"A settled plan to deprive the people of the benefits, blessings, and ends of the contract, to subvert the foundations of the constitution, to deprive them of all share in making and executing laws, will justify a revolution. " John Adams, Novanglus Papers, 1774
AM I SUPPOSED TO JUST STEP ASIDE
AND LET THE LENDER TAKE MY HOUSE?
Originally there were twelve of us working loosely as a group researching individually and then sharing that knowledge. We operated then like members of a club all with similar interests. While we were learning much faster than any individual borrower could have, we were each making our way through court representing ourselves. Is it wrong? Are we going to lose? I have felt both confident and anxious at different times over the last seven years. But, our members have won seven cases in the last eight months, so the answer is, yes it is possible. In fact, I do it full time. In some weird but good way, I feel it is my civic duty.
I have been sitting in court and heard many judges admonish borrowers who are trying to represent themselves as Pro se parties that they "need to get an attorney". Nearly all of my clients over seven years believed that because the judge told them to, that it was the law. It is not. But, the judge most often felt that the borrower had a better chance of having his side of the story represented with a competent attorney. It is, on a general level, good advice. But, judges today are missing some details about a new type of fraud which was illegally unknown until about 1999, and that can make paying an attorney a sure way to lose your family's home.
The Borrower can not afford an attorney anyway at this time. Beside, there are close to zero attorneys that even know mortgage finance law. There is not enough room here to go into detail, but it is easy enough to understand if you are lucky enough to meet someone who knows what has changed over the years in the relationship between attorneys and judges. I wish someone would have told me in 2011.
Actually, if it is a fraudulent foreclosure, why should a borrower have to lose his or her home because they can not afford to hire an attorney? They are victims of a crime. They are not criminals.
So if you are a borrower who is threatened with foreclosure the question is, if you can not find a good attorney and even if you could not pay him or her, you just give up the greatest and most expensive possession that you will ever own? Maybe. But, I say no. Every day I know more than the day before and on this one subject, I am an expert.
I have taken this entire issue of "Imposter" lenders blowing smoke up the court's behind and stealing homes without ever "lending" a dime to the borrower very seriously. Yes, back in the days of the real world (before 1994 or so) it was all very simple.
You borrowed from a banker you knew. You signed a Promissory Note detailing the amount you owed and the payment terms you agreed to. The banker needed to know that if you became unable to make your payments that the bank would not lose the money they were loaning you, so you put up the home you were buying as collateral. The document you signed that contained the terms you and the bank agreed on is called a security instrument. In states that use judicial foreclosure rules, that collateral instrument is called a mortgage. In states that use non-judicial foreclosure rules the security instrument is called a deed of trust, in these states there is nothing even called a mortgage. Since, we all use the term mortgage to mean home loans we get mixed up. The foreclosing party is counting on confusing you and the judge. (I cover that more completely in another article).
Now those documents and the terms agreed to is your home loan. The Promissory Note is essential to the deal and it is the most important document you signed. You made these fair monthly payments. You and the banker kept track of the payments, and when your loan was paid off the Promissory Note was marked paid and returned to you. The original Promissory Note was returned to you. Every time. You could trust the finance industry to do it like this. But, to any borrower, attorney, or judge born after about 1980 this sounds like fantasy, because following the laws and statutes on banking has not been an active idea since 1995 (that's when Microsoft first provided free email at the literal speed of light) .
But, since so few Borrowers know any of their rights and because these same crooked finance guys ruined the economy for just about the whole world, very few Borrowers can afford to go plunk down $ 5,000 for an attorney to tell them their rights. The vast, vast majority of borrowers being wrongfully foreclosed have just tell their kids that they gotta change schools and they rent a truck they can not afford and head for a rental home or apartment that they do not get approved for because not only has the false foreclosing party taken their home illegally, they have also reported the foreclosure to the credit rating companies, which has ruined their credit.
Folks, this is not the America that I grow up in!
