Quiet Title: Head to head approach

From Bill: Sample Cause of Action in our complaints… (decoupling). Neil, your thoughts?

Editor’s Note: My thoughts are this is exactly what is needed.

————-

PRIMARY CAUSE OF ACTION – THE DEED OF TRUST IS NULL
QUIET TITLE IS THEREFORE REMEDY TO THAT NULLITY

1. Between July to August 2006, a now-bankrupt Countrywide Home Loans Inc. in conjunction with US Bank N.A., illegally decoupled (separated) ownership of a note, which listed Countrywide Home Loans Inc., – from ownership of the Arizona-recorded Deed of Trust, which in contrast listed the ‘beneficiary’ as MERS. (Maricopa County Recorder #2006-10000). This now-bankrupt Countrywide Home Loans Inc. note was created in the name a previous owner of Plaintiff’s property at _____________.

2. During this origination period, Countrywide Home Loans Inc. and US Bank N.A. well knew long-standing black letter mortgage law – the 1872 US Supreme Court precedent Carpenter v. Longan, 83 U.S. 271, at 274, inter alia, which states any separation of the Note from the Deed of Trust is a Nullity.

“The note and mortgage are inseparable; the former as essential, the latter as an incident. An assignment of the note carries the mortgage with it, while an assignment of the latter alone is a nullity”.

3. In the last 24 months, Carpenter v. Longan, 83 U.S. 271, at 274 has been repeatedly used as foundational precedent throughout this county, as the basis for illegal nullity in numerous courts including the Kansas Supreme Court in Landmark Nat’l Bank v. Kessler, 216 P.3d 158 (2009); and the Supreme Court of Arkansas in Mortgage Electronic Registration Systems. Inc. v. Southwest Homes of Arkansas, 2009 WL 723182 (2009), inter alia, and many others.

COUNT I
QUIET TITLE, A.R.S. § 12-1101, et seq.

4. Plaintiff repeats, re-alleges, and incorporates by reference the foregoing paragraphs.
5. Plaintiff holds title to its subject property at _________________.
6. Plaintiff is credibly informed and believes that these non-real party(ies) in interest Defendants make some claim adverse to Plaintiff.
7. A null security agreement is unenforceable for foreclosure or cloud on title in Arizona. Quiet Title is the only remaining option.
8. Defendants’ Decoupling Separation violates the long-standing precedence of Carpenter v. Longan, 83 U.S. 271.

9. Said Deed of Trust was indeed separated from the note, one or more times, making it null, deficient, and illegal.
10. Said nullity is an improper cloud on title.
11. WHEREFORE, Plaintiff requests that judgment be entered against Defendants as follows:
A. Judgment establishing Plaintiff’s estate as described above;
B. Judgment barring and forever estopping Defendants from having or claiming any right or title to the premises adverse to Plaintiff;
C. Judgment for Plaintiff’s attorneys’ fees and costs;
D. Such other and further relief as this Court deems just and proper.

51 Responses

  1. I like reading through an article that can make people
    think. Also, thanks for permitting me to comment!

  2. Go to http://www.cloudedtitles.com for the latest update on chain of title assessment workshops being held around the country.

  3. dont you know?
    FIRST AMERICAN TITLE COMPANY subs Chase JP Morgan
    Chase is behind all the master mind of all this….

  4. hey guys;
    thank God, judge ruled on my favor, court vacated my property..
    I think the best way is to file a complaint against Judges, if Judges fair and justice, let court liable for their actions, and next pursue to all the lawyers and bankers which has no back bone…

    Im a pro- se
    if need more detail call me 904-993-3822
    godless America justice for all and pursuit to happiness

  5. From “another” Bill in Ca. who lost a Condo in Mesa, Az. ALL of this is relevant to my complaints. It got “sold” at a “Trustee Sale” for $6000 more than my original down payment in 2006! I have no problem with anyone contacting me. I finally gave up. I didn’t think my Life was worth a Condo.

  6. The Min number is generally on the first page of the Deed of Trust or Mortgage at the top. Then look in the first few pages of the doc and usually around par. 13 you will see that Mers is the nominee.

  7. Where do you find the MERS information on your loan? thx

  8. I have not commented for some time on Living Lies for lots of reasons. But I feel compelled to do so based upon what I am seeing lately going on in the bankrtupcy courts and qt actions. I continue to work for lawyers and for myself in this area of the law while studying for the bar exam in feb. However, I hear awful things from pro se’s and those talking to lawyers. So here goes folks my take. Don’t let some attorney talk you into ging into bankrtupcy if you don’t have a lot of debt. It will kill your credit rating. Some of these lawyers are now suggesting you take a stragegic default by stop making payments, the bank starting foreclosure, you taking bankruptcy and they the bank then moes to lift the stay an you oppose it by a motion challenging standing. Well the problem is the bankrtupcy screws your credit rating and in many instances the banks don’t move to lift the stay. They sandbag and after th bankruptcy come back and sell the property without notice to you. Yes they can do that. Its happening. Then they do an unlawful detainer and you are in the position of contesting it then. Difficult, but not impossible by a quiet title although that was dismissed in Ar. (Im working on an appellate br on that issue). The better way to do this is you are behind, file the quiet title AND A DECLARATORY jugment action. File a lis pendens and if foreclosure has been initiated file a TRO claiming you are contesting title and ownership of the note and that has to be decided before foreclosure. 95 percent of the time that works. YOU DON’T NEED A SECURITIZATION REPORT (SORRY NEIL) You need a chain of title report showing the COT is screwed up. Get a preliminary title report from Chicago showing its unmarketable. The QT takes care of titel but not the note. The Declaratory judgment action takes care of the note. You bear the burden on the QT (easy with a COT) they bear the burden on the DC action (hard for them if the note is split from the DT (in most states but not all). The sec will give affidavits on the note not being in the pool or take their dep rather than a securitization report. The securitization report can only go in thru an expert and getting a decent expert who can testify is very hard (trust me I took experts for 30 years in cases and they are susceptible to being stricken and not allowed). So, I am a little tired of these lawyers putting people in bankrtupcy when they don’t need to go there. I am also tired of them saying that QT gets a free and clear house. It doesn’t. You need to publish in that venue and file the DC action as part. You also need to sue the trustee for breach of fiduciary duty and the servicer for negligence in collecting monies they should not collect. This gets you fees for your lawyer. I’m working thru this in my own case. Be careful. They may try to remove you to fed court on fraudulent joinder grounds. But this is doable. There are also ways to attack the paperwork on fraudulent signatures under some state law like Texas. go to cloudedtitles.com and dave krieger. Still the single best guy in my opinion knowing what he is doing. He has a new 400 page book which a number of lawyers throughout the country are endorsing. Securitization is bs in my opinion and does not get you what you need. sorry folks that is this person’s opinion. QT is not easy and it is timeconsuming and it is not for the faint of heart or some idiot lawyer, but it will get it done and will not screw up your credit and make your lawyer rich.

  9. Neil, would you ever suggest just starting with a Cancellation of Instruments case, alone, where the Deed of Trust is forged and the assignment of the deed of trust is is robo-signed and fraudulent, and then filing for a quiet title after that is decided?

