Comments on: An Open Letter to Florida’s Best Judge by Matt Weidner

By: Richard F. Kessler

Richard F. Kessler — Thu, 16 Dec 2010 17:13:32 +0000

Here is a suggestion for Florida foreclosure defense practitioners. Regarding Mathew Weidner’s blog entitled “A message for the best judge in Florida”, I respectfully suggest that such ex partie polemics are counterproductive. Mr. Weidner has come up with a far more interesting idea, a Florida statute, sec 69.021 enables a judge, sua sponte or upon motion of a party, in a foreclosure proceeding to appoint a three person committee to represent the beneficiaries when there are more than ten members in the trust. Amplify Mr. Weidner’s observations with the views expressed in an article by Professor Adam J. Levitin and Tara Twomey in the Yale Law Journal of Regulation, entitled “Mortgage Servicing”.
In addition, if one looks at the specific securitization behind a securitized mortgage, not only are there diverse beneficiaries, the securitization created different classes of certificates providing rights to specific segments of cash flow and priorities in the order of payment and risk of loss. These different classes were called “tranches”. There is a built-in conflict of interest between these tranches in the event of a foreclosure. A settlement beneficial to one tranche may well disadvantage other tranches. The conflict of interest between tranches has been referred to as “tranche warfare”.
The trustee or servicer who acts as plaintiff has a separate interest, namely, to maximize the fees earned and avoid liability. Under these circumstances the best course for a foreclosing trustee is a protracted, costly foreclosure as opposed to an alternate dispute resolution. At the same time, certain tranches may find a specific alternate dispute resolution proposed by the debtor to be far more advantageous to foreclosure. Accepting an alternate dispute resolution favorable to one tranche while causing losses for another could result in a lawsuit against the plaintiff by members of the injured tranche.
Under these circumstances, a motion should be made in every foreclosure proceeding to appoint a committee to represent the creditor as a precondition to proceeding with Mandatory Mediation to protect the beneficiaries, the trustee and the debtor. Only such a committee can give appropriate consideration to a proposal of an alternate dispute resolution by the debtor while conferring immunity on the trustee from liability to an injured tranche. My own view is that where a debtor does not petition for Mandatory Mediation, a motion to appoint a committee for beneficiaries of the trust is pointless and a waste of the court’s time. If debtors insist upon pursuing their own self-destruction, there is little anyone else can do to stop it. For the remaining debtors, such an approach would facilitate alternate dispute resolution and lighten the burdens currently p[laced upon state court systems.

By: LVLawman

LVLawman — Thu, 16 Dec 2010 08:23:08 +0000

In reply to William Boyd. I hope this is the Bill Boyd that is Chairmen of the Board of Boyd Gaming. The same Bill Boyd that contributed the money to allow the first law school in Nevada to be built at UNLV (The Boyd School of Law) and become an accedited ABA law school by the time it's first freshman class graduated. I would assume THAT Bill Boyd hold the rule of law in high regard and his letter to the Nevada AG (Cathrine Cortez Maestro) would have some political clout. Guess not!

By: Gabe

Gabe — Thu, 16 Dec 2010 04:29:29 +0000

If our government would of wanted to help the American families to save their homes from foreclosure, it could have been done a long time ago.

Instead the elected officials turned the other way. There were a few like Maxine Waters in CA. who went to battle to help the people but the majority of politicians, especially the REPUBLICRATS were stopping any help for homeowners.
Remeber Lamar Smith from Texas? if not here is a few minute video

http://www.c-spanvideo.org/videoLibrary/clip.php?appid=595230185

Also HR 3808 almost passed to cover up bankfraud. It was also intruduced by a republicrat name Rep Aderholt, Robert
He knew from the Bush administration the SH@ will hit the fan because this whole mortgage fraud was premeditated by the Bush administration.

When will the American working class will realize that these elected officials are against the working class?
Many democrats no better either.
Bottom line Money Talks. Lobbyist should be not allowed to go even near to politicians. Lobbyists are bribing our politicians
Elected officials should represent the people and not corporations and banks.

By: internetasker

internetasker — Wed, 15 Dec 2010 17:30:00 +0000

In reply to internetasker.

Correction:
It’s NOT the first time that reducing complex data to a few fields in a data-base itself erected with a particular social enginering model or goal in mind has caused havoc; sighing here … re the’ digital age’.

Many thanks AGAIN for this forum so that each of us can feel not entirely alone.

And sorry for the typo prior eliminating the key word NOT, by accident.

By: internetasker

internetasker — Wed, 15 Dec 2010 17:15:42 +0000

Extending thank yous from Northern States also. And if we could see backward on the timelinet
the conditions of the motrgages themselves would be very alarming.

Do these “lender” people realize what a home means? I guess calling it a “property” evades the issues – personal, social, familial, ethical, psychological, spiritual and otherwise even in addition to financial.

As to MERS its ethe first time that reducing complex data to a few fields in a data-base itself erected with a particular social enginering model or goal in mind has caused havoc; sighing here … re the’ digital age’.

Many thanks for this forum so that each of us can feel not entirely alone.

By: William Boyd

William Boyd — Wed, 15 Dec 2010 15:52:32 +0000

What a brilliantly composed message to the courts! I sincerely hope you get a positive response. Here in Nevada we see the same sort of mess plodding along with the perceived endorsement of the local legal communit. The fact that we’re a non-judicial state being the excuse for impaling citizens on the spears of the major lenders time and again. I wrote a letter to our Madame Attorney General listing several of the State’s Attorneys General that were/are pursuing the foreclosure situation within their states and asked what Nevada was doing or planning to do. I received a very nice letter agreeing with my concern and expressing the fact that they were going to establish a committee to investigate the situation and I was to be assured that it was one of their most troubling situations. That was several months ago and not one significant action has been seen here in NV!
Keep up the good work! I cannot understand how intelligent people can sit on a bench in countless cases and fail to see that the large and aggressive corporations are performing illegal and unscrupulous activities for their profits and conquests! Only by informing the courts that we are aware of these questionable practices being imposed on us by the judges/courts will we force them to become at least impartial participants as they should be.

By: pattie

pattie — Wed, 15 Dec 2010 15:43:43 +0000

Matt is absolutely on point. He is being attacked by the fraudsters who are abusing Floridians. Matt and others like him should be commended. Unfortunately these attorneys will have to continue their relentless attack on the system to get the system to change.