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IMPORTANTINFORMATION!READTHISFIRST!

IfyouarereadingthisyouhavecometoagreatdecisionTOFIGHTFORYOUR HOME! Congratulations on this decision. For this battle you need to be well prepared andtogothroughalotofinformationbutwecameupwithalittlestepbystepguideto helpyougothroughthisprocess. Thefirststepyoushouldtakeistoreadthroughtheentirereport.Ifyoufindany termsthatyouarenotentirelyfamiliarwith,referencetheGlossarythatisincluded.After reading through the program once, review it again to figure out exactly where you currentlyareintheforeclosureprocess. Youwillthenwanttorevisittheprogramandconcentrateonthesectionofthe programthatmatchesupwiththestageofforeclosureyouarecurrentlyin.Ifyouhave justenteredintoforeclosure,orhavenotyetenteredintoforeclosure,youwillwantto startfromthebeginningoftheprogram. As an additional convenience for starting we included some of the forms that youmightneedtofile.Youwillfindthemintheendofthisfile.Notalltheseformsare referenced in the report. You need to alter them so that they fit your particular situation. Then read through the program for the second time. As you read through be sure that youre reading slowly and that youre using correct forms at all times, as describedinthereport.Ifyoudecidetofightforyourhouseonyourownthenbesure to confirm and doublecheck everything, but it is always best to get advice from a qualifiedlegalprofessional. Usingthisreportasaninformationalresourcecanhelpyoubeatthebankatits owngame.Thebattlewontbeeasy,andmighttakealongtime.Butintheendyoull seeitwasworthit. Goodluckandkeepfighting!

FORECLOSURESECRETSREAVEALED

REPORT

2009
Thisreportisactuallyasetoftoolsthatwillhelpyousave yourhousefromforeclosure.Ifyouarereadingthisyoureached acriticaldecisioninyourlifeTOFIGHTFORYOURHOUSE!This reportwillgiveyouanswerstoyourquestionsanditwillbeyour allyinyourbattle.Congratulationsonthisgreatdecision!

DISCLOSURE
This report and information provided herein are for informationalandeducationalpurposesonlyanditisno substitute for personalized advice from a qualified, knowledgeable attorney. This report is not made by an attorneyandwearenotrenderinglegal,financialorany other professional services. This information should not be misconstrued as legal advice at any time. Foreclosure Secrets Revealed do not offer any warranties or representations with respect to the information provided herein, and are subject to update withoutnotice.

www.ForeclosureSecretsRevealed.com

FOREWORD
ThisreportwaswrittenasareactiontotheeconomicalcrisisthatstruckUnited States.Morethan9.000homesgetinforeclosureeveryday,orinotherwords,1outof 58homesinNevada,1outof131homesinCalifornia,1outof158homesinArizona,or 1 out of 164 homes in Florida. We are all feeling the effects of foreclosures in our communities, neighborhoods, at work or in the store, but once we face it ourselves it getsacompletelynewdimension.Butsinceyouarereadingthisreport,itmeansthat youdecidedtofight!Congratulationsonthatdecision!Itistherightone! You have to bear in mind that all information provided in this report is for educational use only. You shouldnt stop at this; you should always seek trusted legal counselpriortousinganyofthetechniquesdiscussedinthisreport. Ifyouconfrontthebankbydefendingyourhomeitcostsbanksandotherpartys considerablesumstofight.Courtsdonottoleratetriviallawsuits,andifyourlawsuitis found to be such, the court will order you to pay the banks legal fees. However, employingadefensetoforeclosureduetogenuinewrongsismorethanavalidreason todefendaforeclosureaction.

FORSTARTERS
Thereisapossibilitythatyourloanwasmadeinsuchawaythatlenderdidnt comply with the Truth in Lending Act (TILA), Real Estate Settlement Procedures Act (RESPA)orotherlawsandthisgivesyouachancetosaveyourhome.Oneoftheways to find out if thats the case with you is to get a Forensic Loan Audit. You can get informationonForensicLoanAuditfrom http://www.ForeclosureSecretsRevealed.com/loanaudit/

THEFORMULA
Makesureyoubaseyourdefenseontheserules: 1. Get everything in writing from all the parties. This is a way to prove everythingyoudo. 2. Take detailed notes of every action you take, like times, dates, phone numbers,names,confirmationnumbers,etc. 3. Askonlyforthetruth,andalwaystellthetruth. 4. Dontleavepropertyvacant.Possessionishalfthebattle. 5. Yourlenderdoesnothaveyourbestinterestinmind.Theyhavetheir own interests in mind; they are not your friends. Be very cautious and selectivewithallinformationyoudisclosetothem. 6. Dontborrowanymoremoney.Itslikediggingadeeperholejusttoend upinit.Ifyouassessyourinabilitytopayearlyyouhavemorechanceto saveyourself. 7. Saveeverydimeyoucanforthis.Cutoffallexcessexpenses. 8. DONOTsignaquitclaimdeedorotherwisewalkaway.Therearemuch better solutions. Short sale is the last resort and should be used as such. 9. Dont worry if you had a Stated Income loan. Courts have consistently upheld that the broker is the responsible party for errors and misstatementsonloanapplications. 10. Challenge all claims of fact! Force everyone to prove what they say is true!

FOLLOWTHESESTEPS:
Step1: FigureOutWhatYouWantTellyourfamilyasearlyaspossible!Cutoff all nonessentials from budget. Save all funds possible to allocate towardthecostsofsavingyourhome! Step2: PlayByTheRulesBesuretoreadtheFederalRulesofCivilProcedure, andyourlocalcourtproceduresknowtherulesofthegame! Step3: GetMoreTimeTalktoyour Lenderandstalloutforasmuchtimeas theywillgiveyouitiseasiertoaskforgreateramountsoftimeinthe beginningversuslater.Keeptrackoftime(deadlines)aswell!

Step4: EducateyourselfandResearchYourOptionsSeekoutmoreinformation inadditiontothematerialincludedhereKnowledgeispower! Step5: Debt Validation Who Owns the Loan Identify the owner of your allegeddebtbysendingdebtvalidationnoticestothepartiesclaiming youowe. Step6: TILA Rescission Identify whether you have claims for relief available under the Truth in Lending Actif disclosures in loan documents are inaccuratebyaslittleas$35youmaycancelyourloan,andreceiveall moniespaidtodateinarefund. Step7: File/Answer the Complaint When push comes to shove, file a complaint/lawsuit,orrespondtooneiffiledagainstyou(allresponses mustbeinwritingtoallpartieswithin20days). Step8: TheDiscoveryProcess(Demandto ProducetheNote)Demandthat the other parties provide for inspection, AFFIRMATIVE, ADMISSIBLE EVIDENCE,tosupporttheirclaims.Submitquestions(interrogatories)to theotherpartiestodiscoverthetruth. Step9: SummaryJudgment/MotiontodismissSeekajudgmentinyourfavor, clearing the title of the invalidated liens, and defend against summary judgment/motiontodismissbyotherparties. Step10: Go to Trial Most Foreclosure cases never make it to trial, as most partiessettleoncethefactsareclear.Getthefactsandyouaremostly there. Step11: Loose,Win,orAppealEvenafteralossinStateCourt,thereareother jurisdictions such as Federal and Bankruptcy court where you can accomplishthesamedesiredoutcomes. AlloftheinformationinthisReportcanbeverifiedbysimpleinternetsearches, andsubsequentdiggingoutthere!YouCanWin!Educationisthemostimportantpart! Dontgiveup!

UNDERSTANDINGTHEFORECLOSUREPROCESS
Understanding the foreclosure process often improves your chances of navigatingforeclosure.WhenyouareAWAREofthestepstotake,andwhattoexpect, you experience fewer surprises, and can cope much more rationally. The time that foreclosure takes depends upon state laws and regulations, which are detailed in the chartthatfollowsbelow.Foreclosuresgenerallyproceedasfollows: Preforeclosure: LateNotices,phonecalls,noticeofaccelerationofdebt.

Foreclosure: Notice of Default, Notice of Trustee Sale, Public Notice, record againsttitleofhome,publicationinnewspaper. Reinstatement Period: The period of time that you can save your home from Foreclosure,bycatchinguponpayments,payingitoff. AuctionorSale:Ifyoudonotreinstatetheloan,orpayitoff,thepropertyissold byaTrustee/Sheriff,tothehighestbidder,whichmanytimesisthebank. RedemptionPeriod:InmanyStates,youhaveaperiodoftimetobuybackthe propertyfromthehighestbidder.Notallstatesprovidethisremedy. Eviction/Unlawful Detainer: This is where the new owner seeks to remove you fromyourpropertypermanently. Thatbeingsaid,itisfirstimportanttounderstandtwoMAJORdifferencestobe foundinforeclosure:

JUDICIALVS.NONJUDICIAL
Itisimportantforahomeownertofirstlearnsomebasicsaboutwhatthelawiswithin theirstate: JUDICIAL FORECLOSURE STATE: Any state with law that provides for all foreclosurestobeauthorizedjudiciallybyacourt,throughthefilingofalawsuit,leading toasummaryjudgmentmotion.Judicialforeclosuresareprocessedthroughthecourts, beginningwiththelenderfilingacomplaintandrecordinganoticeofLisPendens.The complaint will state what the debt is, and why the default should allow the lender to

forecloseandtakethepropertygivenassecurity.Thehomeownerwillbeservednotice ofthecomplaint,eitherbymailing,directservice,orpublicationofthenotice,andwill havetheopportunitytobeheardbeforethecourt.Ifthecourtfindsthedebtvalid,and indefault,itwillissueajudgmentforthetotalamountowed,includingthecostsofthe foreclosure process. After the judgment has been entered, the court authorizing a sheriffssalewillissueawrit.Thesheriffssaleisanauction,opentoanyone,andisheld inapublicplace,whichcanrangefrominfrontofthecourthousesteps,toinfrontof thepropertybeingauctioned. Sheriffs sales will require either cash to be paid at the time of sale, or a substantialdeposit,withthebalancepaidfromlaterthatsamedayupto30daysafter the sale. Check your local procedures carefully. At the end of the auction, the highest bidderwillbetheowneroftheproperty,subjecttothecourtsconfirmationofthesale. Afterthecourthasconfirmedthesale,asheriffsdeedwillbepreparedanddeliveredto thehighestbidder,whenthatdeedisrecorded,thehighestbidderistheownerofthe property. NONJUDICIAL FORECLOSURE STATE: Any state where the law provides for foreclosurestobedoneWITHZEROOVERSIGHTBYTHECOURTSYSTEM.Inthissystem, aforeclosurecanoccurthroughrecordingofdocumentswiththecountyrecorderonly. Nonjudicial foreclosures are processed without court intervention, with the requirements for the foreclosure established by state statutes. When a loan default occurs,thehomeownerwillbemailedadefaultletter,andinmanystates,aNoticeof Default will be recorded at approximately the same time. If the homeowner does not cure the default, a Notice of Sale will be mailed to the homeowner, posted in public places, recorded at the county recorders office, and published in area legal publications.Afterthelegallyrequiredtimeperiodhasexpired,apublicauctionwillbe held, with the highest bidder becoming the owner of the property, subject to their receiptandrecordationofthedeed.Auctionsofnonjudicialforeclosureswillgenerally requirecash,orcashequivalenteitheratthesale,orveryshortlythereafter. It is important to note that each nonjudicial foreclosure state has different procedures. Some do not require a Notice of Default, but start with a Notice of Sale. OthersrequireonlythepublicationoftheNoticeofSaletoannouncethesale,withno direct owner notification required. You need to know the specific procedure for your state.

