Reply #34: Pab Sungenis, I appreciate that you’ve put thought into how homeowners could be [View All]

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helped in this economy. But the government and Federal Reserve have already purchased trillions of dollars in mortgages in the form of failed MBS from the Wall Street banks.

http://financialedge.investopedia.com/financial-edge/1110/What-Happened-To-The-MBS-Market.aspx

http://www.salon.com/news/opinion/feature/2010/05/01/trillion_dollar_fraud

Watch PBS Video – True Cost of the Wall Street Bailout

Federal Reserve 7.7 trillion
Treasury 2.7 trillion
FDIC 2.0 trillion

http://dailybail.com/home/true-cost-of-the-wall-street-bailout-pbs-video.html

Very good discussion and interview with Representative Marcy Kaptur

http://www.youtube.com/watch?v=gd7s6An9fcA&feature=player_embedded#at=19

Very good discussion and interview with Representative Brad Miller

http://www.msnbc.msn.com/id/21134540/vp/39582228#39582228

Personally, I agree with Representatives Kaptur & Miller, the loans should be put back on the banks that created them. Does anyone think that is likely?

Meanwhile, homeowners can sit and wonder if their mortgage loan was already placed on their taxpayer tab when they sit down to write out their next mortgage payment.

Our government has been busy across many administrations, enabling this fraud. It is so dear of you to hope the government would now do something positive on our behalf.

When did the Federal Reserve or the U.S. government foreclosure on any properties? No, that didn’t happen. Instead, the banks used their mortgage servicing companies to bring wrongful foreclosure actions and stole the properties from ill informed homeowners.

Why do you think document mills exist? They will create anything from a Promissory Note to a complete loan file.

Document mill price sheets:

http://www.scribd.com/doc/38591053/Lender-Processing-Services-DOCX-Document-Fabrication-Price-Sheet

http://www.scribd.com/doc/59444662/Doc-Shop-Offerings-Optional-Collateral-File-Creation-services-can-be-performed-as-needed-pg-48

Unfair, Deceptive, and Unconscionable Acts in Foreclosure Cases –

http://www.scribd.com/doc/46278738/Florida-Attorney-General-Fraudclosure-Report-Unfair-Deceptive-and-Unconscionable-Acts-in-Foreclosure-Cases

If it takes that level of fraud noted above to simulate ownership of a loan in order to foreclose, what level of fraud is necessary at this moment to simulate ownership of any performing securitized mortgage loan?

The banks set up MERS, their own privatized land records system to create an illusion for homeowners and our courts. Only the original mortgage lien is filed in our public land records with the life of the loan tracked secretly within the private MERS database.

The banks put investors money at risk in the first place, not their own, and then funded any loan they could. They constructed Mortgage Backed Securities they could count on to fail and purchased their Credit Default Swaps at sometimes twice the value of the loans. The MBS market blew up as expected and the banks collected those Swaps, then sold the garbage MBS to Uncles Ben & Sam and collected yet again. (The banks aren’t owed any money.)

The Promissory Note could be sitting over in the basement at the Federal Reserve for all anyone knows. Meanwhile in our public land records sits the original mortgage liens.

All the banks have to do, is use the mortgage servicing company they own to file a fraudulent Assignment of Mortgage in our public land records and pretend to have recently purchased the loan from the loan originator in order to steal the property and profit yet again from the same loan. The loan originator actually sold the loan years earlier, shortly after the loan was made and just prior to mortgage securitization.

http://blogs.palmbeachpost.com/realtime/2011/10/20/massachusetts-official-calls-for-foreclosure-freeze-based-on-documents-also-questioned-by-florida-attorney-general/

You are working off the premise that the loans were legitimate in the first place. Most of the mortgages contain fraud at loan origination subject to Treble damages. There alone, someone might already owe more money to the homeowner than the homeowner might owe.

Your idea might work with traditional mortgages, but securitized mortgages are a scam and an entirely different type of transaction and most people have no understanding of them. Only about 15% of mortgages haven't been securitized. Unlike a traditional mortgage, a securitized mortgage has two sets of books and the homeowner is only aware of the one set made available to them stating that money is due. That explains your belief that some honest debt remains that could be renegotiated.

The homeowner with a securitized mortgage is at no time given a full accounting of their loan, nor are they informed of what actually happened to their loan. Such a disclosure would after all interrupt the largest Ponzi scheme in history - designed, planned and implemented prior to the repeal of the Glass-Steagall Act.

Fannie is already acting much like a “bad” bank in that it launders properties for the banks. Often, after a foreclosure, the mortgage servicing company will Title over the property to Fannie. Part of this scheme includes a back door way for the “right” companies to pick up properties on the cheap from Fannie.

http://jacksonville.com/business/2011-06-19/story/houses-200-foreclosure-bargain-not-you#ixzz1PjVIEgvG

I researched one property in that article. That particular homeowner faced over $100,000 in supposed debt at foreclosure. Afterward, the mortgage servicer Titled it over to Fannie. I have no way of knowing at this time, how much money may have passed from Fannie to the mortgage servicer. Then Fannie sold the property off to an investment company for $1,500 and the U.S. taxpayer takes the hit.

Now, if Fannie can sell a home for $1,500 to some investment company, why couldn’t it be sold to the original homeowner or some other home buyer for say $2,000? Fannie, like the rest of our government, isn’t interested in helping ordinary people, only the banks.

Please understand that as investors via our pension funds, and as homeowners and taxpayers, we are the marks in this scam.

I don’t support options that will keep homeowners locked into fraudulent securitized mortgage loans. I do support options that extract homeowners from those same loans and there are some very fine people presently working on those options.

Just as an example of one option, 95% of homeowners in bankruptcy in New York are relieved of their securitized mortgages because the liens weren’t valid in the first place.

Quiet Title suits are another option for homeowners to address the fraud in their mortgage, clear their Titles, obtain their Deed and money damages for the harm done to them.

Fighting a foreclosure action is another option but it takes longer and is more expensive than a Quiet Title suit.



I’ve been researching mortgage/foreclosure fraud for 3 years. I recently filed a Quiet Title suit over a new MERS issue. 300 such suits were filed in PA & NJ and in 297 of those suits, the mortgage servicers are either voluntarily withdrawing their fraudulent liens or the court will strike them from our land records. My case is among the 1% going to trial and is closest to trial.