It is my intent to stick around to tell these victim borrowers that it does not all have to go so fast. That the "Bank" that is threatening to foreclose has no case. This "foreclosing party" can not and they will not show the real deal proof that they are even the true party you owe. That is because they are not the party you owe.
But if, you do not stop turn and fight they will and do get away with it. Your case is very good, you just do not know it yet.
I do that. I am working hard to be that someone that can tell you why you have more than just hope to help you fight back. I am a long time real estate broker, real estate developer, home builder, mortgage broker and a consultant on very large real estate deals around the country. I am supposed to be a real smart guy, and you know what?
Yep, GMAC Mortgage stole my house and it made me mad. Real mad. I have been mad every moment since November 11th, 2011. But I did not rent a truck. I bought back. But, like so many Americans in all professions, the economy had seriously damaged my income, so I could not afford an attorney. Back then, I just knew that I had to have a lawyer.
I have held my own house to a standstill in court for now seven years, while dealing with the most outrageous lies from attorneys in court than I could never have dreamed anyone would have brazen (or stupid) enough to tell. Luckily I now know why I could stick around, and if I stuck around either side side would win. The explanation on what is different today is too long for this article, but I think I will make the seven years worthwhile very soon.
OK, so above I have described much of the problem (not in detail of course) of how does a borrower try to protect his home without the money or information to hire an attorney.
The answer is to do it Pro Se. Pro Se means "I am representing myself".
That will at first sound impossibly intimidating. Everyone I have ever talked to had a very difficult time even thinking about it. But, it is possible. It is legal. In fact it is your constitutional right.
First of all, you need information. What has your "Lender" done wrong? What have you done right? How can I find my way through the court system? You can not lie. You have to really know what the truth is and what is happening. If we try to deceive the court with misleading statements, we will look no better than the characters we are up against. The truth is a very powerful weapon when used correctly.
Whoever is threatening to forelose on you is not the entity that funded your loan. You are not going to claim you did not get a loan, because you did. But, not from the Lender which is named on your loan papers. It came from an unknown source in an illegal way. (Just ride along with that thought, you can learn what I mean later).
This means that whoever you think you closed with has no right to collect from you money, nor to "assign" the loan to another entity. Therefore your loan could not have been sold. The Seller and the Purchaser of your Promissory Note can not have written a contract and transferred your loan through a sale because the Seller had no interest (ownership) in your loan to sell.
But, if you do not protest it in court they will claim your loan has been sold and now an Imposter / Fictitious Payee (real statute terms in all 50 states) will steal your home. If they make a claim that is untrue, but you do not object, then the judge must take the lie as the truth by law. In watching borrowers in court, or reading the motives and answers in their cases, I am stuck with how little borrowers think they can object. Heck, what did Perry Mason do? Object. What did Barnaby Jones do? Object. What did Captain Kirk do on Boston Legal? Yes, he expected long and loudly. The court is not a church. You should act professionally, but you have every right to have your say.
The way you begin getting your case to court is to file a lawsuit (a Quiet Title Action is common for home loan fraud, but today we have something much better. The average cost around the country to file a foreclosure fraud lawsuit is $ 100 to $ 200 or so. Compare that to what an attorney wants up front.
You are now the Plaintiff and no longer the Defendant. You will not go to court for some time, but you will have to demand your rights and the party claiming to have the right foreclose will try to block you with lies. But, this is all on paper through motions using the appropriate laws and not before a judge in court right away. Possibly never, which is how we won 5 times recently. It is my belief because we stay in and fight the foreclosing party decides to pick on someone who does not have the strength that knowledge brings.
We can organize your documents and come up with the strategy to prove you did not receive money from the Imposer Lender who is claiming you did. We can answer your questions and help your presentation. That is what we have done for ourselves and we can do it for you. At a fraction of what a full time attorney charges. When the proper time comes you may be using an attorney for a short time in court when you can show the attorney why he can win for you. This will cost you a fraction of what you think to save your home. Did I mention that we can help lower your anxiety with this knowledge?