The whole Fraudclosure and Occupy movement emphasizes the gross and systemic abuses of citizens all across this country. Fraudclosure illustrates the gross and systemic abuses of our legal system and the desecration of our courts in general.
So many laws and rules and basic principles that have been grossly ignored and abused. For hundreds of years in this country property laws were clean and simple. Mortgages and foreclosures were simple. But then the Wizards of Wall Street created the biggest Ponzi scheme and shell game the world has ever seen. A key element in their con was the Mortgage Trust or Real Estate Mortgage Investment Conduit (REMIC), the shell game that is being played in courtrooms and in financial markets all across the world involves the fact that many of the loans that are alleged to be in these trusts are not in fact in the trusts.
We know from depositions and discovery and from other readily available information that the con artists and Wall Street Wizards that initiated all this fraud took one loan that was supposed to be pledged into only one trust was in fact pledged into multiple trusts at the same time. And so all those institutional investors and retirement fund managers and teacher and cop and firefighter pension mangers who think they have real assets and principal behind their investments…..HAVE NOTHING.
That’s right, the investment houses are paper dragons, retirement and investment accounts are Ponzi schemes. And one of the questions presented in this excellent appeal is whether anyone has a right to ask these questions. Now think of things from a very basic perspective. In any normal courtroom, if a party was being sued by a trust or an estate or any entity or person, the party being sued would be able to say,
“Your honor, I would like some proof that this trust (estate, fictitious entity, corporation) has any legal ability to be suing me.”
And the court would surely look at the attorney suing on behalf of the Plaintiff and say,
“Counsel, the defendant is right…when challenged, you need to show some evidence that you have the authority to sue this defendant.”
It’s just basic law. But this is even more important in the context of real estate and estates and trusts. I’m a title attorney and the explicit requirements of insuring title on properties held by trusts or estates is to obtain proof not just of the trust, but proof that the trustee has the powers to convey or encumber the property. And we cannot just take the word of the trustee for it…..
CONVEYING TITLE FROM A TRUST OR ESTATE REQUIRES THE ACTUAL ORIGINAL “WET INK” TRUST OR OTHER PROOF
So why is it that in millions of foreclosure cases all across this country, shadowy, ill-defined trusts are allowed to prosecute cases and take title to property with no one ever even conducting the most basic analysis of the trust powers?
But as a colleague of mine just commented, It’s just another day in the Alice and Wonderland world called foreclosure.