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Larry S. Milligan Rachel L. Milligan 380 E. Magnolia Ave. Portola, CA 96122 Plaintiff SUPERIOR COURT OF THE STATE OF CALIFORNIA FOR THE COUNTY OF PLUMAS PLUMAS SUPERIOR COUTHOUSE

Larry S. Milligan, Rachel L. Milligan Plaintiff, vs. HSBC BANK USA, N.A., AS INDENTURE TRUSTEE FOR THE REGISTERED HOLDERS OF THE FIRST NLC TRUST 2005-1, CALLABLE MORTGAGEBACKED NOTES, SERIES 2005-1 WESTER PROGRESSIVE, LLC, A Georgia Corporation Ocwen Loan Servicing, LLC R.K. ARNOLD and/or his successor, individually, and in his official capacity as PRES/CEO OF MORTGAGE ELECTRONIC REGISTRATION SYSTEMS, INC. Defendants.

Case No: CV11-00161 PLAINTIFFS OPPOSITION TO DEFENDANTS DEMURRER Date: August 22, 2011 Time: 9:30 a.m. Dept: 2

PLAINTIFFS OPPOSITION TO DEFENDANTS DEMURRER Comes now, LARRY S. AND RACHEL L. MILLIGAN, pro per plaintiff in this action, hereby respectfully submits its Opposition to Defendants Demurrer.

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I BACKGROUND Plaintiffs in this case bring this Replevin in Detinet action as a result of an illegal and fraudulent foreclosure on their place of residence located at 380 E. Magnolia Ave Portola, CA. The following are factual basis for belief of fraud by Defendants in this case and are in support of Plaintiffs OPPOSITION TO DEMURRER. 1. NOTICE OF DEFAULT AND ELECTION TO SELL UNDER DEED OF TRUST dated 2/18/2010 and filed in the Plumas County Recorders Office on 2/19/2010 was filed in the Plumas County Recorders Office by MARCO MARQUEZ Western Progressive, LLC, as agent for beneficiary, LSI Title Company, as agent. This documents states: i. That NOTICE IS HEARBY GIVEN: That Western Progressive, LLC is either the original trustee, the duly appointed substituted trustee, or acting as agent for the trustee or beneficiary under a Deed of Trust Dated 2/4/2005. (Though no substitution of trustee had occurred) ii. That Marco Marquez was acting for Western Progressive, LLC is agent for beneficiary. iii. That LSI Title Company is also agent. iv. It does not state the basis for the Notice of Default, instead it leaves that open with if your property is in foreclosure because you are behind in your payments, it may be sold without court action; v. It does not state what is owed for principal or interest; vi. The only statement referencing any money is a one-sentence paragraph by itself, stating that this amount is $10,200.52 as of 2/18/2010, and will increase until your account becomes current. vii. It states that First NLC Financial Services, LLC, a Limited Liability Company, as Lender, Mortgage Electronic Registration Systems, Inc., (herein refered to as MERS) as beneficiary.

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2. NOTICE OF TRUSTEES SALE is dated 5/21/2010 and filed in the Plumas County Recorders Office on 5/26/2010. This document states: i. That the sale would take place on 6/22/2010 at the Main Street entrance to the County Courthouse, 520 Main Street, Quincy, California at 11:00 a.m. (Though the sale did not take place and no notice of continuance was provided to Plaintiff) ii. That the duly appointed trustee was WESTERN PROGRESSIVE, LLC. iii. The document is signed by Robin Pape as Trustee Sale Assistant with an address that is the same as that of the Law Offices of Les Zieve. Attorney for Plaintiff in the Unlawful Detainer Action Case: LC11-P0076 3. SUBSTITUTION OF TRUSTEE is dated 3/19/2010 and not filed in the Plumas County Recorders Office until 5/26/2010. This document is signed & notarized by: i. SCOTT W. ANDERSON as Vice President for Mortgage Electronic Registration Systems, Inc as nominee for HSBC Bank USA, N.A., as Indenture Trustee for the Registered holders of the First NLC Trust 2005-1, Callable Mortgage-Backed Notes, Series 2005-1 (Although there had been no Assignment of Deed of Trust) ii. Lauren Gold as Notary Public, State of Florida. iii. Affidavit of Mailing for Substitution of Trustee by Code (attached to Substitution of Trustee) is signed by Robin Pape as Trustee Sale Assistant and dated 5/21/2010 4. The ASSIGNMENT OF DEED OF TRUST CALIFORNIA is dated 9/22/2010 but not filed in the Plumas County Recorders Office until 10/21/2010. There are 2 ASSIGNMENTS OF DEED OF TRUST CALIFORNIA in this case (as referenced later in this Opposition to Demurrer) The document is signed by: i. CHRISTINA CARTER (know robo-signer) as Vice President of MERS, Inc acting solely as Nominee for First NLC Financial services. ii. And notarized by Elsie Ramirez (suspected robo-signer)

