FRAUD, WHERE DOES IT BEGIN?
at the inception...
I will be uploading a podcast version of this shortly. This is an attempt to do both avenues of distribution through the written word and now, the voice. I am planning of incorporating more of that type of work so that you, the reader, is able to then take this with you for your morning drive or afternoon commute.
This article will most likely take you down a road less, or likely never, traveled.
This is an attempt to explain what has been happening in this country to which most people have no idea of. At the very least an explanation that most people never think about. This is intended to give you an overview of a systemic fraud that is being perpetrated on people in this country on a daily basis that has been going on for generation and has reached epic proportions. Through this article I intend to provoke action to eradicate this scourge that has descended upon this country. Depending on your situation, you reactions to this article will vary from disbelief, fear, anger or outright disgust at what you inherently already know or are about to learn. The article is supported with facts and precedent law and is not mere opinion.
NOTE: This article is not intended to act as me giving legal advice. Any information within does not constitute any legal relationship between the author or the reader. It is advised that you consult your own personal attorney to answer your individual legal questions or concerns relating to any information found within.
Let’s begin with the purchase of a home. We will traverse through all of the subsequent steps in the financial process through the life of the “mortgage loan”. It all starts at the “closing” where we gather with other parties that are involved in the process through to the signing of the documents used to purchase your new home.
What really goes on at closing? Do we really know who all of the participants are in that entire process? Is full disclosure of all the various aspects of that entire transaction given to us regarding what, for most people, is the single largest purchase they may make in their entire life?
To begin, let’s start with the large stack of papers that get placed in front of us at our kitchen table which we are then instructed, by a Notary or the real estate agent, to begin signing or initialing on the “closing documents”. There legal language used varies on so many different documents that we could read through for hours in order to get through them all the first time. That has nothing to say about actually fully understanding the contents therein. Rarely, if ever, are we given a copy of all these documents at least 7 days prior to the closing so we can read and study these documents so we fully understand what it is that we are signing and agreeing to. That is unheard of and has most probably never happened for the average consumer and purchaser of a property in the last 30 years or more if it ever has at all. This begs the question of "why"? I mean, we have a stack of legal and binding documents placed before us at the closing that we have never seen before and are instructed, usually by someone who is not an attorney, on where to sign or initial to complete the transaction. Allthewhile, they are inserting little conversational quips about "congratulations" and “you are about to get our new home”, making us excited to complete the transaction through the emotion in the room. We depend on the real estate agent, in most cases, to bring the parties together at the closing. This happens after we have delivered up enough financial data to choke a horse, as well as, all of the other requested information which then enables the “lender” to determine whether we can qualify for our “loan”. By law, we have the “three day right of rescission” but rarely do we really stop to read all the documents after we have just purchased our home and want to move in. I mean, should the thought that there might be something wrong with what we have just signed a in our mind? Perhaps it should be. We tend to trust the people involved in the transaction. Is this a good idea? Many times these people are or have become our "friends". But, even with their best intentions, do they fully understand what we are all involved in? We all are so focused on getting moved into our new home and getting settled with our family, while all of the other parties are focused on closing the docket so they can get paid.
Let's take a look at who the players are in the transaction from the perspective of the consumer purchasing a property and signing a “Mortgage Note” and “Deed” or similar “Security Instrument” at the closing. Of course, we have the seller, the real estate agent(s). We also include the title insurance company, property appraiser (who is supposed to properly determine the value of the property), and the most obvious one being who we believe to be “the lender” in the transaction. We are led, by all of those involved, to believe that we are, in fact, borrowing money from the “lender”. This is then paid to the current owner of the property as compensation for them relinquishing any “claim of ownership” to the property and transferring that “claim of ownership” to you as the buyer and new owner. It all seems so simple and clear on its face. Then, within a short time which is called "the escrow period", the transaction is completed. After the “closing” everyone is all smiles. Generally due to the fact that they are getting paid. Now, you believe you have a new home and your new responsibility is to repay the “lender”, over a period of years, the money which you believe you have “borrowed”.
What is it that we don't know?
