’re in good standing, tell me there are no other competing entities….and well, here we are three years later and it seems like those questions I raised right at the beginning were well founded and justified.  You see, as the litigation shows, there were in fact two versions of AHMSI, pre-bankruptcy and the fire-sale rising from the ashes, post bankruptcy.  I challenged capacity and it seems that challenge was well-taken at the time….but that was never disclosed to me or the court in my case. (More on that later)

Me being a curious type, I sent detailed, painstaking discovery pointed at AHMSI asking all kinds of questions, the who, what, when, where and hows of every aspect of this loan and the litigation…and guess what responses I got?  NOTHING.  Not a single question answered.  And how did they pull this trick off?  Well, they went behind my back and told the court in an ex-parte motion that the loan had sold and that AHMSI now had nothing to do with this loan. I objected but the court denied my objection, letting AHMSI slither away not answering a single damn question.  For two years now, I’ve kept pointing back to the fact that I was denied those questions, filing motions to compel, trying to take depositions, but the new plaintiff’s attorneys (same as the old plaintiff’s attorneys) scream that the old plaintiff isn’t their client and they cannot be made to answer any questions.  They maintained this position until right up at the eve of trial when they told the court they were going to call their former client as a witness in order to answer questions and get in information they need in order to prove their case.

Well, along comes another interesting thing about this case.  You see, the Plaintiff’s attorney files a “Notice of Non-Reliance on Assignment”.  You see, AHMSI had apparently contracted with a company LPS or DOCS, LLC to generate the documents it needs to foreclose.  Now AHMSI and LPS Docs are in a good old fashioned legal war, AHMSI is suing LPS accusing its old friend of doing shady things as part of its document creation operation.  Nothing like a little fratricide to spice my case up a little bit.  Now, I’m not sure what a “Notice of Non-Reliance” is…I checked the rule books and there’s no mention of such a motion in all of legal history, but I wanted to make sure I wasn’t missing out on something new and exciting so I filed a “Notice of Reliance on Assignment”.  You see, I wanted to bring to the court’s attention the fact that the Plaintiff had produced a document , filed it with the court and were now trying to run away from it like a frat boy runs away from a girl with….well, you fill in the blank.

READ THIS DOCUMENT VERY CAREFULLY

Well, the “Notice of Non-Reliance” brings us to another interesting point in this little saga called, “The Importance of Being Earnest”.  You see, the Florida Bar issued an ethics opinion which dealt with exactly the kind of situation presented here.  How do I know this is the situation.  Well, I just received documents that were sealed as part of the Nevada Attorney General’s Lawsuit against Lender Processing Service.  In this lawsuit is a document that explains exactly how LPS employees are supposed to forge the signatures of other employees, but they don’t call it forgery, they call it “Surrogate Signing”.  The explain it in great detail…really, you just gotta read it here, complete with a picture perfect example of Linda Greene’s signature that everyone is supposed to copy.  It’s just mind blowing that they would make all this so clear and write it down as policy….apparently no one considered that this was called forgery and that if the signature was notarized it was notary fraud.  You see, I in fact have a Linda Greene signature in my case.  Now, as I read the Bar ethics opinion along with the just-released Nevada lawsuit, I believe my opposing counsel has an obligation to bring this directly to the court for consideration….after which I believe the court would have no choice but to dismiss the case and potentially sanction those parties involved. But that hasn’t happened yet.  I’ve asked my friend, the attorney on the other side just when she might make this meeting, but all my pestering emails just get ignored.

Which brings us back to another interesting subject, the promissory note at issue in this case.  I have well founded reason to believe the note at issue in this case was not in fact endorsed by the person whose name appears on the face of the document.  How?  Well, remember the whole picture of the building burning and people running around on fire because 6,500 people are about to get fired in the days just after my loan closed?  That’s certainly part of it, but there’s more.  Much, much more.  The other side knows it and I know it, but they are stuck in some kind of a dangerously delusional world where they think the judge ain’t gonna care about the pleadings I have filed.  Maybe they’re right, maybe the judge will just ignore all of this.

Now, here’s the thing. I can’t just stand up in court and blather on like I can here and make this case.  In court, I can’t just stand up and start making all these wild, accusatory statements and expect the judge to take them into consideration.  Even if the judge wanted to , our rules of procedure require me to go through a painstaking process to make sure the evidence is properly presented and before the court.  And so while it’s just taken me  bit over an hour to tell parts of this story here, preparing then presenting this story in court will take many, many, many hours.  Collecting the evidence, organizing the evidence, then getting it into a form for the court to consider over the screaming objections of my opponents.  This truly sets up as a battle royale.  Will justice prevail?  You just never know until the very last minute.

Drink it all in, folks. Things are bad and only getting worse.  No commentary necessary here, no need to read between any lines.  You can all read the black and white.

The rapid descent into a very dark place has only been hastened as it becomes more and more certain and definite that this nation and especially this state are governed not by people or by laws or by any real justice, but by corporations supported and driven as they are by collision of corruption and cash.

The only real question remains is what happens after the full breadth and depth of the tyranny is fully expressed?  What will this world look like when the corporatacracy apparatchik has ground down and spit out every last bit of law and liberty?  What will we the serfs, the peasants, the prisoners do when clamp is tightened down just a few more screws deeper?

That truly is what terrifies me most. What the masters of the machine fail to realize is the profound danger they are placing all of us in by accelerating this descent into lawlessness.

This nation, these people will only be pushed so far.  The real problem is, the masters will not recognize they’ve pushed too far until it’s too late and there is no turning back.

From The Palm Beach Post:

Florida’s once-heralded foreclosure mill investigations have fizzled as the attorney general’s office has failed to find the right strategy to continue its pursuit and three law firms call for the cases to be dismissed.

This week, an attempt to have the Florida Supreme Court weigh in on whether the state has the authority to subpoena the Law Offices of David J. Stern was denied by the 4th District Court of Appeal.

The decision effectively ends the investigations into complaints that the firms doctored court paperwork in an attempt to speed foreclosures.

FLORIDA ATTORNEY GENERAL

UPDATE: BUT NOW HERE’S A REAL CONFLICT THAT’S DEVELOPING…

 What are we dear people, citizens of a United States of America to make of the fact that one state (that would be Florida) has affirmed a very real wild, dangerous environment of lawlessness while other states, that would be New York, California, Nevada, Michigan, just to name a few have said,

WE WILL OPERATE UNDER A SYSTEM OF EQUAL LAWS THAT BIND PEOPLE AND CORPORATIONS

That’s right, just read the lawsuit that was recently filed in Nevada here and another bombshell, read the lawsuit that was just released a few minutes ago from New York here.

It’s kinda setting up a sort of civil war type situation where on the one hand we’ve got states that are enforcing laws while another state sticks out like a downward sticking thumb, thumbing the nose at the rule of law……