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5. The TRUSTEES DEED UNPON SALE is dated 2/3/2011 and recorded in the Plumas County Recorders Office on 2/9/2011. It says that: i. sold said real property at public auction on 1/28/2011 (but no notice of this sale was filed in the County Recorders Office nor was it posted on the property or published in the Local publication) ii. The document is notarized by Robin Leigh Pape as a notary public for the state of Georgia , county of Cherokee. Further explained below. Upon brief research by the Plaintiff in this case with regard to the signatures and documents: a) Of Record held in the Plumas County Recorders Office. b) That were entered into evidence by the Plaintiff in Case No. LC11-P0076 c) That were included as evidence in the DECLARATION OF SCOTT W. ANDERSON IN SUPPORT OF MOTION FOR RELIEF FROM THE AUTOMATIC STAY. HSBC Bank USA, N.A., As Indenture Trustee for the Registered Holders of the First NLC Trust 2005-1, Callable MortgageBacked Notes, Series 2005-1 (herein referred to as HSBC), its assignees and/or successors in interest as MOVANT in Case No. 10-35242, United States bankruptcy Court, Eastern District of California, Sacramento Division. d) That were included as evidence by the Defendants in Case No. CV11-00161 Superior Court of the State of California, for the County of Plumas. These documents, while prepared by persons on behalf of entities that possess questionable authority to execute them, contain apparent forged signatures of alleged VPs and notarys. II Defendants have discovered multiple versions of the same document and several conflicting and apparently fraudulent signatures by well known robo-signers. A. The NOTICE OF DEFAULT AND ELECTION TO SELL UNDER DEED OF TRUST (see attached exhibit A) was filed in the Plumas County Recorders Office on February 19, 2010. The document is dated February 18, 2010 and is signed by MARCO MARQUEZ. It is unclear who MARCO MARQUEZ actually works for as per this document as well as others signed by him (see attached exhibit B) that was discovered

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while researching this case and further investigation during a proper discovery period would be required to clarify his position and authorities. This document claims that WESTERN PROGRESSIVE, LLC is either the original trustee, the duly appointed substituted trustee, or acting as agent for the trustee or beneficiary under a Deed of Trust dated 2/4/2005. However the SUBSTITUTION OF TRUSTEE (see attached exhibit C) dated March 19, 2010 was not filed in the PLUMAS COUNTY RECORDERS OFFICE until May 26, 2010 approximately 3 months after the NOTICE OF DEFAULT AND ELECTION TO SELL UNDER DEED OF TRUST was served, in which Plaintiff alleged to have the authority to foreclose on the Defendants in this case. In fact the Plaintiff had NO STANDING to file the NOTICE OF DEFAULT AND ELECTION TO SELL UNDER DEED OF TRUST at all. To clarify, this Plaintiff has NO STANDING in this UNLAWFUL DETAINER COMPLAINT in any way. B. The recording of the SUBSTITUTION OF TRUSTEE (see attached exhibit C) in this case was requested by LSI TITLE FIS DEFAULT SOLUTIONS. When recorded it is requested to be mailed to WESTERN PROGRESSIVE , LLC. This document that is dated and notarized on March 19, 2010 and later filed on May 26, 2010 in the Plumas County Recorders Office, is signed by SCOTT W. ANDERSON, as Vice President of MORTGAGE ELECTRONIC REGISTRATION SYSTEMS, INC (herein referred to as MERS), as NOMINEE FOR HSBC BANK USA, N.A., AS INDENTURE TRUSTEE FOR THE REGISTERED HOLDERS OF THE FIRST NLC TRUST 2005-1, CALLABLE MORTGAGE-BACKED NOTES, SERIES 2005-1. This document is notarized by LAUREN GOLD in Palm Beach County Florida. On page 3 of the SUBSTITUTION OF TRUSTEE is the AFFIDAVIT OF MAILING FOR SUBSTITUTION OF TRUSTEE BY CODE, dated May 21, 2010 and signed by ROBIN PAPE as Trustee Sale Assistant. It is unclear as to where in location this alleged mailing took place or in what state ROBIN PAPE is employed. She also signs the NOTICE OF TRUSTEES SALE (see attached exhibit D) as well as notarizing the TRUSTEES DEED UPON SALE (see attached exhibit E) with yet a completely different signature.