Everything appears to be relatively simple and straightforward but is that really the case? Are there are other players involved in this whole transaction that we know nothing about? Yup. Do these other players have a very substantial financial interest in what has just occurred? Yup. Did those players that we are totally unaware of somehow use us without our knowledge or consent to secure a spectacular financial gain for themselves with absolutely no investment or risk to themselves whatsoever? Yup. Are there hidden aspects of this whole transaction that is seemingly “standard operating procedure” in an industry where this hidden “aspect of a transaction” occurs every single banking day across this country and beyond? Yup. Could it be that this hidden “aspect of a transaction” is a deliberate process to unjustly enrich certain entities and individuals at the expense of the public as a whole? Yup. Was there ever actual full disclosure of the “true nature” of the transaction, as it actually occurred, which is required for a contract to be valid and enforceable? Nope.
If all of this is so, what does that mean? Fraud.
Let's have a look at the documents.
Let's take a look at the two most important and valuable documents that are signed at a closing. Those are the “Note” and the “Deed” in their various forms. When looking at the definition of a “Mortgage Note” it can quickly become obvious that this is a “Security Instrument”. It is a promise to pay made by the maker of that “Note”. When looking at a copy of a “Deed of Trust”, which is a usually a template of a “Deed of Trust” form that is directly distributed by and/or downloaded by the real estate agent from the freddiemac.com website. It is very obvious that this document is also a “Security Instrument”. This template is what is used for MOST government purchased loans. Take note that the words “Security Instrument” are mentioned no less than ninety times in that document leaving out the fact that there is any doubt that the document is a “Security”. When at the closing, the “borrower” is led to believe that the “Mortgage Note” that they are to sign is a document that binds them to make repayment of “money” that the “lender” is loaning them to purchase the property which they are acquiring. There is no disclosure to the “borrower” to the effect that the “lender” is not really loaning any of their money to the “borrower” and therefore is taking no risk whatsoever in the transaction. Is it disclosed to the “borrower” that according to FEDERAL LAW, banks are not allowed to loan credit and are also not allowed to loan their own or their depositor’s money? Nope. If that is the case, then by law, how could this transaction possibly take place? Where does the money actually come from? Is there ever actually any money used to be loaned? Nope. Nope? Most people are not aware that there has been no lawful money since the bankruptcy of the United States in 1933.
Since House Joint Resolution 192 (HJR 192) (Public law 7310) was passed in 1933 we have only had debt, because all property and gold was seized by the government as collateral in the bankruptcy of the United States. Most people today think they have money in their hand when they pull bills or coins out of their pocket and look at the paper that is circulated by the banks that they have been told is “money”. In reality what they are looking at is a “Federal Reserve Note” which it states right on the front of the piece of paper we have come to know as “money”. Although, it is not really “money”. It is instead a debt, a promise to pay made by the United States. If you take a “Federal Reserve Note” showing a value of ten dollar and buy something, you are then making a purchase with a “Note” (a promise to pay). There is absolutely nothing like gold or silver used to back the Federal Reserve Notes that we refer to as “money” today. It is simply "paper" with a perceived value to which is "backed" by the promise of the United States government.
As you vervously and excitedly sit down at the closing table to complete the transaction to purchase your home aren’t you tendering a “Note” with your signature which would be considered money? That is exactly what you are doing. A “Note” is money in our monetary system today! You can deposit the “Federal Reserve Note” (a promise to pay) with a denomination of $10 at the bank and they will credit your account in that same amount. If this is the case, then why is it that when you tender your “Note” at the closing that they don’t tell you that your home is paid for right on the spot? The fact is that it is paid for right then and there! Your signature on a “Note” makes that “Note” money in the amount that is stated on the “Note”. This was never disclosed to you at the “closing” in either verbal or written form. Could this be the place where the other players come into the transaction at or near the time of closing? Yup. So, let's take a look at what happens to the “Note” (promise to pay) that you sign at the closing table. Do they put it in their vault for safe keeping as evidence of a debt that you owe them as you are led to believe? Nope. Do they return that note to you if you pay off your mortgage in 5, 10 or 20 years? Do they disclose to you that they do anything other than put it away for safe keeping once it is in their possession? Not a chance.
So, then what actually happens to the note?
This is where things can begin to get quite interesting. What most people fail to understand is that something very different happens with your “Mortgage Note” immediately after closing. Your “Mortgage Note” is endorsed and deposited in the bank as a check and becomes “MONEY”! The document that you just gave the bank with your signature on it, that you believe is a promise to pay them for money loaned to you, has just been converted to money in their account. Simply put, you just gave the “lender” the exact dollar value of what they said they just loaned you. So, then who is the true and correct creditor in this “Closing Transaction”? Who is it who truly loaned who anything of value or any money? The truth is, you actually just paid for your own home with your promissory “Mortgage Note” that you gave the bank and the bank gave you what in return? Diddley. Nadda. Zip. Nothing! For any contract to be valid there must be consideration given by both parties. This stems from a law that is still used dating back to 1677. They don’t tell you that. What they do tell you is that you must now pay back the “Loan” that they have made to you.