FORECLOSUREPROCEDURESBYSTATE
This is a general guide only, laws change and you need to check your state statutesforaccurate,uptodateprocedures.Foreclosuretypewilloftenbejudicialor nonjudicial,ifyouhaveaspecificquestionaboutastateprocess,youcanaskitonthe discussion board http://www.ForeclosureSecretsRevealed.com/dboard/. Months to foreclose include the legal minimum required and the probable time length once foreclosurehasbegun. Deficiency judgments are available in some states, (where the lender loses money through the foreclosure process, and seeks to recover the balance) if it is not practicalforthelendertoenforceajudgment,itwillbelisted.Homeownerredemption afterforeclosureispossibleinsomestates;thetimeperiodsarelistedwhereavailable.
State Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware District of Columbia Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Judicial NonJudicial Process Sale Period Publication (Days) (Days) 49-74 105 90+ 70 117 145 62 170-210 47 135 37 220 150 300 261 160 130 147 180 240 46 75 60 90-100 21 65 41 30 21 60 NA 60-90 18 NA 32 60 45 NA 120 30 21 NA NA 30 30 41 30 7

Deficiencyjudgment Possibleand Practical NotPractical NotPractical Possibleand Practical NotPractical Possibleand Practical Possibleand Practical Possibleand Practical Possibleand Practical Possibleand Practical Possibleand Practical NotPractical Possibleand Practical Possibleand Practical Possibleand Practical NotPractical Possibleand Practical Possibleand Practical Possibleand Practical Possibleand Practical Possibleand Practical Possibleand Practical Possibleand Practical NotPractical

Redemption Period (Days) 365 365* 30-180* 365* 365* None Court Decides None None None None None 365 90 None 20 365 365 None 90 Court Decides None 30-365 1825

Sale/NTS Trustee Trustee Trustee Trustee Trustee Trustee Court Sheriff Trustee Court Trustee Trustee Trustee Court Sheriff Sheriff Sheriff Court Sheriff Court Court Court Sheriff Sheriff


State Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming Judicial NonJudicial Process Sale Period Publication (Days) (Days) 90 60 150 142 116 59 270 180 445 110 150 217 186 150 270 62 150 150 40-45 27 142 95 45 135 60-90 290 60 30 10 50 NA 80 24 NA NA NA 25 NA NA NA 30 NA 21 NA 23 20-25 NA NA NA 14-28 90 30-60 NA 25

Deficiencyjudgment Possibleand Practical Possibleand Practical NotPractical Possibleand Practical Possibleand Practical Possibleand Practical Possibleand Practical Possibleand Practical Possibleand Practical Possibleand Practical NotPossible Possibleand Practical Possibleand Practical NotPractical NotPractical Possibleand Practical NotPractical Possibleand Practical Possibleand Practical Possibleand Practical Possibleand Practical Possibleand Practical Possibleand Practical NotPractical Possibleand Practical NotPractical Possibleand Practical

Redemption Period (Days) None 365 None None None None 10 30-270 None None 180-365 None None 180 None None None 30-365 730 None Court Decides 180-365 None None None 365 90-365

Sale/NTS Trustee Trustee Trustee Sheriff Trustee Trustee Sheriff Court Court Sheriff Sheriff Sheriff Sheriff Trustee Sheriff Trustee Court Sheriff Trustee Trustee Trustee Court Trustee Trustee Trustee Sheriff Sheriff

SOMETHINGSTOCONSIDER
Now that you have identified whether you are facing a JUDICIAL, or NON JUDICIALFORECLOSURE,youcanunderstandhowtherestoftheREPORTappliestoyou. In a Judicial State, you will be the Defendant in any suit filed by the party claiming default,whereinaNONJudicialstate;youwillbethePlaintiff,filingthesuittorestrain the Trustee Sale. Dont worry if you had a Stated Income loan Courts have consistently upheld that the broker is the responsible party for errors and misstatementsonloanapplications.

HOWCANYOUSTOPAFORECLOSURE?
ThetruthisyouhavearighttodefendahomethatYOUOWN.TheBankorother partydoesnotOWNyourhomeYOUDO!FromSecuritization,toalltheBankFailures, Bailouts with Taxpayer $, and the rampant levels of fraud that went unabated from 20012009,itisvirtuallyimpossibleforahomeownertoknowthedetailsoftheirloan and determine whether or not they were a victim of Predatory Lending, Deceptive LendingPractices,AppraisalFraud,andmanyotherpotentialclaims.Wewillattemptto cover a great deal of information here, intending to educate you as much as possible withoutconfusingyou.Justremember,youdonothavetounderstandeverythinghere todefendyourhome.Youonlyneedtoknowthebasicsofhowtofindcompetentlegal help,filethecorrectdocuments,followprocedure,andknowhowtoaskforevidenceto revealTHETRUTH. Simplyput:Youcanstopaforeclosurebyfiling/respondingtoalawsuitincourt, orbyutilizingadministrativeremedies(recordingdocuments). WhetheryoufileacivilsuitinyourlocalCountySuperiorCourt,FederalCourt,or file Bankruptcy, or record instruments with your county recorder will depend on your situation. THEREISNOSILVERBULLETSOLUTION,ANDALLSOLUTIONSREQUIREDILIGENT RESEARCH,ANDQUALIFIEDADVICEFROMALEGALPROFESSIONAL.FORTHISTHEREIS NOSUBSTITUTE. BOTTOMLINE:YOUNEEDEDUCATION,INFORMATION,ANDHELP. GETAFORENSICLOANAUDIThttp://www.ForeclosureSecretsRevealed.com/loanaudit/ GETLEGALADVICEONYOURAVAILABLEREMEDIES,BASEDUPONTHERESULTS OFYOURFORENSICLOANAUDIT.

THESECRETOFHOWTOSTOPFORECLOSURE
ThesecrethereisnotsosecretYoumustTAKEACTION. Eitherby:

Involvingthecourtsystemor Utilizingpublicadministrativeremediestostopforeclosure. TherearemanydocumentsthatcanbeutilizedtoDISCOVEREVIDENCE,OPENA CHANNEL OF COMMUNICATION WITH THOSE WHO ARE AUTHORIZED TO NEGOTIATE, andGAINRELIEFTHATISINYOURBESTINTEREST.

CAUTIONRE:LOANMODIFICATIONS:
VirtuallyALLloanmodificationscomewithaclauseintheagreement,thatcause youtoagreetoholdthepartiesharmless,andforeverwaiveanyrightsyoumayhave previouslyhad.BesuretohavealegalprofessionalreviewALLmodificationdocuments priortosigningyourrightsaway. HowDoIinvolvetheCourtSystem? This is where it becomes important to involve the counsel of an Attorney. We willavoidbeingtoospecificinthereporthere,sincetheproceduralrulesandlawsof everycountySuperiorCourt,StateDistrictCourt,FederalCivilCourtSystem,andFederal BankruptcyCourtsareallverydifferent.

BANKRUPTCY
Many claim the United States Bankruptcy Courts to be the quickest, surest, simplestwaytodisputeyourmortgageforthefollowingreasons: Petition (application) is much simpler than drafting legal documents. (Petitions availableatUSCourts.Gov) TheCourtservestheparties,insteadofyou. Stayofforeclosureisautomaticandimmediate. FederalCourtsseemtobemorereceptivetodisputesofmortgages.

Youwillhoweverliterallyneedtogetadvicewithregardtospecificsinhowto proceedwithyourcasefrom: AQualifiedAttorney(probonoifno$) LocalLegalLawLibrary(Justabouteverycourthousehasone). Theinformationyouneedmostiswithregardtoprocedurallaw(Whatthelocal processis).SeetheFederalRulesofCivilProcedureincludedinthereport.Yoursuccess dependsuponyouproceedingBytheBook. It is important here to note that there are many Attorneys and other professionals that do not understand the concept of disputing a mortgage, only becausetheyarenotawareofthedetailssurroundingthesetypesofloans/situations, suchastheinformationcontainedinthisReport. Oncehomeownerstakethetimetoeducatethemselvesaboutthissubjectthey begintounderstandwherethemanyissuesandremediesare. Countless Homeowners have used these strategies and have remained in their homesindefinitely,withothersendupgainingacleartitletotheirhomeasasideeffect ofchallengingtheirForeclosure.

TOTALEDCARSANDTOTALEDMORTGAGESCREDIT DEFAULTSWAPSCDS101
ByBradKeiser
Takenfromhttp://livinglies.wordpress.com/

Youmayhaveheardhimrantaboutderivativesecurities,creditdefaultswaps, insurance products and coobligors, etc. and why/how they come into play with the securitization process with respect to the argument that the party bringing the foreclosure action against you has already been paid. Trial lawyers who use expert witness testimony realize that the success of expert testimony often hinges less on impressingthejurywithdegreesorcredentialsoftheexpertwitnessthanontheability oftheexpertwitnesstoeffectivelycommunicatewithajuryorjudgeandoftensimplify complexsubjectmatterandputthemintothecontextofthecaseathand.Thesameis true for lawyers or Pro Se litigants. Allow me to break down the credit default swap elephantintobitesizepieces. First, a credit default swap (CDS) can be defined in laymans terms as an insurancepolicy.TheobjectiveofmycarinsurancepolicyistoprotectaphysicalassetI own or replace the vehicle if it is totaled without having to take the cash out of my pocket.Inthecaseofmylifeinsurancepolicy,thebenefitisalumpsumofmoneythat theoretically would replace the income stream my family depends on if I die. The rationaleforinsuranceisthatitiseasierformetobudget$500everysixmonthsforcar insurance than suddenly have to come up with $30,000 at once to replace my wifes totaled minivan. In both instances beside the financial benefit I also derive the additionalbenefitofpeaceofmind. Inthesecuritizationprocess,typicallytheSpecialPurposeEntity(SPE)orTrust thatissuedthemortgagebackedsecurities(MBS)purchasedaninsurancepolicy(CDS) ontheassetstheywereholdingforthesamereasons.Intheeventthemortgagewas totaled the insurance carrier (well call them AIG in this instance) paid out on the policyandmadetheSPEorTrustwholesotheycouldcontinuetopaytheinvestorsthey soldthesecuritiestotheirperiodicreturnoninvestment(ROI).Aswiththecarandlife insuranceabove,therewasasimilarnonfinancialbenefitcalledpeaceofmind.The presenceofthisinsurancegavetheinvestorsinthesecuritiespeaceofmindandno doubt contributed to the peace of mind of the ratings agencies (Moodys, Fitch, S&P)

that gave these securities AAA ratings. The triggering events in each of the above examplesarerespectivelyanaccident,adeathoradefault.

TOTALEDCAR,TOTALEDMORTGAGEPRETTYSIMPLEJUDGE
Sowhenmywifetotaledtheminivan,avehicleImightaddthathadaproperly RECORDED lien noted on my vehicle title, the insurance carrier issued a check to the bankthatheldthelienandpaidoffthenoteonthecarORputanotherwaysatisfiedthe obligation.Thecheckdidnotcomefromme,itcamefromtheinsurancecompany,the bankobviouslydidnotcarewherethemoneycamefrom,theobligationwassatisfied and the lien on the minivan was released. So did the bank, after getting paid by the insurance company, get to keep the damaged minivan and ALSO take it to an auto auction (READ: foreclosure sale) and keep the proceeds of auctioning off the wrecked minivan?NooooDidI,theowner,oftheminivangettokeepthewreckedminivanand sell it for additional $$$ beyond the benefit of the proceeds of the insurance policy payingofftheloanatthebank?Noooo Basedonthetermsofthetypicalautoinsurancepolicy,whoendsupwiththe title on the totaled minivan? It sure isnt the bank that got paid off by the insurance company. The point is that absent someones sworn testimony, who can attest to personal knowledge about your specific loan and/or irrefutable evidence that your mortgage was a) not sold or securitized or b) not subject to an insurance policy we cannotbesurethatthepartiesincourttodayhaveanyauthority. KISS(KEEPITSIMPLESTUPID)Justwintheargumentoftheday.Judgeweare notsayingthisclosingneveroccurred,wearenotsayingthatanotewasneversigned; we are not saying the note wasnt funded. We are saying the material dispute before the court today is whether or not the parties here today bringing this action have alreadybeenpaidand/orwhetherornottheyareeventherightpartieswithauthority to bring this action against my client We simply want the case to be heard on the merits.

SECURITIZATION
Withitsclientsclamoringforsafeinvestmentswithanaboveaveragereturn,the big Wall Street investment houses bought up millions of the least dependable mortgages,choppedthemupintotinybitsandpieces,andrepackagedthemasexotic investmentsecuritiesthathardlyanyonecouldunderstand. 60 Minutes looked at one of the selling documents of such a security with FrankPartnoy,aformerderivativesbrokerandcorporatesecuritiesattorney,whonow teacheslawattheUniversityofSanDiego. "It's hundreds and hundreds of pages of very small print, a lot of detail here," Partnoyexplains. Asked if he thinks anyone ever reads all this fineprint, Partnoy says, "I doubt manypeoplereadit." Thesecomplexfinancialinstrumentswereactuallydesignedbymathematicians andphysicists,whousedalgorithmsandcomputermodelstoreconstitutetheunreliable loansinawaythatwassupposedtoeliminatemostoftherisk. "Obviouslytheyturnedouttobewrong,"Partnoysays. Askedwhy,hesays,"Becauseyoucan'tmodelhumanbehaviorwithmath." "HowmuchofthiscatastrophehadtodowiththeinstrumentsthatWallStreet createdandchosetobuyandsell?"KroftasksJimGrant. "The instruments themselves are at the heart of this mess," Grant says. "They are complex, in effect, mortgage science projects devised by these Nobeltracked physicists who came to work on Wall Street for the very purpose of creating complex instruments with all manner of detailed protocols, and who gets paid when and how much.Andthecomplexityofthestructuresisattheverycenterofthecrisisofcredit today." "People don't know what they're made up of, how they're going to behave," Kroftremarks.