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The signature of SCOTT W. ANDERSON on the SUBSTITUTION OF TRUSTEE is only one of many signatures by MR. ANDERSON, who has been identified as a robosigner by the Honorable Judge Schack. In HSBC Bank USA, N.A., AS INDENTURE TRUSTEE FOR THE REGISTERED NOTEHOLDERS OF RENAISSANCE HOME EQUITY LOAN TRUST 2007-2 v. Ellen N. Taher, et. al., decided on July 1, 2011 in Supreme Court, Kings County by Judge Arthur M. Schack, Mr. Anderson is identified as a robo-signer. In his decision Judge Schack says: Robosigner Scott W. Anderson While I have never personally met Mr. Anderson, his signatures have appeared in many foreclosure documents in this Court. His claims of wearing different corporate hats and the variations in the scrawls of initials used for his signature on mortgage documents has earned Mr. Anderson notoriety as a robosigner. Kimberly Miller, in her January 5, 2011-Palm Beach Post article, State details foreclosure crisis, wrote: Sweeping evidence of the case the state attorney generals office has built in its pursuit of foreclosure justice for Florida homeowners is outlined in a 98page presentation complete with copies of allegedly forged signatures, false notarizations, bogus witnesses and improper mortgage assignments. The presentation, titled Unfair, Deceptive and Unconscionable Acts in Foreclosure Cases, was given during an early December conference of the Florida Association of Court Clerks and Comptrollers by the attorney generals economic crimes division. It is one of the first examples of what the state has compiled in its exploration of foreclosure malpractice, condemning banks, mortgage servicers and law firms for contributing to the crisis by cutting corners In page after page of copied records, the presentation meticulously documents cases of questionable signatures, notarizations that could not have occurred when they are said to have because of when the notary stamp expires, and foreclosures filed by entities that might not have had legal ability to foreclose. It also focuses largely on assignments of mortgage [sic], documents that transfer ownership of mortgages from one bank to another. Mortgage assignments became an issue after the real estate boom, when mortgages were sold and resold, packaged into securities trusts and otherwise transferred in a labyrinthine fashion that made tracking difficult. As foreclosures mounted, the banks appointed people to create assignments, thousands and thousands and thousands of which were signed weekly by people who may not [*6] have known what they were signing . . . In another example, the signature of Scott Anderson, an employee of West Palm Beach-based Ocwen Financial Corp., appears in four styles on mortgage

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assignments Paul Koches, executive vice president of Ocwen, acknowledged Tuesday that the signatures were not all Andersons, but that doesnt mean they were forged, he said. Certain employees were given authorization to sign for Anderson on mortgage assignments, which Koches noted do not need to be notarized. Still, Ocwen has since stopped allowing other people to sign for Anderson, Koches said. Last September, the Ohio Court of Appeals, Second District, Montgomery County (2010 WL 3451130, 2010-Ohio-4158, lv denied 17 Ohio St.3d 1532 [2011]), affirmed the denial of a foreclosure, sought by plaintiff HSBC, because of numerous irregularities. The Ohio Court, in citing four decisions by this Court [three of the four involved Scott Anderson as assignor] summarized some of this Courts prior concerns with HSBC and Mr. Anderson, in observing, at * 11: recent decisions in the State of New York have noted numerous irregularities in HSBCs mortgage documentation and corporaterelationships with Ocwen, MERS, and Delta. See, e.g., HSBC Bank USA, N.A. v Cherry (2007), 18 Misc 3d 1102 (A) [Scott Andersonassignor] and HSBC Bank USA, N.A. v Yeasmin (2010), 27 Misc 3d 1227 (A) (dismissing HSBCs requests for orders of reference in mortgage foreclosure actions, due to HSBCs failure to provide proper affidavits). See, also, e.g., HSBC Bank USA, N.A. v Charlevagne (2008), 20 Misc 3d 1128 (A) [Scott Anderson assignor] and HSBC Bank USA, N.A. v Antrobus (2008), 20 Misc 3d 1127 (A) [Scott Anderson assignor] (describing possible incestuous relationship between HSBC Bank, Ocwen Loan Servicing, Delta Funding Corporation, and MortgageElectronic Registration Systems, Inc., due to the fact that the entities all share the same office space at 1661 Worthington Road, Suite 100, West Palm Beach, Florida. HSBC also supplied affidavits in support of foreclosure from individuals who claimed simultaneously to be officers of more than one of these corporations.).This Court reviewed Scott Andersons signature on the instant MERS to HSBC assignment of the TAHER mortgage and note and using ACRIS compared his signature with that used in assignments in the five prior Scott Anderson assignment foreclosure cases decided by this Court. Similar to the Florida Attorney Generals Economic Crimes Division findings, as reported above in the Kimberly Miller Palm Beach Post article, I also found four variations of Mr. Andersons signature in these six assignments. Each signature is actually a variation of Mr. Andersons initials, SA. The Court concludes that it must be a herculean task for Mr. Anderson to sign Scott Anderson or Scott W. Anderson in full. Mr. Andersons first signature variation is found in: the January 19, 2007 assignment of the 48 Van Siclen Avenue (Block 3932, Lot 45, County of Kings) mortgage and note from DEUTSCHE BANK NATIONAL TRUST COMPANY AS TRUSTEE TO MTGLQ INVESTORS LP, by Scott W. Anderson as Senor Vice President of OCWEN, attorney-in-fact for DEUTSCHE BANK (Deutsche Bank Nat Trust Co. v Castellanos, 18 Misc 3d 1115 [A] [Sup Ct, Kings County 2007]), recorded on February 7, 2007 at CRFN 2007000073000; and, the June 13, 2007 assignment of the 3570 Canal

