Criminal Lesson (more being developed with upcoming video). For related news videos, scroll to bottom of page.
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For law enforcement, prosecutors, and the general public to facilitate the understanding of criminal activity resulting in illegal slander on title of MOST U.S. homeowners' properties (purchased Year 1998 forward), illegal unjust enrichment by entities participating in the scheme, and illegal foreclosure on a percentage of U.S. properties.
Note: We are withholding the Evidence portion of this lesson to ensure that sufficient law enforcement entities have been notified. (We recommend that you build relationships with your law enforcement at this time.) The lesson will show how the homeowner's NOTE was used in an undisclosed investment scheme to make billions for other parties; thereby making the homeowner the CREDITOR who is owed penalties in restitution. This fact is expressed in the recent National Mortgage Settlement.
Associated Lessons: Get Criminal Evidence
WHY IS IT IMPORTANT TO KNOW THE CORRECT PARTY,
THE TRUE OWNER OF THE DEBT?
Multiple parties and/or wrong parties are attempting to illegally foreclose nationwide by using a forged Assignment of Security Instrument (assigning title) to a wrong entity with the intent of using it as a cover-up because either:
a) the real owner is unknown because of lost or destroyed documents, or
b) the real owner does not want to be known and is using a law firm to aid and abet the cover up, or
c) there are multiple owners (investors) because the promissory notes have been bundled together to create a tax-free investment, and investors have bought certificates or bonds (like shares of stock).
Regarding (c), sale of promissory notes into tax-free investments: this resulted in the change in ownership of the debt several times, following a very strict sequence that could not be circumvented.
Further, regarding (c), the sale of promissory notes into tax-free investments, very strict, elaborate contracts (called Pooling and Servicing Agreements, or “P.S.A.”) were signed to ensure the compliance with IRS tax rules. The reason? The investments would be tax-free and billions of dollars would be exempt from IRS taxation if all requirements were met, thus the reason for strict compliance with the P.S.A. agreements.
WHAT ENTITY HAS THE LEGAL RIGHT TO FORECLOSE? SECURED CREDITOR
As ownership of the debt has been transferred multiple times, it is critical that the homeowner and the land and deed records know the identity of the correct owner.
With multiple parties and/or wrong parties attempting to illegally foreclose in Georgia and nationwide, the understanding of this term is critical:
Basic definition of a Secured Creditor in the arena of foreclosure:
The entity which a) holds the security instrument, b) holds all properly and legally executed Assignments of the security instrument to the true creditor, and c) owns the debt by purchase and consideration of said debt.
In other words, when Party A sells the promissory note (debt) to Party B (new "creditor") which sells the note to Party C (next new creditor) and so on, the Security Instrument must travel with the note in order for the creditor to remain "secured".
The security instrument (which can be a security deed, deed of trust, or mortgage, depending on the state - Georgia uses a security deed) is the document which allows the true "secured creditor" to sell the property (exercise a "power of sale") in the event of default on the promissory note.
The security instrument, i.e. security deed (the promissory note's "insurance policy" in case of default on the note) is supposed to be transferred at the same time ownership of the debt changes. This is done by creating a document called an "Assignment" which transfers title to the new owner.
(Note: Statutes from Georgia are used for illustration. Check your state statutes for similar provisions.)
The statute OCGA § 44-14-162.2 was instituted because the intent was to protect the land and deed records of Georgia counties from wrongful transfer in title. Purchase and sale of real estate is dependent on the transparency and accuracy of an accurate chain in title. Without an accurate chain in title, a purchaser could purchase property only to find out later that this property is actually owned by another entity who has the right to claim it. Numerous title insurance companies have discontinued issuing insurance on foreclosures for this reason.
OCGA § 44-14-162.2. Foreclosures under power of sale -- Mailing or delivery of notice to debtor -- Procedures
(b) The security instrument or assignment thereof vesting the secured creditor with title to the security instrument shall be filed prior to the time of sale in the office of the clerk of the superior court of the county in which the real property is located.
The statute OCGA § 44-14-162.2 was instituted because the intent was to give the homeowner the name of the true owner of the debt. The owner has the right to know to whom payments are owed.
OCGA § 44-14-162.2. Foreclosures under power of sale -- Mailing or delivery of notice to debtor – Procedures
(a) Notice of the initiation of proceedings to exercise a power of sale in a mortgage, security deed, or other lien contract shall be given to the debtor by the secured creditor no later than 30 days before the date of the proposed foreclosure.