"Right,"Grantreplies. But it didn't stop ratings agencies, like Standard & Poor's and Moody's, from certifying the dodgy securities investment grade, and it didn't stop Wall Street from making billions of dollars selling them to banks, pension funds, and other institutional investorsallovertheworld.Butthatwasjustthebeginningofthecrisis. WhatmostpeopleoutsideofWallStreetandWashingtondon'tknowisthata lotofpeoplewhoboughttheseriskymortgagesecuritiesalsowentoutandboughteven more arcane investments that Wall Street was peddling called "credit default swaps." Andtheyhaveturnedouttobeamuchbiggerproblem. They are private and largely undisclosed contracts that mortgage investors enteredintotoprotectthemselvesagainstlossesiftheinvestmentswentbad. Andtheyarepartofahugeunregulatedmarketthathasalreadyhelpedbring downthreeofthelargestfirmsonWallStreet,andstillthreatentheonesthatareleft. Before your eyes glaze over, Michael Greenberger, a law professor at the University of Maryland and a former director of trading and markets for the CommoditiesFuturesTradingCommission,saystheyaremuchsimplerthantheysound. "A credit default swap is a contract between two people, one of whom is giving insurancetotheotherthathewillbepaidintheeventthatafinancialinstitution,ora financialinstrument,fails,"heexplains. "It is an insurance contract, but they've been very careful not to call it that becauseifitwereinsurance,itwouldberegulated.Sotheyuseamagicsubstituteword calleda'swap,'whichbyvirtueoffederallawisderegulated,"Greenbergeradds. "Soanybodywhowasnervousaboutbuyingthesemortgagebackedsecurities, theseCDOs,theywouldbesoldacreditdefaultswapassortofaninsurancepolicy?" Kroftasks. "Acreditdefaultswapwasavailabletothem,marketedtothemasarisksaving deviceforbuyingariskyfinancialinstrument,"Greenbergersays. Buthesaystherewasabigproblem."Theproblemwasthatifitwereinsurance, or called what it really is, the person who sold the policy would have to have capital

reservestobeabletopayinthecasetheinsurancewascalleduponortriggered.But because it was a swap, and not insurance, there was no requirement that adequate capitalreservesbeputtotheside." "Now,whowassellingthesecreditdefaultswaps?"Kroftasks. "BearSternswassellingthem,LehmanBrotherswassellingthem,andAIGwas selling them. You know, the names we hear that are in trouble, Citigroup was selling them,"Greenbergersays. "Theseinvestmentbankswerenotonlysellingthesecuritiesthatturnedoutto beterribleinvestments,theyweresellinginsuranceonthem?"Kroftasks. "Well,itmadeiteasiertoselltheterribleinvestmentsifyoucouldconvincethe buyerthatnotonlyweretheygoingtogettheinvestment,butinsurance,"Greenberger explains. But when homeowners began defaulting on their mortgages and Wall Street's highriskmortgagebackedsecuritiesalsobegantofail,thebiginvestmenthousesand insurancecompanieswhosoldthecreditdefaultswapshadn'tsetasidethemoneythey neededtopayofftheirobligations. NOTE:Thisiswheretheevidenceoftheexistenceofindispensablepartiescomes intoplay.Essentially,thisiswhereweknowthattheservicerdoesnotowntheNote, and we know there are thousands of individual securities shareholders, that own thousands of Mortgage Notes. Now that the Free Market has established the shares, and their securities worthless, due to the liability they have as holder of the note (successorliability).Thisisthereasonthereexistspartiesindispensablethatcannotbe positivelyidentifiedinmostcases.

THEREALITY
TheresultofallthisisthatvirtuallyallofthemortgagesintheUnitedStatesare invalid, and unenforceable. It is near impossible for anyone to say who actually is the HolderandOwnerinDueCourseoftheMortgageNoteitself.WeknowthatFederal andStatelawshaveheldthatonlytheBeneficialHolderandOwnerinDueCoursecan

enforcethePowerofSale,authorizedbyamortgageordeedoftrust.Beneficialmeans therighttoreceivetheproceedsfromthepaymentsonthedebt.

LENDERVS.SERVICER
Many Homeowners make the understandable assumption that the party they pay their payments to is their Lender. In fact, most loans have been transferred to parties other than the original Lender. In fact, most loans are only serviced by partiesthatmostconsiderbeingaLender.Whenthetruthisrevealed,homeowners have found time and time again that the Lender is truly only a servicer or debt collectionagent.Thisisimportanttonotebecauseaservicerdoesnothavetheright toforeclose.Therealityisthatmanyservicersjustdonotcare,andforeclosewithout regard to details. In this same fashion most foreclosing parties disregard attention to detail,inthepursuitofexpediency.

THEBANKDOESNTWANTTHEHOUSE
WehearitallthetimeBanksdontwanttotakethehousebecausetheywill losemoneyAlthoughitistruethatmanyhomesaresoldatauctionforlessthanthe balance owed, many servicers of mortgages are taking properties that they have no right to, where they cannot identify the true beneficiaries of the mortgage note. A Servicerisnottheinvestorthatputuptheoriginalcapitalforthedebt,andtheydid not purchase the debt either. They only accept payments and process them by distributingthemblindlybycomputeralgorithm,tofunds,tranches,insurancepolicies, andmostimportantly,thetrusteesofmortgagebackedsecuritiesthatrepresentpools of thousands of mortgages. Many of these securities are owned by 401ks, pension funds,hedgefunds,mutualfunds,IRAs,Governmentmunicipalbonds,andjustabout anyentitythathadfundstoinvestsince2001.ThetruthistheBankdoesntcaresince anemotionlesscomputerprogramautomatesmostforeclosureproceedings. The specific difference in mortgages today from that of the past is the securitizationofMortgageLoansbeginningin2001.Before2001,MortgageLoansand Foreclosuresweremuchdifferent.

BRIEF REGARDING SECURITIZED MORTGAGE LOANS AND M.E.R.S.,INC


Securitization Makes Process of Litigating Predatory Lending Costly for Consumers A critique of the effect of securitization lies in the impact it has on civil procedure. Discovery, negotiation, and litigation in general are more expensive for consumerswithsecuritizedloansthanitisforloansfundedbythetraditionalsecondary market. Legal scholars have made a compelling case for the serious potential consequencesforconsumerswhenbusinessesuseproceduraldisputeresolutioncosts asahedgeagainstenforcementofsubstantivelaw.Forexample,JefSovern,aprofessor of law at St. Johns University, has recently pointed out that many businesses design systems that derive profit from increasing consumers transaction costs. Robert Rubinson, of University of Baltimore School of law, has pointed out that only minute percentageofsocietysdisputeresolutionresourcesareallocatedtodisputesregarding consumers access to shelter even though any principled moral or ethical analysis demonstratesthatthestakesareinvolvingaffluentindividualsororganizations. Moreover, an extensive literature demonstrates the great vulnerability of our civiljusticesystemtomanipulationofprocedureingeneral,anddiscoveryinparticular. For example, a federal district judges remarks from the late 1970s seem equally resonanttoday: TheciviljusticesystemintheUnitedStatesdependsonthewillingnessofboth litigantsandlawyerstotryingoodfaithtocomplywiththerulesestablishedforthefair andefficientadministrationofjustice.Whenthoserulesaremanipulatedorviolatedfor purposes of delay, harassment or unfair advantage, the system breaks down . My experience as a participant in and observer of civil litigation has convinced me that abuseofthejudicialprocessiswidespread.Abuseofthejudicialprocessoccursmost often in connection with discovery. Unjustified demands for and refusals to provide discovery prolong litigation and drive up its costs. Fabrication and suppression of material facts are regrettably common occurrences, although lawyers and judges are oftenreluctanttoadmitit.

Giventheseobservations,weshouldnotbesurprisedtofindabusinesssystem thatderivesitsrevenuefromcreatingproceduralroadblocksinthewayofconsumers litigatingfromthebrinkofhomelessness. One characteristic of structured mortgage finance is the erection of such barriers. In traditional two and threeparty mortgage markets, consumers and their counselhadaclearerideaofwhomtheywereborrowingfromandwhomightseekto foreclose upon them if they failed to repay. Service of process, interrogatories, depositions, and negotiations could be expected to involve only one company, which wasresponsibleforall,ornearlyall,therelationshipfunctionsassociatedwiththeloan. Incomparison,sellingaloanintoacontemporarystructuredfinanceconduitcan forceconsumerstocommunicatewithandlitigateagainstmanymorebusinessentities. Evensimplelitigationtasks,suchasserviceofprocess,interrogatories,andrequestsfor production of documents, can become much more complicated in structured finance. Whereas forty years ago, a borrower might need to serve one party to bring the full rangeofpredatorylendingclaimsanddefensestobearonasecuritizationconduit,can nowmanytimesrequireservingfiveormoredifferententities. This is a daunting task indeed, since at the outset, the consumer will almost alwayshavenoknowledgeofthename,addressorothercontactinformationformany ofthesefirms,makingpersonalservicedifficulttosaytheleast.Indeed,counselforthe foreclosing party itself probably does not know which entities were involved in performing the various functions associated with the loan. Phone calls to the loan s servicer are frequently ignored, subject to excruciating delays, and typically can only reach unknowledgeable staff who themselves lack information on the larger business relationships. For their part, securitization trustees are not in the business of counseling the thousands of mortgagors pooled in each of the many real estate trusts they oversee. Policy makers must not underestimate the staggering difficulty of reconstructing the factsinvolvedinonlyoneloan.Securitizationcreatesanopaquebusinessstructurethat consumershavegreatdifficultyforgathering.Securitizationalsocomplicatesthepaper trail for a given mortgage by facilitating frequent permutations in the servicing and ownership history of the loan. One of the benefits of securitization is that it allows trustees to shop for the most efficient servicer, reassigning servicing rights for loan

pools when a better deal comes along. And, depending on how the securitization conduitisstructured,aloanmayundergoseveralassignmentsinroutetoitsdestination pool.Whilethesechangesmayhelpensurethatthepoolsecuritiespayoutontimeand otherwise manage risks to the entities involved, they also raise costs and overall difficulties for consumer counsel attempting to piece together who did what to their client. Atthesametimemortgageloandocumentationhasbecomemorecomplex.The organizationaltechnologyofsecuritizationhasdisplacedolder,moretransparent,public systems for maintaining records. Nowhere is this more apparent than the use of the MortgageElectronicRegistrationSystems,Inc.,(MERS),tocircumventcountyrecording offices. MERS intended primary function is to act as a document custodian. Major players in the mortgage lending industry created MERS to simplify the process of transferring mortgages by avoiding the need to rerecord liens and pay county recorderfilingfeeseachtimealoanisassigned.Instead,servicersrecordloansonly onceandMERSelectronicsystemmonitorstransfersandfacilitatesthetradingofnotes Currently over half of all new residential mortgage loans in the United States are registeredwithMERSandrecordedincountyrecordingofficesinMERSname.Thishas reducedtransparencyinthemortgagemarketintwoways.First,consumersandtheir counselcannolongerturntothepublicrecordingsystemstolearntheidentityofthe TrueHolderandOwneroftheirnote.Today,countyrecordingsystemsareincreasingly full of one meaningless name, MERS, repeated over and over again. But more importantly,allacrossthecountry,MERSnowbringsforeclosureproceedingsinitsown name even though it was NEVER the financial party in interest. This is problematic because MERS is not prepared for or equipped to provide responses to consumers discoveryrequestswithrespecttopredatorylendingclaimsanddefenses.Ineffect,the securitizationconduitattemptstouseafacelessandseeminglyinnocentproxywithno knowledgeofpredatoryoriginationorservicingbehaviortodothedirtyworkofseizing theconsumershome.Whileupagainstthewallofforeclosure,consumersthattryto assert predatory lending defenses are often forced to join the party usually an investmenttrustthatactuallywillbenefitfromtheforeclosure.Asasimplematterof logistics this can be difficult, since the investment trust is even more faceless and seemingly innocent than MERS itself. The investment trust has no customer service personnelandhasprobablynotevenretainedcounsel.Inquiriestothetrusteeifitcan

beidentifiedaretypicallyreferredtotheservicer,whowillthendirectcounselbackto MERS.Thispatternofnonresponsegivesthesecuritizationconduitsignificantleverage inforcingconsumersoutoftheirhomes.Theprospectofwagingaprotracteddiscovery battlewithallofthesewellfundedpartiesinhopesofuncoveringevidenceofpredatory lending canbe too daunting even for those victims who know such evidence exists. It should be further noted that MERS in their entire history, has never owned ANY beneficialinterest,inasinglenote.Soimposingisthisopaquecorporatewall,thatina vastnumberofforeclosures,MERSactuallysucceedsinforeclosingwithoutproducing theoriginalnotethelegalsinequanonofforeclosuremuchlessdocumentationthat could support predatory lending defenses. This explains why we are currently facing neverbeforeseennumbersofforeclosuresintheUnitedStates.

MORTGAGEELECTRONICREGISTRATIONSYSTEMS,INC.
ByKevinLamson So can anyone guess the name of organization that was formed by Countrywides,AnthonyMoziloandFannieMaes,JamesJohnsontenyearsago,itstarts withanM?NonottheMafia.ItsMortgageElectronicRegistrationSystemsInc.whichis commonlyreferredtoasMERS.Yes,thatsright.CountrywideandFannieMaewerethe lead organizers of MERS and are shareholders and members of MERS. Here are excerpts from an investigative report on MERS I have been working on for the last several months. This may help shed some much needed light on MERS and the cozy relationshipsthatmanyofitssocalledmembershavebetweeneachotherandwith our congress. It may also explain why no one in congress has bothered to investigate MERSanditcrazypaperlesssystemthatthesegreedymortgageexecutivesinvented sothattheycouldlinetheirpocketsbyoriginatingandflippingphony mortgageloans into socalled mortgage backed security trusts and then selling trillions of dollars of bondstoinvestorsaroundtheworld.Byreportingfalseprofitsfromthesesales,Fannie MaesandCountrywidesexecutiveswereabletomakehundredsofmillionsofdollars inbonuses. Given the extremely close relationship that MERS and its many corporate membershavewiththepoliticianswhorunourstateandfederalgovernments,itisnot surprisingthatMERSanditmemberswereabletopulloffthisgiganticglobalfinancial scheme without raising the brow of State or Federal law enforcement or regulators.

Onlynowareafewpoliticiansandregulatorspayinglipservicetowhattheyrefertoas the Mortgage Meltdown. What no politician or regulator ever seems to mention is that a millions of the mortgages that melted down have the name Mortgage ElectronicRegistrationSystemInc.onthem.

