The “robo-signing of affidavits and Assignments of Mortgage and all other mortgage foreclosure documents served to cover up the fact that loan servicers cannot demonstrate the facts required to conduct a lawful foreclosure. If it turns out that robo-signers did indeed sign off on loans without review, they committed fraud by claiming knowledge of a financial matter of which they had no personal knowledge. It could also mean that some people are wrongly being evicted from their houses.
From underwriting fraudulent mortgages; to shuffling it through the mortgage securitization chain without following proper legal procedures like the simple act of passing along paperwork; to concealing or doctoring basic facts when securitizing the mortgages and selling them to investors, large lenders and their partners on Wall Street could face hundreds of billions of dollars in losses by being forced to buy back faulty mortgages, some of which have already defaulted, from misled investors.
Investors bought mortgage-linked securities with the promise that the underlying mortgages conformed to basic underwriting standards, and that proper procedures were followed in the chain of securitization and a tax-exempt status. Steep losses on those investments and the discovery of potentially fraudulent activity are pushing investors to force banks to buy them back.
With all of the press robo-signing has gotten, it is a bit surprising that everyone is having such a hard time concluding whether these practices effect non-judicial foreclosures.
The topic has not gotten the treatment it deserves, I will try to help. The following are by no means a complete list, but are the most clear LEGAL reasons (setting aside pure moral questions and the U.S. Constitution) that the Robo-Signer Controversy will entitle hundreds of thousands of homeowners wrongfully foreclosed and evicted to sue in non-judicial foreclosure states.
Briefly, Robo Signers are illegal because fraud cannot be the basis of clear title, trustee’s deeds following Robo Signed sales are void as a matter of law, notarization is a recording requirement for many of the documents, which we also know was often botched, and most importantly because robo signed falsifications ARE meant for use in court, including unlawful detainers and bankruptcy matters.
Clear Title May Not Derive From A Fraud (including a bona fide purchaser for value).
In the case of a fraudulent transaction the law is well settled.
Numerous authorities have established the rule that an instrument wholly void, such as an undelivered deed, a forged instrument, or a deed in blank, cannot be made the foundation of a good title, even under the equitable doctrine of bona fide purchase. Consequently, the fact that purchaser acted in good faith in dealing with persons who apparently held legal title, is not in itself sufficient basis for relief.
It is the general rule that courts have power to vacate a foreclosure sale where there has been fraud in the procurement of the foreclosure decree or where the sale has been improperly, unfairly or unlawfully conducted, or is tainted by fraud, or where there has been such a mistake that to allow it to stand would be inequitable to purchaser and parties.
Hence, if forged Robo Signed signatures are used to obtain the foreclosure, it CERTAINLY makes a difference in non-judicial foreclosure states as well as judicial states. Any apparent sale based on Robo Signed documents is void – without any legal effect – like Monopoly Money. In turn, the law requires that the beneficiary execute and notarize and record a substitution for a valid substitution of trustee to take effect. Thus, if the Assignment of Deed of Trust/ Mortgage is robo-signed, the sale is void. If the substitution of trustee is robo-signed, the sale is void. If the Notice of Default is Robo-Signed, the sale is void.
These documents are not recordable without good notarization. The reason these documents are notarized in the first place is because otherwise they will not be accepted by the County recorder. Moreover, a notary who helps commit real estate fraud is liable.
Once the document is recorded, however, it is entitled to a “presumption of validity”, which is what spurned the falsification trend in the first place. Therefore, the notarization of a false signature not only constitutes fraud, but is every bit intended as part of a larger conspiracy to commit fraud on the court.