Further, statute OCGA § 44-14-162.2 was instituted because the intent was to give the homeowner the name of the true owner which is the only entity with authority to modify the terms of the mortgage with the debtor.
OCGA § 44-14-162.2 further reads:
Such notice shall be in writing, shall include the name, address, and telephone number of the individual or entity who shall have full authority to negotiate, amend, and modify all terms of the mortgage with the debtor.
RISKS TO THE HOMEOWNER
1. Without knowing the true owner of the debt, the homeowner is at risk of paying the wrong party alleging itself to be the owner. In numerous cases across the nation, more than one party has claimed ownership.
2. Homeowners have paid Servicers, such as CitiMortgage, Wells Fargo, Bank of America, etc., which are performing the services of debt collection only, only to find out later that payments were not applied, were not accounted for or were lost. This also raises the question: were payments given to the owner?
3. Homeowners have trusted Servicers, such as CitiMortgage, Wells Fargo, Bank of America, etc. who alleged that they were taking information from the Borrower for modifications, short sales, etc. to the correct owner to ask the correct owner to modify the terms of the loan or approve sales on property.
4. The national mortgage settlement recently listed severe wrongful activities of Servicers. When a Servicer, such as CitiMortgage, Wells Fargo, Bank of America, etc. which is performing the services of debt collection only, claims that they are owner and records it, they have committed a criminal act. (See Assignment of Security Deed which shows Assignment to wrong party).
5. An Assignment to the wrong party creates an injury to property title, otherwise known as slander on title.
6. The homeowner is at risk that, if the property is foreclosed upon by the wrong entity who "purports" to be the real owner, the correct owner can come forward in the future, claiming ownership and the right to be paid by the homeowner (DOUBLE LIABILITY).
7. The homeowner is at risk, if the property is foreclosed upon by the wrong entity, because the homeowner is subject to a probable deficiency judgment (Georgia). (See your state laws on deficiency). A deficiency, in this arena, is the mortgage balance minus the sales price of the property at the foreclosure auction.
Example: Pursuant to OCGA § 44-14-161. Sales made on foreclosure under power of sale -- When deficiency judgment allowed; confirmation and approval; notice and hearing; resale.
The foreclosure entity (or party claiming to be the rightful entity), can file for a deficiency judgment.
OCGA § 44-14-161 (a) When any real estate is sold on foreclosure, without legal process, and under powers contained in security deeds, mortgages, or other lien contracts and at the sale the real estate does not bring the amount of the debt secured by the deed… person instituting the foreclosure proceedings shall, within 30 days after the sale, report the sale to the judge of the superior court of the county in which the land is located for confirmation and approval and shall obtain an order of confirmation and approval thereon.
8. Criminal violations, whether attempted or completed - depending on the status of foreclosure - are (non-inclusive):
Note 1: For this explanation, Georgia's criminal statutes are used; if you live in another state, search for similar statutes. Click here to go to website page with criminal statutes.
Click here for the Criminal Statutes document in pdf.
Note #2: Here are associated Federal Statutes.
RISKS TO LAND AND DEED RECORDS
1. County officials and Attorneys General across the U.S. have discovered that millions of homeowners have been illegally foreclosed upon with the use of falsified Assignments transferring title to the wrong party, thereby slandering or clouding the title of a homeowner’s property and the titles to millions of properties.
2. As stated above, purchase and sale of real estate is dependent on the transparency and accuracy of an accurate chain in title. Without an accurate chain in title, a purchaser could purchase property only to find out later that this property is actually owned by another entity who has the right to claim it. Numerous title insurance companies have discontinued issuing insurance on foreclosures for this reason.
3. The fraud and flaws of MERS: MERS or Mortgage Electronic Registration Systems, Inc., present as "nominee for the Lender" on millions of security instruments and Assignments (of the security instruments), MERS and parties participating in the fraud has contributed to millions of clouded titles and to the loss of BILLIONS of dollars in RECORDING FEES nationwide.
See snapshot of MERS on page 1 of a Security Instrument.
