You CAN Stop Foreclosure

There are a number of consumer protection laws in place to protect the public from predatory lending practices. The Real Estate Settlement Procedures Act is one of them and The Truth in Lending Act, Regulation Z (12 CFR 226) is another. We use these and others to craft a remedy for you that will allow you to stop foreclosure in its tracks.

In An Emergency
If you are at foreclosure's door, go down to the court house where the sale is to take place, when they call your property, step up and tell them, "There is a claim on this property; buy the property you buy the claim." This will keep anyone from bidding and the bank will have to take the property back. Probably the best solution when you are out of time.

Also, when you sue the bank. If an essentially innocent third party purchases the property, the question before the court will be, "Who has a right to possession." The fact that you may have a claim against the lender will not be considered. By stopping anyone from bidding, the bank must retain the property and then, if you sue the bank for the fraud we find here, the bank will usually stop all efforts to force you out of the building as, if they do, they are responsible for the property and they cannot insure an empty property. The bank will want you to remain in the property until the suit is litigated, which could take a very long time.

This Computer Is Not An Attorney
This program is designed to take your input, run an analysis on it, then merge your data into a lawsuit document. The particular document has been filed in the court a number of times and is intended to be generic. It will address certain issues that pertain to your case in terms of dollar amounts, but the issues brought are issues that exist in every consumer mortgate loan we have seen. It is designed to be used in an emergency to stop foreclosure.

Not Intended To Replace Counsel
This program is not intended as legal advice, but rather, instruction in how to stop the lender and give you time to seek out counsel. It is also the result of considerable research. The issues in this lawsuit have been taken from suits already filed by attorneys in cases. You can file the suite immediately to stop foreclosure, but we suggest you secure counsel to help you with the case. We have been locating and training attorneys around the country to deal with this issue and can give the list we have. If you have your own counsel, we can talk to him and bring him up to speed on the fraud issues common to most all consumer mortgages.

Mediation Services
We can also provide you with a mediation service if you are unable to negotiate with the lender. Once you have the information provided, you will be able to specifically demonstrate precisely how much fraud is involved in your note. Then, instead of going to the lender with your hat in your hand for a loan modification, you can go into mediation with your boot up their collective behinds.

You Can Fight the Banks
The money changers are stripping the American people of the equity in this country. If we do not stop them they will wind up enslaving us all. They have used fraud and trickery to get people to speculate with their homes, now they intend to strip them of their homes and equity, then sell them back at inflated prices.

Loan Modification Fraud
The banks are using this loan modification scam to force people into foreclosure. They offer you a modification then tell you that you do not qualify unless you are a couple of payments behind. They then offer to modify and ask you to produce all your private information while they process the foreclosure. If you question the foreclosure notices, they tell you not to worry about that as you are doing the modification and everything will be fine. The will then stall you until just before foreclosure, deny the modification then sell the property.

Forensic Audits Absent Remedy Are Worthless
There are a lot of companies doing forensic audits and most are, we believe, acting in good faith toward the people they are trying to help. The problem is, the audit does nothing but tell you that the lender has violated certain laws. We are focused on remedy and the audit is not remedy. What do you do with the audit? We suggest, do not waste your money on an audit unless you intend to give it to an attorney who understands consumer law so he can sue them as noting will stop the bank form foreclosing on your property but a nice hefty law suit. If you have had a forensic audit and have the the printout and are wondering what to do with it, contact us, we will show you how to turn that audit into remedy.

How Things Really Work
1) Briefly, how it works is this, the Lender would secure a large loan from a large bank, convert that loan into 20 and 30 year mortgages, then sell the promise to pay to an investor.

2) Usually a Real Estate Agent would contract with a seller to find a buyer, then bring both seller and buyer to a lender who would secure the title from the seller using the funds borrowed for that purpose then trade the title to the buyer in exchange for a promise to pay over a stipulated term. The lender, however, has created a 20 or 30 year mortgage with money the lender must repay within 6 months, therefore, as soon as the closing is consummated, the promissory note is pooled together with others and sold to an investor.

