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Although “robo signing” was officially uncovered in 2009-2010, these questionable document practices go back to the 1990s. Several large banks were forced to stop their foreclosures when the robo-signing scandal was discovered, paving the way for homeowners to challenge their foreclosures in court. Banks cannot legally foreclose on a house if the foreclosure paperwork is not in order. If the affidavits submitted to the court by the bank are false (robo-signed document), then the foreclosure should not go through. Banks have foreclosed on MILLIONS of homeowners using these false and fraudulent documents.

As the recession gained momentum, the banks were met with an increasing amount of homeowners that were now unable to pay their mortgages. In order to “fix” the problem of missing paperwork of loan ownership, the banks will routinely use affidavits signed by “employees” who did not personally review the necessary documents or have knowledge of the “business records”. These same “employees” also had no knowledge of whether or not the homeowner was actually in default, and most importantly whether or not the bank that was foreclosing actually owns the loan. Employees for financial giants like Bank of America, JP Morgan Chase, Wells Fargo, Deutsche Bank and GMAC have all stated that they signed THOUSANDS of affidavits each month, spending only about 30 seconds on each affidavit.

Probably the most famous of the many “Robo-Signers” that have been discovered is “Linda Green”, who was an employee of DOCX based out of Alpharetta Georgia. DOCX is now a defunct subdivision of Lender Processor Services located in Jacksonville, Florida. Lenders hired companies like DOCX to re-create the missing documents that banks needed to complete foreclosures. Employees such as Linda Green, and others who were not actually Linda Green, were signing hundreds or thousands of mortgage documents daily on behalf of a several banks. In review of several mortgage documents, Linda Green was acting as “Vice President” for up to TWENTY BANKS…ALL AT THE SAME TIME, including American Home Mortgage Servicing, Deutsche Bank, Citi Residential Lending, and Wells Fargo!! There is also OVER TWENTY VARIATIONS in the signatures of Linda Green…PROVING that other people were signing as “Linda Green”.
One does not need any “special training” whatsoever when looking at these signatures to know that multiple people were forging the signature of Linda Green on documents that were used to foreclose steal peoples homes without the legal authority to do so.The fraud is clear since each of these signatures is different from the next.

NOTARY FRAUD WAS ALSO COMMITTED.THE SIGNATURES ON THE MORTGAGE DOCUMENTS WERE NOT WITNESSED BY A NOTARY.A notary public is an official who authenticates the signing of a document. In other words, the notary’s stamp and signature is an official declaration that the other signatures on the document are true signatures, not forgeries. Generally, a notary public directly observes the person who signs a document and verifies that person’s identity, thus certifying that the document is legal and authentic.If a notary is not watching the person sign the document and is in fact confirming that the person signing it is that person – then the document is not legal.%uFEFF
The Television Show “60 Minutes” aired an incredible story in April 2011 detailing how DOCX is putting the ownership of hundreds of thousands of homes in jeopardy by forging documents in an attempt to create a paperwork trail that never existed.

www.cbsnews.com/video/watch/?id=7361572n&tag=contentMain;cbsCarousel

The story details how DOCX hired people (including Linda Green) for $10 an hour to sign as many documents as possible without actually reading or understanding what they were signing. Linda Green’s name was a popular choice on the mortgage documents, because her name was simple to remember and easy to sign. These robo-signers were given a stack of paperwork each day that needed signatures, and each employee was expected to sign approximately 350 documents per hour. These workers signed whatever signature was needed on any particular document, WHICH IS A FELONY IN MOST STATES.
It has become difficult if not impossible to prove in a court of law who has clear ownership rights to any particular property in this country.
By using these “bogus” documents created by DOCX and other document mills, the banks continue to perpetrate fraud on our courts and damage the integrity of the judicial system, by foreclosing on homes without having any legal authority to do so.

DOCX is currently the subject of several civil and criminal investigations and lawsuits into these robo-signing activities.

It was much more important for Wall Street to put profit above the rule of law (which requires proper documentation of each property transfer). The banks are now trying “fix” this problem of missing documentation showing a proper chain of title to a property, by making these documents appear out of “thin air” with the use of robo-signers and document mills that churn out THOUSANDS of documents each day. The bank cannot legally foreclose on a mortgage that they do not own. It is ESSENTIAL that the homeowners challenge the banks to PROVE their ability to foreclose!!

If a bank cannot prove ownership of your mortgage, the bank also CANNOT legally change the terms of a particular mortgage that they do not own in order to do a modification.

***When a homeowner signs the paperwork for a modification, the homeowner is actually creating a new contract for a mortgage that was not enforceable to begin with, DOING A HUGE FAVOR FOR THE BANKS. ***

A typical modification scam will start with the homeowner being proactive and contacting their mortgage servicer when it becomes difficult to make the monthly payments. The homeowner is often told that “there is nothing that can be done until you are 90+ days delinquent”. Let me repeat, the Servicer tells the homeowner that they cannot make mortgage payments for 90 days and go into “default” before they will be considered for a modification.

Now that the homeowner is 90 days delinquent and in “default”, the “friendly reminder” letters from the servicer threatining to start the foreclosure process will start showing up in the mailbox. These letters will have terminology that states This is an attempt to collect a debt and any information obtained will be used for that purpose”. THIS LANGUAGE DEMONSTRATES THAT THE MORTGAGE HAS BEEN “WRITTEN OFF” AS BAD DEBT, ESSENTIALLY DISCHARGED. THIS IS ALSO A CLUE THAT THE SERVICER IS NOT THE ORIGINAL CREDITOR AND IS ACTING AS A DEBT COLLECTOR THAT IS GOVERNED BY THE FAIR DEBT COLLECTION PRACTICES ACT.

The loan modification carrot will now start to be dangled in front of the homeowners as they are now feeling that options are limited. Out of desperation, the homeowner submits a multitude of information that the bank asks for in order to “qualify” for a modification.

In most if not all situations, the servicer will have serious “problems” with their fax machines and mysteriously do not receive the paperwork from the homeowner. Often times, the homeowner must submit MULTIPLE copies of the same information.

When in fact, the servicer DID receive the first copy of the information, WHICH IS A COMPLETE DISCLOSURE OF ALL OF THE HOMEOWNER’S FINANCIAL RECORDS AND ASSETS.

BY PROVIDING THIS INFORMATION, THE BANK NOW HAS A COMPLETE LIST OF YOUR ASSETS AND WILL DETERMINE HOW PROFITABLE IT WILL BE FOR THEM TO FORECLOSE AND TO THEN SUE FOR A DEFICIENCY JUDGMENT.

WHILE THEY ARE CONTINUING TO “WAIT” FOR THE PAPERWORK TO BE SUBMITTED BY THE HOMEOWNER FOR THE TENTH TIME, THE FORECLOSURE PROCESS ON THE HOME IS CONTINUING, WITHOUT THE HOMEOWNER HAVING A CLUE THAT THEIR HOUSE IS BEING STOLEN RIGHT OUT FROM UNDER THEM. THIS IS WHAT IS KNOWN AS A “DUAL TRACK FORECLOSURE”.

When the bank reviews the paperwork submitted by the homeowner and determines that in fact it will be very profitable to complete the foreclosure, the homeowner is told that they qualify for a “trial” modification. The homeowner will be told to make “reduced” payments for several months. After several months of reduced payments, the homeowner is reviewed for a “permanent” modification, only to be told that they do not qualify, without any good reason.

The homeowner will also be told: ONE MORE THING MR. HOMEOWNER, PLEASE PAY ALL OF THE ARREARS AND BACK PAYMENTS (THOUSANDS OF DOLLARS) THAT WERE NOT INCLUDED IN THE TRIAL MODIFICATION BY A CERTAIN DATE, OR WE WILL CONTINUE WITH THE FORECLOSURE”.

WARNING: Companies offering “foreclosure rescue” services have been showing up everywhere.Foreclosure Rescue Companies prey on consumers facing foreclosure. Foreclosure consultants will claim that they are able to save a homeowner’s home from foreclosure by negotiating or modifying the terms of the homeowner’s existing mortgage.

These companies demand an up-front payment (as high as $1500) to “work” with the bank, and most never deliver the services as promised. In most states it is illegal for companies to take money “up front” to work with the bank.

The use of “robo-signers” to re-create missing documents that the banks need in order to prove ownership and foreclose has clouded the title of millions of properties in this country. It is fundamental that homeowners have clear title and uncontested property ownership rights in this country.

It is estimated that there are more than SIXTY FIVE MILLION HOMES with a cloud on the title throughout the country. Mortgage Electronic Registration Systems (MERS), is the main player in this problem. MERS was created by the Banks as an electronic “database” to keep track of the mortgage transfers, instead of following the requirements to record these transfers in the County Recorders Offices.

The laws are VERY specific and require that the note and mortgage must travel together at ALL TIMES. This never happened. If the note and mortgage do not travel together, they become what is called “bifurcated” and the mortgage obligation becomes “unsecured” permanently and can NEVER be joined together again!! The note is used as an “IOU” where the homeowner promises to pay X amount of dollars for X amount of years at X interest rate. The mortgage is used as collateral for the obligation of the note and “perfects” or secures the lien. If the mortgage is unsecured, the bank can sue the homeowner to collect a judgment, but they cannot foreclose and take the house as collateral. The homeowner also has the possibility to discharge the unsecured obligation through bankruptcy.

Furthermore, it is now widely known that the mortgage notes were not properly transferred into the securitized trust, and instead were pledged as collateral simultaneously to multiple pools. When a foreclosure to proceed based on false documentation, at any time the REAL HOLDER OF THE NOTE AND MORTGAGE could show up at ANY TIME and demand payment and foreclose on the property. THE HOMEOWNER IS ONCE AGAIN HELD LIABLE FOR THE DEBT!!

***More importantly, when banks use false documents to wrongfully foreclose on homeowners and subsequently evict the homeowner, they are still the rightful owners of their houses, and can take legal action to regain title to their house and kick out the new “owner”. ***

A scenario of this exact situation is currently playing out in Massachusetts. In January 2011, the Massachusetts Supreme Court issued a ruling in the case US Bank Nat’l Association vs. Ibanez. The Supreme Court ruled that a bank cannot foreclose on a property until the bank is in possession of BOTH the note and mortgage, perfecting the chain of title AT THE TIME THE NOTICE OF DEFAULT IS FILED. When the paperwork was not recorded at the county recorder’s office, then the chain of title was not perfected, and it CANNOT be created after the fact. Many banks will issue a “blank assignment” to be filled in later if/when it is needed to foreclose. The Supreme Court also said that using a blank assignment is problematic. This case deals with a non suspecting homeowner who purchased a foreclosed property. The bank used fabricated documents to foreclose on the property, and the new homeowner purchased the house from the bank. When a bank uses forged documents to steal someone’s house, it cannot sell what it does not rightfully own to a new buyer. The house still belongs to the homeowner who was wrongfully foreclosed. The new homeowner will be left “high and dry”.

The banks have relied on all of us (lawyers and judges too) to be “dumbed down” and ignorant about what has been happening. Banks are using false documents to steal homes that they are not legally entitled to. If a homeowner tried to cash a check that was intended for another party, THEY WOULD BE IMMEDIATELY PLACED IN JAIL%u2026FOR A VERY LONG TIME. YET THERE HAVE BEEN NO BANKERS JAILED FOR COMMITTING THESE ACTS OF F-R-A-U-D.

There are two sets of rules and laws in this country, one for the banks and one for the rest of us.

Most homeowners have never heard of the term “securitization” and have no clue what has happened to their mortgage, until they have an issue with missed payments or a possible foreclosure. The belief of most homeowners is that the entity that they are sending their monthly mortgage payment is the owner of their mortgage. WRONG.

From around 2002 – 2007, mortgages were securitized faster than they were created. The securitization of mortgage loans is an extremely complex process which involves many different entities. The majority of securitized trusts are governed by New York Trust Law and their associated documents, which include the most important document which is called a POOLING AND SERVICING AGREEMENT(PSA). This document describes VERY strict procedures and guidelines which must be followed precisely, in order to assign these mortgages into the trust within a certain time frame (cut off date and closing date). ONCE THE CUT OFF DATE AND CLOSING DATE FOR THE PARTICULAR TRUST HAS OCCURRED, MORTGAGES CAN NO LONGER BE ASSIGNED INTO THE TRUST.

In order to keep the trust “bankruptcy remote” with limited liability, the mortgage must be assigned through several entities, which include the originator (A) assigning the mortgage to the Sponsor (B). The sponsor was primarily responsible for filing the necessary documents with both the IRS and SEC in order for the trusts to claim a “tax exempt” status. These trusts were claiming a “tax exempt” status by filing documents with the IRS and SEC stating that all of the mortgages were properly assigned into these trusts, and in doing so these trusts have up until this point evaded BILLIONS of dollars in taxes owed to the government. The IRS and SEC are currently doing their own independent investigations into these acts of tax evasion and fraud.

The sponsor then assigns the mortgage to the Depositor (C) and finally with the Depositor assigning the mortgage to the Trust (D).

