Transcript Breaking the Predatory Lender Matrix By Jim Krage of www

Breaking the Predatory Lender Matrix 2
By Jim Krage of www.AmericanLoanAudits.com
What we will discuss:
1)
2)
3)
4)
5)
6)
7)
8)
9)
10)
11)
12)
13)
Depression was caused by Lenders & Wall Street (Lehman)
Lehman crashed Sept. 08–Lenders & Trusts are crashing NOW
Lehman conned Investors to pay – 30% bought Notes, 70% profit?
Previously (pre-2005), Lenders lent Credit, not Money
2005-2008 Trusts bought Notes, Lenders got Commissions to lie
No Disclosure that Lender didn’t Loan, and Trust Bought the Note
Nominal Lender now bankrupt, so Servicer or Trustee foreclose
MERS not Beneficiary, but often Assigns & Substitutes illegally
AIG got bailed out, because it paid insurance against defaults
Did the investors in your Trust get insurance – why foreclose?
Loan Audits find Violations (& may get Trust Name)
Homeowner Options (Loan Mod, Short Sale, Lawsuit..)
What www.AmericanLoanAudits.com does for you
Breaking the Predatory Lender Matrix 2
By Jim Krage of www.AmericanLoanAudits.com
•
Foreclosure Sales are Avalanching from Predatory Lending:
•
Since October 2008, Hard Money Loans have gone into Foreclosure massively.
•
Now, Option ARMs are predicted to start a new Cataclysm.
KFWB – Market Wrap with Moe Ansari – Sat 12 Noon – Predicted new Downturn to DEPRESSION – Option ARM
•
•
•
Probably DEPRESSION with Hi Inflation – Dollar Will Lose Value, eveything will be more expensive.
Past Mistakes in FOREX: many bought EUROs – Canadian $ and some small currencies were Better
Gold and Precious Metals skyrocketed – Real Estate is now cheaper, and may get cheaper still.
•
Predatory Mortgage Loan elements = Variable Interest, Negative Amortization, Balloon Payments,
Prepayment Penalties, Interest Only Periods, Lack of Disclosures
YSP (Yield Spread Premiums) – Lender bribed Broker to get Borrower to accept Higher Interest Rate
If you have a Predatory Mortgage, what can you do?:
1) Sell it (Lose Money or Bank agrees to take less)
2) Bankruptcy (Adversary Proceeding or Reformation)
3) Offer a Deed in Lieu of Foreclosure
4) Short Sale to a Friend
5) Sue the Lender
6) Short Refinance
7) Loan Modification (often turned down – won’t lower principal)
•
•
•
•
•
Short Sales and Loan Modifications with TEETH are most popular.
Good Lawyers doing Loan Mods get an Audit of Loan Docs and Sue to wake up Negotiations.
TOOLS #1: File a Rescission, File a Lis Pendens (for your Complaint filed) = CLOUD TITLE
TOOLS #2: Forensic Audit of Origination Loan Documents for Violations of TILA, RESPA, State Laws
TOOLS #3: Audit Recorded Documents–Assignments, Substitutions, NOD, Notice of Sale, Trustee’s Deed
Breaking the Predatory Lender Matrix 2
By Jim Krage of www.AmericanLoanAudits.com
Short Sales and Loan Modifications with TEETH are most popular.
•
•
•
•
Good Lawyers doing Loan Mods get an Audit of Loan Docs and Sue to wake up Negotiations.
TOOLS #1: File a Rescission, File a Lis Pendens (for your Complaint filed)
TOOLS #2: Forensic Audit of Origination Loan Documents for Violations of TILA, RESPA, State Laws
TOOLS #3: Audit Recorded Documents–Assignments, Substitutions, NOD, Notice of Sale, Trustee’s Deed
Check with a Lawyer to see what’s Best for You:
1) Rescinding the Contract (Note) and all documents based on it (like the
Trust Deed) = can remove the Security of the Deed of Trust
(The Rescission may need to be validated by a Judge for full effect)
2) If a Loan Audit finds Violations in Origination Loan Docs = Leverage
(Some Lenders will ignore Audit Findings, unless they are in a
Lawsuit)
3) If an Audit of Recorded Docs finds errors, the Sale may be reversible
(Often Eviction by Unlawful Detainer can be stopped)
(Results can be used for Quiet Title and Wrong Foreclosure Procedure
Causes of Action in a Lawsuit)
Breaking the Predatory Lender Matrix 2
By Jim Krage of www.AmericanLoanAudits.com
• Some Reasons to Rescind – then Examples:
• 1) TILA Violations of Notice of Right to Cancel
(for Refi’s TILA offers 3 years to Rescind)
• 2) TILA Violations of APR
(for Refi’s TILA offers 3 years to Rescind)
• 3) TILA Violations of undisclosed Finance Charges
(for Refi’s TILA offers 3 years to Rescind)
• 4) Violations of Misrepresentation, Fraud, Consideration
(Calif. Civil Code 1689 & 1691 allow Rescission)
• Rescission can Void the Security Interest of the Lender
(Always check with a Lawyer for What’s Best for You)
•
[NEXT = 2 Notices of Right to Cancel with no Date, and a CE Audit]
Breaking the Predatory Lender Matrix 2
By Jim Krage of www.AmericanLoanAudits.com
Courts and Causes of Action:
TILA and RESPA are Federal Laws.