Mortgage Electronic Registration Systems, Inc., an electronic database, was created in the mid to late 1990's by the Mortgage Banker's Association along with companies like Bank of America, Wachovia, J P Morgan Chase, Fannie Mae, and Freddie Mac because the bankers did not want to pay recording fees on every transaction when they bought and sold notes by and between themselves. Therefore, they invented a corporate model (which never received Congressional approval or any kind of legislative approval) to circumvent (go around) the public registry that has been in place since the U.S. first started keeping record of property transactions. The goals of MERS was to avoid the fees that would have been assessed at the county courthouse for recording documents and to "look like their system could effectively track Servicing Entities and Owners, an intentional deception which has led to massive corruption of the land registries and victimization of homeowners nationwide.
MERS does not share their REAL registry with anyone and therefore, it has created a shadow or false registry. Because they refuse to share the information, they can create any document they want.
Here is a screenshot of the MERS system (instructions how to access are below):
Here are the results of a "MERS for Homeowners" look-up. Several parties, including the foreclosure attorneys, participated in this illegal foreclosure. As annotated, Bank of America foreclosed when it was only the Servicer. The MERS SYSTEM did not reflect either the correct Servicer or the correct Owner (Investor). The reasons for these errors are listed below. SEE "TRUTH ABOUT MERS" BELOW.
Here is 2 screenshots of Assignments with Mortgage Electronic Registration Systems assigning a security instrument (and notice: also the promissory note on #1) to an entity
Observations about the above Assignment:
• Assignment was to the WRONG PARTY - to the Servicer, not to the Owner.
• Note the verbiage, "For value received..." MERS is a registry and does not buy or sell anything. This is a misrepresentation/coverup.
• Note the verbiage, "Assignee herein has this day sold and assigned to the Assignee herein the note..." MERS itself has admitted not to owning notes. This is a misrepresentation/coverup to lead the public to believe that the note and security instrument were not divided. But MERS does not own any notes; therefore they cannot transfer any ownership.
• Troy Crouse and Thomas Sears are McCalla Raymer attorneys signing as officers of MERS? What gives them power of attorney to sign which is visible to the public in the county records? (Note: their positions change from document to document: Assistant Vice President, Assistant Secretary and so on). Here are signature variations of Troy Crouse.
• Crystal Wilder was not a notary at the time she allegedly witnessed this document. In addition, examination of Wilder's REAL signature on her Notary Application and Notary Certificate of Appointment (like a diploma) at the Fulton County Superior Court Clerk's shows that the REAL Wilder did not sign this document.
• The Assignment was allegedly created by Prommis Solutions, LLC which is a document manufacturing facility used by foreclosure mills McCalla Raymer, LLC, McCurdy & Candler, and others. Crouse and Sears, attorneys for McCalla Raymer, are allegedly "signing" documents (rather, allegedly other people are signing their names).
Observations about the above Assignment #2:
• Assignment on 8/1/2009 from Mortgage Electronic Registration Systems as NOMINEE for American Broker's Conduit TO Deutche Bank National Trust Company as Trustee for Harborview Mortgage Loan Trust Mortgage Loan Pass Through Certificates Series 2006-14 is impossible for 2 simple reasons!
#1 American Broker's Conduit dissolved August 6, 2007 (a Judge's order is available as proof); therefore there is no way to transfer from a defunct entity.
#2 When promissory notes were sold into securitization trusts with a REMIC (tax-exempt status), transfer in ownership had to follow a strict sequence to ensure that IRS regulations were met. In order to meet REMIC guidelines, the "true" sale of the promissory note had to go:
FROM the Correspondent or Originator TO the Seller/Sponsor TO the Depositor TO the Trust. This is to ensure bankruptcy remoteness (in other words, a creditor cannot come after an asset if the Originator or Seller/Sponsor go bankrupt); thus the term "true sale".
Therefore, there is NO WAY that ownership can be transferred from an Originator directly to a Trust. According to the Pooling and Servicing Agreement (hereinafter “P.S.A.”) filed with the Securities and Exchange Commission (SEC), transfers in Promissory Note ownership would have occurred from American Broker’s Conduit (Originator), to Greenwich Capital Financial Products Inc. (Seller/Sponsor) to Greenwich Capital Acceptance Inc. (Depositor) to Deutche Bank National Trust Company as Trustee for Harborview Mortgage Loan Trust Mortgage Loan Pass Through Certificates Series 2006-14
Here is a sample diagram showing A FORMATION OF REMIC SECURITIZATION TRUST PER IRS STANDARDS
Observations about the above Assignment #2 (continued):
• Assignment #2 was created by Docx, a document manufacturing facility in Alpharetta, GA which closed when news of fraudulent activity surfaced. (Also see the last news video below on this page -- CBS 60 MINUTES -- which spotlighted Docx and the parent company LPS (Lender Processing Services) and Linda Green, a former Fulton County, GA notary. Also here is an article about Docx.