THEFUNDAMENTALS:
In the period beginning in 1999 and ending in March of 2008, Mortgage ElectronicRegistrationSystemsInc.,a/k/a/MERS,hasbeennamedasamortgageeon overfiftymillionmortgages.YetMERShasneveroriginatedasinglemortgageloannor loanedadimetoasingleborrower.In2001theNewYorkSupremeCourtorderedthe Suffolk County Clerk to accept MERS mortgages for recording as a purely ministerial duty. However, the Court denied MERS request for a judgment declaring that MERS mortgages were lawful in all respects. The New York Court of Appeals affirmed the SupremeCourtsorderdirectingtheCountyClerktorecordMERSmortgages.TheCourt of Appeals did not reverse the Supreme Courts denial of MERS request for a judicial declaration that MERS mortgages are lawful in all respects. MERS, for obvious reasons,didnotwantapublishedopiniondeterminingthatMERSmortgagesarelegal nullities and/or that MERS has no standing to enforce a mortgage when it is not a creditorentitledtocollectadebt.TheNewYorkCourtofAppealsdidaddressandframe thesetwoissuesbutleftthemtobedecidedatafuturedate. MERS members, mortgage industry executives, invented the socalled MERS paperless system to short cut standing mortgage lending safe guards and circumvent thelegalrequirementsfororiginatingmortgageloansand/orforsellingandtransferring theseloanstosubsequentholders.ThiswouldallowMERSmemberslikeCountrywide Financial,FieldstoneMortgage,andOptionOneMortgagetomakeloanstoanyonewith aheartbeatandthenquicklyflipthesequestionableloanstootherMERSmemberssuch aFannieMae,FreddieMac,BearStearns,MerrillLynch,LehmanBrotherstonamejusta few.(SecondaryMortgageMarketPlayers) MERSanditssocalledsystemwasdrivenbythestrongdesireofitsfounding members strong desire to report billions in profits as can be seen, in part, from a highlycriticalreportissuedbytheOfficeofFederalHousingEnterpriseonMay23.2006, detailing what it called employees manipulated accounting and earnings to trigger bonuses for senior executives from 1998 to 2004... The image of Fannie securities

would result in billions of dollars of salaries and bonuses being paid to the senior executivesofmanyofMERSmembercorporations.Ultimately,thebondinvestorswho actuallyprovidedallthemoneywouldlearnthattheirsafeinvestmentwasanything butsafe.Ashundredsthousandsandthenmillionsoftheseloansfellintodefault.These bondholderswouldlosehundredsofbillionsofdollars.AsofApril1,2008,thelargest banksaroundtheworldhadalreadywrittenofflossesofonehundredandfiftybillion dollars relating to bonds they had purchased. One Swiss bank, U.S.B., has recently reported40billiondollarsinlosses.Theselosesmayonlybethebeginning.Whatmany peoplerefusetoadmitisthatbecauseofthesocalledMERSpaperlesssystemmany of the socalled mortgage backed security trusts do not actually hold the promissory noteswhichevidencedthedebtsthataresupposedtobebackingthebondspurchased bytheseinvestors.ThesituationisreminiscenttotheGreatOliveOilScandalinthelate 1800s when banks were duped into investing millions of dollars into Olive Oil only to laterdiscoverthatthetankswhichweresupposedtobeholdingmillionsofgallonsof oliveoilbackingtheirinvestmentsweremostlyempty. A June 10, 2007 article in Forbes magazine that details the carelessness in the securitizationprocessbywhichmortgageloanswerepackagedandsoldofftomortgage poolsisnowcomingbacktobitethetrusteesofthesemortgagebackedtrustswhoare nowseekingtoforeclosemillionsofloansthatareindefault: The financial engineering (i.e. mortgage securitization) helped oil the housing boom by making credit more available. But stalled housing prices and rising defaults haverevealedamess:Intherushtoflippaper,lotsofthenewlendersorpoolsdont havetheproperpaperworktoshowtheyevenholdthemortgage. ItappearsthatafterMERSmortgageloansareflippedtothemortgagebacked trusts, the promissory notes are not actually delivered to the trustees. Nor are assignments of mortgages executed and delivered which evidence the fact that the originallenderhastransferredthedebtwhichissecuredbythemortgage.Thisleaves the trusts with absolutely no paper evidence of ownership of the secured debt it purportedly owns. One informed lawyer who represents homeowners in Florida, April Charney, had foreclosure proceedings against 300 clients dismissed or postponed in 2007forlackofstanding.Sheisquotedassayingthat80percentoftheminvolvedlost note affidavits. . . They raise the issue of whether the trusts own the loans at all, Charneysaid.Lostnoteaffidavitsarepatternandpracticeintheindustry.Theyarenot

exceptions.Theyaretherule.Ms.CharneystartedchallengingMERSanditmembers lostnoteaffidavitsafterbecomingskepticalofthelendercouldpossiblylosehundreds ofpromissorynotes. At least two Florida judges shared Ms. Charneys skepticism regarding the copious amounts of MERS lost note affidavits and they issued show cause orders, sua sponte, challenging MERS to show proof that it held and/or lost notes in numerous actions. After evidentiary hearings, these two alert judges dismissed twenty nine (29) MERS actions to foreclose for lack of standing. One judge struck MERS pleadings as beingasham. ASouthCarolinacourtdismissedaMERSactiontoforecloseforlackofstanding eventhoughMERSfiledanaffidavitwhereinapersonclaimingtobeanofficerofMERS claimedthatMERSwasholdingapromissorynote.TheSouthCarolinacourtvettedthe MERSaffidavitclaimthatitwastheholderofthenoteaftertheCourtwasapprisedof thefactthatMERShadpreviouslytoldtheNebraskaCourtofAppealsthatitneverheld promissorynotes. In late 2007, three Federal Court Judges in Ohio dismissed over fifty law suits brought by trustees of mortgage backed trusts where they could not produce the original promissory notes. Following these decisions, the Bankruptcy Court in Los Angeles,Californiaadoptedaruleofpracticewhichrequiresallforeclosingtrusteesor other plaintiffs to produce the original promissory note when bring an action to forecloseadebtorfacesanctionsfornotdoingso. It is disturbing to know that National Banks are the trustees of thousands of truststhatmaybemissingmillionsofpromissorynotes.Thismightexplainwhy,todate, not a single National Bank has publicly disclosed the fact that they are not actually holdingwhatmaybemillionsofpromissorynoteswhichevidenceownershipofdebts supposedly owned by their respective trusts. An independent audit of these trusts wouldprobablybequiterevealing.Thiswriterisalsounawareofanysuchauditsthat have been performed to date. These National Banks, as trustees are accountable and thereforeliableformissingtrustpropertyorthedocumentsevidencingownership. As more borrowers, lawyers and judges learn that neither MERS nor these trustees are actually holding the promissory notes evidencing the debts they seek to collectthroughforeclosure,dismissalsoftheseforeclosureactionsforlackofstanding

willbecomeroutine.Thiswillalsomeansthatbondholdersfromaroundtheglobewill beseekingtorecovertheirlossesfromtheNationalBanktrustees. Americancourts should no longer tolerate orclose a blind eye to the fact that theMERShasnostandingtocommenceanylegalactionsrelatingtopeoplesproperties becausetheydonotholdanylegalorequitableinterestinthedebtorintheproperties. The Courts must protect the integrity of our court system by enforcing our laws of commerce as they have existed and not allow parties to come into our courts and commence actions relating to debts that they do not own and/or have no proof of ownership. MERS founders and members went about foisting their socalled paperless system on the American economy and indirectly upon the global economy. MERS studiously avoided seeking any legislative changes of long standing commercial laws relatingtopromissorynotes,mortgagesandpublicrecordingofassignmentsinanyof the50statesthatitwouldultimatelybeoperating.Itispossiblethatthisblatantabuse, oftheUCCandstaterecordinglawsmighthavepasseditselfoffasthenewwayofdoing business in our computer age. ButMERS member companies, under clear instructions from their leaders, guarantied disaster by pumping up and then dumping these shaky loans onto investors through trust they set up for this purpose. These investor/bondholders are just now discovering that they were duped. They just dont knowhowbadlytheywereduped. Perhapsthisiswhattheglobaleconomyisreallyallabout.Seeingwhocandupe internationalbanksandgovernmentsoutoftrillionsofdollarsindepositorandtaxpayer money and do so with complete impunity. Yet, to my knowledge, after learning that theyinvestedtrillionsofdollarsintothesequestionableloanpoolsn/k/a/cesspools,not a single National Bank has ordered an audit of these cesspools or trusts to determine theactualcontentsandthevalue.Asamatterofsoundpublicpolicy,ourcourtsshould notallowMERSoritssocalledmemberstocircumventand/orviolatelongstanding laws of commerce; simply because some greedy mortgage executives thought they could shoehorn their socalled paperless system into the framework of our current system of commerce. Our system still requires that such sundry instruments as promissorynotesareusedtoevidencedebtsandalsorequiresthattheseinstruments have to change hands when sold or transferred to a new owner. Our system also requiresanewholderofapromissorynotetorecordanassignmentofsecurityinterest

or mortgage in order to enforce a lien, which secures the debt evidenced by the promissorynote.Nooneshouldbeabletosimplyignoretheselongstandinglawsjust so they can reap billions of dollars in illicit bonuses by quickly originating and then flipping loans without the attendant delivery of notes and assignments of mortgages. Our system of commerce does not operate this way. This is because we have laws of commerceincludingtheUCCwhichregulatesoursystemofcommerce. TheMERSpaperlesssystemsimplyprovidedanexpedientwayforMERSandits members to fleece the investor on a global basis, by loaning money to people who couldntorwouldntpaythemoneybackandthenflippingtrillionsofdollarsofthese bogusloanstothirdpartyinvestors.TheMERSsystemdoesnotcomplywithourcurrent laws of commerce. While the computer age has admittedly changed how business is transacted it has not eliminated or replaced the legal requirement for such things as promissory notes, mortgages and assignments of mortgages, when a loan is made, a mortgagegivenandtheloanissubsequentlysoldand/orresold.Thisispreciselywhya competentandprudentlender,whomakesaloantoaqualifiedborrower,takesbacka promissorynoteandiftheloanistobesecuredtheborrowerexecutedamortgageor security agreement naming the lender as the mortgagee or secured party. The lender must then record or file its mortgage or security agreement to prefect its lien. If the lenderdecidestosellthedebtitisowedtoathirdpartyitmustendorseanddeliverthe promissorynotetothethirdparty.Andinorderforthethirdpartytoenforceeithera mortgage lien or security interest, the original lender must execute an assignment of mortgageorsecurityinterest,whichmustthenberecordedorfiledbythethirdpartyto giveevidenceandpublicnoticeofitsstatusasassigneeoftheliensecuringthedebtit hadpurchased.Onlytheholderofthepromissorynoteisentitledtoenforcethenote and/oranylien,whichsecuredthedebt. Given the extremely close relationship that MERS and its many corporate membershavewiththepoliticianswhorunourstateandfederalgovernments,itisnot surprisingthatMERSanditmemberswereabletopulloffthisgiganticglobalfinancial schemewithoutraisingthebrowofStateorFederallawenforcementorregulators. Only now are a few politicians and regulators paying lip service to what they refer to as the Mortgage Meltdown. What no politician or regulator ever seems to mention is that a millions of the mortgages that melted down have the name Mortgage Electronic Registration System Inc. on them. American courts should no

longer tolerate or close a blind eye to the fact that the MERS has no standing to commenceanylegalactionsrelatingtopeoplespropertiesbecausetheydonotholdany legalorequitableinterestinthedebtorintheproperties.TheCourtsmustprotectthe integrityofourcourtsystembyenforcingourlawsofcommerceastheyhaveexisted andnotallowpartiestocomeintoourcourtsandcommenceactionsrelatingtodebts thattheydonotownand/orhavenoproofofownership. The author has been an investor in real estate since 1976, and has owned properties in eight states and three countries. Over the last thirtytwo years, I have witnessedandheardofmanyillegalorfraudulentschemesinvolvingrealestatefinance. The MERS paperless system is the kind of scheme that is hatched in some internet boilerroominNigeria,notintheboardroomsofouronceprestigiousAmericanfinancial institutions.Thisgiganticschemecompletelyignoredlongstandinglawsofcommerce. The effect of the system has already had a catastrophic effects on both the American and global economy. Yet many of the investment trusts which supposedly hold thousandsoforiginalpromissorynotesarehardpressedtoproducethemwhenlegally requiredtodoso.MERSadmittedlydoesnotholdanypromissorynotes.Apartymust have possession of a promissory note in order to have standing to enforce and/or otherwisecollectadebtthatisowedtoanotherparty.Giventhesefacts,howwillthese investorseverrecouptheirinvestmentsifthedebttheywerebelievedtoowncannotbe legallyenforcedorcollected?Whatwillbethestatusoftitlestopropertiesthatwere purportedlyforeclosedbyMERSwhereMERSadmittedlyhadnolegalrighttoforeclose or otherwise collect debt which are evidenced by promissory notes held by someone else?