  10. PS… thank you all for your participation, help, caring, kindness, opinions, reference and all energy you share!! (Dave thanks for response, turned out that in Md the Les Pendens automatically is filed, in the records, according to the recorders office any court case is automatically filed or referenced in the land records office… I need to follow up on that one day) :-} Hug to all

  11. Christine. so glad to see others are like minded… My next step is to go after the Judges and the alleged Trustees.. they are acting outside their capacity (principal agent)!!! I would love to work with you or anyone in this aspect because i believe we need to shut it down for all our brothers and sisters who just dont have the time, money or braincells (desire) to learn all this and do it….;-} Here is my take on it….. The Judge (please know and refer to Rod Class who has proven this in court in NC) working for a business (the court,, if they have a tax ID # then they are a business just as churches are businesses with tax ID#) and as such are “agents” of the court as are the Attorneys considered to be agents of the courts…. so under basics of agent, principal relationship the principal is liable for the principal as long as the the agent stays within the bounds of the contract (rules, regulations statutes etc. and the Law according to the Trust) . When they act or do something outside of the “bounds” of the contract/trust then they are ON THEIR OWN!!! NO PROTECTIONS, NO IMMUNITIES!!!
    The last case I read and put in my QT kept coming back to me, “when a party comes into court and has no standing, the courts have no jurisdiction” BANG! if the Courts have no jurisdiction then the judges have no authority!!!! Having no authority then they acted on their own outside their capacity!!!! No immunity!! no protections!! In fact the moment they act outside their capacity and conduct any sort of tort or crime they violate their oath of office and are no longer holding their position. “shall hold their positions, upon good behavior”. So they no longer hold them!! Which means on top of everything else they are committing fraud. Pretending to hold a position of public TRUST and they are NOT!
    Lets look at a tiny bit of what they have done… they paid or caused by their order (constructive fraud) and position, the payment of a Counterfeit instrument. (the sale of the property and the proceeds going to pay the pretender lender agents… ). Yes a copy of a Note is a COUNTERFEIT!!!! What is the term used for participating in making, use or negotiating counterfeit instruments?
    So, I could really use some help (opinions) to do this right…. by taking them to task, they will STOP doing it all together. Right now it is one in fifty thousand that even tries o fight it. So on their balance sheet it is still a money making scam. They wont stop till it no longer benefits them!!
    I also think that now the cat is out of the bag that these courts are businesses, can be sued and held liable for not monitoring their employees/agents. ……
    Now lets get to the real scumbags.. the alleged substitute Trustees that cant be trusted. Allegedly we wrote/created the Deed of Trust.. (find history on trusts, very interesting) bottom line as grantors we make the rules and they must obey!! In the same manner in the Constitution, X amendment “The Powers not delegated to the United States by this Constitution, nor prohibited by it… are reserved to the states OR the people”.. So I reserve all powers.!! anyhoo.. the trust, read it carefully, never “delegated” any power to the Trustee to bring any actions what so ever!! In fact they are obliged under the trust to protect the trust and the res and the grantor!! To protect the Trust they must protect the res, cause without the res there aint no trust! So first they are givin power to sell the property under specific circumstances… when the holder/owner/holder in due course of both the Note and the Deed of Trust, after giving notice of default, after giving notice of acceleration and most importantly having standing (given value for the instruments) and clean hands, requests the Trustees Sell the property to buy back the Note…. then and only then can they sell the property!!! None of these circumstances can ever exist, therefore NO TRESTEE/SUBSTITUTE TRUSTEE can bring any action and can never sell the property. !!!
    So once again we have an agent (special and specific) acting outside of their capacity!!! They are Liable!!!
    I remember this from college class… agent has permission to take van home and back (but no other) to work and for the job itself…. agent, get in accident on way to work… company pays…. agent takes side trip and does a little drug dealing to the local Judge that is feeling the pressure :0 and gets into an accident… he is liable because he was not authorized to do drug deals with the company van. That simple…..
    What say you???
    Can we put together a team to work on this?
    Oh I have one other note…. the all caps NAME is a fiction or at the very least not the living man or even the birth man label, it is a different entity all together!! So when the Judge unlawfully “grants” a foreclosure against the ALL CAPS NAME that is fine (not) but the ALL CAPS NAME aint on the deed in the land records… hmm in fact I can not find that the ALL CAPS NAME owns anything… so how is it that the Judge can order the sale of a property to pay anthers ALL CAPS NAME judgement?? Can’t!! and the ALL CAPS NAME is not found on the Note or the Deed of Trust they brought copies (counterfeit) of alleged Note and alleged DOT…. hmmm once again ain’t the judge steppin outside the “bounds” of the office? “…;and the Judges in every State shall be bound thereby, …”
    Oh and by the way if it never made it to the REMIC or it was taken out of the REMIC or some other non tax vehicle then the moment it is removed or never made it in, (as we are finding out) then it is taxable….. oops, that means they are in possession of CONTRA-BAN !! :-}.. HA they didn’t pay the taxes and that makes them tax evaders and the Judge is doing business with them… can we spell whistle blower?….. blessings (may all your desires be fulfilled) It is time to manifest the world we desire and leave the corruption to its demise. Life, Liberty and the pursuit of happiness. What makes you happy, believe it, think it, imagine it and give it energy, in that way you do Manifest it into reality.. it is shown to be true scientifically!!! The fact that this and other sites exists is proof!! Myself and others desired it and here it is… yea, we are the creators created to create. The only currentsee is Happiness and joy. Let the energy flow!!! I believe in Joy, happiness and kindness ,,what are you manifesting? the living man known as colin

  12. why not try the writ of discovery of the note?????

  13. Truthmonger …

    Every state has specific requirements for lis pendens. You did not say what state you were in.
    Florida for example is found under F.S.A. 48.23.
    There is no “sample” per se because these are not only case-specific, they are property-specific.

    I cannot and will not post someone else’s lis pendens from their court case, because it may not apply to you … posting blank forms could be construed as UPL.

    If you are looking to see what others have done, Google the case in the state you’re in; go to the nearest courthouse records, or go online to any county recorders office that has internet access, type in (or use the pulldown menu) and look for
    LIS PENDENS. That will reveal documents filed in law suits that were used to notice parties of suits pending.

    This is paralegal level research, not legal advice.
    Whether you are playing with bifurcation issues is of no concern to the filing of a lis pendens. They are two different animals. One is an argument that requires a conclusion of law and the other is a recordation notice.

    Best of luck in your search.

    Dave

  14. Can someone Pleeeeeese paste a sample of a Lis Pendens for a quiet title action on bifercation. Thank you…
    I am filing one and just too tired to put it together after working on my QT filing.. if it wins I’ll share it. I think it is good but only the test will show. Thanks

  15. I’m in GA trying to keep my head above water. Your web site is very helpful.

    Thanks

  16. Mr. Garfield,
    Question regarding Title and Recission of Sale to Investor:
    Example: Homeowner decides to sign over Deed to investor, based on foreclosure notice and not understanding at the time he may have the right to file a defense against the lender. Homeowner is made aware of his right to file a suit against lender. Investor has NOT filed suit against lender, HAS been negotiating with lender o/b/o without homeowners’ permission, and has found fraud to be an issue with investor Title/Deed still in name of homeowner. The homeowner wants to rescind the transaction between he and the investor. Does the homeowner send a letter of Recission based on fraud and based on the ability to file suit against the lender? How can he retreive the house back from the investor who has committed fraud.