It pays to be a "bank"!
How can it be that you could just write a “Note” and pay for your home? This leads us back to the bankruptcy of the United States in 1933. When FDR and Congress took all the property and gold from the people in 1933 they had to give something in return for that confiscation of property. What it was that the people got in return was the promise that all of their needs would be met by the government because the assets and the labor of the people were collateral for the debt of the United States in the bankruptcy. All of their debts would be “discharged”. This was done without the consent of the people of America and could actually be construed as an act of Treason by President Franklin Delano Roosevelt. The problem comes in where they never told us how we could accomplish that discharge and have what we were entitled to after the bankruptcy.
Why has this never been taught in the schools in this country? Could it be that it would expose the biggest fraud in the history of this entire country and in the world? If the public is purposely not educated about certain things then certain individuals and entities can take full financial advantage of virtually the entire population. Isn’t this “selective education” more like “indoctrination”? Could this be what has happened?
In Fina Supply, Inc. v. Abilene Nat. Bank, 726 S.W.2d 537, 1987 it says “Party having superior knowledge who takes advantage of another's ignorance of the law to deceive him by studied concealment or misrepresentation can be held responsible for that conduct.” Does this mean that if there are people with superior knowledge as a party in this “Loan Transaction” that take advantage of the “ignorance of the law”, (through indoctrination) of the public to unjustly enrich themselves, can they be held responsible? Can they be held responsible in only a civil manner or is there a more serious accountability that falls into the category of criminal conduct?
It is well established law that Fraud vitiates (makes void) any contract that arises from it. Does this mean that this intentional “lack of disclosure” of the true nature of the contract we have entered into is Fraud and would make the mortgage contract void on its face? Yup. Could it be that the Fraud could actually be “studied concealment or misrepresentation” that makes those involved in the act responsible and accountable? Yup. What happens to the “Note” once it is deposited in the bank and is converted to “money”? What are the different kinds of money? There is money of exchange and money of account. They are two very different things. The banks actually do convert signatures into money.
The definition of “money” according to the Uniform Commercial Code: "Money" means a medium of exchange authorized or adopted by a domestic or foreign government and includes a monetary unit of account established by an intergovernmental organization or by agreement between two or more nations. Money can actually be in different forms other than what we are accustomed to thinking. When you sign your name on a promissory note it becomes money whether you are talking a mortgage note or a credit card application! Did the bankers ever “disclose” this to us? Why weren't we ever taught anything about this in the school system in this country? Could it be that this whole idea of being able to convert our signature to money is a “studied concealment” or “misrepresentation” where those involved become responsible if we are harmed by their actions? What happens if you have signed a “Mortgage Note” and already paid for your home and they come at a later date and foreclose and take it from you? Would you consider yourself to be harmed in any way? We will bring this up again very shortly but we need to look at the other document that is signed at the “closing” that is of great significance.
Let's look at the Deed of Trust
Why do we need a Deed of Trust? What exactly is a Deed of Trust or other similar “Security Instrument”? It spells out all the details of the contract that you are signing at the “closing”, including such things as insurance requirements, preservation and maintenance and all of the financial details of how, when, where and why you are going to make payments to the “lender” for years and years. Hold on a second. What is this about making payments to the “lender”? Why is that? We just established the fact that your house was paid for by you, with your “Mortgage Note” that is converted to money by the bank depositing it. So, what are we missing here? We have just paid for our “home” but now we are told we have to sign a Deed of Trust or similar “Security Instrument” that binds us to pay the “lender” back? What exactly are we paying the lender back for? They didn't loan us any money. Remember the part about banks not being able to loan “their or their depositors money” under Federal law? “In the federal courts, it is well established that a national bank has no power to lend its credit to another by becoming surety, indorser, or guarantor for him.” Farmers and Miners Bank v. Bluefield Nat ‘l Bank, 11 F 2d 83, 271 U.S. 669; “A national bank has no power to lend its credit to any person or corporation.” Bowen v. Needles Nat. Bank, 94 F 925, 36 CCA 553, certiorari denied in 20 S.Ct 1024, 176 US 682, 44 LED 637.