THEPROBLEMWITHMERS (MORTGAGEELECTRONICREGISTRATIONSYSTEMS)
SecuritizationMakestheProcessofLitigatingPredatoryLendingMoreCostlyfor Consumers A critique of the effect of securitization lies in the impact it has on civil procedure. Discovery, negotiation, and litigation in general are more expensive for consumerswithsecuritizedloansthanitisforloansfundedbythetraditionalsecondary market. Legal scholars have made a compelling case for the serious potential

consequencesforconsumerswhenbusinessesuseproceduraldisputeresolutioncosts as a hedge against enforcement of substantive law. For example, Jeff Sovern has recently pointed out that many businesses design systems that derive profit from increasing consumers transaction costs. Robert Rubinson has pointed out that only minutepercentageofsocietysdisputeresolutionresourcesareallocatedtodisputes regarding consumers access to shelter even though any principled moral or ethical analysisdemonstratesthatthestakesaremuchhigherindisputesinvolvinglowincome disputantsthanindisputesinvolvingaffluentindividualsororganizations. Moreover, an extensive literature demonstrates the great vulnerability of our civiljusticesystemtomanipulationofprocedureingeneral,anddiscoveryinparticular. For example, a federal district judges remarks from the late 1970s seem equally resonanttoday: TheciviljusticesystemintheUnitedStatesdependsonthewillingnessofboth litigantsandlawyerstotryingoodfaithtocomplywiththerulesestablishedforthefair andefficientadministrationofjustice.Whenthoserulesaremanipulatedorviolatedfor purposes of delay, harassment or unfair advantage, the system breaks down . My experience as a participant in and observer of civil litigation has convinced me that abuseofthejudicialprocessiswidespread.Abuseofthejudicialprocessoccursmost often in connection with discovery. Unjustified demands for and refusals to provide discovery prolong litigation and drive up its costs. Fabrication and suppression of material facts are regrettably common occurrences, although lawyers and judges are oftenreluctanttoadmitit. Giventheseobservations,weshouldnotbesurprisedtofindabusinesssystem thatderivesitsrevenuefromcreatingproceduralroadblocksinthewayofconsumers litigatingfromthebrinkofhomelessness. One characteristic of structured finance is the erection of such barriers. In traditionaltwoandthreepartymortgagemarkets,consumersandtheircounselhada clearerideaofwhomtheywereborrowingfromandwhomightseektoforecloseupon them if they failed to repay. Service of process, interrogatories, depositions, and negotiationscouldbeexpectedtoinvolveonlyonecompanywhichwasresponsiblefor all,ornearlyall,therelationshipfunctionsassociatedwiththeloan.

Incomparison,sellingaloanintoacontemporarystructuredfinanceconduitcan forceconsumerstocommunicatewithandlitigateagainstmanymorebusinessentities. Evensimplelitigationtasks,suchasserviceofprocess,interrogatories,andrequestsfor production of documents, can become much more complicated in structured finance. Whereas forty years ago, a borrower might need to serve one party, to bring the full rangeofpredatorylendingclaimsanddefensestobearonasecuritizationconduitcan requireservingtenormoredifferentbusinesses. This is a daunting task indeed, since at the outset, the consumer will almost alwayshavenoknowledgeofthename,addressorothercontactinformationformany ofthesefirms.Indeed,counselfortheforeclosingpartyitselfprobablydoesnotknow whichbusinesseswereinvolvedinperformingthevariousfunctionsassociatedwiththe loan. Phone calls to the loans servicer are frequently ignored, subject to excruciating delays, and typically can only reach unknowledgeable staff who themselves lack informationonthelargerbusinessrelationships. For their part, securitization trustees are not in the business of counseling the thousands of mortgagors pooled in each of the many real estate trusts they oversee. Policy makers must not underestimate the staggering difficulty of reconstructing the factsinvolvedinonlyoneloan.Securitizationcreatesanopaquebusinessstructurethat consumershavegreatdifficultyforgathering.Securitizationalsocomplicatesthepaper trail for a given mortgage by facilitating frequent permutations in the servicing and ownership history of the loan. One of the benefits of securitization is that it allows trustees to shop for the most efficient servicer, reassigning servicing rights for loan pools when a better deal comes along. And, depending on how the securitization conduitisstructured,aloanmayundergoseveralassignmentsinroutetoitsdestination pool.Whilethesechangesmayhelpensurethatthepoolsecuritiespayoutontimeand otherwisemanageriskstothebusinessesinvolved,theyalsoraisescostsforconsumer counselattemptingtopiecetogetherwhodidwhattotheirclient. Atthesametimemortgageloandocumentationhasbecomemorecomplex,the organizationaltechnologyofsecuritizationhasdisplacedolder,moretransparent,public systems for maintaining records. Nowhere is this more apparent than the use of the Mortgage Electronic Registration System, or MERS, to circumvent county recording offices.

MERSprimaryfunctionistoactasadocumentcustodian.Majorplayersinthe mortgage lending industry created MERS to simplify the process of transferring mortgagesbyavoidingtheneedtorerecordliensandpaycountyrecorderfilingfees each time a loan is assigned. Instead, servicers record loans only once and MERS electronic system monitors transfers and facilitates the trading of notes Currently overhalfofallnewresidentialmortgageloansintheUnitedStatesareregisteredwith MERS and recorded in county recording offices in MERS name. This has reduced transparency in the mortgage market in two ways. First, consumers and their counsel cannolongerturntothepublicrecordingsystemstolearntheidentityoftheholderof their note. Today, county recording systems are increasingly full of one meaningless name, MERS, repeated over and over again. But more importantly, all across the country,MERSnowbringsforeclosureproceedingsinitsownnameeventhoughitis notthefinancialpartyininterest.ThisisproblematicbecauseMERSisnotpreparedfor or equipped to provide responses to consumers discovery requests with respect to predatorylendingclaimsanddefenses.Ineffect,thesecuritizationconduitattemptsto useafacelessandseeminglyinnocentproxywithnoknowledgeofpredatoryorigination or servicing behavior to do the dirty work of seizing the consumers home. While up againstthewallofforeclosure,consumersthattrytoassertpredatorylendingdefenses areoftenforcedtojointhepartyusuallyaninvestmenttrustthatactuallywillbenefit from the foreclosure. As a simple matter of logistics this can be difficult, since the investment trust is even more faceless and seemingly innocent than MERS itself. The investmenttrusthasnocustomerservicepersonnelandhasprobablynotevenretained counsel. Inquiries to the trustee if it can be identified are typically referred to the servicer,whowillthendirectcounselbacktoMERS.Thispatternofnonresponsegives thesecuritizationconduitsignificantleverageinforcingconsumersoutoftheirhomes. The prospect of waging a protracted discovery battle with all of these well funded partiesinhopesofuncoveringevidenceofpredatorylendingcanbetoodauntingeven forthosevictimswhoknowsuchevidenceexists.Soimposingisthisopaquecorporate wall, that in a vast number of foreclosures, MERS actually succeeds in foreclosing withoutproducingtheoriginalnotethelegalsinequanonofforeclosuremuchless documentationthatcouldsupportpredatorylendingdefenses. Comedic Analogy: Taxpayers are capitalizing banks with trillions of dollars, yet theyexpectustosellofourassetstopaytheinterestonloans?Thinkaboutthat.Lets say you have a friend who made some bad investment decisions and now faces

bankruptcy. To help him out, you give (not loan) him millions of dollars. The next day youfindoutthatyourfriendhascheckedintoasuiteattheWynninLasVegas.Youfind himatthehighrollerstableandaskhimhowheisdoing.Heresponds,Hey,yougot those ten thousand dollars I loaned you last year? If not, you can give me that 67 Corvetteyourdadleftyouandwecancalliteven,orIcansueyou.Nothingpersonal, youknowthat.WouldyougivehimtheCorvette?Orbeathimup?

WHATIFMYLOANDOESNTINCLUDEMERS?
If your loan does not have the MERS name associated with it, then you must seekotherremediesthatarevirtuallyguaranteedtobeavailabletoyou.Overtheyears, mortgage finance lobbyists pushed lawmakers and regulators to cause the terms and restrictionsinloanmakingtobecomesocomplex,toallowforderegulation. As a result, Mortgage Professionals have a difficult time abiding by each and every law and regulation on a consistent basis. Furthermore, these results in virtually everyloancontainingflawsthatprovidesrelieftoyouasthehomeowner.

FORENSICLOANANALYSIS
TheImportanceoftheForensicLoanAnalysis:($1500) Many Attorneys and other finance professionals offer loan compliance audits, analyses,andotherreviewsofloandocuments,todetermineTheTruthandRealityof thesituation,revealingoptionsforthehomeowner. For Example, if the finance charges disclosed are only $35 understated on the disclosureforminsomeofyourloandocuments,theentireloancanbeunraveledand thehomeownercanwalkawaywitheverypennyputintotheloanbeingreturned,with noliabilityandnoruinedcredit! Itisimportantheretonotethatmanyprofessionalsofferservicesthatarebetter than doing nothing at all However, only a Forensic Loan Analysis from http://www.ForeclosureSecretsRevealed.com/loanaudit/ will provide a COMPLETE Analysis in the form of an extensive report that can be used as 3rd party evidence in courtproceedings.

COMMONMORTGAGEVIOLATIONSFINDINGS
ConstructiveFraud Material facts include the terms of the loan, whether there is a prepayment penalty, or any other information, which a reasonable borrower would want to know before accepting the loan. Did the broker or loan officer or anyone working for the brokerorloanofficerfailtodiscloseanymaterialfactstotheborrower? FraudandNegligentMisrepresentation Were any representations, statements, or comments, written or oral made by theloanofficer,broker,notaryoranyoneelsecontradictthetermsofthedocuments? When a mortgage professional makes errors, which a reasonably diligent mortgage professional would not have made, he or she may have made a negligent misrepresentation. ExcessiveFees WelookforExcessiveFeesandImproperChargesbyyourLender.Wealsolook for Deceptive Abusive Predatory Lending Practices, Excessive Prepayment Penalties, Tangible Benefits to the Borrower, Affordability to the Borrower, Home Mortgage DisclosureAct(HMDA)Data,BrokerFeeAgreements,andStateandFederalDisclosure Accuracy. BreachofContract All the mortgage documents and attachments are a contract. The lender must followallthetermsofthecontractsuchasthewaytheinterestiscalculated,andthe penaltiesitassesses.Werethereanytermsinthecontract,whichthelenderfailedto follow? AFORENSICLOANAUDITPROVIDESTHEOPPORTUNITYTOGETTOKNOWWHY TOFOCUSONAREASSUCHAS: Sourceoftheloanedfunds? Collateralizingorpledgingthepromissorynotetoa3rdparty? Noteconvertedintoanassetbackedsecuritywithauthorization?

Whereistheoriginalsignednote? Whereotheraccountsdebitedwhenthedisputedaccountwascreated? Allegedloanorreal? WhendidtheborrowerreceiveValuableConsideration? Did the purported lender involved in the alleged loan follow Generally AcceptedAccountPrincipals? Were the appropriate disclosures of terms, costs, commissions, etc, properlydisclosedtoallegedborrower? Didtheservicerservicethemortgageinaccordancewiththetermsofthe mortgage,promissorynote,and/ordeedoftrust? How,whereandwhyeachdebitorcreditwasestablished? Servicers,Assignmentsandholderinduecourse. Chargingofattorneyfees,interest,andotherquestionablecharges. CollectionandLatefees. ForcedPlacedInsurance AttorneyforServiceractinginBadFaith?UncleanHands? Using violations in the audit along with other areas of fraudulent discoverymayprovideyouandyourAttorneywithlitigationclaimssuch as: SlanderofTitle; Fraud(MaterialMisrepresentation); To Void Contract Based on Impossibility to Performance (CA Civil Code 1411,1511,1595etseq); ToCancelDeedofTrust; BreachofFiduciaryDuty, Violation of Business and Professions Code; Intentional Infliction of EmotionalDistress;DeclaratoryRelief; InjunctiveRelief; Restitution(UnjustEnrichment) No matter where/who you choose to perform your audit, the following shouldbeaddressedwithyourCertifiedReportofresults: Documentstobesubmittedtoprofessionalforexamination: Promotionalliterature,correspondenceandborrowersnotesfrominitial contactwithmortgagebrokeroflender.

Anydocumentpurportingtogivethetermsofaproposedloanincluding butnotlimitedtoGoodFaithEstimate The Good Faith Estimate and documents supporting affordability and benefits Thesettlementstatement The name and contact information and appraisal report including the actual person and license number of the appraiser, the amount of the previous sale, any prior appraisals available to borrower, and the borrowersestimateofcurrentvaluedecreasedby12%forbrokersfees (6%)andcurrentaveragediscountfromaskingprice(6%). The name and address of the mortgage broker, and the specific person theborrowerdealtwith,whetherthemortgagebrokerisstillinbusiness. Identificationoftheloanoriginator Determination if FNMA or FreddieMAC wereactually involved or if the standard forms were used from those or any other (HUD) GSE. (GovernmentSponsoredEntity) Identificationoftitleagentwithnameandaddress Identificationoftitleinsurancecompanywithnameandaddress Identificationoftheescrowagentwithnameandaddress Identificationoftheclosingagentwithnameandaddress IdentificationoftheTrusteewithnameandaddress

The set of closing documents given to the borrower: the ones provided before closing, the ones provided after closing and any documents that were transmitted appointingservicerorsubstitutionofTrusteeorassignmentetc. SECreportsandannualreportsofanyoftheseentitiesoraffiliates

If available, Sampling investigation to determine if: Pooling and Services Agreement, Assignment and Assumption Agreement, Insurance, Credit Default Swaps, Cross Collateralization, Overcollateralization, reserves, and bailouts from Federal ReserveorU.S.Treasurycanbeproducedforexamination. Documents,ifavailable,showingauthorityofanypartyallegingrightstoenforce, collect or perform modifications, issue notices of delinquency, default, sale or file foreclosureactions,unlawfuldetainer(eviction)actionsetc.