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Avenue (Block 6978, Lot 20, County of Kings) mortgage and note from MERS to HSBC, by Scott Anderson as Vice President of MERS, acting as nominee for DELTA (HSBC Bank USA, N.A. v Cherry, 18 Misc 3d 1102 (A) [Sup Ct, Kings County 2007]), recorded on August 13, 2007 at CRFN 2007000416732. In this signature variation the letter S is a cursive bellshaped curve overlapping with the cursive letter A. The second signature variation used for Mr. Anderson is in the May 1, 2007 assignment of the 572 Riverdale Avenue (Block 3838, Lot 39, County of Kings) mortgage and note from MERS to HSBC, by Scott Anderson as Vice President of MERS, acting as nominee for DELTA (HSBC Bank USA, N.A. v Valentin, 18 Misc 3d 1123 [A] [Sup [*7]Ct, Kings County 2008]) and HSBC Bank USA, N.A. v Valentin, 21 Misc 3d 1124 [A] [Sup Ct, Kings County 2008], affd as modified 72 AD3d 1027 [2010]), recorded on June 13, 2007 at CRFN 2007000306260. These decisions will be referred to as Valentin I and Valentin II. In this signature variation the letter S is a cursive circle around a cursive letter A with various loops. The third signature variation used for Mr. Anderson is in the November 30, 2007 assignment of the 680 Decauter Street (Block 1506, Lot 2, County of Kings) mortgage and note from MERS to HSBC, by Scott Anderson as Vice President of MERS, acting as nominee for DELTA (HSBC Bank USA, N.A. v Antrobus, 20 Misc 3d 1127 [A] [Sup Ct, Kings County [2008]), recorded on January 16, 2008 at CRFN 2008000021186. In this signature variation, the initials are illegible. One cursive letter looks almost like the letter O. It is a circle sitting in a valley created by something that looks like the cursive letter M. In the fourth signature variation, used for Mr. Anderson in the February 16, 2009 assignment in the instant case, the cursive letter S, which is circular with a loop on the lower left side abuts the cursive letter A to its right. Moreover, in HSBC Bank USA, N.A. v Cherry, Mr. Anderson acted both as assignor of the mortgage and note to HSBC and then as servicing agent for assignee HSBC by executing the affidavit of meritfor a default judgment. Because of this, in Valentin I, I required him to provide me with an affidavit about his employment history. In Valentin II the Court was provided with an affidavit by Mr. Anderson, sworn on March 14, 2008. Mr. Anderson, in his affidavit, admitted he was conflicted. I noted, at * 2, in Valentin II that: The Court is troubled that Mr. Anderson acted as both assignor of the instant mortgage loan, and then as the Vice President of Ocwen, assignee HSBCs servicing agent. He admits to this conflict, in 13, stating that [w]hen the loan went into default and then foreclosure in 2007, Ocwen, in it capacity as servicer, elected to remove the loan from the MERS system and transfer title to HSBC. The stockholders of HSBC and the noteholders of the Trust [the owner of the mortgage] probably are not aware that Mr. Anderson, on behalf

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of the servicer, Ocwen, claims to have the right to assign toxic nonperforming mortgage loans to them. It could well be that Ocwens transfer of the instant nonperforming loan, as well as others, ispart of what former Federal Reserve Board Chairman Alan Greenspan referred to in his October 23, 2008 testimony, before the House Oversight Committee, as a once in a century credit tsunami. Interestingly, the purported signature of Mr. Anderson in the March 14, 2008Valentin II affidavit is a fifth signature variation. The Court is perplexed that in response to my order for Mr. Anderson to submit an affidavit with respect to his employment, Mr. Anderson was unable to sign either Scott Anderson or Scott W. Anderson. Instead, there is a fifth variation of scrawled initials. There is a big loop for the cursive letter S, which contains within it something that looks like the cursive letter M going into lines that look like the cursive letter V, with a wiggly line going to the right of the page. Many samples of SCOTT W. ANDERSONS signatures are included herein and attached as exhibit F1, F2, F3, F4, F5. C. The NOTICE OF TRUSTEES SALE (see attached exhibit D) is dated May 21, 2010 and recorded in the Plumas County Recorders Office on May 26,2010 it is signed by ROBIN PAPE, Trustee Sale Assistant, with an address of WESTERN PROGRESSIVE, LLC as TRUSTEE c/o 18377 Beach Blvd., Suite 210 Huntington Beach, California 92638. The address for the LAW OFFICES OF LES ZIEVE (attorney for HSBC in the UD action) is also that of 18377 Beach Blvd., Suite 210 Huntington Beach California 92648. To determine in what state ROBIN PAPE is employed, Defendants demurrer must be overruled. It should beg the question, is ROBIN PAPE actually employed by the Law Offices of Les Zieve attorney for HSBC? ROBIN PAPE once again signs as notary on the TRUSTEES DEED UPON SALE (see attached exhibit E) where not only does her signature appear completely different but she also signs with her middle name LEIGH. Her notary public commission is for the state of Georgia, county of Cherokee. So the question here is reiterated, where exactly and for whom exactly does this ROBIN LEIGH PAPE work and what is her TRUE notary signature on file with the state of Georgia? The NOTICE OF TRUSTEES SALE has a sale date scheduled for June 22, 2010. This notice was NOT posted at the property in question NOR was it publicly posted in the