What is happening here with this “Deed of Trust” or similar “Security Instrument” that says we have to pay all this money back and if we don’t, they can foreclose and take our home? Why do we have to have this kind of agreement when we have already paid for our home through our “Mortgage Note” which was converted to money by the bank? Could this possibly be another example of “studied concealment or misrepresentation”? Could those involved be held accountable for their conduct? What happens to this Deed of Trust or similar “Security Instrument” after we sign it? Where does it go? Does it go into the vault for safekeeping like we might think?
Now, let's have a look at the other players.
This is where things get really interesting. We have already found out that the “Note” doesn’t go into the vault for safe keeping but instead is deposited into an account at the bank and becomes money. Where does the Note go then? Your “Mortgage Note” is then used to access your Treasury Account (something of which you probably know nothing about)and get credit in the amount of your “Mortgage Note” from your “Prepaid Treasury Account”. If they process the “Note” and get paid for it then they have received the funds from your account at Treasury to pay for your home. Correct? They, the bank, then turn around and bundle the “Note” and sellit to investors on Wall Street and get paid again! Now let’s see what happens to the “Deed of Trust” or similar “Security Instrument” after you have signed it. You may be quite surprised to know that not only does it not go into “safekeeping”. It is immediately soldas an "investment security" to one of any number of investors on Wall Street. There is a ready, and waiting, market for all of the “mortgage paper” that is produced by the banks. What happens is the “Deed of Trust” or other similar “Security Instrument” is bundled and soldto a buyer and the bank gets paid for the value of the mortgage. Again! But wait, haven’t the bankers just transferred any risk on that mortgage to someone else and they have their money?
It pays to be a bank. They get their money right away and everyone else connected to the transaction has the liabilities. Don't you think there something wrong with this picture? Indeed. How can it possibly be that the bank has now been paid three times in the amount of your “purported” mortgage? The short answer is fraud. How is it that you still have to pay years and years on this “purported” loan? The short answer is fraud. Was any of this disclosed to you before you signed the “Deed of Trust” or other similar “Security Instrument”? The short answer is nope. Would you have signed any of those documents including the “Mortgage Note” if you knew that this is what was actually happening? The short answer is nope. Do you think there were any “copies” of the “Mortgage Note” and “Deed of Trust” or other similar “Security Instrument” made during this process? Are those “copies” just for the records to be put in a file somewhere or is there another purpose for them?
Is reproducing a note or deed of trust illegal?
We have already established that the “Mortgage Note” and the “Deed of Trust” or other similar “Security Instrument” are “Securities” by definition under the law. Securities are regulated by the Securities and Exchange Commission which is an agency of the Federal Government. There are very strict regulations about what can and cannot be done with “Securities”. There are very strict regulations that apply to the reproduction or “copying” of “Securities”:
The Counterfeit Detection Act of 1992, Public Law 102‐550, in Section 411 of Title 31 of the Code of Federal Regulations, permits color illustrations of U.S. currency provided:
The illustration is of a size less than three‐fourths or more than one and one‐ half, in linear dimension, of each part of the item illustrated
The illustration is one‐sided all negatives, plates, positives, digitized storage medium, graphic files, magnetic medium, optical storage devices, and any other thing used in the making of the illustration that contain an image of the illustration or any part thereof are destroyed and/or deleted or erased after their final use
Other Obligations and Securities
Photographic or other likenesses of other United States obligations and securities and foreign currencies are permissible for any non‐fraudulent purpose, provided the items are reproduced in black and white and are less than three‐quarters or greater than one‐and‐one‐half times the size, in linear dimension, of any part of the original item being reproduced. Negatives and plates used in making the likenesses must be destroyed after their use for the purpose for which they were made.
Title 18 USC § 472 Uttering counterfeit obligations or securities
Whoever, with intent to defraud, passes, utters, publishes, or sells, or attempts to pass, utter, publish, or sell, or with like intent brings into the United States or keeps in possession or conceals any falsely made, forged, counterfeited, or altered obligation or other security of the United States, shall be fined under this title or imprisoned not more than 20 years, or both.
Title 18 USC § 473 Dealing in counterfeit obligations or securities
Whoever buys, sells, exchanges, transfers, receives, or delivers any false, forged, counterfeited, or altered obligation or other security of the United States, with the intent that the same be passed, published, or used as true and genuine, shall be fined under this title or imprisoned not more than 20 years, or both.