AREASOFAUDIT
Analysis of disclosures and promotional literature to determine the nature of the deal the borrower thought he/she/they were getting and comparisonwiththeactualresult. AnalysisofGFEetc.andcomparisonwithactualdeal,disclosuresofthird partyfunding,tablefunding,surprisefees,undisclosedfees,undisclosed parties,etc. Analysisofsettlementstatementtodeterminetherepresentationofthe partiesatclosingtotheborrowerandcomparisonwithactualdeal. Appraisalsamplinganalysistodeterminenegligenceorfraudbasedupon comparables of time, geography and whether developer asking prices were used to inflate the appraisal. Calculation of potential claim for inflated appraisal. Determination of the expected life of the loan based upon adjustments, expected market conditions etc. Calculation of probableeffectonAPRovertheexpectedlifeoftheloan. AnalysisofwhethertheclosingconformedtoGSEguidelinesasindustry standards Analysisofconductofthemortgagebrokertodeterminepotentialclaim fornegligenceorfraud Analysis of conduct of the title agent to determine potential claim for cloudontitle,negligenceorfraud Analysisofconductofthetitleinsurancecompanytodeterminepotential claimforcloudontitle,negligenceorfraud Analysisofconductoftheescrowagenttodeterminepotentialclaimfor negligenceorfraud Analysisofconductoftheclosingagenttodeterminepotentialclaimfor negligenceorfraud Analysis of results of investigation for compliance with TILA, RESPA, HOEPA, RICO, Deceptive Business, Predatory/Deceptive Lending, usury etc. AnalysisofconductoftheTrusteeorsuccessorTrusteeonDeedofTrust, ifapplicabletodeterminepotentialclaimfornegligenceorfraud Samplinganalysistoidentifypotentialsuccessortrustees(Pool,SIV,SPV etc.)

Sampling analysis to determine where the borrowers payments have beensentandhowtheyhavebeenapplied,ifavailable. Sampling analysis to determine if the named entity as Payee on the Promissorynotehasbeenpaidinfullbyathirdpartyandpreliminary analysis as to whether the note became nonnegotiable, whether the borrowerowesanyoneanyamount,andifsowhothatmightbeandhow much it might be, if it is possible to make such determinations in the preliminaryinvestigations. Fullaccountingauditincludingexaminationofservicersledgersetc.

AFTERTHEAUDIT:
Challenge letters should be sent to each party seeking to enforce, whether lawyer or party, raising defensive positions concerning their authoritytoact. Extensive Qualified Written Request with suggestions for resolutions, coupled with Notice and contract for appointment of Borrower or BorrowersdesigneeasattorneyinfactforreconveyanceasperRESPA. DemandletterandnoticeifLenderfailstocomply. ChallengeletterifLenderdeniesclaimsorrequiresadditional writtenauthorization Ifavailable,counselsrecommendationofnextsteps Extended Services Available through many Attorneys: Appointment of agentforreconveyance Recordingreconveyance RecordingotherinstrumentsinpropertyrecordsExpertAffidavit Experttestimony Exhibitspreparedforcourt Formcomplaints,motionsandaffidavits LegalghostWriting ConsultationwithBorrower/borrowersattorney AppearancesinCourt

FEDERALLAWSGOVERNINGMORTGAGELENDING
TheUnitedStatesfederalgovernmenthas4corelawsthatmaketheguidelines uniform and administered fairly and equally for all individuals. In fact, all lenders are required to operate under certain rules, regulations and procedures when taking loan applications.Thoserules,regulationsandproceduresarespelledoutintheRealEstate Settlement Procedures Act (RESPA), the Truth In Lending Act (TILA), Equal Credit OpportunityAct(ECOA)andFairCreditReportingAct(FCRA).

TRUTHINLENDINGACTREGULATIONZ TRUTHINLENDINGACT(TILA)
TheTruthInLendingAct(TILA)alsoknownasRegulationZ,requiresthatannual percentagerate(APR),termoftheloanandtotalcostsmustbedisclosedtoaborrower prior to extending credit to the borrower. This information must be conspicuous on documents presented to the consumer before signing, and also possibly on periodic billingstatements.

FORECLOSUREDEFENSEMECHANISMTILA
The most powerful foreclosure defense mechanism afforded consumers by CongressistheextendedrighttorescindamortgagetransactionpursuanttotheTruth inLendingActanditsimplementingRegulationZ. Rescissionofamortgage: Voids the Security Interest (Mortgage/Deed of Trust) in the Consumer's ResidenceNullifiestheConsumer'sObligationUnderthePromissoryNote RequirestheCreditortoRefundClosingCosts ExtinguishesAllFinanceCharges CancelsPrepaymentPenalties RequirestheCreditortoReturntotheConsumerAllSumsPaidOverthe Life of Loan May Result in Forfeiture of the Entire Principal when a CreditorWillfullyViolatestheStatute TripleDamagesMaybeAwardedbyaCourtifLitigated ReimbursementfortheConsumer'sLegalFeesandCostsareMandated

Actual and Statutory Damages are Awarded Consumers in a Successful Action

In summary, tens of thousands of dollars in debt relief and monies paid are recoverabletoconsumersfoundtohaveviablerescissionrightsundertheFederalTruth in Lending These claims can only be discovered in the Forensic Loan Audit making it incrediblyvaluable. http://www.fdic.gov/regulations/laws/rules/65001400.html

EQUALCREDITOPPORTUNITYACT
EqualCreditOpportunityAct(ECOA) The Equal Credit Opportunity Act (ECOA) prohibits discrimination in lending basedonrace,creed,religion,nationalorigin,sex,maritalstatusorage.Italsoensures that all consumers are given an equal chance to obtain credit. This doesn't mean all consumers who apply for credit get it: Factors such as income, expenses, debt, and credit history are considerations for creditworthiness. The law protects you when you deal with any creditor who regularly extends credit, including banks, small loan and finance companies, retail and department stores, credit card companies, and credit unions. Anyone involved in granting credit, such as real estate brokers who arrange financing,iscoveredbythelaw. http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre15.shtm

REALESTATESETTLEMENTPROCEDURESACT
RealEstateSettlementProceduresAct(RESPA) The Real Estate Settlement Procedures Act (RESPA) requires lenders to give a "goodfaith estimate"ofallclosingcostsyouarelikelytopay.Theideaistokeepthe borrower from being forced to pay "hidden" fees at closing. RESPA also requires that borrowers receive disclosures at various times. Some disclosures spell out the costs associated with the settlement, outline lender servicing and escrow account practices anddescribebusinessrelationshipsbetweensettlementserviceproviders. http://www.hud.gov/offices/hsg/sfh/res/respamor.cfm#WT

FAIRCREDITREPORTINGACT
FairCreditReportingAct(FCRA) TheFairCreditReportingAct(FCRA)promotestheaccuracy,fairnessandprivacy of information in the files of consumer reporting agencies. When you apply for a mortgage,thelenderpullsacreditreport.TheFCRAguaranteesyouwillhaveaccessto thatreport. http://www.fdic.gov/regulations/laws/rules/65001400.html

MOREUNITEDSTATESGOVERNMENTONLINERESOURCES
FairHousingandEqualOpportunity(FHEO) FTC Mortgage Servicers: Their Responsibilities to You FAQs About Escrow AccountsforConsumersHowtoAvoidForeclosure(HUD) GuidetoAvoidingForeclosure FTCMortgages/RealEstate HOPEforHomeowners HUDApprovedHousingCounselingAgencies ListofCreditCounselingAgenciesApproved The best way to deal with this is to say that you are willing to enter into an agreementiftheyanswerafewquestions.Themainquestioniswhetherthisloan,note, mortgage and/or obligation has been assigned, transferred and/or securitized and whether they can identify the real party owning or claiming to own the note, mortgage,and/orobligation.Thewaytoputthemupagainstthewallisbyincludinga selfservingstatementthatiftheycannotanswerthisquestion,youmustassumethat they either cannot or will not answer the question despite your right to know the identityofthepartytowhomyouallegedlyowemoney.YourrequestMUSTincludea demand for copies of any applicable documents including Pooling and Service Agreement,AssignmentandAssumptionAgreement,thelocationoftheactualoriginal

note, any allonge, and any assignment together with any documents specifying the dutiesofanyTrusteeorsuccessorTrustee,includingsubstitutionofTrusteeonDeedof Trust, appointment of Trustee for Pooled Assets, appointment of Trustee for any Structured Investment Vehicle, appointment of Trustee for owners of certificates of asset backed securities, and whether there is any record of transfer, sale, bailout, insurancepaymentetctotheinvestor.

HOUSINGRESCUECOMESUPSHORT
RememberHopeforHomeowners?Wedidn'tthinkso.InJuly,Congresspasses the only housing rescue to date: a plan to guarantee up to $300 billion worth of mortgagesandpreventmorethan300,000foreclosures. Buttoparticipate,banksmusttakesteeplossesanddoingsoisvoluntary.The anticlimactic upshot: A piddling 312 applications have been filed since the program's Oct. 1 launch and not one loan workout has been completed, according to the U.S. Department of Housing and Urban Development. By Penelope Patsuris, CNNMoney.comseniorproducer

MORTGAGEGLOSSARYOFTERMS
Acceleration The right of the mortgagee (lender) to demand the immediate repaymentofthemortgageloanbalanceuponthedefaultofthemortgagor(borrower), orbyusingtherightvestedintheDueonSaleClause. Adjustable rate mortgage (ARM) a mortgage in which the interest rate is adjusted periodically based on a preselected index. Also sometimes known as the re negotiable rate mortgage, the variable rate mortgage or the Canadian rollover mortgage. Adjustment interval On an adjustable rate mortgage, the time between changesintheinterestrateand/ormonthlypayment,typicallyone,threeorfiveyears, dependingontheindex. AmortizationMeansloanpaymentbyequalperiodicpaymentcalculatedtopay offthedebtattheendofafixedperiod,includingaccruedinterestontheoutstanding balance. Annualpercentagerate(A.P.R.)interestratereflectingthecostofamortgage asayearlyrate.Thisrateislikelytobehigherthanthestatednoterateoradvertised rateonthemortgage,becauseittakesintoaccountpointandothercreditcost.TheAPR allowshomebuyerstocomparedifferenttypesofmortgagesbasedontheannualcost foreachloan. Appraisal An estimate of the value of property, made by a qualified professionalcalledan"appraiser". AssessmentAlocaltaxleviedagainstapropertyforaspecificpurpose,suchas asewerorstreetlights. Assumption The agreement between buyer and seller where the buyer takes overthepaymentsonanexistingmortgagefromtheseller.Assumingaloancanusually save the buyer money since this is an existing mortgage debt, unlike a new mortgage whereclosingcostandnew,probablyhigher,marketrateinterestchargeswillapply.

Balloon (payment) mortgage Usually a shortterm fixedrate loan which involves small payments for a certain period of time and one large payment for the remainingamountoftheprincipalatatimespecifiedinthecontract. Blanket Mortgage A mortgage covering at least two pieces of real estate as securityforthesamemortgage. Borrower(Mortgagor)Onewhoappliesforandreceivesaloanintheformofa mortgagewiththeintentionofrepayingtheloaninfull Broker An individual in the business of assisting in arranging funding or negotiating contracts for a client buy who does not loan the money himself. Brokers usuallychargeafeeorreceiveacommissionfortheirservices. BuydownWhenthelenderand/orthehomebuildersubsidizedthemortgage byloweringtheinterestrateduringthefirstfewyearsoftheloan.Whilethepayments areinitiallylow,theywillincreasewhenthesubsidyexpires. Cash Flow Theamountofcashderivedoveracertainperiodoftimefroman incomeproducingproperty.Thecashflowshouldbelargeenoughtopaytheexpenses oftheincomeproducingproperty(mortgagepayment,maintenance,utilities,etc.) Caps(interest)Consumersafeguardswhichlimittheamounttheinterestrate onanadjustableratemortgagemaychangeperyearand/orthelifeoftheloan. Caps (payment) Consumer safeguards which limit the amount monthly paymentsonanadjustableratemortgagemaychange. CertificateofEligibilityThedocumentgiventoqualifiedveteranswhichentitles them to VA guaranteed loans for homes, business, and mobile homes. Certificates of eligibilitymaybeobtainedbysendingDD214(SeparationPaper)tothelocalVAoffice withVAform1880(requestforCertificateofEligibility)CertificateofReasonableValue (CRV) An appraisal issued by the Veterans Administration showing the property's currentmarketvalue CertificateofveteranstatusThedocumentgiventoveteransorreservistswho have served 90 days of continuous active duty (including training time) It may be obtained by sending DD 214 to the local VA office with form 268261a (request for

certificate of veteran status. This document enables veterans to obtain lower down paymentsoncertainFHAinsuredloans). Closing The meeting between the buyer, seller and lender or their agents wherethepropertyandfundslegallychangehands,alsocalledsettlement.Closingcosts usually include an origination fee, discount points, appraisal fee, title search and insurance, survey, taxes, deed recording fee, credit report charge and other costs assessedatsettlement.Thecostsofclosingusuallyareabout3percentto6percentof themortgageamount. Commitment A promise by a lender to make a loan on specific terms or conditions to a borrower or builder. A promise by an investor to purchase mortgages from a lender with specific terms or conditions. An agreement, often in writing, between a lender and a borrower to loan money at a future date subject to the completionofpaperworkorcompliancewithstatedconditions. Construction loan A short term interim loan to pay for the construction of buildingsorhomes.Theseareusuallydesignedtoprovideperiodicdisbursementstothe builderasheprogresses. ContractsaleordeedAcontractbetweenpurchaserandasellerofrealestate toconveytitleaftercertainconditionshavebeenmet.Itisaformofinstallmentsale. ConventionalloanAmortgagenotinsuredbyFHAorguaranteedbytheVA. CreditReportAreportdocumentingthecredithistoryandcurrentstatusofa borrower'screditstanding. DebttoIncomeRatioTheratio,expressedasapercentage,whichresultswhen a borrower's monthly payment obligation on longterm debts is divided by his or her grossmonthlyincome.Seehousingexpensestoincomeratio. DeedoftrustInmanystates,thisdocumentisusedinplaceofamortgageto securethepaymentofanote. Default Failure to meet legal obligations in a contract, specifically, failure to makethemonthlypaymentsonamortgage.

