What I tell Prospective Clients

I had a request today from someone who apparently has an 8-10 year old case in which the property has been ordered sold but the sale has not yet occurred. The fact that the case has been lingering for so long is enough to tell me that the alleged “loan” was most likely subject to false claims of securitization or sales into the secondary market when in fact it was involuntarily funded by investors.

So I figure I’ll share my response, since it is the answer to many other questions I receive.

FIRST OF ALL IT SOUNDS LIKE YOU MAY BE UNDER A DEADLINE TO TAKE ACTION IN WHICH CASE YOU NEED IMMEDIATE REPRESENTATION BY COMPETENT TRIAL COUNSEL. ONLY A COURT ORDER WILL STOP THE SALE. SUCH ORDERS ARE ENTERED BY TRIAL JUDGES, SOMETIMES APPELLATE COURTS (RARELY) AND BY BANKRUPTCY COURTS UPON FILING THE PETITION (UNLESS BARRED FROM RE-FILING).

It sounds like you have sufficient funds available to confront and hopefully repel the foreclosure by what is most likely a fraudulent actor. The question about whether to use those funds or simply move on with your life is a personal decision. For those people and lawyers who follow my guidance, they win judgments for the homeowner more than they fail. For those people who try to use magic bullets they have read on the internet, the odds are much worse.

For starters you should fill out our Registration Form to provide us with basic information about the you and the property.

CLICK HERE TO SUBMIT REGISTRATION

After nearly 42 years of trial work I rarely make court appearances. I also am not licensed in Connecticut which means I cannot represent you without local counsel involved. As a licensed attorney in Florida State and Federal Courts I have certain reciprocal rights, such as in Washington DC and other places. So in all events it is with utmost urgency that I recommend that you find a local lawyer who will represent you and who is good at trial practice even if they know nothing about foreclosures. In fact, it seems that knowing nothing about foreclosures is preferable because those lawyers who know a little have arrived at the wrong conclusions and followed the wrong strategies.

If a lawyer is not willing to accept the possibility that the entire foreclosure and the entire loan are a sham perpetrated as fraud on borrowers and the courts, then they can only act as placeholders while you try to bargain your way into a modification with actors who have no interest in the proceeds of a foreclosure sale and no interest obviously, in the debt. The proceeds of foreclosure sales do not end up in the hands of either investors or the so-called REMIC Trusts, most of which have no legal existence, much less ownership of the debt, note or mortgage or, for that matter, even a bank account.

If a sale has already been ordered or scheduled, then you must know what to look for when the sale is “complete.” In most of these cases neither the deed nor the proceeds of sale when the property is liquidated go to the same party who brought the action for foreclosure. That is the first red flag. A credit bid submitted by a party who does not own the debt is barred from acceptance by law in most states. They may have won the case but the fight isn’t over. The owner of the debt must submit a credit bid along with transfer of the rights under the court judgement or order.

Usually there is some attempt to disguise this reality by recording or filing other documents that imply that some transaction took place, after the foreclosure judgment or order in which the rights to the proceeds were transferred from the name used to identify the party as the claimant in the foreclosure to another name. Where a trust has not been introduced into the mix it is still highly likely that the debt, note and mortgage are subject to claims of securitization.

In all events you can bet that no transaction after the court battle ever occurred and therefore no debt was transferred because the party named as claimant did not own the debt when they started the foreclosure process.

So the way to start is by our accumulating enough information and analysis that I can know what I am talking about when you order a CONSULT.

The usual way we approach this is by starting with the TERA report, then do the Preliminary Document Review (PDR) which includes a 30 minute consult. If litigation has only just begun you can select the BASIC PDR + Consult. But in most cases you need to at least order the PDR PLUS + Consult. We will open a folder on our ftp server on Box.com so you can upload your documents.

Understand that in preparation for the CONSULT we are only reviewing the documents for context and not performing a full case analysis.

CLICK HERE TO ORDER TERA

CLICK HERE TO ORDER PRELIMINARY DOCUMENT REVIEW (PDR PLUS + Consult)

CLICK HERE TO ORDER CONSULT (not if you ordered the PDR)
CLICK HERE TO ORDER CASE ANALYSIS (not yet if you haven’t done the TERA and PDR, unless you have equivalent from a third party). It’s in the case analysis where I give specific guidance on strategy and tactics.
THIS IS NOT LEGAL ADVICE UPON WHICH YOU CAN DEPEND. ANY REPRESENTATION OF SUPERIOR KNOWLEDGE ON MY PART IS AS AN EXPERT WITNESS IN BANKING AND THE SECURITIZATION OF DEBT. ONLY A COURT ORDER WILL STOP A FORECLOSURE SALE. NO REPORT WILL STOP IT.

2 Responses

  1. I have strongly recommended for people to use Neil’s services. It is very difficult to go it alone.

    Just two points – 1) Investors do NOT directly fund loans to borrowers. If they did and could – this would eliminate protection under TILA as TILA does not recognize beneficial security investors as the Creditor or Lender. Security investors simply invest in the pass through of cash flows sold to them by security underwriters. THEY DO NOT FUND LOANS.

    2) Title reports can be grossly in error. Counties take any document for filing – especially in certain states. Also, mortgage loan schedules can be in great error — servicers can report on them at whim.

    Like

  2. Dear Atty. Garfield – I have followed you for quite some time. I have a non legal issue.
    For about a week now I have been unable to access Comments at all,
    it just keeps defaulting back to the Post of the day.
    Thanks and keep doing what you do so well.
    John

    Like

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