The documents are intended for court proceedings. A necessary purpose for these documents, AFTER the non judicial foreclosure, is the eviction of the rightful owners afterward. While the foreclosures are non-judicial, evictions afterwards still are conducted in court, although the process moves quickly and is mostly a “rubber stamping” by skeptical judges. However, as demonstrated below, once these documents make it into court, the bank officers and lawyers become guilty of FELONIES:
The Doctrine of Unclean Hands provides: plaintiff’s misconduct in the matter before the court makes his hands “unclean” and he may not hold with them the pristine remedy of injunctive relief. The unclean hands rule requires that the Plaintiff not cheat, and behave fairly. The plaintiff must come into court with clean hands, and keep them clean, or he or she will be denied relief, regardless of the merits of the claim. Whether the doctrine applies is a question of fact. Robo Signed Documents Are Intended for Use in Bankruptcy Court Matters. One majorly overlooked facet is the extremely active bankruptcy court proceedings, where, just as in judicial foreclosure states, the banks must prove “standing” to proceed with a foreclosure. If they are not signed by persons with the requisite knowledge, affidavits submitted in bankruptcy court proceedings such as objections to a plan and Relief from Stays are perjured. The documents in support are often falsified evidence. Conclusion Verified eviction complaints, perjured motions for summary judgment, and all other eviction paperwork after robo signed non judicial foreclosures are illegal and void. The paperwork itself is void. The sale is void. But the only way to clean up the hundreds of thousands of effected titles is through litigation, because even now the banks will simply not do the right thing. And that’s why robo signers count in non-judicial foreclosure states. Victims of robo-signers in may seek declaratory relief and damages, an injunction and attorney’s fees for Unfair Business practices, as well as claims for slander of title; abuse of process, civil theft, and variety of other civil remedies, including RICO, which carries triple damages.
HomeSmart, Evergreen Realty - Irvine, CA
REALTOR , GRI, Broker associate, Attorney
I disagree. Such signing of documents to start non-judicial foreclosures in California by mortgage lenders and servicers is according to law.
These declarations present facts essential for the non-judificial foreclosure proceedings - as is authorized in Section 2924 et. seq. of the California Civil Code.
California courts of appeal have mostly not held that people who make claims that they were wrongfully foreclosed must show that they either paid the money owed to the lender or that they tendered payment.
Jun 01, 2012 02:15 AM
Anonymous
ROBO,, SIGNING IS FRAUD ...if one is to do a foreclosure.. then DO THE NEEDED PAPER TRIAL
I am not in foreclosuse and I have fraud on my deed.. title .. robo signing why...
because the Investors, banks, took my note and sold and sold and sold and made money off my
signature, and in the pooling, sec , the cut off date is final yet.. they conitnuse to sale and make money
a money laundering as such, that is why the ROBO SINGING,, the leander did not want there signature
involved.. FRAUD.. WITH A BIG FFFFFFFFFFFFFFFFFFFF.. F ..
...
Sep 29, 2012 09:54 AM
#2
Anonymous
It is woefully true that AFTER a sale takes place, the courts ASSUME it was done properly and some even find "res judicata" even though no judge oversaw the foreclosure process or ruled on it.
In the face of FRAUD, there should be no tender requirement.
These are literally felony offenses used in order to take people's homes. If it is all above board and the banks are honest, they do not need to bring FALSE, FORGED, and FRAUDULENT instruments into our county public recording system in order to foreclose.
Why is there a massive AG investigation and why are the banks trying to cover it up with payoffs (graft) to avoid going to jail if it they are so honest and right?
When the banks took out mutiple default insurance policies on the mortgages incase of non-payment by the homeowner-borrowers, they were paid many times over the loan amounts after the homeowners defaulted.
Once the note is paid, by insurance or otherwise, (rich uncle, aunt Sally, or mom and dad) the note (loan obligation) is no longer due. So, even though the loan was paid off, and it is settled law that there can be no collection on such a note, loan servicers and banks close in for illegal forclosures, to take the house too.
Banksters won their bets that many Americans would fall behind on their mortgages making wallstreet Banksters richer with insurance payouts, thirty or more times the loan value! This kind of insurance was illegal before deregulation, so the banks tried their best to work things out with the homeowners. Old fashioned banks could not concieve of making loans that they knew or hoped would fail, much less betted they would and made loans calculated to fail so well that they even knew when their windfalll would arrive! The notes were usually paid off more than thirty times over when homeowners fell behind, and now they want to make the family who did not knowingly sign up for this scheme homeless???THey couldn't have carried it off without sucking as many homeowners in as possible and making sure that only appraisers who vastly oversetimated the home values were hired. Heck, the entities who set up the investment trusts the loans would go into and bought the default insurance policies, did the underswriting! Anyone could qualify!
The mortgage default insurance companies cannot ask a homeowner to pay 30 times the value of the loan, hense no abrogation clause in the mortgage default insurance agreeements that are supposed to be a secretl!!! When do they have enough? Thirty times what each homeowner borrowed is not enough?