DeferredinterestWhenamortgageiswrittenwithamonthlypaymentthatis lessthanrequiredtosatisfythenoterate,theunpaidinterestisdeferredbyaddingitto theloanbalance.Amortization DelinquencyFailuretomakepaymentsontime.Thiscanleadtoforeclosure. Department of Veterans Affairs (VA) An independent agency of the federal government which guarantees longterm, lowor nodown payment mortgages to eligibleveterans. DiscountPointSeepoint DownPaymentMoneypaidtomakeupthedifferencebetweenthepurchase priceandthemortgageamount. DueonSaleClauseAprovisioninamortgageordeedoftrustthatallowsthe lendertodemandimmediatepaymentofthebalanceofthemortgageifthemortgage holdersellsthehome. EarnestMoneyMoneygivenbyabuyertoaselleraspartofthepurchaseprice tobindatransactionorassurepayment. EntitlementTheVAhomeloanbenefitiscalledentitlement.Entitlementfora VAguaranteedhomeloan.Thisisalsoknownaseligibility. EqualCreditOpportunityAct(ECOA)Isafederallawthatrequireslendersand other creditors to make credit equally available without discrimination based on race, color,religion,nationalorigin,age,sex,maritalstatusorreceiptofincomefrompublic assistanceprograms. EquityThedifferencebetweenthefairmarketvalueandcurrentindebtedness alsoreferredtoastheowner'sinterest.Thevalueanownerhasinrealestateoverand abovetheobligationagainsttheproperty. EscrowAnaccountheldbythelenderintowhichthehomebuyerpaysmoney fortaxorinsurancepayments.Alsoearnestdepositsheldpendingloanclosing. FannieMaeSeeFederalNationalMortgageAssociation.

FarmersHomeAdministration(FmHA)Providesfinancingtofarmersandother qualifiedborrowerswhoareunabletoobtainloanselsewhere. Federal Home Loan Bank Board (FHLBB) Theformernamefortheregulatory andsupervisoryagencyforfederallycharteredsavingsinstitutions.Agencyisnowcalled theOficeofThriftSupervision FederalHomeLoanMortgageCorporation(FHLMC)alsocalled"FreddieMac" A quasigovernmental agency that purchases conventional mortgage from insured depositoryinstitutionsandHUDapprovedmortgagebankers FederalHousingAdministration(FHA)AdivisionoftheDepartmentofHousing andUrbanDevelopment.Itsmainactivityistheinsuringofresidentialmortgageloans madebyprivatelenders.FHAalsosetsstandardsforunderwritingmortgages. FederalNationalMortgageAssociation(FNMA)alsoknowas"FannieMae"A taxpaying corporation created by Congress that purchases and sells conventional residential mortgages as well as those insured by FHA or guaranteed by VA. This institution, whichprovidesfundsforoneinsevenmortgages,makesmortgagemoney moreavailableandmoreaffordable. FHA loan A loan insured by the Federal Housing Administration open to all qualifiedhomepurchasers.WhiletherearelimitstothesizeofFHAloans($155,250as of 1/1/96), they are generous enough to handle moderatelypriced homes almost anywhereinthecountry. FHAmortgageinsuranceRequiresafee(upto2.25percentoftheloanamount)paid atclosingtoinsuretheloanwithFHA.Inaddition,FHAmortgageinsurancerequiresan annual fee of up to 0.5 percent of the current loan amount, paid in monthly installments.Thelowerthedownpayment,themoreyearsthefeemustbepaid. FHLMC The Federal Home Loan Mortgage Corporation provides a secondary market for savings and loans by purchasing their conventional loans. Also known as "FreddieMac." FirmCommitmentApromisebyFHAtoinsureamortgageloanforaspecified propertyandborrower.Apromisefromalendertomakeamortgageloan.

FixedRateMortgageThemortgageinterestratewillremainthesameonthese mortgagesthroughoutthetermofthemortgagefortheoriginalborrower. FNMA The Federal National Mortgage Association is a secondary mortgage institution which is the largest single holder of home mortgages in the United States. FNMAbuysVA,FHA,andconventionalmortgagesfromprimarylenders.Alsoknownas "FannieMae." ForeclosureAlegalprocessbywhichthelenderorthesellerforcesasaleofa mortgagedpropertybecausetheborrowerhasnotmetthetermsofthemortgage.Also knownasarepossessionofproperty. FreddieMacSeeFederalHomeLoanMortgageCorporation GinnieMaeSeeGovernmentNationalMortgageAssociation. GovernmentNationalMortgageAssociation(GNMA) Graduated Payment Mortgage (GPM) A type of flexiblepayment mortgage wherethepaymentsincreaseforaspecifiedperiodoftimeandthenleveloff.Thistype ofmortgagehasnegativeamortizationbuiltintoit. Guaranty A promise by one party to pay a debt or perform an obligation contractedbyanotheriftheoriginalpartyfailstopayorperformaccordingtoacontract Hazard Insurance. A form of insurance in which the insurance company protects the insuredfromspecifiedlosses,suchasfire,windstormandthelike. HousingExpensestoIncomeRatioTheratio,expressedasapercentage,which results when a borrower's housing expenses are divided by his/her gross monthly income.Seedebttoincomeratio. ImpoundThatportionofaborrower'smonthlypaymentsheldbythelenderor servicer to pay for taxes, hazard insurance, mortgage insurance, lease payments, and otheritemsastheybecomedue.Alsoknownasreserves. Index A published interest rate against which lenders measure thedifference between the current interest rateon an adjustable rate mortgage and that earned by otherinvestments(suchasonethree,andfiveyearU.S.Treasurysecurityyields,the

monthlyaverageinterestrateonloansclosedbysavingsandloaninstitutions,andthe monthly average costsoffunds incurred by savings and loans), which is then used to adjusttheinterestrateonanadjustablemortgageupordown. InterimFinancingAconstructionloammadeduringcompletionofabuildingor aproject.Apermanentloanusuallyreplacesthisloanaftercompletion. InvestorAmoneysourceforalender. JumboLoanAloanwhichislarger(morethan$214,600asof1/1/97)thanthe limits set by the Federal National Mortgage Association and the Federal Home Loan MortgageCorporation.Becausejumboloanscannotbefundedbythesetwoagencies, theyusuallycarryahigherinterestrate. LienAclaimuponapieceofpropertyforthepaymentorsatisfactionofadebt orobligation. LoantoValue Ratio The relationship between the amount of the mortgage loanandtheappraisedvalueofthepropertyexpressedasapercentage. MarginTheamountalenderaddstotheindexonanadjustableratemortgage toestablishtheadjustedinterestrate. MarketValueThehighestpricethatabuyerwouldpayandthelowestpricea seller would accept on a property. Market value may be different from the price a propertycouldactuallybesoldforatagiventime. MIP (Mortgage Insurance Premium) It is insurance from FHA to the lender againstincurringalossonaccountoftheborrower'sdefault. Mortgage Insurance Money paid to insure the mortgage when the down payment is less than 20 percent. See private mortgage insurance, FHA mortgage insurance. MortgageeThelender MortgagorTheborrowerorhomeowner

Negative Amortization Occurs when your monthly payments are not large enough to pay all the interest due on the loan. This unpaid interest is added to the unpaidbalanceoftheloan.Thedangerofnegativeamortizationisthatthehomebuyer endsupowingmorethantheoriginalamountoftheloan. NetEffectiveIncomeTheborrower'sgrossincomeminusfederalincometax. Non Assumption Clause A statement in a mortgage contract forbidding the assumptionofthemortgagewithoutthepriorapprovalofthelender.Note:Thesigned obligationtopayadebt,asamortgagenote. Office of Thrift Supervision (OTS) The regulatory and supervisory agency for federally chartered savings institutions. Formally known as Federal Home Loan Bank Board OriginationFeeThefeechargedbyalendertoprepareloandocuments,make credit checks, inspect and sometimes appraise a property; usually computed as a percentageofthefacevalueoftheloan. PermanentLoanAlongtermmortgage,usuallytenyearsormore.Alsocalled an"endloan." PITI Principal, Interest, Taxes and Insurance. Also called monthly housing expense. Pledged account Mortgage (PAM) Money is placed in a pledged savings account and this fund plus earned interest is gradually used to reduce mortgage payments. Points(loandiscountpoints)Prepaidinterestassessedatclosingbythelender. Each point is equal to 1 percent of the loan amount (e.g., two points on a $100,000 mortgagewouldcost$2,000). PowerofAttorneyAlegaldocumentauthorizingonepersontoactonbehalfof another.

Prepaid Expenses Necessary to create an escrow account or to adjust the seller'sexistingescrowaccount.Canincludetaxes,hazardinsurance,privatemortgage insuranceandspecialassessments. Prepayment A privilege in a mortgage permitting the borrower to make paymentsinadvanceoftheirduedate. Prepayment Penalty Money charged for an early repayment of debt. Prepaymentpenaltiesareallowedinsomeform(butnotnecessarilyimposed)inmany states. Primary Mortgage Market Lenders making mortgage loans directly to borrower's such as savings and loan associations, commercial banks, and mortgage companies.Theselenderssometimesselltheirmortgagesintothesecondarymortgage marketssuchastoFNMAorGNMA,etc. PrincipalTheamountofdebt,notcountinginterest,leftonaloan. Private Mortgage Insurance (PMI) In the event that you do not have a 20 percentdownpayment,lenderswillallowasmallerdownpaymentaslowas5percent insomecases.Withthesmallerdownpaymentloans,however,borrowersareusually required to carry private mortgage insurance. Private mortgage insurance will usually require an initial premium payment and may require an additional monthly fee dependingonyourloan'sstructure. Realtor A real estate broker or an associate holding active membership in a localrealestateboardaffiliatedwiththeNationalAssociationofRealtors. RecisionThecancellationofacontract.Withrespecttomortgagerefinancing, thelawthatgivesthehomeownerthreedaystocancelacontractinsomecasesonceit issignedifthetransactionusesequityinthehomeassecurity. Recording FeesMoneypaidtothelenderforrecordingahomesalewiththe localauthorities,therebymakingitpartofthepublicrecords. RefinanceObtaininganewmortgageloanonapropertyalreadyowned.Often toreplaceexistingloansontheproperty.

Renegotiable Rate Mortgage A loan in which the interest rate is adjusted periodically.Seeadjustableratemortgage. RESPA (Real Estate Settlement Procedures Act) RESPA is a federal law that allows consumers to review information on known or estimated settlement cost once after application and once prior to or at a settlement. The law requires lenders to furnishtheinformationafterapplicationonly. Reverse Annuity Mortgage (RAM) A form of mortgage in which the lender makesperiodicpaymentstotheborrowerusingtheborrower'sequityinthehomeas Satisfaction of Mortgage: The document issued by the mortgagee when the mortgage loanispaidinfull.Alsocalleda"releaseofmortgage." Second Mortgage A mortgage made subsequent to another mortgage and subordinatetothefirstone. Secondary Mortgage Market The place where primary mortgage lenders sell themortgagestheymaketoobtainmorefundstooriginatemorenewloans.Itprovides liquidityforthelenders.Security. Servicingallthestepsandoperationsalenderperformstokeepaloaningood standing, such as collection of payments, payment of taxes, insurance, property inspectionsandthelike. Settlement/SettlementCostsSeeclosing/closingcosts Shared Appreciation Mortgage (SAM) A mortgage in which a borrower receivesabelowmarketinterestrateinreturnforwhichthelender(oranotherinvestor suchasafamilymemberorotherpartner)receivesaportionofthefutureappreciation inthevalueoftheproperty.Mayalsoapplytomortgagewheretheborrowerssharethe monthlyprincipalandinterestpaymentswithanotherpartyinexchangeforpartofthe appreciation. SimpleInterestInterestwhichiscomputedonlyontheprinciplebalance. Survey A measurement of land, prepared by a registered land surveyor, showingthelocationofthelandwithreferencetoknowpoints,itsdimensions,andthe locationanddimensionsofanybuildings.