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local publication. The trustee sale scheduled for June 22, 2010 did not take place and no notice was filed in the Plumas County Recorders Office for the sale that allegedly took place (as stated in the TRUSTEES DEED UPON SALE (see attached exhibit E) on January 28, 2011 nor was it posted in any local publication or on the door at the property in question. What proof does the Plaintiff offer to prove beyond reasonable doubt that this alleged sale actually took place as a public auction or that it took place at all? The burden of proof falls on the Plaintiff as to right of possession. If the alleged sale on January 28, 2011 did in fact did take place, the Plaintiff should have no trouble proving it in a court of law. D. There are two, very different ASSIGNMENT OF DEED OF TRUST CALIFORNIA in question in this case. The ASSIGNEMENT OF DEED OF TRUST CALIFORNIA filed in the Plumas County Recorders Office (see attached exhibit G) and an ASSIGNMENT OF DEED OF TRUST CALIFORNIA (see attached exhibit H) which was provided to the Defendants in this case directly from the LAW OFFICES OF LES ZIEVE. This copy of the ASSIGNEMNT, provided by the Law Offices of Les Zieve (exhibit H), was included in the DECLARATION OF SCOTT W. ANDERSON IN SUPPORT OF MOTION FOR RELIEF FROM THE AUTOMATIC STAY (see attached exhibit H) filed by MOVANT HSBC BANK USA, N.A., AS INDENTURE TRUSTEE FOR THE REGISTERED HOLDERS OF THE FIRST NLC TRUST 2005-1, CALLABLE MOTRGAGE-BACKED NOTES, SERIES 2005-1, ITS ASSIGNEES AND/OR SUCCESSORS IN INTREST in the UNITED STATES BANKRUPTCY COURT, EASTERN DISTRICT OF CALIFORNIA, SACRAMENTO DIVISION Case No. 1035242. These two documents are not only worded very differently but are prepared by two different people and dated differently as well. The ASSIGNEMENT OF DEED OF TRUST CALIFORNIA filed in the Plumas County Recorders Office (exhibit G) on October 21, 2010 is dated September 22, 2010. This COUNTY RECORDED ASSIGNMENT OF DEED OF TRUST CALIFORNIA is prepared by LAURA BUXTON of OCWEN LOAN SERVICING and signed by CRISTINA CARTER as Vice President of MORTGAGE ELECTRONIC REGISTRATION SYSTEMS, INC. ACTING SOLY AS NOMINEE FOR FIRST NLC

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FINANCIAL SERVICES LLC. ELSIE RAMIREZ notarizes CHRISTINA CARTERS signature. ELSIE RAMIREZ appears to be a notary from the state of Florida in the county of Palm Beach. In the Plaintiffs research in regards to this document the NOTARY APPLICATIONS for both CHRISTINA CARTER (see exhibit I1) and ELSIE RAMIREZ (see exhibit I2) were found. The signatures that appear on the ASSIGNEMENT OF DEED OF TRUST CALIFORNIA filed in the Plumas County Recorders Office do not match those on the notary applications of either woman and appear to be blatantly fraudulent. Both ELSIE RAMIREZ and CHRISTINA CARTER list OCWENs business address as their place of business on their notary applications, which is 1661 Worthington Road, Suite 100 West Palm Beach Florida 33409. The signature of CHRISTINA CARTER on the ASSIGNEMENT OF DEED OF TRUST CALIFORNIA filed in the Plumas County Recorders Office is only one of many signatures by her. For other signature versions and signatory titles for CRISTINA CARTER, ELSIE RAMIREZ as well as JAICEL VALVERDE (see exhibit J, 1, 2, 3 & 4). CHRISTINA CARTER has also been identified as a robo-signer by the Honorable Judge Schack. In HSBC Bank USA, N.A., AS INDENTURE TRUSTEE FOR THE REGISTERED NOTEHOLDERS OF RENAISSANCE HOME EQUITY LOAN TRUST 2007-2 v. Ellen N. Taher, et. al., decided on July 1, 2011 in Supreme Court, Kings County by Judge Arthur M. Schack, in where CHRISTINA CARTER is identified as a robo-signers. In his decision Judge Schack says: Robosigner Christina Carter Mr. Cassara, plaintiffs counsel affirmed that On January 4, 2011 and January 5, 2011, I communicated with the following representative . . . of Plaintiff . . . Christina Carter . . . Manager of Account Management. This is disingenuous. Ms. Carter is not employed by plaintiff, but by OCWEN. She executed documents as an officer of MERS and as an employee of OCWEN. Ms. Carters signature on documents is suspect because of the variations of her signature used. This Court examined eight recent documents that exhibit three different variations of Christina Carters signature. The first signature variation is on her May 24, 2010 application with the Florida Department of State for a