3) Using the instant case as an example, a $139,200.00 note at 7.8980% interest over 30 years will produce $352,108.80 The lender can then offer up the security at say 50% of the future value to the investor. The investor will, over the life of the note, less servicing fees, realize a profit of $180,466.72 . The lender can then pay back the bank and retain a handsome profit in the amount of $52,429.60. The lender, however, is not done with the deal.

4) The lender who signed over the promissory note to the investor at the time of the trade, did not sign over the lien document. The State of Kansas Supreme Court addressed this issue and stated that such a transaction was certainly legal, however, it created a fatal flaw in that, the holder of the lien document, at time of sale of the security instrument, received consideration in excess of the lien amount, and therefore, the lender could not be harmed and the lien became a void document.

5) This begs a question, if keeping the lien would render it void, why would the lender not simply transfer the lien with the promissory note? As always, follow the money. The lender will hold the lien for three years, file an Internal Revenue Form 1099a, claim the full amount of the lien as abandoned funds, and deduct the full amount from the lender's tax liability. The lender, by this maneuver, gets consideration a second time and still the lender is not done profiting from the deal.

6) After sale of the promissory note, the lender remains as the servicer for the investor. The lender will receive 3% of each payment the lender collects and renders to the investor pool. However, if the payment is late, the lender is allowed to assess an extra 5% and keep that amount. Also, if the loan defaults, the lender stands to gain a considerable amount for handling the foreclosure.

7) The lender stands to profit far more from a note that is overly expensive in the first instance, then slow to pay in the second, then ultimately fails in the third, than from a good stable loan. And where, you may ask, does all this profit come from? It comes from the equity the lender convinced the borrower to invest in the new purchase, and still the lender is not finished profiting from the deal.

8) The last nail was driven in the American financial coffin on the last day of Congress in 2000 , the Graham Bailey Leach Act, was when they removed a restriction that had been in place since the economic collapse of 1907. At that time, investors were allowed to bet on stocks without actually buying them. This unbridled speculation lead directly to an economic collapse so the legislature banned the practice, until the year 2000. The money changers got their way on the last day, the last act of the session, when congress opened the process again and it took only 8 years to crash the stock market.

9) The lender was not done profiting from the loan he created as he was then free to bet on the failure of the security.

10) The unsuspecting consumer was lulled into accepting the pronouncements of the Real Estate agents, the Lenders, Appraiser, Underwriters, and Trustees as all were acting under the cover of government regulation. Unfortunately, the regulations in place to protect the consumer from just this kind of abuse were simply being ignored.

11) The loan origination fee from line 801 of the HUD1 settlement statement is the finder's fee paid for the referral of the client to the lender by a person acting as an agent for the borrower. Hereinafter, the person or entity who receives any portion of the yield spread premium, or a commission of any kind consequent to securing the loan agreement through from the borrower will be referred to as "Agent." The fee, authorized by the consumer protection law is restricted to 1% of the principal of the note. It was intended that the Agent, when seeking out a lender for the borrower, would seek the best deal for his client rather than who would pay him the most. That was the intent, but not the reality. The reality is that Agents never come away from the table with less than 2% or 3% of the principal. This is accomplished by undisclosed fees to the Agent in order to induce the Agent to breach his fiduciary duty to the borrower and convince the borrower to accept a more expensive loan product than the borrower qualifies for. This will generate more profits for the lender and, consequently, for the Agent.

12) It is common practice for lenders to coerce appraisers to give a higher appraisal than is the fair market price. This allows the lender to increase the cost of the loan product and give the impression that the borrower is justified in making the purchase.

13) The lender then charges the borrower an underwriting fee in order to convince the borrower that someone with knowledge has gone over the conditions of the note and certified that the meet all legal criteria.

14) The entire loan process is carefully contrived and intended to induce the unsophisticated borrower into accepting a loan product that is beyond the borrowers means.

15) The trustee, at closing, participates actively in the deception of the borrower by placing undue stress on the borrower to sign the large stack of paperwork without reading it. The trustee is, after all, to be trusted and has been paid to insure the transaction. This trust is systematically violated for the purpose of taking unfair advantage of the borrower.

16) With all this, it should be a surprise to no one that this country is having a real estate crisis.

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