Title 18 USC § 474 Plates, stones, or analog, digital, or electronic images for counterfeiting obligations or securities
Are these regulations always adhered to by the “lender” when they have possession of these “original” securities and make reproductions of them before they are “sold to investors? How much has been in the media in the past 2 years about people demanding to see the “wet ink signature Note” when there is a foreclosure action initiated against them? You hear it all the time. Why is that such a big issue? Shouldn’t the “lender” be able to just bring the “Note” and the “Deed of Trust” or similar “Security Instrument” to the Court and show that they have the original documents and are the “holder in due course” and therefore have a legal right to foreclose? To foreclose they must have both the “Mortgage Note” and “Deed of Trust” or other similar “Security Instrument” original documents in their possession at the time the foreclosure action is initiated. Furthermore, is there a real honest to goodness obligation to be collected on?
Whoever, with intent to defraud, makes executes, acquires, scans, captures, records, recieves, transmits, reproduces, sells, or has in such person's control, custody, or possession, an analog, digital, or electronic image of any obligation or other security of the United States is guilty of a Class B felony.
Let's look at why there is such a problem with “lost Mortgage Notes” that are claimed by numerous lenders that are trying to foreclose today. How is it that there could be so many “lost” documents all of a sudden? Could it be that the documents weren’t really lost at all, but were actually turned into a source of revenue that was never disclosed as being a part of the transaction? To believe that so many “original” documents could be legitimately “lost” in such a short period of time stretches the credibility of such claims beyond belief.
Let's look at MERS
Perhaps this is the reason that MERS (Mortage Electronic Registration Systems) was formed in the 1990’s as a way to supposedly “transfer ownership of a mortgage” without having to have the “original documents” that would be required to be presented to the various county recorders.
Intercontinental Exchange, the parent company of the New York Stock Exchange, is now also the parent company ofMERSCORP Holdings, as the companies announced that ICE has acquired all of MERS. The deal comes just over two years after ICE acquired a majority stake in MERSCORP, the owner of Mortgage Electronic Registrations Systems and operator of the MERS System, a national electronic registry that tracks the changes in servicing rights and beneficial ownership interests in U.S.-based mortgages.
MERS knew they wouldn’t have the original documents for recording and had to devise a system to get around that requirement. When the foreclosure action is filed in the court the attorney for the purported “party of interest”, usually the “lender” who is foreclosing, files a “COPY” of the “Deed of Trust” or similar “Investment Security” with the Complaint to begin foreclosure proceedings. Is that “copy” of the “Security Instrument” within the “regulations” of Federal Law under 18 U.S.C. § 474? Doesn't sound like it, does it? Is it usually the same size or very nearly the same size as the original document? Yes it is and without question it is a counterfeit security!Who was it that produced that counterfeit security?Who was involved in taking that counterfeit security to the Court to file the foreclosure action? Who is it that is now legally in possession of that counterfeit security?Has everyone from the original “lender” down to the Clerk of the Court where the foreclosure is now being litigated been in possession or is currently in possession of that counterfeit security?
What about the Trustees who are involved in the process of selling foreclosed properties in nonjudicial states? This is another situation to which I am extremely experienced with and have personally litigated this specific issues as a Pro Per litigant in California. I even wrote the book on the subject called "Quantum of Justice - The Fraud of Foreclosure and the Illegal Securitization of Notes on Wall Street". You can find this here or order it from any bookstore throughout the world or any other online book retailer.