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notary public commission. In this application she lists as her business address that of OCWEN, 1661 Worthington Road, West Palm Beach, FL 33409. In her full signature the capital letters C in her first and last names are signed differently than in other recent documents reviewed by this Court. In five other documents reviewed by the Court, Ms. Carter signs her initials with the second letter C looking like a cursive letter L, with a circular loop on the second letter C. Three of these documents are deeds of release to acknowledge mortgage satisfactions, filed with the Clerk of Court for Middlesex County, South District, State of Massachusetts. In the first document, signed on July 2, 2010, Ms. Carter signed as Account Management, Manager for OCWEN, for the premises at 158 Algonquin Trail, Ashland, Massachusetts, with the deed of release [*9] recorded on September 9, 2010, at document number 2010 00156681. In the second document, signed on July 7, 2010, Ms. Carter signed as Account Management, Manager for US BANK NATIONAL ASSOCIATION, AS TRUSTEE BY ITS ATTORNEY-IN-FACT OCWEN LOAN SERVICING, LLC, for the premises at 30 Kenilworth Street, Malden, Massachusetts, with the deed of release recorded on September 3, 2010, at document number 2010 01542078. In the third Middlesex County, Massachusetts document, signed on July 19, 2010, she signed as Account Management, Manager for OCWEN, for the premises at 10 Johnson Farm Road, Lexington, Massachusetts, with the deed of release recorded on September 9, 2010, at document number 2010 00156684. In the fourth document, signed on July 12, 2010, for the assignment of a mortgage for 1201 Pine Sage Circle, West Palm Beach, Florida, Ms. Carter signed as Account Management, Manager for NEW CENTURY MORTGAGE CORPORATION BY ITS ATTORNEY-IN-FACT OCWEN LOAN SERVICING, LLC (NEW CENTURY). This mortgage was assigned to DEUTSCHE BANK NATIONAL TRUST COMPANY, AS TRUSTEE FOR IXIS REAL ESTATE CAPITAL TRUST 2005-HE3 MORTGAGE PASS THROUGH CERTIFICATES, SERIES 2005-HE3 (DEUTSCHE BANK) and recorded on August 23, 2010 with the Palm Beach County Clerk at CFN 20100314054. Interestingly, both assignor NEW CENTURY and assignee DEUTSCHE BANK have the same address, c/o OCWEN, 1661 Worthington Road, Suite 100, West Palm Beach, FL 33409. In the fifth document, Ms. Carter changes corporate hats. She signed, on September 8, 2010, an Oregon assignment of a mortgage deed of trust, for 20673 Honeysuckle Lane, Bend Oregon, as Vice President of MERS ACTING SOLELY AS NOMINEE FOR CHAPEL MORTGAGE CORPORATION. The assignment is to DEUTSCHE BANK NATIONAL TRUST COMPANY, AS TRUSTEE FOR IXIS REAL ESTATE CAPITAL TRUST 2006-HE2 MORTGAGE PASS THROUGH CERTIFICATES, SERIES 2006-HE2, whose address is c/o OCWEN, 1661 Worthington Road, Suite 100, West Palm Beach, FL 33409. This was recorded on September 20, 2010 with the Clerk of Deschutes County, Oregon.