  17. bill or anyone else–if you want my quiet title and declaratory juugment that I filed myself in Jackson County, Mo with my claims against the trustee and mers under common law, email me ag gwencaranchini@sbcglobal.net and i will send. I am not licensed to practice law and this is not legal advice–its just what I ahve done. used proactice not any more.

  18. Bill’s response to Christine’s post.

    Christine:

    Great idea. Can you please post the cite or .pdfs for your wonderful action. We all need to duplicate these efforts as well. Let us join in or at least duplicate.

    We each have a separate cause of action against these same people!

    These pretender Trustees hide behind A.R.S. 33 § 807(e), which protects them only when they are not in breach. Producing false documents AND/OR covering up faulty title is certainly joins the Banks’ breach, which puts them in breach.

    Further, § 807(e) is unconstitutional or unconstitutionally applied, if used as a defense to any fraud they committed.

    We need to start researching the assets of each of these foreclosure mills owner’s buying and selling of property, what are they doing, and that we can trace these assets after your victory!

    Will buy Dave’s ebook as well. Sounds like a real winner.

  19. Bill’s Response V

    Dave:
    Gwen:
    Friends Here!

    Dave, thank you boatloads for getting ‘on the air.’ We EACH are now the ‘new media’. Infect every place: Talk Radio, News, Flyers, Political Events, ‘Tea Parties’, Churches, etc. etc. Let’s help Neil get the message out way bigger than we have already. There is no turning back now. It’s all or nothing.

    I know the fraud. You know the frauds. The lack of Chain of Title. The criminality. The political sellouts. The Judicial cover-ups. Everyone on this site does, particularly Neil. How can we allow this to be yet again covered-up, and our neighbors homeless as a result?

    America’s freedom cannot survive this. I’m increasing my efforts 5x fold. We handed out another 400 fliers about this mortgage crisis at some random political event yesterday.

    Lets direct all this anger to that which actually is causing all of these problems – Banks, counterfeited notes ‘money’, politicians of both ‘parties’ covering it up.

    As you well noted, Helen Purcell is a self-serving disaster. Violates the law with absolute impunity in Arizona. Tied to the self-named “Phoenix 40”, the business mafia that killed reporter Don Bolles in 1977. Name recognition, keeps her illegalities covered up well here. McCain associates with these same people as well. Foreclosure mill Tiffany & Bosco is tied in as well.

    Arizona voters are very lost, and don’t know.

    Been on your website and thank you for the link. Will review that atty’s complaint for ideas. Interesting quiet title ideas. Will review much further.

    Interestingly, Arizona has no ‘licensed’ attorneys, or statute to be ‘licensed’. Only Bar membership as a defacto civil replacement, by Ct rule.

    Each Bar’s UPL is their way these keep everyone scared and subservient in fear not to fully use their 1st amendment rights to free speech. It does NOT protect the public as they claim, but protects propaganda mind-reshaping places misnamed law ‘schools’. Teaching bright young minds that our Bill of Rights and the few laws actually protecting the people, don’t really mean what they say. They are always ‘interpreted’ into non-existence.

    Unfortunately, our corrupt American Bars have their roots in the ancient British Bar, which was and is completely subservient to the queens, kings, & Tories. Look at our original US constitution’s 13th amendment. It forbade anyone with a ‘title of nobility’ from even holding office. Then this corrupt system just removed this original 13th amendment from copies of the constitution in circa 1865 and ‘replaced’ it with a new ‘13’, that is really a 14th amendment.

    Most of the ratification records were burned in the war of 1812, but Colorado’s early constitution shows it plainly, 30 years later, as well as several law books. Recently it was proven that Virginia did ratify it.

    See also: http://www.hawaiian-tv.com/showthread.php?t=701

    We live in a world of lies…

    Let’s refute them as the new media everyday.

    Bill

  20. Dave and Gwen are spot on. Get his book, it’s excellent.

    I have a lawyer client here in Arizona who is pursuing the substitute trustee here in Arizona state court, and the bank’s lawyer told her that she shouldn’t have sued them because they were acting under the statute. Except that they fabricated and recorded documents without any authority. The non-judicial foreclosure states have a much bigger problem with these documents because there is no oversight of the non-judicial foreclosure process.

    The Arizona foreclosure mill lawyers better have their millions in offshore bank accounts, because it’s just a matter of time before the fraud allegations spread out west. Look at what’s happening in Florida for a peek at what’s headed out this way. It might take a few months but it will happen.

    By the way, New York courts are now requiring that the attorneys who are foreclosing must file an affidavit or it’s their neck on the line.

  21. it never ceases to amaze me how the Bar prevents ordinary citizens from doing the simplest of things–such as filing a lis pendens. In Mo we don’t use lawyers even for real estate transactions any more–

  22. To Bill et al …

    Maricopa County seems to have a County Recorder that has been in office way too long and it’s time you ousted her. Helen Purcell has got to go! Now you have a reason you can tell the taxpayers WHY your county is so broke!

    These recorders wonder why their county is so broke? Because they let MERS record anything it wants to and MERS and its agents starve them for fees! Start working against your own county recorders and ramp up the comment to them and the AG and tell them (and the county commission) to ban MERS (by ordinance) from ever recording anything in their courthouse again. That will put an end to this nonsense and get more revenue for Maricopa County.
    Sorry, but I can’t do anything about multicultural issues. Foreclosure and clouded titles affects all of us.

    I WILL BE GUESTING ON DR. KEVIN SKIPPER’S SHOW ON WVOC-AM IN COLUMBIA, SC ON SATURDAY … THE 30TH OF OCTOBER AT 11:00 A.M. EST … TALKING ABOUT FORECLOSURES AND THE MESS THEY CREATE FOR OUR FUTURE. http://www.wvoc.com … then click LISTEN LIVE.

    THIS MONDAY … I will be appearing on Noon Edition on KVUE-TV in Austin (ABC) …

    That’s how you get the word out …

    A national seminar tour is anticipated at some point. I have been invited to participate in some CLE classes for attorneys … yes, there is hope. I get to explain to them the importance of clouds on title and defuse their consciences … the passionate ones will step out because the E&O carriers will be the next entities to take it on the chin for this foreclosure mess. Good litigators smell money. I actually have attorneys that laugh every time they get a case … it puts them one step closer to victory.

    I do not advocate class actions as a means of PR. People can assist by doing their own PR …

    Warn others that if they buy a foreclosed home, they face title problems … especially investors. Stay away from properties where the bank makes you sign a waiver indemnifying them from all legal liability for condition of title. WF has been reportedly doing this. This is one way you can get the title companies on board. It’s obvious that not enough of them understand this mess …

    Go to http://www.cloudedtitles.com for updates. Then keep your eye on the courthouses, because the suits will be there. If you see a posted case # on my site, it will mean there is something active that you should be paying attention to.