We won't get into the fact that there is no true legal trustee. You can read about that in the book. But, what about the fact that there is no judicial proceeding in those states where the documentation purported to be legal and proper to bring a foreclosure action can be verified without expensive litigation by the alleged “borrower”? All the "trustee", or any partyactingas a trustee, has to do is send a letter to the alleged “borrower” stating they are in default and can sell their property at public auction. It is simply assumed that they have the “original” documents in their possession, as required by law. However, In reality, in almost every situation, they don't! They are using a counterfeit security as the basis to foreclose on a property that was paid for by the person who signed the “Mortgage Note” at the closing table that was converted to money by the bank. When it is demanded they produce the actual “original signed documents” they almost always refuse to do so, or produce a forged document and submit that forged document as legitimate to the Court and ask the Court to “take their word for it” that they have both of the "original" documents which are absolutely required to be in their possession to begin foreclosure actions. Almost every time the people that are being foreclosed on and are able to convince the Court to demand that those “original documents” be produced in Court by the Plaintiff, the foreclosure action stops and it is obvious why that happens! they don’t have the “original” documents. They have, instead, submitted a counterfeit securityto the Court as their “proof of claim” to attempt to unjustly enrich themselves through a blatantly fraudulent foreclosure action. My experience in this issue is detailed throughout the 460 pages of my book. One often cited example of this was the decision handed down by U. S. Federal District Court Judge Christopher A. Boyko of Ohio, who on October 31, 2007 dismissed 14 foreclosure actions at one time with scathing footnote comments about the actions of the Plaintiffs and their attorneys. Not long after that came the dismissal of 26 foreclosure cases in Ohio by U.S. District Court Judge Thomas M. Rose who referenced the Boyko ruling in his decision. How many other judges have not been so brave as to stand on the principles of law as Judges Boyko and Rose did, but need to start doing so today? Nearly all of them.
Has any of this foreclosure activity crossed state lines in communications or other activities? Have there been at least two predicate acts of Fraud by the parties involved? Yup. Have the people involved used any type of electronic communication in this Fraud such as telephone, faxing or email? Yup. It is obvious that those questions have to be answered with a resounding "indeed"! If that is the case, then the Fraud that has been discussed here falls under the RICO statutes of Federal Law. Didn’t they eventually take down the mob for Racketeering under RICO statutes years ago? Is it time to take down the “new mob” with RICO once again? Why is it then, that there has been only “1” RICO charge ever ruled upon in the United States against a financial institution? This happened in Ohio, under the Attorney General at the time, named Marc Dann. One.
How much fraud is there that goes around?
How could this kind of situation ever occur in this country? Could it be that this whole entire process could be “studied concealment or misrepresentation” where the parties involved are responsible under the law for their conduct? Could it be that it is no “accident” that so many “wet ink signature” Notes cannot be produced to back up the foreclosure actions that are devastating this country? Could it be that the overwhelming use of counterfeit securities,as purported evidence of a debt in foreclosure cases, is by design and “studied concealment or misrepresentation” so as to strip the people of this country of their property and assets? Could it be that a very substantial number of Banks, Mortgage Companies, Law Firms and Attorneys are guilty of outright massive Fraud? Not only against the people of this country, but of massive Fraud on the Court as well because of this counterfeiting? How could one possibly come to any other conclusion after learning the facts and understanding the law? How many other people are implicated in this massive fraud such as Trustees and Sheriffs that have sold literally millions of homes after foreclosure proceedings based on these counterfeit securities submitted as evidence of a purported obligation? How many judges know about this Fraud happening right in their own courtrooms and never did anything? A lot. How many of them have actually been paid for making judgments on foreclosures? (A detailed book on that subject was written by Mark Stopa, called People vs. Money.) Wouldn’t that be a felony or at the very least, misprision of felony, to know what is going on and not act to stop it or make it known to authorities in a position to investigate and stop it?
How is it that so many banks could recover financially, so rapidly, from the financial debacle of 2008-09, with foreclosures still running at record levels, and yet pay back taxpayer money that was showered on them and do it so quickly? Could it be that when they take back a property in foreclosure where they never risked any money and actually were unjustly enriched in the previous transaction, that it is easy to make huge sums by reselling that property and then beginning the whole “Unconscionable” process all over again with a new “borrower”? How is it that a loan can be made available to virtually almost anyone who can “fog a mirror” with no documentation of income or ability to repay a loan? Common sense makes you ask how “lenders” could possibly take those kinds of risks. Could it be that the ability to “repay a loan” was not an issue at all for the lenders because they were going to get their profits immediately and risk absolutely nothing at all? Could it be that, if anything, they stood to make even more money if a person defaulted on the “alleged loan” in a short period of time? They could literally obtain the property for nothing other than some legal fees and court filing costs through foreclosure. They could then resell the property and reap additional unjust profits once again! One does not need to have been a finance major in college to figure out what has been happening once you are enlightened to the FACTS.
What action can be taken to avoid losing you home to foreclosure?
In my opinion, the first action must be, as we have shown here throughout this article, that the foreclosing party must first prove that there is indeed a legitimate contract. As we have layed out many various points to which that there is no legitimate contract due. Anything arguing any other fact dealing with the contract would mean you are acquiesing that there is indeed a legitimate contract. Next, would be to argue in the alternative.
