Foreclosure Process

More thoughts on the residential defense strategies

Posted on

TILA audits should only cost a homeowner under $500. A more complete audit with a Qualified Written Rqeuest, attorney demand letter and suggestions for how to proceed should cost under $2500.

A lot of possible defenses are raised by the securitization proces lenders used.

The goal is to get a case settled before litigation. Be proactive. Often if you are able to put the lender or their counsel on notice that there is a damage claim that may be covered by insurance results are better.

Review all cases from the perspetive of the initial transaction table, loan funding, assignments, pooling and securitization as seerious flaws can occur at each of these stages. The sheer volum of new deals into securitization meant alot of mistakes were made.

Consider UCC Article 3 which governs negotiatble instructments (promissory notes) and the transfer of same.

Consider standing issues.

MERS (Mortgage Electronic Registration System) registers loans so they can be bought, sold and securitized more easily. It originates thousands of loans daily and is the mortgageee of record for at leats 40 million mortgages and other security documents, some of which cannot be substantiated or traced.

Consider the rules of evidence. The lender must prove both the default and the debt.

Recent case law illustrates enormous problems in loan servicing in the context of securitization and difficult identifying the note holder, mortgage assignee, parties with legal UCC rights and standing.

On initial intake at least the following is normally reviewed by lenders:
Plaintiff name - all parties named correctly?
Original mortgage
Original note
Original unrecorded assignments
copies of all recorded assignments
Title policy
Intervening deed and exceptions
Loan status screens/default information
Proof the borrower is not in military
Occupnacy status
Mortgagro and owner addresses, employment, social security numbers, martial status, evidence if deceased
Bankruptcy information
Liens claims or other encumbrances.

Supporting Materials


1000 characters maximum Your Name:    

By Category

Recommended Sites