    I may not be able to give legal advice, but I can share research and take it to the media. That is what I did for a number of years … as a News Director. I saw this coming down in October 2006 when the first wave of subprimes reset themselves and sold out of all of my properties. By 2008, I was mortgage free.

    To those of you who bit off more than you could chew? You will hear it from the judges more than anyone else, because the banks you’re going up against have your financial information and will make it available. Your argument then becomes … well, if my information was so bad, how come you loaned me the money? And how come you shared my social security number with a bankruptcy remote entity?

    I can’t wait to be at the MERS deposition wherein they get to explain how much “VALUE” they received when they wrote up and filed a reconveyance deed. Hey Brochin! See ya in depo! Don’t keep objecting to form either Bobby … “form” comes in many shapes and sizes and you and your klan have done enough damage for one decade. There is a movement afoot to take you all down and the writing is on the wall. I know MERS’s attorneys are reading this blog … so

    Visit http://www.cloudedtitles.com for more information.

    In the meantime, remember to name your property as a defendant too and be sure to list the legal description … I do that for all my legal pleadings I write for attorneys …

    ON THE FRONT:

    Two suits filed in Seattle to quiet title.
    Two more suits to be filed in Seattle next week.
    One suit in Phoenix next week.
    Two unlawful detainer actions resulted in 2 trials de novo in Kansas City last week.
    One case in Kansas is headed for the appeals court when JUDGE KEVIN MORIARTY stated that it’s okay to separate the deed from the note! He uses the MERS statute a lot, considering there is Kesler … the case I’m talking about now needs to go to the KS Supreme Court and they will probably review the MERS statute for constitutionality. Ya know, it’s really tough foreclosing on a minister and his family and getting away with it.

    MERSCORP has insurance coverage. MERS does not. MERS agents do not either. They need to be taken down individually … let them hire their own counsel and see how long they keep up robosigning when they have 20 lawsuits to defend. The legal fees alone will crush them like cockroaches.

    ON QT ACTIONS:

    Tips … go to the courthouse and get a copy of it. You’ll get the case # shortly on my site.

    That way … I’m not giving you legal advice. You can read what attorneys are filing.

    Attorneys are hard to come by because there is a part of their upbringing called “moral conscience”. This is reflected when they ask you whether you want a house for free. This is missing the whole point. If attorneys become seated judges … then this conscience carries forward onto the bench. Then your work becomes twice as hard with no formidable arguments and no formidable case law.

    Since your AG has joined the fight, why not write them a letter encouraging them to do the right thing and not cave in to the banks. They can do their investigations into robosignors … help them. Go dig up exhibits at the courthouse, online if you have it … send them the files. This tells them they have a problem. Your county recorder is an elected official. Maricopa County … Tell Helen Purcell to do her job! Otherwise, you’ll disgrace her out of office! No old lady likes to hear that! You have a false recording statute! Use it!

    I think we all may be including County Recorders in our pleadings as defendants at some point if we discover fraud and the County Recorder did nothing to stop it. If it results in a wrongful foreclosure and fraud can be proven, don’t you think the County Recorder could be held as an accessory to the fact? Ponder that for awhile. Our elected officials are obviously NOT doing their job. If they were, we would not be in a tax-starved situation. Read BOTH Peterson white papers. SHARE THEM WITH THE RECORDERS!

    Now for those of you wanting that “letter” that live in Maricopa County … the one I talk about in my YouTube Video … Chicago Title is having a hard time understanding that MERS can’t convey something it doesn’t own. If you go there, make sure to give them an earful before paying them a dime!

    YOU TITLE COMPANIES:

    Your E&O carriers are going to find themselves wondering just how come it is that you played into the fraud in your local courthouses. When enough of you get sued, that might change.

    FIRST AMERICAN TITLE COMPANY is listed on most DOT’s and Mortgages. My feeling here is they are just catering to the GOB Network and need to be taught a lesson first. Since they want to be a trustee … in Arizona … there is a statute in Chapter 33 … force them to use it. Go backward and kick them off your page, because they can’t guarantee title and be a trustee too, can they? That would make them biased. The trustee is supposed to be a neutral party to the deed of trust. Holding title insurance AND being a trustee? Hmmm.
    Ponder that too.

    None of the above is legal advice. It’s my own take on this situation … I’m humoring myself here. Watch out for the banks attorneys because they’ll rat you out to the UPL committees. That’s how they stop our fight.
    The AG needs to know that too. Information sharing is one thing. Holding yourself out as a lawyer when you’re not, is a felony in most states.

    I’ll save the escapades of the 73rd Texas Legislature for another day. This bunch clearly violated their own state constition passing two pieces of legislation and Lord only knows how many other laws were passed as a result of conflict of interest.

    Frustrating, isn’t it?

  23. Since many of you evidently need the whole layout – relatively soon, Livinglies readers can now download a copy of the entire editable sample complaint form on the HSU website at: http://HomeSafeUnivesity.weebly.com , with some supporting exhibits to educate the judges who ‘don’t yet get it’.

    Banks decoupled the note from the Deed of Trust = Null = Quiet Title.

  24. usedkarguy:

    You just explained most Livinglies readers’ problems so well. Not enough ‘get it’ aggressive attorneys, who aren’t also booked till 2014. Hopefully the above link helps. We need to attempt to save everybody who works hard at it on this blog – now! I have seen so many drown, and I am sickened.

  25. Bill’s replies, comments ‘III’:

    First Things First:

    Since many of you evidently need the whole layout – soon, Livinglies readers can now download a copy of the entire editable sample complaint form on the HSU website at: http://HomeSafeUnivesity.weebly.com , with some supporting exhibits to train the judges who ‘don’t yet get it’.

    I am also sending it to Livinglies to do the same or to alter it further if they choose. This is a 1st study draft, subject to revisions.

    It is the core argument that is most important, and why Neil posted my simple question to him in the first place. He wants us to win.

    Banks decoupled the note from the Deed of Trust = Null = Quiet Title.

    Thanks for your discussions. Regards to you all.

    ————–

    Dave & Gwen

    Feel free to suggest some improvements. You could couch quality quiet title language around this ‘core’ nullity premise, if you wanted to experiment.

    usedkarguy:

    You just explained most Livinglies readers’ problems so well. Not enough ‘get it’ aggressive attorneys, who aren’t also booked till 2014. Hopefully the above link helps. We need to attempt to save everybody who works hard at it on this blog – now! I have seen so many drown, and I am sickened.

    Papadeaux:

    I like you have no faith in the legal system either. Only 1 out of 15 judges reads and follows black-letter-law as written. The rest are covering it all up for the gov’t and we all know it. They give us the pretension of justice, attempting to wear us out, to save their unfair fat pensions funds and perverse economic control over society with all those future rent payments from all these new homeless!

    Withdrawn:

    You lucky dog! A cancellation means they know they did it wrong. If I were in that situation, Q.T. would be a perfect encore. Hasta La Vista!

    Abby:

    Hope you guys won.

    Help:

    I personally suspect both are potentially a cloud to title. And Morgan Stanley sold that note, without simultaneously recording the new ‘owner’ on the Deed of Trust = Null.

