Foreclosure Defense Florida

IRS Form 938- I Have No Idea If This Is Important But It Sure is Curious

Sometimes this all becomes a bit too overwhelming, trying to unravel this whole foreclosure cataclysm.   This is so far beyond the simple situation where a borrower borrows money from a bank and doesn’t pay….that bank is clearly entitled to their money back.

I’m a fairly bright guy with a good education and a fair to ‘middlin grasp on complex legal issues….I just boil down way complex stuff to smaller parts and learn those complex issues piece by piece.   The problem we face in foreclosures today is no-one has any idea who’s really owed money on these mortgages, who is entitled to collect payments on the mortgages, what government money was used to bail out mortgages.

Sophisticated attorneys with years of complex litigation and legal experience are perplexed by the inability of Plaintiffs to answer the most basic questions about litigation.

Experienced circuit court judges with decades of trial court, evidentiary and complex litigation experience have started to ask real questions about the millions of dollars in foreclosure judgments they’re signing every day in their courtrooms to entities that they cannot identify.

Federal judges with hundreds of years of experience are really starting to dig into documents filed and representations made by the parties that appear before them….there are real questions being raised in bankruptcy courts and even bigger questions about fraud and collusion and federal crimes at the highest levels of American businesses.

Thrown into all these questions are some thought provoking comments and research from a subscriber to this blog, like I said, it’s a bit beyond me now, but consider his words….

The best way to prove this mess all got dissolved is to go to the IRS.gov website and look for the publication # 938 for 2006 through the present.     This is where you will see that the gain on sale reporting etc all stopped as the securitization machine was turned off temporarily in late 2007.

The trusts were all named and reporting until the end of 07 then 08 is missing??????.
They restart the reporting in 09 but it is down to only Ginnie/Freddie/Fannie/JPM/Citi and random trusts that have been created. The government absolutely knows what happened yet seems to help cover this up thinking we are too dumb to catch it.

2009 reported in 2010
https://www.irs.gov/pub/irs-pdf/p938.pdf

2008? is missing and reverts to the 2009 file?? Don’t believe me. try it.
https://www.irs.gov/pub/irs-prior/p938–2009.pdf

2007 reported in 2008
https://www.irs.gov/pub/irs-prior/p938–2007.pdf

They seriously think we are that stupid. What are they hiding from us? Maybe that the banks have committed billions upon billions in tax evasion.   Follow what is happening in non-judicial states and you will see the arrogance. They actually show us the blank note endorsement from the original lender yet no recording of the interest through the depositor to the trust. Lack of standing?

Then when they are finished stealing the house they sell the loan from the unlawful foreclosing party(trust) that had no standing to F/C back to the trust through a POA to the servicer and effectively cover their tracks that the loan was never in the trust, they still stole the investors money, and they still claimed the tax exemptions under REMIC.

All while the Govt and IRS watch.

Look at the WAMU BK. They were found to have a 10.3 Billion dollar tax claim filed against them that was reduced to 33M yet Chase got to walk away with a 300 Billion dollar bank 200M in mortgages for 1.9Billion. The loans were shown to have been written down to $0 yet they still want to collect?

Along with the Pub 938 you can review Pub 550 that explains the tax exemptions etc for the REMIC trusts.

No assignments were done as required, no “true and absolute sales under FASB 140” were ever perfected, No standing has ever been established for most or all of the securitization trusts.

This is the biggest RICO case on earth.

Oh, and maybe we should review who funded LPS…..JPM/BOA/Wachovia when they split off of FIS in 2008.

9 Comments

  • indio007 says:

    Why is the IRS even publishing this? Why in the world would the IRS be indexing privately held securities? Why would they have any obligation to do so? This is fishy.

  • J.R. Homeowner says:

    “Fishy” or not, it’s one more excellent piece of evidence that most of these securitized trusts no longer EXIST and have no CAPACITY to bring a foreclosure action.
    The real “Fishy” part is WHERE the hell has all the money been going since they disappeared, (some of them many YEARS ago) ???