• People signing on behalf of Mortgage Electronic Registration Systems were employed by Docx:
- Linda Green – former notary, Fulton County, GA, signing as Vice President of MERS. Her commission was revoked (Revocation Letter available from Fulton County, GA Clerk of Superior Court)
- Tywanna Thomas – signed as Assistant Secretary
- Christina Huang– signed as an unofficial witness
• Britanny Snow, notary (on second page of Assignment, not shown) – former notary, Fulton County, GA. Her notary commission was revoked. (Revocation Letter available from Fulton County, GA Clerk of Superior Court). Former Manpower employee.
• As in Assignment #1, Linda Green and Tywanna Thomas are Doxc employees signing as officers of Mortgage Electronic Registration Systems. What gives them power of attorney to sign which is visible to the public in the county records? (Note: their positions change from document to document: Vice President, Assistant Vice President, Assistant Secretary and so on).
• An examination of Snow's REAL signature on her Notary Application and Notary Certificate of Appointment (like a diploma) at the Fulton County Superior Court Clerk's shows that the REAL Brittany Snow did not sign this document.
THE TRUTH ABOUT MERS
__________________________________ (to be filled in)
4. Counties officials have discovered that millions of dollars have not been received by Georgia counties as a result of the contracted foreclosure firms filing an “EXEMPT” status on PT-61 tax forms to assist Federal National Mortgage Association and Federal Home Loan Mortgage Corporation to avoid paying required real estate transfer taxes.
THE CONTRACTED FORECLOSURE FIRMS ARE KNOWINGLY AND
INTENTIONALLY PARTICIPATING IN THE CRIMES.
1. As specialized “default servicing” companies performing foreclosure services, Managing Principals and Lawyer Associates in the foreclosure processing arena have to have superior knowledge of required documentation and required material fact, format, and certification on such documents: i.e. required indorsements (correct spelling), notarial acts, required witnesses, required adherence to Trust policies and procedures, Assignment requirements and deadlines, powers of attorney, and all foreclosure laws.
2. The following list explains the ways in which Managing Principals of contracted law firms and Lawyer Associates are aiding and abetting the commission of crimes:
a) Creating false Assignments or commissioning other document manufacturers to create false Assignments.
b) Filing, or "causing to be filed" false Assignments in the county recorders' offices. (See paid receipt showing Rubin, Lublin, Suarez, and Serrano, LLC).
c) Sending through the mail (mail fraud):
Letter 1) Notice Pursuant to Fair Debt Collection Practices Act which either omits the true owner or states the wrong owner.
Letter 2) Notice of Foreclosure Sale which either omits the true owner or states the wrong owner.
d) Causing to be filed in the county legal organ, a public advertisement of foreclosure sale which alludes to a transfer in title via Assignment (see verbiage "as last transferred") to an entity which they know is the wrong party (and some advertisements go as far as to admit a transfer to the wrong party while at the same time declaring who the true owner is).
See example ad in the The Champion (legal organ for Dekalb County, GA):
• FNMA indicates Fannie Mae.
• They would have confirmed and audited the status of the loan with TRUE secured creditor. This shows that the lawyers in the firm had knowledge.
e) Filing, or "causing to be filed" false Foreclosure Deeds in the county recorders' offices. (See Example).
f) Filing or "causing to be filed" false Special Warranty Deeds. (See Example).
g) Filing PT-61 tax forms, marking an “EXEMPT” status to assist Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac) to avoid paying required real estate transfer taxes. Note: This has caused the loss to counties of millions of dollars per year.
* Fannie Mae and Freddie Mac are private companies, not non-profit or legally exempt entities. As counties around the country have learned this fact, they are initiating law suits to recover lost real estate transfer taxes.
* Fannie Mae and Freddie Mac have contracted a "closed network" of attorney firms (called the Retained Area Network - see list) to perform services that are not legal pursuant to state laws.
g) Performing foreclosure and post foreclosure services despite having knowledge of criminal activity.
See State Bar of Georgia's Rules of Professional Conduct addressing these improprieties which lead to disbarment. (For other states, google your state and Rules of Professional Conduct).
CBS ATLANTA FORECLOSURE FRAUD
September 5, 2012 (11 minutes)
CBS "60 MINUTES" ON FORECLOSURE FRAUD