Certain Asset Backed Securities Deemed Unsecured !

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Fraud on the grandest scale! Asset Backed Securities in the hands of institutional investors worldwide (involving the MERS system) are unsecured paper !!! This should make the Subprime and Alt-A scheme look pale in comparison.....Depending upon the State in question, foreclosure upon such loans, will require court action.


Fannie Mae Policy Now Admits Loan Not Secured

June 2, 2010
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“…So when you put this all together, you end up with the following inescapable conclusions:
· The naming of MERS (Mortgage Electronic Recording System) as mortgagee in a mortgage deed or as beneficiary in a deed of trust is a nullity.
· MERS has no right, title or interest in any loan and even if it did, it disclaims any such interest on its own website.
· The lender might be the REAL beneficiary, but that is a question of fact so the non-judicial foreclosure option is not available.
· If the lender was not the creditor, it isn’t the lender because it had no right title or interest either, legally or equitably.
· Without a creditor named in the security instrument intended to secure the obligation, the security was never perfected.
· Without a creditor named in the security instrument intended to secure the obligation, the obligation is unsecured as to legal title.
· Since the only real creditor is the one who advanced the funds (the investor(s)), they can enforce the obligation by proxy or directly. Whether the note is actually evidence of the obligation and to what extent the terms of the note are enforceable is a question for the court to determine.
· The creditor only has a claim if they would suffer loss as a result of the indirect transaction with the borrower. If they or their agents have received payments from any source, those payments must be allocated to the loan account. The extent and measure of said allocation is a question of fact to be determined by the Court.
· Once established, the allocation will most likely be applied in the manner set forth in the note, to wit: (a) against payments due (b) against fees and (c) against principal, in that order.
· Once applied against payments, due the default vanishes unless the allocation is less than the amount due in payments.
· Once established, the allocation results in a fatal defect in the notice of default, the statements sent to the borrower, and the representations made in court. Thus at the very least they must vacate all foreclosure proceedings and start over again.
· If the allocation is less than the amount of payments due, then the investor(s) collectively have a claim for acceleration and to enforce the note — but they have no claim on the mortgage deed or deed of trust. By intentionally NOT naming parties who were known at the time of the transaction the security was split from the obligation. The obligation became unsecured.
· The investors MIGHT have a claim for equitable lien based upon the circumstances that BOTH the borrower and the investor were the victims of fraud.
See:

http://thepatriotswar.com/index.php/fannie-mae-policy-now-admits-loan-not-secured/homeowner-resources/


Will JPMorgan face facts on foreclosures?

October 12, 2010
Legal challenges have forced Chase and other big banks, notably Bank of America (BAC) and government-owned Ally, to halt foreclosures and related sales while they investigate apparent improprieties in their handling of homeownership documents.

At the very least, these delays stand to crimp profits in the banks' lucrative mortgage servicing business at a time when regulatory crackdowns are already pressuring earnings. But the banks have offered little guidance on how much of a hit they might expect. What's more, skeptics say their legal exposure could be quite large.

The result is yet another cloud of uncertainty hanging over the banks at a time when investors already have been backing away from the biggest players….”

See:
http://finance.fortune.cnn.com/2010/10/12/will-jpmorgan-face-facts-on-foreclosures/



Bank of America to restart foreclosures in 23 states

October 18, 2010; 10:13 PM
Just 10 days after announcing a nationwide halt to foreclosure sales, Bank of America, the nation's largest bank, said Monday that it would begin resubmitting paperwork on Oct. 25 to restart foreclosures on borrowers who missed their payments in 23 states.

If judges approve the new filings, the bank expects that the sales of foreclosed properties will start up once again in the states where a court order is needed to foreclose on a home.

The bank said it will continue to freeze foreclosure sales and review files in the District of Columbia and the other 27 states, including Maryland and Virginia, which do not require a judge's action. Reviewing its process in those jurisdictions will take several more weeks, the bank said in a statement.

But it is unclear whether the courts will accept the new paperwork. Some judges have said in interviews that they are considering throwing out entire cases and making the banks file new ones, which would be costly and time-consuming….”

See:
http://www.washingtonpost.com/wp-dyn/content/article/2010/10/18/AR2010101805992.html


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