Quick Reconveyance: Module 2

You should have already gathered all information requested in 001-Things to Gather.doc so you have everything handy.  If you don’t have your information from your loan docs…go down to the County Recorder’s office and ask them to help you find your Deed of Trust or Mortgage (in a Judicial State).

Next, while you are in your County Recorder’s office/Hall of Records, you want to ask the nice people behind the counter how to do a Title Search against your property.  Tell them you want all records of activities on your property from the date of the closing of your loan.  (obviously, you should know the date of your loan from your Loan documents, or the Deed of Trust/Mortgage).

If you are not getting any joy here, then contact any local Title company and ask for a Preliminary Title Report on your house…from the date of the original loan.

You want to have either the Title officer or the County recorder write a statement to say “There has been no recorded assignment of the Deed of Trust on record for the Deed of Trust #XXX (your Deed of Trust Recording ID number).”

This is really important.   This is evidence that your note was not Assigned…but paid off.

Remember, the Rule of Court is…the Plaintiff bares the burden of Proof.  You MUST bring proof and evidence of any wrong doing to the court, otherwise, your case will be subject to dismissal (for “failure to state a claim”).

Remember also that proof is everything.  In other words, if you go down to the County Recorder’s office and do find a record of assignment…then unfortunately, we have to abort this process.  They have proper assignment and our arguments are not as strong.  Fortunately, 99% of the time, they don’t do this.

The Above is really important.  Make sure you read and understand it.  Court is about proof and evidence.  If you don’t bring evidence of wrong doing into court…then you have no case.  If you have no evidence of wrong doing, then you have no case.

If you closed with Bank A…and now making payments to Bank A…then you have no APPARENT evidence of movement.  What we need to do is to get your current “lender” to admit they are not a lender…but in fact, just a servicer.  In other words, they have already sold your loan and have been paid in full.

Customize the 002-Pre-litigation letter.doc.

Get your last statement.  Look at the back for an address for Correspondences.  Address and send your letter to this address.

BE SURE TO SEND IT CERTIFIED MAIL RETURN RECEIPT.

Then wait for their response.

If you have not received a response in 30 days…send it again.

If you closed with Bank A and now is being serviced by Bank B, then fill out 002a-Payoff Request.doc.  We want to use this letter to gather evidence and admission that there is ZERO amount outstanding to the lender.

BE SURE TO SEND IT CERTIFIED MAIL RETURN RECEIPT.

Then wait for their response.

For those of you who do not have clear evidence of movement, for example, you closed with Countrywide and the loan got acquired by Bank of America.  Or your loan went through Chase and is now Chase is just a servicer, or GMAC (and GMAC is now servicing), then getting a Securitization Audit might be a way to go.

Remember, as the Plaintiff, you have the burden of proof.

Banks HATE HATE HATE these as it exposes their fraud.  It will be like having a photo of a bank robber with a gun aimed at a teller.  It’s them caught with their hands in the cookie jar…and it puts opposing counsel in a position of having to explain to the judge why he should not be sanctioned for bringing fraud before the court.

If banks hate these then it is good for us.  Unfortunately, finding your loan in a pooling and servicing agreement is like finding the proverbial needle in a haystack.  It takes SO MUCH time.  Companies charge around $2000 for a securitization audit…some attorneys charge up to $4000 for one.  We’ve found a great company who can do it for much less than that.

To show you how powerful a securitization audit can be, read the following role playing session:

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Opposing Counsel:  “but Your Honor, the plaintiff has the burden of proof.  He/She is alleging that we sold the note.  Where’s the proof?”

You:  “Your Honor, please see Exhibit C in our evidence as part of our initial complaint.  On Page X, you will find our loan listed as a permanent fixture in an SEC filing for the New York Mellons Bank Trust Series 1232342 REMIC in which this loan has been securitized.”
Judge: “Counsel, what do you have to say to that?”

Opposing Counsel:  “I don’t know about this your Honor.  I was informed by my client that they bought back the loan.”

You:   “Counsel, are you aware of FAS 140?  Under the Financial Accounting Standard 140, it says that once a loan has been sold into a pooling and servicing agreement, the lender forever loses control of the asset.”
“Are you aware that this loan is a permanent fixture of the New York Mellons Bank Trust Series 1232342 REMIC?”
“Where is the Chain of Title that gives your client the right to enforce the promissory note?”
“Are you aware that the promissory note has been discharged in the REMIC as a bad debt and that the individual share holders have received tax credit for this loss?”
“Are you aware that once a debt has been discharged, it loses its ability to collect?”
“Are you aware that your client bought the note as a discharged debt and an unsecured instrument?”
“I motion the court to have Counsel stipulate that you know with first hand knowledge that the note has not been discharged as a non-performing asset.”if he can not, then say…
“I motion the court to sanction opposing counsel for bringing fraud before the court.  Counsel misrepresents the facts in order to deceive the court.”

We will need the following scanned and emailed

Send the files to:

Our auditors will discuss with you what is needed to proceed with your audit once you have submitted all of the above. Obviously, we can not proceed until you have provided us with all of the above documents.

1) Go down to the County Recorder’s Office to get a statement that there is no assignment on your Deed of Trust/Mortgage.  If not, then get a statement from a Title officer at a local Title company.

2) If you have the same lender you closed with, then send the pre-litigation discovery letter to them…certified mail, return receipt.  Make sure you keep the green card as evidence.

3) Wait 30 days.  If you do not receive a response, send it again.

4) If you have a different original lender, then send off the Payoff Request.

5) Connect with someone in the Meet up directory.  If you haven’t put your contact info there, do so. Trust me.  This is REALLY IMPORTANT.  You are going to need friends.  Let’s all share our information and help each other.