There was no incentive for the originators to follow their own rules to ensure that the mortgages were properly assigned into the trust. The mortgages were sold to the trusts before the ink was dry on the paperwork.

Throwing hundreds of years of property law out the window, all in the name of as much profit as quickly as possible for Wall Street, the paperwork was never completed in order to properly document the required transfers of the properties into these trusts. In most if not all cases, there will only be ONE assignment of mortgage created and dated SEVERAL YEARS after the cut off date and closing date of the trust (which is in clear violation of the PSA). This single assignment will usually be from the Originator (A) DIRECTLY to the Trust (D), skipping all of the entities in between (also in violation of the PSA).

There are multiple problems with these “A to D” assignments, which include: When these documents are created, the Originator (A) no longer has anything to sell or transfer. The PSA states that such a sale and transfer needed to occur years ago prior to the cut off date and closing date of the trust. Next, the documents do not comply with the objective of securitization by creating “bankruptcy remote” and “true sales” of the Trust, by assigning the mortgage to the Sponsor (the B party) and the Depositor (the C party). In a true securitization, a direct transfer (A to D) from the originator to the trust would not be allowed. Also, these A to D transfers ignore the representations and warranties made to the Securities and Exchange Commission, the IRS, and to the certificate holders issued by the Trust.

In many cases, the A to D documents are executed by parties (Robo-Signers) who are not even employed as “Vice President” or “Assistant Secretary”, but claim to have “signing authority” or some type of “agency authority” from the originator. These “Robo-Signers” sign THOUSANDS of documents each day that they know absolutely nothing about. Lastly, in most if not all situations, the originator is legally defunct (out of business) at the time the mortgage is assigned directly from the Originator to the Trust. In addition, these documents are often signed with a current date and an “effective date” that was one or two years earlier, essentially “backdating” the document and creating the false impression that the mortgage has been into the trust all along.

If your mortgage has been securitized (most if not all mortgages have been securitized), you were actually an issuer of an unregulated security in a highly complex structured financial transaction, which was not disclosed to you at closing, and is a violation of several laws. When a homeowner takes out a loan to purchase a house, the two documents used are a NOTE and a MORTGAGE. The original mortgage and loan documents were destroyed, and the mortgages were sliced and diced multiple times and pledged to multiple trusts simultaneously. The investors who pooled their money into these trusts were given BONDS AND/OR CERTIFICATES as evidence of ownership, which is regulated by the SEC (Securities and Exchange Commission).

THE BANK CANNOT “HAVE THEIR CAKE AND EAT IT” TOO. IF AN ENTITY IS ATTEMPTING TO FORECLOSE BY WAY OF THE MORTGAGE, KNOWING THE LOAN HAS ALSO BEEN CONVERTED TO A BOND BY SECURITIZATION, THIS IS A FORM OF SECURITIES FRAUD. THE NOTE AND BONDS CANNOT EXIST AT THE SAME TIME.

This is the reason why the banks cannot “produce the note” when the homeowner stands up for their rights in Court. The Bank will only be able to produce “copies” of the note and mortgage and not original documents.

The players involved in the securitization scheme relied on “Credit Default Swaps”, and essentially placed unregulated side bets against the homeowner, in that they would not be able to continue making their mortgage payments on mortgages which were purposely designed to fail. That’s right, Wall Street knew this, and placed HUGE bets and HIT THE JACKPOT. Not only were these side bets very profitable, but other forms of insurance were placed on the pools to cover the manufactured “losses”.

For example, if a homeowner has an adjustable rate mortgage for $300,000 and goes into “default”, the credit default swaps and pool insurance will pay the investors of the trust for their “losses” up to THIRTY TIMES THE AMOUNT OF THE LOAN FOR A GRAND TOTAL OF $9 MILLION DOLLARS. As a result, your mortgage has been PAID IN FULL many times over.

As if being paid up to thirty times over is not enough, the servicer will collect one more time and foreclose on the homeowner and sell the house for a very nice profit when they have NO LEGAL AUTHORITY TO FORECLOSE. THERE IS ABSOLUTELY NO INCENTIVE FOR THE SERVICER TO WORK WITH A HOMEOWNER TO STAY IN THEIR HOUSE. IT IS MUCH MORE PROFITABLE TO FORECLOSE.

Some of the many critical questions that the homeowner must ask themselves is: “Is the entity that I am making my monthly mortgage payments to, entitled to be receiving those payments”? “Moreover, why am I still making payments on a mortgage that has been paid up to THIRTY times over”?