Attached to this email is an excellent report prepared by Nye Lavalle, that addresses a very simple point:
THERE IS NO SUCH THING AS A SIMPLE FORECLOSURE!
Read his forward, and please comment and share with friends!le
When once, traditional lenders held the loans they originated in their local vaults and on their
balance sheets (“originate-to-hold model or “traditional model”), a new and modern method of
structured financing created an “originate-to-distribute” loan model over the last two decades.
Yesterday’s mortgage in an originate-to-hold model was relatively simple. The old and traditional
housing finance system was straightforward. Local banks and savings and loan associations made
mortgage loans to local households and held those loans in their vaults and loan portfolios until they
were eventually repaid.
In the old days, the bank’s depositors provided the primary source of funding for lenders by making
deposits into various checking and savings accounts, certificate of deposits, and other financial
accounts. The process of making a loan was called originating a loan. In the traditional model, the
lender made the loan, recorded the mortgage, and held onto the note. If the borrower defaulted,
the lender would seek to enforce the note and mortgage. However, this model is widely a relic of the
past. Today, lending is typically followed by a series of transfers of the lender’s interest.
Once the lender’s rights have repeatedly been transferred, determining rights related to the lender’s
claim is complex. Thus, commercial law, not real property law provides us many of the answers
necessary to determine complex legal issues to Florida foreclosures.
Coming off the Bartram decision, the free house win for a borrower is now off the table. By taking the illusion
of a free house away from a judge’s mindset, you can now start arguing real facts and evidence, not illusional
arguments, evidence and testimony of servicers and their lawyers.
The first fact you should argue is there is no such thing as a mere simple foreclosure. Every trial or hearing I
attend I hear one of the foreclosure mill robo-lawyers say, but judge, this is just a simple foreclosure. This
mantra and industry-led “talking point” needs to be attacked each moment it’s uttered and needs to be the
focal point of any foreclosure defense. If it were so simple, then why are there so many problems and issues in
for them in foreclosing?
Why were notes lost and missing? Why do they need an assignment of note and mortgage when they had a
Pooling and Servicing Agreement (“PSA”)? Why has standing become such an issue” Why do they have to
fabricate evidence and provide incompetent witnesses? Why were they fined billions? Why did their own
investors and the U.S. government sue them? This is far from simple judge. In fact, this is complex litigation that
should be in complex litigation court, not in foreclosure court.
Click below the read the full report: