5th Circuit: Only the VA Can Foreclose

For more information please call 954-495-9867 or 520-405-1688

This is for general information only. It is not a legal opinion.

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HAT TIP TO GEORGE RILEY. THANKS

see Equity Trust Company v. McDonald Secretary of Veteran Affairs

Interesting case that opens up a series of questions to which I don’t have the answers. In this case the circuit court of appeals decided and affirmed a lower court ruling that only the VA can foreclose on a VA guaranteed loan. But the wording of the opinion seems to say that if you want to take title to property owned by the Federal government, then you must file an action to quiet title under the Quiet Title Act which frankly I never knew existed.

The main question is whether this applies to loans guaranteed by other quasi governmental and now nationalized agencies like Fannie and Freddie — especially after bailouts. If it does then there are millions of foreclosures that might be subject to unwinding just on this issue alone. But since the VA was an actual Federal Agency and Fannie and Freddie were always considered GSE’s (Government Sponsored Entities), it is possible that the same court might draw a distinction.

So I am asking for lawyers out there to give me their opinion on this issue. Write to neilfgarfield@hotmail.com.

8 Responses

  1. Keep us posted on this and any all quiet title issues, Thank you so much and blessing to all

    Sent from my iPhone

    >

  2. See the truth on “privatization?

    http://dailysignal.com/2008/10/03/caps-faulty-fanniefreddie-facts/

  3. Dbelanger- the Maiden Lane LLCs may have been terminated when the FED auctioned the securities which comprised them.
    Somewhere on LL is one of Neil’s posts, (sic) ” when the FED purchases MBS as part of their QE programs, stated to be 85-100 bn$ per month, what exactly are they buying?”
    So when they sold them,
    What exactly did the buyer get?

  4. so kal- i did find this a few yrs ago, and my trust is one of them, so if terminated. my trust should be not trying to foreclose right

    Federal Reserve Bank of New York
    Maiden Lane LLC Holdings 10-31-2011 (with CUSIPs)
    https://www.newyorkfed.org/medialibrary/media/markets/ML_103111.xls

    djabelanger, on January 7, 2016 at 2:05 pm said:
    Maiden Lane Transactions
    E-mail alert | Glossary »
    MILESTONES
    November 12, 2014: The legal existence of Maiden Lane II LLC and Maiden Lane III LLC was formally terminated.

    The small amount of cash held in reserve by each LLC was paid to the New York Fed and AIG, after payment of final trailing expenses, in accordance with their respective interests on November 20, 2014

  5. @ Charles Reed

    I suspect you meant the security instrument / lien “is permanently separated from the Note.”

  6. How does Freddie Mac have anything to do with my loan when I never heard their name until AFTER the fraudclosure when they sent me some made up looking 1099A. We need to Unwind these fraudclosures !!!!

  7. Have I talked about this issue for years on this site about exactly this issue and have submitted the SEC Whistleblower Claim, but here now come Neil asking any attorney to contact him on this subject?

    The VA does not purchase the debt and its is Ginnie Mae that does have possession of the blank Notes, but the debt is permanently separated from the Notes!

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