Misrepresentation and Fraud are most sued as State Laws
You can only sue in Fed Court if you have a Fed issue.
Rumors are that Borrowers are unlucky in L.A. Fed Court.
I have seen better results in State Court for Fed & State issues
Even State Court Judges are often unfriendly to In Pro Pers – see www.1215.org
L.A. Fed Judge Manual Real is an old judge trying to throw out Fed complaints that
ask for the Original of the Note.
From www.mortgageservicingnews.com/newsletter/stories/?story_id=56
“Judge Manuel L. Real of the Central District of California. In December 2008, Real began holding hearings into
the conduct of the law firm that filed at least nine produce-the-note cases pending before him. By the end
of January 2009, Real declared the suits to be frivolous, ordered the attorney to repay plaintiffs all monies
paid for his services, ordered the attorney and his law firm to pay in excess of $60,000 to five law firms
forced to defend the cases he filed, declared the attorney to be a vexatious litigant and barred him from
making any future filings in the Central District without the prior written permission of the chief judge.”
In 2006,the House Judiciary Committee started an investigation of Real, but did nothing.
Breaking the Predatory Lender Matrix 2
By Jim Krage of www.AmericanLoanAudits.com
Historically, the Borrower got a “Loan” from a
Lender in exchange for signing a Note and a
Deed of Trust to secure the debt.
Actually, the Lender loaned Credit.
----------------------------------------------------------From about 2005-2008, Lehman Brothers
milked investors to fund trusts that bought
Notes directly, the nominal Lender didn’t
Loan anything, got paid a Commission to lie.
Breaking the Predatory Lender Matrix 2
By Jim Krage of www.AmericanLoanAudits.com
In these Securitization Trusts, Lehman got
people to invest, used 30% to buy notes,
used 70% for commissions & reserve funds
(to pay investor back partially – to keep ‘em
quiet), and bought the notes outright without
disclosing it to the homeowner.
The Lender got a Commission to be a Front by
putting its name on Note and Trust Deed.
Lehman and the “nominal Lender” fraudulently
misrepresented the actual nature of the
transaction to defraud both the investor and
the homeowner.
Breaking the Predatory Lender Matrix 2
By Jim Krage of www.AmericanLoanAudits.com
Now, Foreclosures are rampant – Problems?
They will lie and do anything to get your home
The Servicer can’t foreclose, but they do try.
Foreclosure Evictions by Unlawful Detainer
must be done by the “Proper Party” – the
Servicer is not the “Proper Party”
MERS can only act as “Nominee” for the
Lender - not Beneficiary – if you don’t know
Breaking the Predatory Lender Matrix 2
By Jim Krage of www.AmericanLoanAudits.com
If the Securitization Trust was created before
the “Loan” and bought the Note outright,
the “nominal Lender” on the Note and
Deed of Trust never loaned you anything –
fraudulent misrepresentation??
If the “nominal Lender” never paid anything,
it wasn’t Beneficiary, and can’t Assign or
Substitute? Who is the real Beneficiary?
Is it the Trust or the Investor???
Breaking the Predatory Lender Matrix 2
By Jim Krage of www.AmericanLoanAudits.com
More and more Foreclosures are happening,
where the Servicer is foreclosing without
even an Assignment to them.
Often MERS signs Assignments and
Substitutions of Trustee as Beneficiary.
All of the above should be VOIDABLE.
If you’re lucky enough to get a good judge, you
may win in court in the above circumstances.
Sometimes, you may stop the Foreclosure Sale or the
Unlawful Detainer Eviction, if you present it properly.
Audits help you know. Get a Lawyer to present it.
Breaking the Predatory Lender Matrix 2
By Jim Krage of www.AmericanLoanAudits.com
Are YOU or a FRIEND in Foreclosure?
Who is Foreclosing?
1) The “Lender” on the Note?
2) The Servicer? (Aurora, Litton, etc)
3) The Trustee? (Deutsche Bank, Wells Fargo,
OneWest, Chase, etc)
4) Was an Assignment recorded to them?
5) Was the Substitution of Trustee proper?
6) Who signed the Assignment & Substitution?
7) Was FRAUD at inception and in foreclosure?
Breaking the Predatory Lender Matrix 2
By Jim Krage of www.AmericanLoanAudits.com
At www.AmericanLoanAudits.com, we can help:
1) We Audit Origination Loan Docs in 2 Steps:
a) A Compliance Ease Audit to recalculate APR, etc
b) A Manual Audit that scours the documents
2) We also check Recorded Docs for errors.
3) We provide a Qualified Written Request to
try to get the Trust Name and other Docs
4) We work with your lawyer, to help them
understand the potential issues, including
the Trust, which some don’t want to hear.
Breaking the Predatory Lender Matrix 2
By Jim Krage of www.AmericanLoanAudits.com
If you want help, call Jim at (562)867-3230 or
visit www.AmericanLoanAudits.com
Read more about Securitization Trusts and the current situation at:
http://www.americanloanaudits.com/fraud/
Watch our Sept. 2, 2009 Video at:
http://www.americanloanaudits.com/video/
A video of this 1/23/10 Presentation will be posted soon.