    ——–

    ***Other jurisdictions***

    I speak here as what I would do personally, if I were in these places someday. Not ‘legal advice’.

    Carrie:

    Personally if I were in Cal., I would replace the “A.R.S. § 12-1101”, et seq. with California’s quiet title statute(s), as well perhaps checking some of the wording at the end’s request for relief (#11). There are many standardized format that attorneys mimic at the law library, that you could find the Cal. statute as well to cut & paste some of state-specific wording from.

    More possible Cal. info:
    http://www.fidelitytitle.net/images/recos/1167/documents/fastfacts1/012%20Quiet%20Title.pdf

    http://www.kinseylaw.com/attyserv/civil/complaints/quiettit.html

    Foreclosure fight:

    Exactly! If I were filing, I personally would put on my BK unsecured schedule, their null note as unsecured & disputed. Then I would bring up BK rule 7017 (no real party in interest) & (Arizona’s Local BK Rule 4001-1 or its equivalent), as well as full attached copies of the recent In re: Walker (CA), & the In re: Tarantola decisions (AZ),etc., to fight any attempts of any pretender’s phony null Proof of Claim efforts, and educate a local judge to the massive problems, that judges Hollowell & Sargis so eloquently described for them and us all!

    Concerned:

    I used bankrupt as in common usage of Countrywide being effectively financially upside down/broke. ‘Defunct’ may be a better word to use here, to avoid confusion??? These liars were long underwater. The system bailed their unsound business practices out, when they should have flushed and left America alone, like any crappy fraudulent company.

    Donna s

    Personally, if I were in Colorado, I would replace the “A.R.S. § 12-1101”, et seq. wording with Colorado’s C.R.S. equivalent, as well perhaps checking some of the wording at the request for relief end part (#11). There are many standardized formats that attorneys mimic at the law library, that you could find the Colo. Statute(s) as well to cut & paste some of state-specific wording from.

  26. Gwen,

    Here in California the law has changed regarding the lis pendens. If you are pro se, you must request the judge to allow you to file a lis pendens. Only attorney may file a lis pendens without the court permission.

  27. withdrawn call me 8162237178

  28. Gwen:

    Thanks for the response. A little further background. As I mentioned, I’m in a non-judicial state and had to file a complaint to get this into court. I filed a lis pendens right after my complaint, so that is done. Since I already have a case before the court, do I file a QT seperately from that?

  29. withdrawn: go to your local law library. Go to your state’s statutes and look up “quiet titl”. In that statute it will tell you what to do. FILE the quiet ttle immediately naming mers, the lender, and anyone else on the title docs at the courthouse including the trustee and add the servicer.. Attaching to it every doc that you think tat is messing up your title. Then look up too “iis pendens”. You need to get the form for that too at the library. Its a one pager. Name the qiet title lawsuit in the lis pendens. Go file the lis pendens at the recorder’s office against your title. That should stop any foreclosure action until the quiet title is determined. Serve the notice of lis pendens on everyone by certified mail: the foreclosing law firm, the lender, the servicer, mers, and anyone else on any of the title docs. KEEP THE RETURNED RECEIPTS. File a copy of the lis pendens in the quiet title action.

    I am not a licensedd attorney–was some 15 years ago. This is not legal advice but you should be able to do this if you have been proceeding pro se on your foreclosure. write me on this blog

  30. Bill, thank you. After being bled by attorneys and trollers like Maher, it’s about time someone starts dispensing some real help here. No one can offer something and say “take this to court” without reviewing a case. There is no “one size fits all” motion. I also appreciate that people need to make a living, but all the banter and bullshit opinion isn’t getting us anywhere closer to a clear-cut, repeatable victory.

    We need some lawyers to step up take some cases and win! Hey, Mr. Torres from Chicago! I know you’re reading this. CALL ME! I left my number with your secretary. I have a “smoking gun” case evidencing scienter on the part of the originator/sponsor/servicer. I have my loan traced from Wells Fargo to Citigroup to Goldman Sachs to LOCHSONG to TARP. If someone, any ONE qualified litigator would win a case and PUBLICIZE, we’d get rolling. I know nobody can work for free. But if my title was free and clear, don’t you think I’d be able to get a mortgage for $40,000 and pay you $20,000?

    I personally don’t think I can go into court and argue a case against a high-power defense attorney hired by a national bank. That is fantasy. Been there, done that. But I’m not paying another attorney to tell me to “give up–you invested nothing-it’s a non-deficiency state, who cares?”, or “give me $800, I’ll look it over….oops, need more money…..”. The profession needs to take a look in the mirror and realize there is a battle between good and evil being waged, and someone needs to come down on the side of GOOD.

  31. Neil: Any further comments on this back and forth on Quiet Title. Bill and Dave: You both know this is very political. It is sad to see but I truly have lost faith in our legal system. You TWO need to put your heads together and help us tighten the noose around every banksters neck. I am approaching my 3rd year of fight the bank and trying to save our home. There were lots of articles about TILA rescission. Easy to find the violations. Got the bank to rescind and then what? I have to tender before they record/acknowledge the rescission! Can’t tender when my credit is F’d up after I tried to file for a simple loan mod and was told not to make my payments during the process which took over 2 years. Oh yeah, I am so far behind now that the bank has us by the cojones because we can’t tender because of some ruling 30 years ago that will get us tossed out of court. So, was that the direction to go? Haven’t seen too many posts on Rescission lately but I see how far we’ve come as a community of readers and posters. Now the quiet title action. Bill is right, the brightest of the bright are visiting this blog and someone really needs to step up and help the little guy. I have spent THOUSANDS to save my home (on my 4th attorney) and we still aren’t any further than we were before but getting there, I hope! Who has the best pleading and who is willing to share? Neil, what are your thoughts once again??? You talk Quiet Title in your class now what is the real scoop and how can ALL of you work together to help the little guy! It is getting ridiculous out here. Attorneys asking $2500 for an Audit (we ALL have crappy loans/paperwork) and $600/hr for attorney fees to save a home (not my attorney thank god but other firms I have talked to). Others say walk away but that is what the banks want. The have defrauded us, deceived us and made fools out of me, you and some of the best attorneys in this country. I for one am sick of the B.S. and hope that someone smarter than me will step up and help align the forces and go after these CRIMINALS! The Biggest fraud in U.S. History and they have been getting the best of us. They are laughing in our faces and most of you are putting up with it. Disgusting! Let’s make some noise and let’s work together!

  32. I’m trying to get my timing right and need some (non) advice from this brain trust. My foreclosure was just withdrawn and while everything is up in the air over standing, decoupeling of note and mortgage, MERS, etc, Is it ripe for a quiet title motion? I still have an suit against the “trustee”, “servicer” and does. Non-judicial state. Would like to hear from anybody and everybody.

  33. bill

    these are GOOD ideas you have posted.,thank you for sharing.

    dave k…no thank you for not sharing also.

  34. New Century Mortgage & Home123

    believe that Pierre Augustin is in middle of his trial up in their bankruptcy—stay tuned.

    we are on Omnibus hearing now…I think Pierre’s trial is on break while we have Omnibus

    search on Pierre’s name on this site to see his early and informative posts

  35. Bill’s Response IV:

    ALERT

    I am off the opinion that we have the brightest minds here on Livinglies, and we better start sharing the best of the best information real fast between us. Mark your copyright on your work, then let the Livinglies community ‘license’ it for two years for free. You will still be able to sell many paid copies to the mass public, to reimburse your research/writing time, I assure you.

