Click in to tune in at The Neil Garfield Show
Or call in at (347) 850-1260, 6pm Eastern Thursdays
Edstrom, Macklin and Marshall rejoin me on the show tonight to talk about one particular subject — explaining why “servicers” undermine the modification process and wherever possible fight against receiving money from the alleged borrower. As one Judge in Broward County, Florida recently mused out loud in the courtroom — “It used to be that banks wanted the money. Now they don’t. Why is that?”
The plain truth is that the servicers are not creditors. And because the alleged “loans” were not acquired by the Trust, their authority to act like servicers and trustees are nonexistent. [AND that is why they are resorting to empty powers of attorney — having realized that we are on to the fact that the REMIC Trust was completely ignored]
BUT even though they are NOTHING in relation to the “loan” or the homeowner, they assert a right to collect servicer advances as though those advances are secured. They are not secured. If the “creditor” on the mortgage or deed of trust makes those payments or if an agent makes payments out of an account that contains the creditor’s money for insurance, taxes, and other expenses covered by the mortgage or deed of trust, then of course the advances are secured by the mortgage or deed of trust.
BUT if the servicer is making payments from its own account or from the account of some third party who is a stranger (neither creditor nor authorized agent) then the payments are volunteer payments that are NOT secured by the mortgage or deed of trust. When you add to that fact that the servicer is making advances out of a reserve fund consisting of investors’ funds but not covered by any agreement because the Investment Bank intentionally avoided the REMIC Trust, then the truth emerges —
the real truth is that servicers delay conclusion of foreclosure proceedings because they WANT to make “Servicer advances” because it it isn’t money of the servicer that they are advancing and it is isn’t money of the “creditor” that they are advancing; BUT they do assert a claim to “recover” those advances after the foreclosure is done and the property is sold and there is nobody around to object because the investors mistakenly believe that they have signed away their right to inquire, much less observe how the money is handled.
So if advances are made by the servicer and not the creditor (which is the way it happens), and those advances include payments of interest and principal as set forth in the PSA (which has otherwise been completely ignored as an entity), the servicer collects money that neither the servicer nor the creditor ever paid as advances.
By the time the whole charade is over, the servicer collects all the money that was “advanced” PLUS the exorbitant fees for “Servicing” a “non-performing” loan that was never acquired by the Trust — which means that neither the Servicer nor the Trustee are authorized to assert ANY claims over the loan (since their alleged authority comes from the Trust through the PSA.
To say the least, this puts servicers’ interests squarely in conflict with both the investors who ended up getting worthless “certificates” and in conflict with the job scope described in the PSA that they have gleefully ignored and even in conflict with the alleged REMIC Trust if it is ever determined to have some sort of interest even though it never paid for nor received the “note” or “mortgage.”
The investment banks STARTED with premise that they were going to screw everyone and that is exactly what they did. They are now laughing all the way to their “bank” in which they are depositing illicit earnings and bonuses.
Now tell us who is getting a completely free house? Who else made a down payment? Who else made improvements to the property? Who else furnished the home? Who else made payments of principal, interest, taxes and insurance? Who else reached out for modifications of the loans willing to waive their defenses to the illegal loan practices? It was the homeowner. The ONLY parties that are getting free houses are the servicers and trustees that have no right to call themselves servicers or trustees.
The real truth is that luring the homeowner into “non-payment” creates the illusion of a default.The REAL truth is that the “servicer” collects years of “non payment” for themselves and not any creditor — only if they get the foreclosure sale. The real truth is that the servicers and trustees are interlopers in a fraudulent scheme where the investor was defrauded from the start. Every time foreclosure happens, the courts are furthering the fraudulent scheme. But how are the courts ever going to know this when the time is so limited on the rocket docket (or its equivalent). Tune in tonight to hear more.
Filed under: foreclosure |