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Ms. Carter, in the third variation of her signature, again only uses her initials, but the second letter C looks like the cursive letter C, not the cursive letter L with a circular loop. The Court examined two of these documents. The first document is a mortgage satisfaction, signed on June 15, 2010, and filed with the Clerk of Court for Middlesex County, South District, State of Massachusetts. Ms. Carter signed as Account Management, Manager for OCWEN, for the premises at 4 Mellon Road, Billerica, Massachusetts. The deed of release was recorded on July 19, 2010, at document number 2010 00031211. In the second document, a mortgage satisfaction for the premises at 13352 Bedford Meadows Court, Wellington, Florida, Ms. Carter signed on July 22, 2010, as Account Management, Manager for HSBC BANK USA, NATIONAL ASSOCIATION AS TRUSTEE BY ITS ATTORNEY-IN FACT OCWEN LOAN SERVICING, LLC. The document never states for whom HSBC is the Trustee. This was recorded on September 10, 2010 with the Palm Beach County Clerk at CFN 20100339935. The ASSIGNMENT OF DEED OF TRUST CALIFORNIA (see attached exhibit H) which was provided to the Milligans directly from the LAW OFFICES OF LES ZIEVE and included in the DECLARATION OF SCOTT W. ANDERSON IN SUPPORT OF MOTION FOR RELIEF FROM THE AUTOMATIC STAY filed by MOVANT HSBC BANK USA, N.A., AS INDENTURE TRUSTEE FOR THE REGISTERED HOLDERS OF THE FIRST NLC TRUST 2005-1, CALLABLE MOTRGAGE-BACKED NOTES, SERIES 2005-1, ITS ASSIGNEES AND/OR SUCCESSORS IN INTREST in the UNITED STATES BANKRUPTCY COURT, EASTERN DISTRICT OF CALIFORNIA, SACRAMENTO DIVISION Case No. 10-35242. This assignment is not signed by anyone and has completely different content than the one filed in the Plumas County Recorders Office on October 21, 2010 and is dated June 28, 2010 and prepared by Jaicel Valverde. This document appears to be made to fit the need Defendant HSBC had to show standing. So the question here also becomes, how exactly were these assignments made when the trust for these mortgage pools closed in 2005? HSBC brings no proof that the note is in fact part of this pool. How do they make the assignment when FIRST NLC FINANCIAL SERVICES LLC filed for Bankruptcy in 2008? III FIRST NLC FINANCIAL SERVICES, LLC

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The following is the information found by defendants on the bankruptcy of FIRST NLC FINANCIAL SERVICES, LLC. FIRST NLC FINANCIAL SERVICES, LLC, et al., Debtors. U.S. Bankruptcy Court, Southern District of Florida, West Palm Beach Division. Case No. 08-10632-BKC-PGH, Chapter 7 (Jointly Administered). DEBORAH C. MENOTTE, TRUSTEE, Plaintiff, v. NLC HOLDING CORP., FNLC FINANCIAL SERVICES, INC., BLUE BOY LIMITED PARTNERSHIP, NSH VENTURES II, L.P., and FRIEDMAN BILLINGS RAMSEY GROUP, INC., Defendants. Adv. No. 08-01327-PGH. February 12, 2009. Paul G. Hyman, Chief Judge. On January 18, 2008 (Petition Date), First NLC Financial Services, LLC (First NLC or Debtor), whose business was originating and selling prime and subprime mortgages, filed for relief under Chapter 11 of the Bankruptcy Code. The Complaint initiating this adversary proceeding was filed by the Creditors Committee prior to the Debtor voluntarily converting its case from Chapter 11 to Chapter 7. After conversion, the Court approved substitution of the Trustee for the Creditors Committee as the Plaintiff and real party in interest in this action. The Complaint names five defendants: Friedman Billings Ramsey Group, Inc. (FBR), NLC Holding Corp. (NLC Holding), FNLC Financial Services, Inc. (FNLC Financial),1 Blue Boy, and NSH. The Complaint seeks to recharacterize the alleged debt owed by the Debtor to the Defendants as equity. E. In the TRUSTEES DEED UPON SALE (see attached exhibit E) dated February 3, 2011 and filed in the Plumas County Recorders Office on February 9, 2011, a STEPHANIE SPURLOCK sings under the title WESTERN PROGRESSIVE, LLC as TRUSTEE. STEPHANIE SPURLOCK as trustee, states in this document that All requirements per California Statues regarding the mailing, personal delivery and publication of copies of the Notice of Default and Election to Sell under Deed of Trust and Notice of trustees Sale, and the posting of copies of Notice of Trustees Sale have been complied with.. This statement is patently false. This document is then notarized by ROBIN LEIGH PAPE Notary Public, state of Georgia county of Cherokee. The signature used by ROBIN PAPE in the TRUSTEES DEED UPON SALE is a different signature than is used in both the AFFIDAVIT OF MAILING FOR SUBTITUTION OF TRUSTEE BY CODE (page 2 of exhibit C) and the NOTICE OF TRUSTEES SALE (exhibit D). ROBIN PAPE signs the NOTICE OF TRUSTEES SALE and then she