    There is simply no time, to slowly dish-out our best arguments/research anymore, particularly to newbies.

    These bankers/cover-up system know what you wrote, from your ‘online’ backups, tapping emails & phone calls, meetings, way before you realize it. One above-average complaint gets filed in some little county in this country, and every damn bank and Federal Reserve lawyer has it in on their desk; picking it apart the next morning, and sharing their discoveries and schemes in conference calls. A very tough approach against us that has killed off 90% of us, thus far. As Dave noted, Teilborg in Arizona is in the middle of it, with his MDL powers over the ninth circuit.

    We all are the economic Titanic, the hole is too big, and most of us are drowning in freezing water, due to lack of recourses to properly hire a fight, particularly a knowledgeable one.

    The banks probably use our loan-mod paperwork, to see how much ‘reserves’ you have, to estimate how long you can last a protracted legal battle. That decides your standard of abuse thereafter.

    Lets not slowly-release our best anymore. At this point, I freely ‘license’ the best of my best work to all of you, through this crisis.

    Watching all of the drowning around me, I’m worried more about our country people’s predicaments, than I do selling a copyrighted version to 1,500 of you, at this late hour.

    By the time I copyright, market to you all, and receive payment from you all – You and I will all be long-past homeless. And the ‘bailout’ Ponzi crowd will gloat. 40 years of inflation-adjusting rent from every last one of us, to very late retirement!

    I am forwarding this entire complaint to Livinglies for rough-draft sharing, if he so chooses.

    Attorneys, paralegals, and knowledgeable pro pers, then feel free to ramp it up. The full copy 1st draft is better than you may assume from the small clip.
    Between this tough, agile Livinglies community, we could write perhaps 5 super-quiet title lean complaint (& TRO) variations, which every reader and every newbie attorney to this fight could pick from, as a rough foundation if needed – like West Publishing puts on our shelves in the law libraries, only way better.

    We have no time on this Titanic. Listen to the cries of our neighbors and the desperate posters on here. Families are going down. The banks and their political friends will unleash hell after the election, lame-duck.

    I have two years of heavy 60 Hr-Wk. research in all my work, and my simple question to Neil, posted herein, is the result of it.

    He evidently concurred on the generalized argument, and posted it for discussion.

    Soon, I can imagine several complaint word-doc variations linkable on here, some versions with state specific language; all as blue links on the getting started “FORMS” page.

    Quiet Title v.1
    Quiet Title v.2
    Quiet Title v.3
    Quiet Title v.1 (AZ)
    Quiet Title v.1 (CA)
    Quiet Title v.2 (AZ)
    Quiet Title v.2 (FL)
    Quiet Title v.3 (NY)
    TRO v.1

    Neil would be the gatekeeper and reviewer of the best of the best. No guarantees, no recommendations, no legal advice. Simply quick, free-speech (word-doc) templates like West Publishing prints.

    I see a lot of less bad precedent, considerably-less successful motions to dismiss, and a lot more anguished pretender banks attempting to cover-up their Ponzi crimes against this country.

    No more. Tell a friend.

    Much regards to each of you,

    Bill

  36. New Century Mortgage & Home123

    here is latest agenda for this morning. Pierre Augustin (early poster on LivingLIes) has his trial up in the NCM bankruptcy court this morning (if he has not settled with them).

    As you can see (by reviewing the Omnibus agenda) there are 9 pro se homeowners who are fighting up there. Some have settled for amounts over 55K.

    If you had a loan originated by one of these companies (and HOME123 is a subsidiary), you should talk to your lawyer about filing a Proof of Claim and an Adversary Proceeding up there.

    just released OMNIBUS AGENDA–

    http://www.scribd.com/doc/39744304/New-Century-Mortgage-Home123-Corp-10-20-10-SECOND-Amended-Agenda-Omnibus-2-2-Copy

  37. Bill … and others who may face U.S. District Judge Teilborg and others in the State of Mass Confusion …

    Most of the attorneys I have spoken with want to keep quiet title actions in state court.

    I am not saying one does not have a right to 1st Amendment freedoms … one does have the right to access to a court system that is not fraught with biased notions of judges who are bought and paid for by the banks.

    The biggest phobia of attorneys is creating a prima facie case wherein a judge has no choice but to quiet title.

    I get what Tiffany & Bosco is doing. I have been retained as a paralegal by an attorney who is working the front end of a suit against them. Those in deed of trust states need to start looking at the substitute trustees. Arizona has very specific statutes under Article 33 applying to them. Again, you will see the E&O carriers becoming very uncomfortable as these trustees “step outside their legal capacities” to sue to foreclose when they have failed to investigate agency.

    My take, from the other attorneys I work with, is you need other “relief” here to cement the case shut once you’ve proven lack of agency. That in of itself is cause to declare the note unsecured by most case law I’ve read. Having an unsecured note sitting there with no agency also means seeking other relief to shut it off so it is unenforceable by judgment or by counterclaim when the lender brings the unsecured note back to court and the burden of proof is on them to prove the value of the note.

    Again, most quiet title statutes, excepting California statutes covering QT (very thorough and also very anal) is what gave me the real tip on fighting these actions.

    More of this will be discussed once the first volley of suits get filed using my arguments up and down the West Coast.
    I already have trustees admitting they slandered title … and they put it in writing! See http://www.cloudedtitles.com for details on that.

    If you’d buy the book, you’d see what the “secret weapon” is. Then you’d find out who your friends are in this whole mess.

    BTW, the working draft of Peterson II on MERS is stimulating and has just given me impetus in another direction with our national campaign.

    Bill … and others … good luck in your research and in your pursuits for justice. The enema starts with your county recorders. (hint hint)

    Mr. Bosco should probably make sure his E&O covers fraudulent behavior because there will come a time when his foreclosure suit doesn’t hold water because of his lack of due diligence. Arizona’s Deed of Trust statutes are supposed to inure to the benefit of the borrower. Yet, after much research, there are only 3 cases that are applicable to today’s concerns in your state.

  38. I totally agree with Dave Krieger’s comments on Bill’s pleadings–or anyone’s for that matter. Dave Krieger spent two years analyzing this issue before writing cloudedtitles.com. He’s not an attorney but sought the advice of attorneys on his book. I formerly practiced law for 30 years in federal and state courts in the civil rights and employment arena. After talking to Dave who was introduced by a mutual friend, I started to investigate my own problems and eventually took dave’s approach to quiet title and a declaratory judgment action. I did add some fraud claims against the trustee and other entities but Quiet Title was the lead off complaint. It took ME 1500 hours of research to come up with a decent quiet title action which I have amended once and am seeking amendment on a second time. This is not for some pro se plaintiff who does not have a clue. Quiet title actions are based upon statutory state court law and need to be reviewed in light of each state’s law. You just can’t take some form on the internet and file it–you will get kicked out. Dave is right on point here and readers would do well to read his book and read his comments when they are printed.

