Deny and Discover

First and foremost do not admit that you borrowed or owe any money to anyone. Why, because the entity foreclosing on you never loaned you any money. However, they used your promissory note to make money for themselves and did not share any of it with you. They most likely sold your note to an investor, were paid in full and still want to collect mortgage payments from you. They were also paid off in several different forms of insurance policies. Your loan has been paid in full.

Below is a step by step process to assist with a pending foreclosure1.

The most important point to make is to be sure that you have been properly notified of your hearing date and that the hearing has to happen before a sale takes place.

1. Go to the Mortgage Electronic Registration Systems (MERS) website and put in your personal information to determine who your loan servicer is (i.e. company you send your monthly mortgage payment) and who, is the holder of your home mortgage note otherwise known as the investor.

a. MERS website: https://www.mers-servicerid.org/sis/index.jsp

b. The site will ask you for basic information

 Social Security No. or the MIN number if you have it.  Property address/Borrower Details  FHA/VA/MI Certificate  To find the investor on your alleged mortgage, you will have to look closely for a link “here” on the second screen to find the investor.

c. Once you have completed the information the site will return the name of your Servicer with a link to their website if available. It will also provide a link to display the investors name; this will require your last name and Social Security Number (SSN). Be sure to print off these pages for future reference.

2. If you are under foreclosure go to your County Court of Clerk office and get a copy of all the documents in your file. Very important step. You have a right to know and should know what has been filed in the Clerk’s file. Hopefully, the foreclosure entity will have filed a copy of the deed of trust and the note.

3. Also go to the Register of Deeds website and print out a copy of any docs filed in the last few months, i.e. the Substitute Trustee filing and the assignment of the mortgage document. These are extremely important documents. Also note how many different substitute trustee forms have been filed and make a copy them all

4. Prepare a Qualified Written Request or QWR for the Servicer and the Substitute Trustee, (See Appendix A for an example). This QWR is your chance to do discovery and find out what evidence the “bank” has to prove their case. Even though NC is a non-judicial state, you still have the power and right to contest all the efforts the banks takes to foreclose on your home. They must prove they have standing to foreclose and the only way they can do that is to prove they own the mortgage note, not the deed of trust, the note.

5. Send the Servicer QWR and Substitute Trustee QWR via register mail so that you will have conformation of receipt. The Servicer and Substitute Trustee, by law, have 5 days to acknowledge receipt of your QWR and 20 days to get the information back to you. They most likely will stall, so keep track of the time and clock it.

6. File a complaint with the OCC (Office of the Comptroller of Currency) on line. This is the second most important thing you can do. It is believed that they cannot foreclose on you as long as the complaint is being investigated. This is the link: http://www.helpwithmybank.gov/complaints/index-file-a-bank-complaint.html Keep a copy for yourself and file a copy in the County Clerk’s file. Any documents you send to the bank of trustee be sure to also file a copy in the County Clerk’s file. You will get a response. So far all that have filed a complaint have heard back from the bank and/or the trustee.

7. Next important step is to file a fraud complaint with your Sheriff’s Department. If you live in the city limits, you will need to file with the Police Department. This will get your evidence out in front of law enforcement. The banks and trustee firms have committed fraud by filing documents with the Register of Deeds that are fabricated documents. Currently, out of the $25B mortgage settlement, $6.3M has been provided to the Conference of DA’s to investigate and prosecute mortgage and financial fraud. However, to be considered, you must start with the local fraud investigator so that it can be referred to the District Attorney.

These steps are urgent and must be done in order to get you into a position to properly defend yourself against the banks. They are fraudulently foreclosing on your home because they do not own the note on your home. The first step in suing anyone is to establish standing, or the right to sue. The right to sue must be established by furnishing evidence that they have been financially harmed. Since the entity foreclosing on your home is only a servicer and have suffered no financial harm, they have no standing to sue or take your home. Remember what I said earlier, this servicer never loaned you any money. They only have the right to collect your payments.