14 PLAINTIFFS OPPOSITION TO DEFENDANTS DEMURRER

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notarizes STEPHANIE SPURLOCKs sworn statement that she has complied with the law in all mailings, postings and publications of said document, with two different signatures. IV DEFENDANTS MOVE THIS COURT TO OVERRULE DEFENDANTS DEMURRER AND ALLOW THIS MATTER TO MOVE TO DISCOVERY In light of the overwhelming record of inconsistencies and apparent outright forgeries contained in the documents relied upon in order to pursue a non-judicial foreclosure action against the Plaintiffs, the Plaintiffs Larry and Rachel Milligan, pray that this Court overrule Defendants Demurrer. V Evidence in this case has been brought to the attention of the PLUMAS COUNTY DISTRICT ATTORNEYS OFFICE. In light of the overwhelming evidence in this case, the Defendant Rachel L. Milligan has brought the apparent fraud to the attention of the Plumas County District Attorneys Office. The Defendant Mrs. Milligan had a meeting in person with Deputy District Attorney Joel McComb in which the evidence in this case was presented and discussed. Prior to this meeting Mrs. Milligan spent 2 hours in the Plumas County Recorders Office investigating MERS in their relation to foreclosures in Plumas County. This evidence was also presented to the Deputy District Attorney. Multiple cases of fraud were found in only 2 hours of research. Plumas County has a many clouded titles in the Recorders Office by confirmed and deposed robo-signers. There are 11,427 Deeds of Trust in the Plumas County Recorders Office, 3,172 of those have MERS on them. I believe Plumas County will see many more cases just like this one. Deputy District Attorney Joel McComb is more than willing to make himself available to the Honorable Judge Hilde if he can be of any assistance in this matter. Unclean Hands Doctrine Points and Authorities: 'Under the 'unclean hands' doctrine, a party is barred from relief if he has engaged in any unconscientious conduct directly related to the transaction or

15 PLAINTIFFS OPPOSITION TO DEFENDANTS DEMURRER

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matter before the court." (DeRosa v. Transamerica Title Insurance Co. (1989) 213 Cal.App.3d 1390, 1395, 262 Cal.Rptr. 370.) California has long recognized the maxim that No one can take advantage of his own wrong. (Civ. Code. 3517.) Put another way, [h]e who comes into equity must come with clean hands. (See Wilson v. S.L. Rey, Inc. (1993) 17 Cal. App.4th 234, 244; Kendall-Jackson Winery, Ltd v. Superior Court (1999) 76 Cal. App.4th 970, 978.) The underpinnings of the doctrine/defense of unclean hands was explained in Kendall-Jackson Winery, Ltd v. Superior Court, supra, at p9. 978-79: The unclean hands doctrine protests judicial integrity and promotes justice. It protects judicial integrity because allowing a plaintiff with unclean hands to recover in an action creates doubts as to the justice provided by the judicial system. Thus, precluding recovery to the unclean plaintiff protects the courts, rather than the opposing parties interest. [Citation omitted.] The doctrine promotes justice by making a plaintiff answer for its own misconduct in the action. It prevents a wrongdoer from enjoying the fruits his transgression. [Citation omitted.] [At p.p. 978-970.] BIFURCATION In Landmark Natl Bank v. Kesler, MERS, the appellant sought to invoke due process rights which it said were violated when MERS failed to get notice of the fact that their interest was being wiped out via a prior foreclosure it did not receive notice of. The Court said simply that MERS or any nominee didnt have any interest and proves its point by reference to simple statements in the documents and the simplest of laws and interpretation of the role of MERS and the requirements of recordation. The splitting or bifurcation of the promissory note or mortgage note and mortgage or deed of trust creates an immediate and fatal flaw in title.[1] JUDICIAL NOTICE Caldwell v Miller, 790 F. 2d 589, 595 (7th Cir. 1986) Pro Se litigants are not held to the stringent standards applied to formally trained members of the legal profession, and their pleadings are to be liberally construed. The United States Supreme Court, in Haines v Kerner 404 U.S. 519 (1972), said that all litigants defending themselves must be afforded the opportunity to present their evidence and that the Court should look to the substance of the complaint rather than the form. In Platsky v CIA, 953 F.2d 26 (2nd Cir. 1991), the Circuit Court of Appeals allowed that the District Court should have explained to the litigant

16 PLAINTIFFS OPPOSITION TO DEFENDANTS DEMURRER

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proceeding without a lawyer, the correct form to the plaintiff so that he could have amended his pleadings accordingly. Plaintiff respectfully reserves the right to amend this complaint. WHEREFORE, Plaintiff MOVES the court to enter ruling in the following mannor: - That Defendants Demurrer be overruled. - That Defendants non-judicial foreclosure action against the Plaintiffs real property located at 380 East Magnolia Portola, California be rescinded immediately on the basis of the Doctrine of Unclean Hands and existing California and Federal statutes related to fraud and perjury in both State District Court and Federal Bankruptcy Court as well as HSBCs lack of standing in these actions. - That this matter be officially turned over to the Plumas County District Attorney for further investigation. DATED: the 16th day of August, in the year of Our Lord, 2011 BY: ____________________________, agent RACHEL L. MILLIGAN Here, pro per Signed reserving all my rights at UCC 1-308

17 PLAINTIFFS OPPOSITION TO DEFENDANTS DEMURRER