  39. WHAT IF?

    2004-Orginal loan of $700k sold and then Refied. Satisfaction of Mortgage is by MERS and recorded in 2005 after refi. Proof orginal lender had loan presold to Morgan Stanley before closing.

    2005- REFI by same lender as 2004, loan again table funded and sold. The loan was for $970,000, Written proof the lender sold the loan to Morgan Stanley the day of the closing for $989,000 plus the first months payment. Then the loan was placed in a Securtized Trust.

    The orginal MERS satisfaction of mortgage in 2005 could be clouding t he title right? QUIET title that satisfaction of mortgage by MERS to show the loan was paid for more than once?

    Leave the newst loan alone until later? any thhoughts

  40. Bill’s Comment II:

    For this complaint’s primary exhibits….

    You could use your xeroxed copy of the Note and of the Deed of Trust to prove this nullity cause of action 60% of the time, without additional discovery

    The Deed of Trust says MERS, and the note says “BOA” …. At the day of closing!

    Decoupled at birth. Completely Illegal per Carpenter v. Longan, et al.

    This is why this could be so simple for everybody, and why Neil likely posted it. We no longer languish when the banks refuse discovery anymore. We already have the exhibits proof in our ‘closing packages’.

    On the remaining 40% of loans, a copy of the allonge(s), or proof of the scattered pool will show the same thing happening, a bit later. One entity on the Deed of Trust, and another entity on the note…. and the transfer dates are not simultaneous! Null.

  41. Dave K.:

    Stepped on some monopolistic toes there?? What ever happened to the 1st Amendment as written; including freely discussing the banks steamrolling over each one of us Americans? You do that as a respected author. So do the rest of the American Livinglies community.

    NOTE! – This is one small section of a proposed draft 8+ page complaint. A small tough cause of action portion. It is NOT the entire complaint with parties, jurisdiction, statement of facts, exhibits, etc. If you insist, make it as complex as you want; perhaps just make this ‘nullity at birth’ argument the main thrust of a simple complaint for quiet title.

    You are an expert at quiet title, so feel free to beef it up, preferably without the judges drowning in too many side stories and pages. Unfortunately, many judges over here don’t read lengthy complaints. Arizona is a cover-up state for bank misdeeds. I understand our biggest foreclosure mill, Tiffany & Bosco’s owner sits as chairman of our Bar’s ‘ethics’ board, as well as writes 80% of our property statutes.

    Separation Nullity is the banker’s toxic Achilles heel, and they all know it.

    Instead of Livinglies readers filing TILA, RESPA, et al. causes, with their worthless Federal statute of limitations….

    …. And the banks refusing critical discovery, necessary foundational to prove other type causes….

    The (chain-of-title) separation of the note from the DOT, creating the nullity, is all that is demanded here. The null Deed of Trust is being challenged as a (null) cloud on homeowner’s title; that’s all.

    No cloud – no foreclosure – ever.

    Later, you could again argue your quality note arguments in a separate action, if the pretenders sue you for a deficiency later.

    Of course in Arizona, our homeowner then applies Arizona’s $150,000 homestead exemption, which will completely exempt about 60% of Arizona homes within today’s ‘valuations’.

    Either these banks violated the law or they didn’t.

    95% of these pretender Deed of Trusts are NULL – for decoupling ownership of the Note from the Deed of Trust, per Carpenter v. Longan.

    Don’t let the pretenders get away with it. Save the little guys too, who can’t always afford your firm too, although we wish they all could. Help co-write a quality variation of templates if you wish to reduce bad precedent; bad precedent that is happening regardless. Help the younger newbie attorneys this way too. I put my free-speech best effort in. Now it’s your turn.

    We all have a big country to save. Now.

    Regards,

    Bill

  42. Dave Krieger:

    I could be wrong, but I thought there were no grounds for removal to federal court in a quiet title action which does not seek money damages (attorney’s fees and costs are not money damages). I don’t think these would be as easily removed as you say.

    I see real merit for bringing a quiet title action in and of itself. On the other hand, as the Plaintiff, the burden is on us to PROVE the separation. I can see that if we know the full name of the securitization trust, we can easily prove bifurcation of the Note from the Deed of Trust. But what if we don’t have that info? Is “information and belief” enough?

    In Nevada, a Plaintiff’s allegations in the Complaint are to be taken as true…..but most courts simply don’t do it. Hopefully, the appeal will be in conformity with recent Nevada Supreme Court decisions which favor discovery over premature dismissals.

    I figure it this way: we will need to appeal most of these anyway, so two good things will come out of it — (1) the case is remanded back to the same judge with the instructions that he or she cannot rule the same way; and (2) we now have a higher court’s ruling which trumps the lower court and gives us some better precedent.

    Think of this fight as a twelve-rounder, and you just got knocked down in round one. Do you quit, or come out fighting for round two?

  43. UNFORTUNATELY, THIS FORMATTED PLEADING IS GOING TO GET TOSSED OUT OF COURT.

    REMEMBER, YOU ARE NOT DEALING IN GOLD MINE CLAIMS OR ENCROACHMENTS HERE … YOU ARE DEALING WITH CUTTING EDGE PLEADINGS THAT DO NOT CUT TO THE CORE OF THE NOTE. YOU WILL NOT SEPARATE THE DEED FROM THE NOTE IN THIS PLEADING AND YOU WILL GET JERKED AROUND AND SPIT OUT OF COURT LIKE FISH FOOD POPPING OUT OF A GROUPER.

    YOU ARE NOT ARGUING AGENCY, YOU ARE ARGUING THE NOTE AND THE NOTE HAS NOTHING TO DO WITH CLOUDS ON TITLE OR THE LAW OF AGENCY. THIS WILL BE YOUR DEMISE IF YOU BRING THIS NAKED PLEADING INTO COURT IN ARIZONA. THE LENDER WILL REMOVE THIS TO FEDERAL AND YOU WILL BE STUCK THERE FOR A YEAR OR IT WILL GET REMOVED TO FEDERAL COURT AND 12(b)(6)’d …

    BILL … IF YOU’RE NOT AN ATTORNEY, DON’T PUT THIS ON THE WEBSITE. THERE IS SUCH A THING AS UNAUTHORIZED PRACTICE OF LAW IN ARIZONA. THERE IS MORE TO THESE QT ACTIONS THAN YOU THINK WHEN YOU ARE INVOLVING ADVERSE CLAIMANTS AND A NOTE.

    NOW EVERY PRO SE LITIGANT IS GOING TO GRAB THIS STUFF AND RUN INTO COURT WITH IT. WHEN THEY LOSE AND SET BAD CASE LAW … WHOSE FAULT WILL IT BE THEN?

    PEOPLE DO STUPID THINGS OUT OF DESPERATION AND FRUSTRATION.

    NEIL … THIS MAY FIT INTO THE SCHEME OF YOUR SECURITIZATION ARGUMENTS BUT IT WILL NOT SATISFY THE CRITERIA FOR ESTABLISHING A CLAIM FOR WHICH RELIEF CAN BE GRANTED.

    I WOULD BE ASHAMED TO EVEN DRAFT SOMETHING LIKE THIS WITH NO SUPPORTING DOCUMENTATION.