Sweat Equity Equity created by a purchaser performing work on a property beingpurchased. TitleAdocumentthatgivesevidenceofanindividual'sownershipofproperty. Title Insurance A policy, usually issued by a title insurance company, which insuresahomebuyeragainsterrorsinthetitlesearch.Thecostofthepolicyisusuallya functionofthevalueoftheproperty,andisoftenbornebythepurchaserand/orseller. Policiesarealsoavailabletoprotectthelender'sinterests. Title Search An examination of municipal records to determine the legal ownershipofproperty.Usuallyisperformedbyatitlecompany. TruthInLending A federal law requiring disclosure of the Annual Percentage Ratetohomebuyersshortlyaftertheyapplyfortheloan.AlsoknownasRegulationZ. TwoStep Mortgage A mortgage in which the borrower receives a below marketinterestrateforaspecifiednumberofyears(mostoftensevenor10),andthen receivesanewinterestrateadjusted(withincertainlimits)tomarketconditionsatthat time.Thelendersometimeshastheoptiontocalltheloanduewith30daysnoticeat theendofsevenor10years.Alsocalled"SuperSeven"or"Premier"mortgage. UnderwritingThedecisionwhethertomakealoantoapotentialhomebuyer basedoncredit,employment,assets,andotherfactorsandthematchingofthisriskto anappropriaterateandtermorloanamount. USURYInterestchargedinexcessofthelegalrateestablishedbylaw. VA Loan A longterm, lowor nodown payment loan guaranteed by the DepartmentofVeteransAffairs.Restrictedtoindividualsqualifiedbymilitaryserviceor otherentitlements. VAMortgageFundingFeeApremiumofupto17/8percent(dependingonthe sizeofthedownpayment)paidonaVAbackedloan.Ona$75,000fixedratemortgage withnodownpayment,thiswouldamountto$1,406eitherpaidatclosingoraddedto theamountfinanced. VariableRateMortgage(VRM)Seeadjustableratemortgage

Verification of Deposit (VOD) A document signed by the borrower's financial institutionverifyingthestatusandbalanceofhis/herfinancialaccounts. Verification of Employment (VOE) A document signed by the borrower's employerverifyinghis/herpositionandsalary. WarehouseFeeManymortgagefirmsmustborrowfundsonashorttermbasis inordertooriginateloanswhicharetobesoldlaterinthesecondarymortgagemarket (ortoinvestors).Whentheprimerateofinterestishigheronshorttermloansthanon mortgageloans,themortgagefirmhasaneconomiclosswhichisoffsetbycharginga warehousefee.

ADDITIONALGLOSSARYOFTERMS
AffidavitAwrittenstatementoffactsvoluntarilymadebyapersonunderan oath or affirmation administered by a person authorized to do so by law, such as a notary. Affidavit in Opposition An affidavit filed with the Court that states that somethingabouttheplaintiffscaseisfalseaccordingtothedefendant,thuscreatinga genuineissueofmaterialfact. AffirmativeDefensesWhenadefendantfilesananswer,inadditiontodenying someoralloftheallegations,he/shecanstatewhatarecalled"affirmativedefenses." These defenses can contain allegations; take the initiative against statements of facts contrary to those stated in the original complaint against them, and include various defenses based on legal principles. Many of these defenses fall into the "boilerplate" (statedinroutine,nonspecificlanguage)category,butoneormoreofthedefensesmay helpthedefendant. Agency Relationship Aconsensualrelationshipcreatedbycontractorbylaw whereoneparty,theprincipal,grantsauthorityforanotherparty,theagent,toacton behalf of and under the control of the principal to deal with a third party. An agency relationshipisfiduciaryinnatureandtheactionsandwordsofanagentexchangedwith athirdpartybindtheprincipal.

AgreedOrderOrderonamotionsignedbybothpartiesthatstatesthatthere isnolongeradisputeastothemotion. AnswerThefirstresponsivepleadingfiledbythedefendantinacivilaction;a formalwrittenstatementthatadmitsordeniestheallegationsinthecomplaintandsets forthanyavailableaffirmativedefenses. Assignment of Mortgage Document used to transfer the ownership of a mortgagefromonepartytoanother. BankruptcyAfederallyauthorizedprocedurebywhichadebtoranindividual, corporation,ormunicipalityisrelievedoftotalliabilityforitsdebtsbymakingcourt approvedarrangementsfortheirpartialrepayment. BorrowerThepersontowhomathingislentathisrequest. CauseofActionThefactorcombinationoffactsthatgivesapersontheright toseekjudicialremedyorreliefagainstanother.Itisthelegaltheoryformingthebasis ofalawsuit. Certificate of TitleAcertificatethatannouncesthatthereisanewownerof theproperty. ChainofPossessionThelistofpeopleorentitiesthathaveownedapieceof propertyleadinguptothecurrentowneroftheproperty. Clerk/ClerksOfficeTheteamofpeopleassignedwiththetaskofkeepingallof thecourtfilesuptodateandcomplete.Thisistheplacetogotofileanydocumentyou wantthecourttotakenoticeof. ClosingDateThedatethathasbeenagreeduponbythebuyerandtheseller fortheactualsaleoftheproperty. ComplaintAcivilcomplaintinitiatesacivillawsuitbysettingforthforthecourt aclaimforrelieffromdamagescaused,orwrongfulconductengagedin,bythe defendant. The complaint outlines all of the plaintiff's theories of relief, or causes of action, and the facts supporting each cause of action. The complaint also servesasnoticetothedefendantthatlegalactionisunderway.

Counterclaim A claim by a defendant opposing the claim of the plaintiff and seekingsomerelieffromtheplaintiffforthedefendant Default A default judgment is one that may be entered against a party in a lawsuitforfailuretocomplywithaproceduralstepinthesuit,suchasfailuretofilean answertoacomplaintorfailuretofileapaperontime. DefendantThepersondefendingordenying;thepartyagainstwhomreliefor recoveryissoughtinanactionorsuit. DepositionThetestimonyofapartyorwitnessinacivilorcriminalproceeding taken before trial, usually in an attorney's office. Deposition testimony is taken orally, withanattorneyaskingquestions andthedeponent(theindividualbeingquestioned) answering while a court reporter or tape recorder (or sometimes both) records the testimony. Discharge Act or instrument by which a contract or agreement is ended. A mortgage is discharged if it has been carried out to the full extent originally contemplatedorterminatedpriortototalexecution. Discovery A categoryof procedural devices employed by a party to a civil or criminalaction,priortotrial,torequiretheadversepartytodiscloseinformationthatis essential for the preparation of the requesting party's case and that the other party aloneknowsorpossesses. DocketToenterthedatesofjudicialproceedingsscheduledfortrialinabook keptbyacourt. EmergencyMotiontoStayForeclosureSaleMotionraisedbydefendanttoask thecourttocancelthescheduledforeclosuresaleandresetitforalaterdate. FDCPA Request Letter written by the borrower to the plaintiffs attorney requesting debt verification. Once the attorney receives this letter, the foreclosure processmustbeputonholduntiltheFDCPAletterissenttotheborrower.TheFDCPA requestmustbemadewithinthirty(30)daysofthecomplaintbeingfiled. FDCPA Letter Letter of debt verification issued by the plaintiffs attorney, in responsetoarequestmadebytheborrowerfortheverification.

ForbearanceRefrainingfromdoingsomethingthatonehasalegalrighttodo. Givingoffurthertimeforrepaymentofanobligationoragreement;nottoenforceclaim at its due date. A delay in enforcing a legal right. Act by which creditor waits for paymentofdebtduebyadebtorafteritbecomesdue. Foreclosure A procedure by which the holder of a mortgagean interest in landprovidingsecurityfortheperformanceofadutyorthepaymentofadebtsells the property upon the failure of the debtor to pay the mortgage debt and, thereby, terminateshisorherrightsintheproperty. HardshipLetterLetterdescribingthereasonsthataborrowerhasbeenunable to fulfill his or her obligations under a loan agreement. A hardship letter does not containlegaldefenses,asitisbasedonsympathyalone. InvestorTheentitythathaspurchasedthenoteandmortgagefromthelender andisnowthePlaintiffintheforeclosuresuit. LenderTheentitythatoriginallylenttheborrowermoneyforthepurchaseof theproperty. LisPendensAnoticefiledintheofficeofpublicrecordsthattheownershipof real property is the subject of a legal controversy and that anyone who purchases it takes it subject to any claims asserted in the action and thereby its value might be diminished. LoanOriginationDocumentsAnyformsthatwerefilledoutbytheborroweror themortgagebrokerinpreparationfortheentranceintotheloanagreement. Loss Mitigation Division of the servicing agent that focuses on reducing the amount of loss to both sides in a foreclosure. They are the people to talk to for loan modification,forbearanceagreements,reinstatementplans,andpayoffamounts. Lost Note Affidavit Sworn statement issued by the servicing agent that explains that they had the note in their possession, but then they lost it. It is used to reestablishownershipoverthenote.

Mediation A settlement of a dispute or controversy by setting up an independent person between two contending parties in order to aid them in the settlementoftheirdisagreement. ModificationAnagreementmadewiththeservicingagenttotearuptheold termsofthenoteandenterintoanewagreementwithmorefavorableterms. MortgageAlegaldocumentbywhichtheowner(i.e.,thebuyer)transfersto thelenderaninterestinrealestatetosecuretherepaymentofadebt,evidencedbya mortgagenote. Motion for Continuance Motion filed with the court that asks the judge to postponethehearinguntilalaterdatebecauseonepartyortheotherisunavailable. MotionforSummaryFinalJudgmentofForeclosureAproceduraldeviceused duringcivillitigationtopromptlyandexpeditiouslydisposeofacasewithoutatrial.Itis usedwhenthereisnodisputeastothematerialfactsofthecaseandapartyisentitled tojudgmentasamatteroflaw. Motion to DismissMotionthatasksthecourttodecidethataclaim,evenif trueasstated,isnotoneforwhichthelawoffersalegalremedy. MotiontoVacateDefaultMotionfiledwiththecourtthatrequeststhesetting asideofapreviouslyentereddefaultinordertoallowthepartytofileananswer. Necessary Party Person or entity whose interests will be affected by the outcomeofalawsuit,whoseabsenceasapartyinthesuitpreventsajudgmentonall issues NoteWrittenstatementofdebtbyoneormorepeopletooneormorepeople, withastatementofaspecificamountowedordue,dateitisdue,interest(ifany)on theamount,andothertermssuchasinstallments,penaltyforlatepayment,fullamount due if delinquent, how secured (as by real property), and attorneys' fees and costs if requiredtocollectonthenote. Notice of Hearing Notice that must be sent to all parties in a lawsuit that explainsthedate,time,andlocationofanupcominghearing.

Notice of Action/Publication Publication of a summons is the process of publishingitinanewspaper,whenrequiredbylaw,inordertonotifyadefendant ofthelawsuit.Thenoticeofactionisfiledwiththeclerkwheneverpublicationis necessary. NonResident Cost Bond Bond that must be purchased by any party to a lawsuitthatresidesoutsideofthestatethatthesuitisfiledin.Thebondprotectsthe otherpartyincasedamagesaretobepaid. ObjectiontoSaleDocumentthatmustbefiledwithinten(10)daysfollowinga salethatclaimsthatsomethingaboutthesalewasnotappropriateandtherefore,the saleshouldbevacatedandreset. PlaintiffThepartywhoinitiatesalawsuitbyfilingacomplaintwiththeclerkof the court against the defendant(s) demanding damages, performance and/or court determinationofrights. QuitClaimDeedAninstrumentofconveyanceofrealpropertythatpassesany title, claim, or interest that the grantor has in the premises but does not make any representationsastothevalidityofsuchtitle. ReinstatementThepayingofasetamountofmoneytotheservicingagentin order to avoid foreclosure and allow the borrower to continue making their regularly scheduledpayment. Request for Production Also called discovery, a request to produce requires the adverse party to disclose information that is essential for the preparation of the requestingparty'scaseandthattheotherpartyaloneknowsorpossesses. SaleDateThisisthedatethattheforeclosedpropertyisscheduledtobesold atpublicauction. Service of Process Delivery of a writ, summons, or other legal papers to the personrequiredtorespondtothem.

ServicingAgentCompanyhiredbytheinvestortomanagethenote,mortgage, foreclosureproceedingandlossmitigation.Theyarethestockbrokersofthemortgage world. ShortSaleProcessbywhichtheservicingagentagreestoallowtheborrower to sell the property for less money than the amount owed on the loan, and pay the proceedstotheservicingagentaspaymentinfullofthedebtowed. Standing The legally protectable stake or interest that an individual has in a dispute that entitles him to bring the controversy before the court to obtain judicial relief. Summons The paper that tells a defendant that he or she is being sued and assertsthepowerofthecourttohearanddeterminethecase.Aformoflegalprocess that commands the defendant to appear before the court on a specific day and to answerthecomplaintmadebytheplaintiff. Title CompanyCompanyhiredbytheplaintiffto verifythechainoftitleand assurethatallnecessarypartiesareincludedintheforeclosureaction. WritofPossession/RestitutionAnorderissuedbythecourtdirectingasheriff toejectanypersoncurrentlyinpossessionoftheforeclosedproperty;aneviction.

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