Another important part of what the “bank” will do is to try to get you into a modification agreement. I do not recommend that this be done. Most likely the “bank” does not have the right to enter into a modification agreement. Remember, they do not own the loan. And in a lot of cases, while you are in the process of doing a modification, they can still foreclose on you. Most modification agreements are temporary, yet they ask you to put some money up front and you will lose it if after the trial period they do not approve your modification. You were just tricked into giving the “bank” some of the money you need to defend the foreclosure. And if you are approved for a modification, you will be asked to sign another note and your first note is still out there and not being cancelled. They will sell/securitize the new one just like they did the first one. So now you could be on the hook for two loans (most likely will not) but it could happen.

Short sales are an option but unless you file Bankruptcy, you could be hit with a deficiency judgment at the end of 2013. This means that the IRS will hit you up for income based on the difference of what you owed minus what the sold your home for.

Most folks think filing bankruptcy is a bad thing. I disagree 100%. Your credit takes less of a hit with a bankruptcy than it does with foreclosure and all those missed payments. Also you buy a lot of time when filing a bankruptcy because they bring everything to a dead halt. And you might be able to get the Bankruptcy trustee to help you fight your battle on requiring the bank to prove standing. There is some great case law in NC on this. Google this case: InRe: Tonya Bass and read this opinion from the NC Court of Appeals. http://www.scribd.com/doc/75081797/In-re-Bass-w

Please do not think of yourself as defenseless and at the mercy of the banks. We have powers and the above outline is working very well in calling a halt to foreclosures thus far. You may be a victim of foreclosure fraud, but it is time to be a FORECLOSURE WARRIOR!

Contrary to all you have heard in the past about foreclosure, it is not a slam dunk for the bank. You are behind on your mortgage payments but that DOES NOT mean they can just file some paperwork and take your home. THEY MUST PROVE STANDING. They have to prove to the Courts that they have the right to foreclosure and in most cases they do not. YOU HAVE RIGHTS AND THEY ARE POWERFUL IN THIS FIGHT. DON’T WASTE THEM. DON’T TAKE THEM FOR GRANTED. THEY WORK!

The last thing you might want to do is to attend a foreclosure seminar to learn more and ask questions about all of the above. A seminar will be scheduled as soon as we know how many can attend and where everyone is located. 1. These steps do not guarantee any particular results but have been found to make sure the legal process is followed to protect your rights.

Appendix A: Qualified Written Request

Date Servicer or Investor Address

RE: Borrowers Names Property Address Current Loan Number: ______Originating Bank: ______Date loan was originated: DD/MM/YEAR QUALIFIED WRITTEN REQUEST Dear Sir/Madam: Please accept this letter as a Qualified Written Request (“QWR”) pursuant to the Real Estate Settlement Procedures Act (“RESPA”) at 12 U.S.C. 2605(e) as amended (“RESPA”). The requests made hereunder are directed to you as my loan servicer. These requests relate directly to the servicing of my alleged loan insofar as you, as the loan servicer, cannot lawfully be servicing a loan that cannot be shown to be legally owned by an identified person or entity. In the reported news, any banks and mortgage companies have been accused of being involved in predatory lending and servicing schemes. Such matters are currently being investigated by federal and state authorities in all 50 states. As a citizen, I am extremely concerned about such practices by anyone, let alone my own mortgage company or anyone who may hold a beneficial interest in my loan. I am worried that potential fraudulent and deceptive practices by unscrupulous banks, loan servicers and foreclosure mill attorneys involving the sale and transfer of mortgage servicing rights; deceptive and fraudulent servicing practices to enhance balance sheets; deceptive, abusive and fraudulent accounting tricks which may involve my mortgage account and/or any alleged debt or payments for which I may be legally obligated. To independently validate my concerns and in accordance with the applicable law stated herein, please respond to the following requests as required under US Code Title 12 Part 226.39

1.) Please fully identify the owner of my alleged loan by name, address and phone number. The “owner” of my alleged loan shall be defined as the person or entity that purports to be lawfully entitled to the payments due under any promissory note that I allegedly signed when the alleged loan was originated. If the “owner” is a so-called “securitized trust”, please identify: a.) the name of the specific trust in which my alleged loan is supposedly “pooled” (and not simply the name of the Trustee);

b.) the CUSIP number for the trust; and

c.) the specific date my alleged loan was sold into said trust.

