Case Compilation of Standing Issues Where Trusts Were Not Able to Foreclose or Proceed in Bankruptcy

Case Compilation of Standing Issues Where Trusts Were Not Able to Foreclose Expeditiously

For anyone on this list who is working on standing issues, and for anyone who wants to know how mortgage trusts are harmed by the missing loan documents (despite the rants of the American Securitization Forum), here is the latest case compilation by Lynn Szymoniak and Lisa Epstein – real warriors.

The purpose of the representations in the Pooling and Servicing Agreements regarding conveyances of mortgages was to promise potential investors that the ownership of the loans and mortgages would be unassailable. In the event of any attack on the ownership by the trust, the trust could produce both the note, endorsed in blank or endorsed to the trust, and the mortgage, assigned to the trust, or, in the case of MERS mortgages, listing the trust as the owner of the mortgage on the closing date of the trust.

In the event of defaults by mortgagors, the trustee/servicer was supposed to have been able to foreclosure without any documents proving ownership of the mortgage by the trust other than the documents already in the mortgage files maintained by the document custodian of each trust.

The trust was not only supposed to be able to ultimately prevail in a foreclosure, the trust was supposed to be able to expeditiously prevail, without the expense of extended litigation regarding standing, real party in interest and the right to foreclose.

In the cases listed herein, the trust was not able to foreclose expeditiously because of loan documentation issues:





12 Responses to “Case Compilation of Standing Issues Where Trusts Were Not Able to Foreclose or Proceed in Bankruptcy”
  1. Rebecca Lara says:

    Clerk of court signed off ex along with da remove par shale dismissal from 2001 court order that was also put into effect on property and par shale dismissal da did parshel dismissal on my property from court order in 2001 even though judgement was filled 1998 the child support did this for a lean they put on property 2001 against ex he still owes me $30,000 march 28 or 29 2006
    Town and country credit has original at time I had copy granted sole owner as single women as travel notary 3/22/06 bev d with # then hall of records 3/22/06 said no way this title co would rip me off 9,000
    Court said bring own notary then said sec a had file from storage then checked again said bev would help then paid in full and was given grant deed original signed and stamped seal along with beneficiary numbers non tobacco rate and tobacco rate 3/22/2006 hall of records authentication of docs pursuant putt dated nov 16 1989 signed court district supervisor clerk of court San Bernardino district interspocial transfer deed doc# 2006-
    3/22/2006 11:15am doc transfer of tax 0
    Notary of court signed stamped even to tax assessor preliminary change of ownership report taking ex off in married sole owner recording date 6/28/2001 instrument # release of judgment lien
    Recessing mortgage term life ins in amount of one amount on two pages then higher ant on two other pages in addition monthly impound account payments
    Note was microfilmed
    Witness the hand (s) and seal (s) of the undersigned pledge released on two loan co on this mortgage loan along with national title clearing for national title clearing for – – bank fa with 3 didget number paid in full returning original deed of trust. Note. Where’s the note I ask ?

  2. Allisun says:
    Somebody here better watch this video …quick…lol

  3. REX says:

    Hi again Aex,

    Just wondering if these attorneys that took over from David Stern have been photo shopping documents. I am sure David Stern would have foreclosed on us in the 4 years he had to do it….It is very strange that your documents and our documents suddenly appeared! ……or is it!?

    • Alex says:

      Sorry for delay in response…all this has been overwhelming. I did visit Ice legal attorneys, and unfortunately the attorney i interviewed with indicated that my previous attorney who i had hired did the basic stough to buy time but never really litigated. If i would of given this case to them from the beginning i believe the turn out would of been different. The day of the nj trial the attorney handling m case simply told me she had great news for me which was that the court had given me 120 before the sale date of May 9th…to try to modify or short sale the property. But the same as you I always asked myself and asked her what happened with the lack of standing, which i understood that in order for the bank to file a forclosure lawsuit needed to prove they had standing by showing they had the original note from the beginning. But the attorney at that time told me when i asked her about that they they showed up with all the paperwork in order and that was enough for the judge to enter the judgment…which i still don’t buy. Again to have a judgment vacated according to my interview with ice legal could be around $8000 US. I found out that right after you get the judgment and sale date, you have 10 days to request a new hearing and 30 days to make an appeal which usually is denied by the lower courts and then you must take it to the higher courts like the supreme court. And well with this experience i have no other option than to short sale, but i continue to be suprised how our court system are playing blind just to simply get these files out of the way. Just like my case and yours i bet there way much more hundreds of cases out there with exactly the same situation. I say the same…why forclose 4 years later if you always had your paperwork in order.