  • J in CO says:

    I’m not sure if there is any overlap with this topic but I have come to understand that the reporting of Pub 938 is in correlation with 1099OID gain on sale reports. It is somehow related to the income and in some ways losses that get reported.

    I reviewed a notice that is filed when the R class of certificates is sold, usually to a close affiliate and it talked in detail about the party having to financially establish that it had the ability to pay tax losses in the event they occur.

    This also piques my interest because many of the “Sovereign” movement followers are using 1099OID forms to discharge debt with the IRS based upon some treasury bond in which they say is created by the “human resources” we are in the fiat money system.

    To me it seems that maybe the 1099OID reporting might have something to do with discharging losses for the banks.

    I have in my experience been privy to state affordable housing programs which allowed the developer to sell the tax credits from the project given by the state of fed program to someone else as a method to raise capital. I would wonder if certain layers of the losses of an MBS pool are also similar.

    If the banks know they will incur losses through the course of a securitization, it would make sense for them to try and package and sell those losses or utilize such losses themselves in the tranching of the certificates.

    They always retain certain layers of certificates for their own use as part of the gain they charge in must cases they sold at 105% or par. If they retain “known” losses that are planned to occur as subordinate certificates it would almost be more proof of the known ponzi scheme.

    I wish an accountant would chime up and offer us some understanding of the 938/1099 OID issue so that we would have some clarity.

  • speakout says:

    The 1099A is acquisition or abandonment. The 1099C form is used by banks to cancel debt. The 1099 Misc and W9 form also have something to do with debt cancellation. Look under http://www.stayexempt.gov
    It’s the IRS simple version website of tax exempt entities of which a REMIC is included.
    If the banks fail to file the proper forms and give us a copy, they are involved in tax evasion. There is certain criteria for staying in REMIC status.

  • speakout says:

    Made a mistake in the website address.

    It’s http://www.stayexempt.org (not.gov)

  • Mike Dillon says:

    As hinky as it may be that securitization, in general, may have “disappeared” for a year, I have continually marveled at the consistency of the timing of the number of investors falling below that magic floor of, what, 300 (?) in literally every trust that is/was foreclosing on a property.

    Without fail, each and every trust that I looked at, related to a local foreclosure, filed a 15-15D (Suspension of Duty to Report to the SEC) within 12 to 18 months of inception of the trust. At that rate of attrition, how can RMBS trusts established even 5 years ago still exist? Do they all have 4 investors left in them?

    And take a look at your local public notices. How many trusts do you see conducting FCs anymore? Is it me or have things shifted somewhere…

  • J in CO says:

    Speakout, is this for everything exempt? It would seem this is only for 501(c)(3) entities not REMICs or REITs which are under a different exemption.

    I believe it is under only the Original Issue Discount that you will find the exemption.

    REMIC falls under IRC 860 which allows the discount as applied by the Treasury under 31 CFR 357. Pub 938 is for the yearly reporting of OID so why are they not reporting anymore???

    Why was the IRS lien filed in the WAMU BK for 10.3 Billion?

    Why were the mortgage loan assets of WAMU transferred at a book value of $0?

    Why won’t the FDIC return any of my FOIA requests about this info?

    Why do people believe the court system is here for us?

    When will the general population wake up to what is really going on?

  • PATRICK FARRELL says:

    Notes were paid off with TARP.
    Notes were mostly held by Europe banks.
    “American” banks are using the MORTGAGE to 4close.
    Thus Double dipping.
    See KORMAN VS. AURORA
    He shows atty. for the Amer. Bank Assoc. argued before the Fl. Supremes, and said that “notes were destroyed [and electronically recorded in MERS] to avoid double dipping”.
    Destroy the note=detroy the secured interest.
    UETA dis-allows for the electronic recording of Mortgages.
    REMIC fraud by the IRS who is rewarding the banks fraud by TARP.
    They are all in on the Fraud.

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