The first and most widely used tactic is to demand that the party bringing the foreclosure action does, in fact, have the "standing" to bring the action. The most important issue of standing is whether that party has actual possession of the “original wet ink signature” documents from the closing showing they are the “holder in due course”. As previously mentioned, in almost all cases the Plaintiff bringing the action refuses to make these documents available for inspection by the Defendant in the foreclosure action so they can, in fact, determine the authenticity of those documents that are claimed to be “original” and purportedly giving the legal right to foreclose. The fact that the Courts allow this to happen repeatedly without demanding the foreclosing party bring the ”wet ink signature documents” into the court for inspection by the Defendant, begs the question of whether some of the judiciary are involved in this Fraud. Where is due process under the law for the Defendant when the foreclosing party is not required by the Court to meet that burden of proof of standing, when demanded, to bring their action of foreclosure?
Another option that has been used more and more frequently to deal with foreclosure actions is the issuing of a “Bonded Promissory Note” or “Bill of Exchange” as payment to the alleged “lender” as satisfaction of any amounts allegedly owed by the Defendant. As was earlier described, a “Note” is money and as the banks demonstrated after the closing, it can be deposited in the bank and converted to money. Some of the “Bonded Promissory Notes” and “Bills of Exchange” are, in fact, negotiated and credit is given to the accounts specified and all turns out well. The problem that has occurred is that many of the “lenders” say that the “Bonded Promissory Notes” and “Bills of Exchange” are bogus documents and are worthless and fraudulent and they refuse to give credit for the amount of the “Note” they receive as payment of an alleged debt even though they are given specific instructions on how to negotiate the “Note”. Isn’t it interesting that they can take a “Note” that they print and put before you to sign at the closing table and deposit it in the bank and it is converted to money immediately, but the “Note” that you issue is worthless and fraudulent? The only difference is who prints the note. They are both signed by the same “borrower” and it is that person’s credit that backs that “Note”.
The “lenders” don’t want the people to know they can use your “Prepaid Treasury Account”, just as the banks do without your knowledge and consent. The fact that some of the “Bonded Promissory Notes” are negotiated and accounts are settled, proves beyond a shadow of a doubt that they are legal securities just like the one that the bank got from the “borrower” at the closing. Why then aren’t all of the “Notes” processed and credit given to the accounts and the foreclosure dismissed? Because by doing so you would be lowering the National Debt and the bankers would make less money.
One very interesting thing that happens with these “Bonded Promissory Notes” or “Bills of Exchange” that are submitted as payment, is that they are very rarely returned to the issuer yet credit is not given to the intended account. They are not returned, and the issuer is told they are “bogus, fraudulent and worthless” but they are not returned. Why would someone keep something that is allegedly “bogus, fraudulent and worthless”? Perhaps it is because they are not really “bogus, fraudulent and worthless” and the “lender” has, in fact, actually negotiated them for yet even more unjust enrichment. That is exactly what happens in most instances. There could be no other explanation for the failure to return the allegedly “worthless” documents which are actually securities. Does the fact that they keep the “Note” that was submitted and refuse to credit the account that it was written to satisfy, rise to the level of Security theft This is just one more example of the Fraud that is so obvious. This is but one more example of the ruthless nature of those who would defraud the people of this country.
Let's wrap this up.
One of the incredible aspects of this whole debacle is the fact that the very people who are participants in this Fraud are victims as well. How many bank employees, judges, court clerks, lawyers, process servers, Sheriffs and others have mortgages? How many of the people who work in law offices, Courthouses, Sheriffs Departments and other entities that are directly involved in this Fraud have been fraudulently foreclosed on themselves? How many people in our military, law enforcement, firefighting and medical fields have lost their homes to this Fraud? How many of your friends or neighbors have lost their homes to these fraudulent foreclosures? Everyone who has a mortgage is a victim of this fraud but some of the most honest, trusting, hardest working and most dedicated people in this country have been the biggest victims. Who are those who have been the major beneficiaries of this massive Fraud? Those with the “superior knowledge” that enables them to take advantage of another's ignorance of the law to deceive them by “studied concealment or misrepresentation”. This group of beneficiaries includes many on Wall Street, large investors, and most notoriously, the bankers at the top and the lawyers who work so hard to enhance their profits and protect the Fraud by them from being exposed. The time has now come to make those having superior knowledge who have taken advantage of another's ignorance of the law to deceive them by studied concealment or misrepresentation to be held responsible for that conduct. This isn’t just an idea. It is the law and it is time to enforce it starting with the criminal aspect of the fraud! Under the doctrine of “Respondeat Superior” the people at the top of these organizations are responsible for the actions of those in their employ. That is where the investigations and arrests need to start.