      I bet that if a law firm gathered or called out to people with this same situation a point would be made to the court system, a bombshell would explode to know how dirt is simply being dumped onto these files in order to get the forclosure system moving without any regret what so ever. Ignoring that its simply causing our country’s real estate system to loose more credibility. Realistically speaking, no law firm will take upon a case like this if there is no money upfront, but i still feel that maybe someday someone with the resources will take a stand and make a change. I have come to a dead end because i cant continue to spare more resources on this, specially if you don’t find an attorney that is willing ot believe that something can be done.

  4. Charles Reed says:

    Aex what I would do is ask to see those document and look at the endorsement on the last page of the Note and if you find a endorsement signed by the lender and there is no name listing the who they are endorsing the Note to, then without that being filed in there is a broken link in the chain of ownership. What type of loan did you have?

    • Alex says:

      I had a fixed for 30 years. I will take your advice…for curiosity. k…im going to court to check this out. I will be doing this in the upcoming days. So in other words this endorsement should be in the file at court correct? have a copy of the assignment of mortage and an allonge to note which shows the transfers withough any notarization nor date. It simply shows the name of each lender until it mentiones pay to the order of JP morgan chase bank as trustee without recourse, but never shows the transfer from chase to Bank of NY Mellon. Even though the assignment which was filed 9 months later after the lawsuit was filed indicates Bank of NY MellonTrust Company as successor to JP Morgan Chase Bank.

  5. Aex says:

    Quick question..if anyone knows. I had a non jury trial last week in which my attorney after a almost 4 year forclosure battle indicated that the good news in regards to the outcome was that the court had given 120 days for a sale date. Do not know what is the good news yet. Bank of New York Mellon as Plaintiff didn’t have the note at moment of filing the law suit as indicated in the same documents by them and the day of the trial …kaboom they appeared with all documents. I asked her what had happened with the lack of standing supposingly they were suppose to have this before filing the lawsuit and she indicated that since they showed up with all docuements as trial they had complied. This file was originally handed by David Stern firm and later transfered to another firm. Even though there is a sale date is there any possibility at this point to appeal and do some type of audit that can really prove if there are the real party in interest, The assignment of mortgage show several transferes from one bank to another without dates or notarizations. Any input is highly appreciated.

    • REX says:

      Hi Aex,
      I cannot say if you have any comback beacuse I am not a lawyer. BUT, I too have a foreclosure case anaginst New York mellon linked to David Stern…..My story might help you.

      The last payment we made on our mortgage was in December 2007. We filed bankruptcy in Oct 2007 which was completed in 2008. We never fought this case. We had written it off. The original loan was in the name of Impac Funding, transferred without assignment to countrywide who are the named plantiffs.

      After the David Stern “fall from grace” another firm took over the case. Suddenly the lost note was found and lodged with the court. Still nothing happened. I guess they were getting quite close to the 5 year timeline so thought they better do something. So they are finally going for summary Judgment. Hearing next week….My point is that after 4 years of being in default and foreclosure they SECURITIZED the loan and transferred it to the New York Mellon Bank. The amount we wrote off in was approx $450,000. The new bank thinks the loan is worth approx $630,000. Selling that home today the “trust” would NET only $250,000 (etimated without costs etc. So THE BANK has defrauded the trust, the govt and the IRS by $380,000. No wonder the Bank of America can afford to pay $10B in fines and still make profits! I have no case to answer, we have nothing to lose (apart from the $150,000 cash we put down…..MY problem is that the banks are scamming the Govt. How can a bank transfer a non performing loan into a trust 4 years AFTER the foreclosure started! FOOD FOR THOUGHT!!!

    • Roger says:

      You definitely need to appeal this. I hope you hired a court reporter for the appeals court to review. I would also hire a better lawyer, someone with some successes like Matt Weidner, also hope that you saved up your money over the last 4 years of no payments, spend it now!!!

  6. Learning2 says:

    Any Cases available for World Savings?

  7. James M says:

    Thanks a lot. Some very useful insights. One quick question, what was the document to which these were appendixes and when where they complied ?

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