House for Free? Don’t get Caught in that Trap

Posted on May 19, 2010 by Neil Garfield
I’m probably partly to blame for this notion so I want to correct it. The goal is NOT to get your house for free, although that COULD be the result, as we have seen in a few hundred cases. The simple answer is “No Judge I am not trying to get my house for free, I’m trying to stop THEM from getting my house for free. They don’t have one dime invested in this deal and payments have been received by the real creditors for which they refuse to give an accounting.”

The obligation WAS created. The question is not who holds the note but to whom the note is payable, and what is the balance due on the note after a full accounting from the creditor.

So don’t leave your mouth hanging open when the Judge says something like that. Tell him or her that they have the wrong impression because they are getting misinformation from the other side which is trying to get a lawyer’s argument admitted as evidence. Tell him you want the deal you signed up for — including the appraised value that the lender represented to you at closing.

Don’t say you won’t pay anything. Offer to make a monthly payment into the court registry — not in the amount demanded, but for perhaps 25% of the amount demanded. Tell him you refuse to pay someone who never lent you the money, who is not on the closing documents and is relying on securitization documents which contain multiple conditions, many of which they have violated.

Tell the Judge you deny the default because you know they received third party payments and they refuse to allocate the payments to your loan, and they refuse to inform you or the Court as to whether these third party insurers and guarantors have equitable or legal rights of subrogation. Subrogation is taking the place of another person because you are the real party in interest.

“Why should I lose my house just because I didn’t pay them. The note isn’t payable to them. Even if they have an assignment, it violates the terms under which they are permitted to accept it, and even if they were permitted to accept it, it wold be on behalf of the true creditors who were the investors who advanced the funds and now could be anyone because of the transactions in which the investors were paid or settled.

“The question is not whether I made a payment, it is whether a payment is due after allocation of third party insurance, credit default swap and guarantee payments. Who are they to declare a default when they refuse to give a full accounting?”

Southern California (909)890-9192 in Northern California(925)957-9797

11 thoughts on “House for Free? Don’t get Caught in that Trap”

  1. Dear Tim:

    I have learned plenty from useful inormation that you have provided. I would like to help relative, and friends that are in critical forclosure status, in particular my brother in california. Condo refinanced with Chase back in 2007, loan amount $588k, and property value dropped 30%, and small 2nd and 3rd line of credits. TS already issued, and we are planning to modify his existing loan, and adjust to current market value of $485k. I have heared that we may not succeed so I would like to proceed as I learned from your information. I am a technical guy, and quick learn and I believe I can handle all paper works for my brother, recording, etc. I like to make sure my brother can stay in his home for many years, and do not loose it. Please let me know the sequence, and documents that I may need to proceed stop the trustee sale, and prove all issues related to Note, and deed of trust, and pay off my existing debt with my own bonded promisory. I may need some guidance from your system. My brother is in a financial hardship, however expected to make it a little more stable and then we can make also some small fees for your professional suppots. I will also help others as I work on my brother case. Thank you Alec

  2. My Mortgage Deed say that Fannie May is my holder of my Mortgage, but GMAC is who is the loan servicer and that is who I make my payments to and MERS is showing on my Mortgage Deed as well. What is the deal with that and what should I do ? I sent GMAC a QWR and they said that Fannie May is the owner. GMAC Stated that the full accounting practice that I requested was proprietary and confidential

    1. Wayne go on FDIC website and do a FOIA request. Requesting any and all records indicating ownership and servicing right related to your loan. Give them the Bank name and loan number

  3. I am in the state of Illinois where there is a Note and a Mortgage. I sent GMAC a request for Proof of Claim for inspection of my original Wet Ink Signature Promissory Note allonge with the Wet Ink signature Mortgage and have given them 30 days to respond to my request. Am I understanding that if they do not respond within 30 days to set up this inspection that I can have my Promissory Note and Mortgage Null and Void through my trustee and send GMAC a (NOD) Notice of Default? or do I need to file a motion with the court to compel them to produce the original?

  4. I am experiencing similar problem with Saxon Mortgage in California. Can I join class action lawsuit? They refused to help lower principle, refuse to tell me title owners and Just recently sent me letter that loan payments are to made to another lender?
    I don’t believe they have original title and I am 2 months behind on payments.

    I could use some help

    Jeff, San diego

    1. Jeff, the new servicer must send you a welcome letter and you must receive a goodbye letter from your previous servicer. Make sure that your request is done by stating that this is a Qualified Written request under the real Estate Settlement Procedures Act (section 6).
      Jeff, please do not take this as legal advice because I am not an attorney, but this is how it is done. They must answer point by point. If you like Jeff, shoot me an email:

  5. If I were you, I would get a securitization audit and then file a Quiet Title Action. That is what I am doing right now as well.

  6. Wayne, do you know any recent California case law to support a securitization audit and quite title action as effective?

    1. Hey John:
      I am pretty sure there is some successful cases in California with Securitization Audits and Quiet Title Actions. One thing that I can tell you is that the Securitization Audits are awesome when doing a Quiet Title, because now you will have the solid evidence to cream those crooks. Be careful who you use to do your Securitization Audit because you want a very good one to go after these Pretender Lenders. If you like, shoot me an email as well.

  7. Your information is very usefull, but have you win cases in court. I been foreclosure for 4 years ,I been demanding for proof of debt and full accounting cwalt,bofa,sls llc., bny mellon, they just send copies of the note , I received more than 4 different version of the same note. I’m looking for attorney who knows how to demand in court for a judgment to comfort the void note.

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