What is it going to take to put a stop to the destruction of this country and the lives of the people who live here? It is going to take an uprising of the people of this country, as a whole, to finally say that they have had enough. The information presented here is but one part of the beginning of that uprising and the beginning of the end of the Fraud upon the people of America. It is obvious, as has been pointed out here, with supporting evidence, that Fraud is rampant. You now know the story and can no longer say you are totally uninformed about this subject. This is only an outline of what needs to, and will, become common knowledge to the people and law enforcement agencies in this country. If you are in law enforcement it is your duty to take what you have been given here and move forward with your own intense investigation and root out the Fraud and stop the theft of people’s homes. Your failure to do so would make you an accessory to the fraud through your inaction now that you have been noticed of what is occurring.
If you are an attorney it would do you well to take it to heart, and understand there is no place for your participation in this Fraud and if you participate you will likely become liable for substantial damages, if not more severe consequences such as prison. If you are in the judiciary you would do well to start following the letter of the law if you haven’t been, and start making all of those in your Court do likewise, lest you find yourself looking for employment as so many others are, if you are not incarcerated as a result of your participation in the fraud. If you are part of the law enforcement community that enforces legal matters regarding foreclosure you would do well to make sure that all things have been done legally and properly rather than just taking the position “I am just doing my job” and turn a blind eye to what you now know. If you are a banker, you must know that you are now going to start being held accountable for the destruction you have wreaked on this country. You have every right to be, and should be, afraid.......very afraid. If you are one of the ruthless foreclosure lawyers that has prayed on the numerous people who have lost their homes, you need to be afraid also. When people learn the truth about what you have done to them you can expect to see retaliation for what you have done. People are going to want to see those who defrauded them brought to justice. These are not threats by any stretch of the imagination. These are very simple observations and the study of human behavior shows us that when people find out they have been defrauded in such a grand manner as this, they tend to become rather angry and search for those who perpetrated the fraud upon them. The foreclosure lawyers and the bankers will be standing clearly in their sights.
The question of Fraud, where does it beginhas been answered. It began right at the closing table and was perpetuated all the way to the loss of property through foreclosure or the incredible payment of 20 or 30 years of payments and interest by the alleged “borrower” to those who would conspire to commit Fraud, collusion and counterfeiting and practice “studied concealment or misrepresentation” for their own unjust enrichment.
The simplest of analogies: What would happen if you were to make a copy of a $100 Federal Reserve Note and go to Walmart and attempt to use it to fraudulently acquire items that you wanted? You more than likely would be arrested and charged with counterfeiting under Title 18 USC § 474 and go to prison. What is the difference, other than the magnitude of the fraud, between that scenario and someone who makes a copy of a mortgage security, and using it through foreclosure, attempts to fraudulently acquire a property? Shouldn’t they be treated exactly the same under the law? The answer is obvious.
Title 18 USC § 474
Whoever, with intent to defraud, makes, executes, acquires, scans, captures, records, receives, transmits, reproduces, sells, or has in such person’s control, custody, or possession, an analog, digital, or electronic image of any obligation or other security of the United States is guilty of a class B felony.
"Fraud vitiates the most solemn Contracts, documents and even judgments" [U.S. vs. Throckmorton, 98 US 61, at pg. 65].
“It is not necessary for rescission of a contract that the party making the misrepresentation should have known that it was false, but recovery is allowed even though misrepresentation is innocently made, because it would be unjust to allow one who made false representations, even innocently, to retain the fruits of a bargain induced by such representations.” [Whipp v. Iverson, 43 Wis 2d 166].
"Any false representation of material facts made with knowledge of falsity and with intent that it shall be acted on by another in entering into contract, and which is so acted upon, constitutes 'fraud,' and entitles party deceived to avoid contract or recover damages." Barnsdall Refining Corn. v. Birnam Wood Oil Co. 92 F 26 817.
(This article was originally published on my old blog on Sept. 23, 2018.)
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