The homeowners who worked all their lives saw their pension funds go into the mortgage backed securities pools, supposedly backed by these loans, because we know people will sacrifice EVERYTHING to keep paying the mortgage. Heck, Christmas presents, vacations, college funds, any savings or retirement fund, are sacrificed, then even food and clothes are cut to to the bone to keep paying the mortgage. By the time the default happens, the homeowner has been sucked dry. There is no college or retirement fund. The family's credit it ruined and even renting, once the family is thrown to the curb after foreclosure, is going to be virtually impossible. I'm sorry, my pension fund did not vanish overnight because families "decided" not to pay their mortgages.
It vanished because of the BIG DIRTY SECRET:
The MORTGAGES AND NOTES NEVER WENT INTO the trusts that that our pension funds bought into. There was no insurance paid to US when the house of cards came falling down and folks lost their jobs and started defaulting on their mortgages. We pension -retirement investers lost like crazy!!! I lost 20K in a matter of weeks from my retirement pension fund. The default insurance went to the scam artists who sold the bond certificates and set up the whole scheme and sold it to our pension managers. Their profits skyrocketed when we fell to the floor.
So for the majority of Americans, earning a living gets harder or impossible, your retirment plan gets emtied, and guess what? The same people who stole your retirement money, are now at the door like the wolves they are, ready to make you homeless!!! Not just that, but they blame YOU for it!!!
THE BIG SECRET YOU ARE NOT SUPPOSED TO KNOW: MORTGAGE-BACKED INVESTMENT TRUSTS ARE AND ALWAYS WERE EMPTY! The bond certificates, supposedly backed by mortages were backed by NOTHING. The mortgages (notes, deeds of trust) never made it into the mortgage-backed investment trusts.
BTW, any JUDGE reading this, if you think that making homeowners homeless helps your mortgage-backed securities investment or retirement pension plan, you are wrong and you are sleeping with the enemy. Your retirement plans were riped off by the mortgage securitization schemes as surely as homes were stolen from the famillies you throw to the streets. You are helping the very ones who gouged your retirement plan.
Do you really think money from the foreclosure sales ends up in your retirment investment vehicle? Did you really think any non-performing loan, could be stuck into a REMIC trust, YEARS after its closing date, when if even one such loan managed to get into a trust, the REMIC status vanishes, the trust is dissolved, and taxation is a punishing 100%!!! How does that help your retirement?
The loan servicers and banksters servicing loans take it and the funds likely end up like all the rest of the money, IN THE CAYMAN ISLANDS or some other hiding place or in a money laundering scheme.
The banksters pretend to assign the loans to the investments trusts years after the trusts close, when it is IMPOSSIBLE to put them in. The trustees cannot allow it. If even one loan goes into a mortage investment trust, called Real Estate Investment Conduit, "REMIC" after its closing deadline, the trust is disolved and owes 100% taxes!! The deadline for getting mortgages in is usually a few months after the homeowner gets a loan, after the pool of 2000 or so loans is reached.
The bankster-wallstreet wolves who set up the trusts kept the notes and investor money. The invester (our pension funds) price for the loans in the pool was two to three times the amount paid for the loans. The rest was pocketed, although as all good Ponzi schemes show, a little of the investor money was set aside to be sent to back to the the investors until the defaults came in.
After juicy defaults came in, the banksters collected mega bucks on default insurance, told penion managers that the bad homeowners turned your retirement plan into dog pooh. Then the loan servicers started stealing the houses that were security for the NOTES that the default insurance already paid off many times over.
If you are a judge, you have probably helped the crooks by giving a blind eye to robo-signed, forged and fraudulent paperwork used to make families homeless. Maybe, like so many lawyers I have talked to, you could not imagine a lawyer risking his bar card so cheaply and just cannot believe it is real or that the lawyers are aware of what they are doing. I entreat you to avoid rewarding the ones who set this up or their minions.
If questionable documents are proffered by foreclosing agents and counsel in your court, how about checking to see if fraud upon the court is happening and if "equitable relief" is due those who have come with unclean hands, fresh from the recorder's office, where they just finished recording fraudulent documents to hurt the desperate families looking to you as their last hope?
Apr 20, 2013 02:08 AM
#3
Recent Posts
Real Estate Industry
almost 11 years ago
ActiveRain Community
about 12 years ago
ActiveRain Community
about 12 years ago
https://plus.google.com/100716214554169775908
Comments(3)