2.) Under U.C.C. – Article 3, 3-501, (b) 2 (1), I (we) am entitled to demand presentation of the negotiable instrument referencing my alleged mortgage. This demand is hereby ordered. I hereby demand that you present for my visual inspection MY ORIGINAL WET INK SIGNATURE PROMISSORY NOTE together with the original wet ink Deed of Trust. This is required to establish your right of enforcement as Holder in Due Course via a chain of assignment as evidenced by the Note showing any endorsements made thereto. Claiming to be the “holder in due course” as a statement is insufficient proof of status and is/will be rejected.

In the absence of a bona fide presentation of the note, it will be assumed that the note has been lost, stolen or destroyed and that it will constitute evidence that the note has been lost, stolen or destroyed and no longer exists. If you so state that the note has been lost, stolen or destroyed, please furnish your notice to the SEC 17f-1 (securities exchange commission) regarding such loss. To simply state that the note has been lost or stamped as lost, will not be acceptable and will also be considered an administrative default. If you cannot provide this proof as I have requested within the time allowed under this “QWR” THEN YOU ADMIT TO NOT BEING A PARTY OF INTEREST and cannot rightfully enforce your claim under U.C.C 3, 3-301. 3.) Please fully identify the current holder of my mortgage by name, address and phone number. a. If my mortgage is a MERS-designated mortgage, please identify the principal for whom MERS purports to act and provide written proof of the authorization of MERS to act for the lender with respect to my mortgage; b. Please send me a MERS Summary Report, also referred to as a MERS Milestone Report showing me all transfers of servicing rights and beneficial interest rights; c. If my mortgage has been assigned to another person or entity at any time, please provide certified copies of each and every assignment of the mortgage and advise whether or not such assignment was recorded on the public land records; d. If my mortgage is a MERS designated mortgage, please confirm or deny whether my promissory note was sold separately from my mortgage obligation and identify; i. Each and every party that purchased my promissory note or any interest; ii. The date upon which any such purchase(s) took place; iii. The amount of consideration paid for my promissory note. Also include copies of Form 424B-5, 424B-3 and 424B-2 referencing information contained in any prospectus concerning the registration statements, pooling and servicing agreements. Also include any initial prospectus that were issued for any security connected to this alleged security instrument. In order to give full disclosure, it is hereby demanded that you provide an accounting of all monies flowing in and out of this alleged promissory note as it was deposited initially, as it was then sold and monies flowing back in this account no matter how many times this was done. Also show any funds received by the various MBS accounts, SPV’s, REIMC’s or any other security vehicle that may have been used in this process. As you know, RESPA – as recently amended – requires written acknowledgement of the receipt of this QWR letter within five (5) days and a substantive response to the requested information within thirty (30) days. A failure to comply with this request may result in fines of up to $2,000.00 plus my attorney’s fees and costs. I hereby reserve any and all rights to make additional requests for information and to bring additional claims against any parties involved with my loan. You are also advised hereunder that to the extent that you or the “owner” of my loan may allege to be protected by any applicable statute(s) of limitation(s) with regard to any claims I may have for violations of state or federal law under the loan above-referenced, including my ability to rescind the loan transaction under applicable law, that any such claims are alleged to not be fully “discoverable” until full documentation is provided hereunder. I therefore reserve all rights to any and all claims, including rescission, until examination of the documents can be completed.

Thank you for your prompt attention to this matter.

Sincerely, Signature of borrowers

Appendix B Additional Information

Below is a organization who is working to educate the public about foreclosures. Home Owner for Justice - Link: http://www.hofj.org/...

For more indepth details see Trillion Dollar Fubar Link: http://trilliondollarfubar.com/

If you know somone in foreclosure please copy or print this information and send it to them. They can contact Roger Lytle at [email protected] for questions and further assistance. This effort is being lead locally by WE THE PEOPLE of Franklin County Patriots.

As we develop more information and/or guidelines we will post them.