Foreclosure Defense Florida

The Banks, The Trusts, The Servicers, They’re All Lying (Again) (and Again) (and Again)

The foreclosure crisis and the economic meltdown were not caused by unsophisticated homeowners who borrowed more than they can afford and who want to live in a home for free….this crisis was far to grand for that.

The crisis was a direct result of devious financial gamesmanship and outright fraud being committed by the highest levels of national and international finance. The Wall Street Fat Cats caused the collapse then they got bailed out with our money.   The lies continue as they accept payments to “review” loans for modifications that they rarely give (although they do get paid for reviewing them).

The lies continue as the same brokers of fraud and deceit pursue foreclosures that they have no right to prosecute, maybe or maybe not making payments to the certificate holders. The lies continue as the servicers conceal the identity of the real parties in interest, making it all the more likely that the lies and fraud will continue….and yet with all this lying going on, we’re still treated to phrases like this:

In connection with the Trustee’s preparation of this Statement to Certificateholders, the Trustee is conclusively relying upon, and has not independently verified, information provided to it by various third parties, including the Servicer, Master Servicer, Special Servicer and other parties to the transaction. The Trustee makes no representations as to the completeness, reliability, accuracy or suitability for any purpose of the information provided to it by such third parties.

Most of the times parties perpetrating lies go to some lengths to conceal the lies, but a statement like that ensures that the lying will be front and center.   The statement comes from the attached trustees distribution report. The analysis below comes from a reader who provided the report to me….read it carefully and consider the impact of the statements:

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Please check out page 2. Here you can see the different tranches or pools of mortgages from the most senior class A-1 to the lowest mezzanine level M-10. Each of these classes were active in the original distribution report with an original or starting principal balance from Jan 06. As you can see (2) of the senior classes A-2a and A-2b have been paid off in full and (4) of the lower mezzanine classes M-7, M-8, M-9, M-10 have no principle or interest balance remaining and have been folded out of the trust. I am unaware if these failed classes have been sold off to a vulture fund and/or resecuritized. I would venture to guess that the classes that were folded out or collapsed triggered a default swap or other type of reimbursement. On page 3 you can see the classes with their cusip numbers. One thing that I find very interesting is that all of the classes have been defrauded and the payments have been applied to other than where they were supposed to go according to the terms of the original mortgage and note. Every class, no matter where in the trust’s hierarchy receives interest payments while that class is active in the trust. The entirety of all of the principal payments are always applied to the higher classes first until that class’s principal is reduced to zero then the principal payment waterfalls to the next underlying class and the process begins again.

4 Comments

  • speakout says:

    Want to know the latest?

    The lenders are securitizing the default judgements and selling them on wall street!

    That’s why the judges don’t want to side with the borrower, the judge is getting his cut too!

    I think our “justice” system has turned into the wild wild west, with the bankers as the ringleader robbers and the courts & wall street as the partner in crime.
    We need to bring back common law, abolish the bankers “law” & have lawyers licensed by the state so they can practice real law.. The bankers need to be sued, because they do not own the notes. Notes, deeds, mortgages have been sliced and diced six ways over. You have one underlying piece of collateral (the house) that is being leveraged 5 times+. AND, the banks have already written these defaulted loans off their books. The security agreements state that the “owner” is not determined until the note goes into default. In that case, the lender would not be the “holder in due course” as this would require the note holder to have had ownership prior to default and no alteration on the document. All these notes have been liquidated by the banks and stamped “pay to the order of” without recourse. That means – it’s been paid! And altered.
    That’s why they don’t want to produce the note.

    I had a judge rule in favor of JP Morgan anyway, even though the note had been paid and the judged stamped it cancelled last year. They sold my house last week, without sending me a signed by the judge (someone else signed it – not the judge) and recorded judgement. Ignored my motion to vacate the judgement for lack of standing. No discovery allowed, no due process, no proof of claim (fake note). They stole my house! A $75,000 loan that was not due until 2036 (interest only), They got paid on the note, got my house for $100 at the sale, and got a judgement against me for $98,000+, AND 6% interest on the judgement amount, AND a deficiency, AND they got the “note” for free, because they got TARP money to buy WAMU for a $50,000,000 deposit that they didn’t have to pay for 6 months – got a $300 BILLION bank for $50 million! Then foreclosed on all the loans that had already been sold to Freddie Mac.
    Where is the justice? Where is the Governor? Where is the AG? Maybe it’s pitchfork time.

  • speakout says:

    Oh Yeah, one more thing, Florida Fedault Law Group represented JP Morgan Chase. I informed the judge that they were under investigation for falsifying documents. He didn’t care, he never required the Plaintiff to produce any accounting documents. He knows this would show they have no rights to the note. Judge McClellan in Jackson County is crooked. Hope he loses his job one day soon just like all the people are losing theirs which is WHY they can’t pay their loans – THANKS TO THE CROOKS ON WALL STREET that crashed the economy after running up THEIR debt in the trillions- that are the very same BANKSTERS that are stealing our homes!

  • dmedstrom says:

    The tranche information appears correct, I would need to review the historical statements to determine what is really happening. Typically the losses come from the bottom up. The most interesting part of this document is that the servicer, JP Morgan, is advancing $326,813.70 in principal and $1,443,017.77 in interest for the month of this statement. That’s $1,769,831.47 in advances for one month. This comes out to approx. $21,237,977.64 per year. And that is just for one trust. JP Morgan services over 500 trusts. $21,237,977.64 times 500 = $10,618,988,820.00 …
    Of course thanks to the Fed, this is free money for them (they get it at 0% interest). They charge the trusts for interest on the advances. I have no idea how much, but let’s say 5%, and it turns out to be $530,949,441.00 per year. The money is being ADVANCED, so it is not being paid by borrowers. It is a GUARANTEED loan because when they have extracted as much money from a foreclosure as they can, and dump the property back into the trust, all that is left is a few dollars. But they still get to recover their advances from the pool of money BEFORE paying certificateholders.
    What is really happening is the trustee is shirking their fiduciary duty to protect the assets of the beneficiaries. Why is this? Because the settlor controls the trustee and the servicer. In my opinion these trusts were NEVER completed because the settlor never gave up control, not to mention the beneficiaries have no power to enforce the trust.
    Here is what my “sponsor/seller/master servicer/warehouse lender/securities administrator” says to the investors regarding the transaction parties for RAMP and RASC Single Seller Transactions:

    “GMAC-RFC remains the Depositor, Issuer and Master Servicer on these transactions and has the same responsibility to the trusts with regard to representations and warranties as in other GMAC-RFC transactions.”

    That statement speaks for itself. Arms length? Bankruptcy-remote? Really?

    Thanks,
    Dan Edstrom
    dmedstrom “at” hotmail.com

  • Well I cant belivie I like this, I mean its so easy it makes me up set I never knew this.

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