    AND WHAT’S WITH A SCOTUS DECISION IN A STATE PLEADING? NO FEDERAL QUESTIONS … NO FEDERAL CITATIONS … UNNAMED DEFENDANTS …

    THIS IS SERIOUSLY LACKING IN CREDIBILITY …

    STOP POSTING SAMPLE PLEADINGS ON YOUR WEBSITE. THE BANKS ARE READING THIS AND LAUGHING THEIR ASSES OFF.

  44. I believe you need to research your source of information on any reference to a COUNTRYWIDE Home Loans filing for bankrutcy. I have searched on this point since it is relevant in my own case. BofA bought them out.

  45. How could this be applied when the note is discharged in a Chapter 7???

    What you have left is a “Stray Dog” lien that is unenforceable…

  46. Banks Sold the Same Mortgage Over and Over to Investors
    By: David Dayen Tuesday October 19, 2010 10:28 am

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    I mentioned this at the end of this post about investor lawsuits, but it deserves to be highlighted. This is a level of fraud that I probably should’ve seen coming, but didn’t. Apparently, Bank of America has admitted in a court filing that they sold the same mortgage loan in multiple pools to investors. In layman’s terms, say I own the FDL News Cupcake Food Truck and you come up to buy a cupcake. I sell it to you, and then I sell the same cupcake to the guy behind you, and the guy behind you. As you all wait for your order, you talk to each other and realize that you were all sold the same cupcake. So who actually owns it?

    That’s directly from the court document, saying that many loans and other mortgage-related assets “have been double- and even triple-pledged to various constituencies.” It would be impossible to designate ownership in that scenario unless the trustees of the mortgage pools took back all the loans and assigned them again.

    You’re talking about the same mortgage loan sold two or three times to different people. In the hustle to get as much paper out the door as possible, all kinds of fraudulent occurrences like this happened. An anonymous whistleblower at Zero Hedge basically corroborates this today:

    This much I can tell you. We have no idea what is in those packages. I personally packaged billions in MBS which have been placed on public shelves. Those assets were underwritten by Goldman, Morgan or name your investment bank […]

    I put together a large subprime deal where we said that the percentage of Stated income assets was 10%. Out of a pool of over 500 assets, we ran our due diligence and pulled a sample of 50 assets, we had over 25% of the assets come back as stated income. Well, we got another 50 assets and still came back with 22% stated. It was obvious to me and the underwriter that the stated income levels were higher than originally reported.

    How did we handle this issue? We threw all the stated income assets out of the deal. In this case we threw out 22 assets and packaged the deal as 10%. In fact that is how we would typically handle issues where we had discrepancies. I told my boss on several occasions that it was a real fishy way of doing things, but as everyone was also doing it, my coworkers, the guys from Goldman, the agencies, I just kind of went along with it […]

    We didn’t check every single loan document for every single legally required piece of information. Yea, we’d check for the important things, but we couldn’t and didn’t check for every single clause on every single loan document. We couldn’t. And now we are finding out that we should have.

    This is basically the mortgage bond scandal that Felix Salmon, Shahien Nasiripour and others have been writing about. The banks would knowingly put garbage into the mortgage pools and trot it out to the investors while misrepresenting the product. Now, we’re learning, there was a whole new angle – some of the loans showed up in multiple pools.

    And the database function which built the securitization market for speed instead is contributing to the legal problems. Floyd Norris took a look at MERS today and came to many of the same conclusions that I did.

    Bank stocks fell sharply last week, even while most shares were rising. JPMorgan Chase, which is a part owner of MERS, said it had not used the service since 2008. At least one title insurance company has gotten a bank to agree to indemnify it if the securitization process causes problems for titles. Without title insurance, the real estate market would grind to a halt.

    And earlier this month a federal judge in Oregon issued an injunction blocking Bank of America from foreclosing on a borrower’s home. United States District Court Judge Garr M. King said that under Oregon law, the borrower was likely to prevail on the argument that the use of MERS had invalidated the mortgage […]

    In a case in Arkansas, the owner of a second mortgage foreclosed on a home without notifying MERS, which was listed as owning the first mortgage. When MERS sued to overturn the foreclosure, the state supreme court ruled that MERS had no case. It had lost nothing, the court concluded, because it was not the actual beneficiary of the first mortgage.

    I see no way out of this for the banks. Investors are getting wise that they’ve been defrauded, they have legal avenues to seek restitution, and unlike homeowners they are rich enough to get recognized by a legal system that caters to some more than others.

    UPDATE: Atrios is right that we don’t have a sense of how widespread this particular problem is. But it does show that there were practically no safeguards to this kind of occurrence, that MERS did not streamline the securitization process in such a way to avoid mistakes, and that just presages more problems.

  47. MA.& RI & CT.IF YOUR HOME HAS BEEN FORECLOSED ON CALL US WE WILL MAKE IT RIGHT FOR YOU. WE CAN HELP YOU RIGHT AWAY! NO FAMILY LEFT BEHIND! BUDGET PLANS FOR EVERYONE.WE CAN HELP YOU STAY IN YOUR HOME. THE BANKS MADE A LOT OF MISTAKES IN THE PAPERWORK AND WE OFFER TO FIND THEM.FREE CONSULTATION ON ANY LEGAL MATTER.CALL KIM THOMAS 401-352-5609 or 401-274-1905. WE CAN HELP THE LAW OFFICES OF GEORGE E.BABCOCK ………………………………………………………………………ESQUIRE. CHECK OUT OUR WEBSITE: http://www.facebook.com/l.php?u=http%3A%2F%2Fwww.babcocklawoffices.com%2F&h=911e4
    IF YOU HAVE A MERS WHICH STANDS FOR MORTGAGE ELECTRONIC REGISTRATION SERVICES WHICH WOULD BE IN MOST CASES ON THE 1ST PAGE OF YOUR MORTGAGE PARAGRAPH C. CALL KIM THOMAS OR GEORGE BABCOCK AT 401-274-1905 AND GET RELIEVE FROM YOUR PROBLEM!

  48. This is almost identical to my Mortgage (Foreclosure) situation. Countrywide; August, 4 2006. What remedy is available, (if deemed necessary) Was supposed to auction @ Trustee’s Sale Oct. 1st; Spoke with a mr. Patel in India,(Jurisdiction?) who told me it was NOW scheduled for Nov. 16th? Any help, suggestions, guidance, etc. much appreciated. lahabrabill@roadrunner.com

  49. this is what i have done based upon dave krieger’s analysis of my dt. i coupled this under mo quiet title law with the declaratory judgment action asking that the note be found to be a nullity. defendants removed to fed court and I sought a remand which was denied. i think that is wrong but i think the court kept it because there were state law claims that were pendent. i filed a separate lawsuit in state court for the state law claims and dismissed the fed state claims. wewill see what happens but this quiet title idea is one that dave krieger has worked on for two years see cloudedtitles.com which is a definitive study on these clouded title issues incuding quiet ttle

  50. How can this be adapted for California? It’s a non-judicial foreclosure state. The rationale is certainly the same, but are there any nuances between AZ and CA law as it relates to foreclosures that need to be taken into consideration?

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