Happy Birthday Jesus

As you know I normally discuss only law and related topics on the Lawmen Group.  Today I make an exception.

Picture of Jesus
Jesus of Nazareth

I thought I’d take a moment to acknowledge the birthday of Jesus of Nazareth (21 August 7 B.C.E.) and recite for you the inspiring gospel which he taught and lived throughout his 4+ year public ministry.  I paraphrase from his matchless teachings the tenets of that gospel:

  1. Acceptance of the fact of the sovereignty of God
  2. Belief in the truth of the brotherhood of man
  3. Faith in the effectiveness of the supreme human desire to do God’s will, to become LIKE him.

I have yet to find a sincere truth seeker unable to embrace the above good news wholeheartedly.  It encourages and uplifts all, inspiring us to go into life and tackle its problems and vicissitudes with gusto and joy.  We know that by embracing our Sonship with God, as Jesus of Nazareth did, we shall sincerely pursue truth, beauty, and goodness.  And, we shall express that pursuit through energetic demonstrations of love, mercy and ministry.  We cannot help but to become ever more like God as we strive for personal perfection.  Each of us who does so shall develop a majestic and well-balanced personality, allowing others to see God in us, and inspiring them to go and do likewise.

THAT constitutes the most wonderful gift anyone could give us, and the most wonderful gift we can give others.

I know that many who read this will chide me for not discussing eternal life, salvation, and such, as Jesus’ greatest gift to us.  I don’t mean to minimize those lessons.  I simply mean to say we live TODAY, this MINUTE, this INSTANT, not in the future.  And we cannot possibly do any better RIGHT NOW than to show our Heavenly Father’s wise and loving nature to others, as his gospel inspires us to do.

I have only this exhortation for you at this moment of prayerful thought about Jesus’ gifts to us:

Go forth and DO IT.  And take someone with you to help your neighbors and share this good news with them.

What?  You want to know where I got that image of Jesus?  I googled around and picked what I considered he most likely looked like.  I picked this as a close second because Jesus spent a lot of time laughing and smiling.

Oh, you want to know why I wish Jesus Happy Birthday TODAY?  Where I got the idea he experienced birth on 21 August 7 B.C.E.?

Okay, here’s your source.   I encourage you to read the whole book.  Over and Over.

The Urantia Book – download a Compiled Hypertext Markup Windows Help File version here.

The Urantia PapersPaper 122 : BIRTH AND INFANCY OF JESUS

Sections 8 and 9


122:8.1 All that night Mary was restless so that neither of them slept much. By the break of day the pangs of childbirth were well in evidence, and at noon, August 21, 7 B.C., with the help and kind ministrations of women fellow travelers, Mary was delivered of a male child. Jesus of Nazareth was born into the world, was wrapped in the clothes which Mary had brought along for such a possible contingency, and laid in a near-by manger.

122:8.2 In just the same manner as all babies before that day and since have come into the world, the promised child was born; and on the eighth day, according to the Jewish practice, he was circumcised and formally named Joshua (Jesus).

122:8.3 The next day after the birth of Jesus, Joseph made his enrollment. Meeting a man they had talked with two nights previously at Jericho, Joseph was taken by him to a well-to-do friend who had a room at the inn, and who said he would gladly exchange quarters with the Nazareth couple. That afternoon they moved up to the inn, where they lived for almost three weeks until they found lodgings in the home of a distant relative of Joseph.

122:8.4 The second day after the birth of Jesus, Mary sent word to Elizabeth that her child had come and received word in return inviting Joseph up to Jerusalem to talk over all their affairs with Zacharias. The following week Joseph went to Jerusalem to confer with Zacharias. Both Zacharias and Elizabeth had become possessed with the sincere conviction that Jesus was indeed to become the Jewish deliverer, the Messiah, and that their son John was to be his chief of aides, his right-hand man of destiny. And since Mary held these same ideas, it was not difficult to prevail upon Joseph to remain in Bethlehem, the City of David, so that Jesus might grow up to become the successor of David on the throne of all Israel. Accordingly, they remained in Bethlehem more than a year, Joseph meantime working some at his carpenter’s trade.

122:8.5 At the noontide birth of Jesus the seraphim of Urantia, assembled under their directors, did sing anthems of glory over the Bethlehem manger, but these utterances of praise were not heard by human ears. No shepherds nor any other mortal creatures came to pay homage to the babe of Bethlehem until the day of the arrival of certain priests from Ur, who were sent down from Jerusalem by Zacharias.

122:8.6 These priests from Mesopotamia had been told sometime before by a strange religious teacher of their country that he had had a dream in which he was informed that “the light of life” was about to appear on earth as a babe and among the Jews. And thither went these three teachers looking for this “light of life.” After many weeks of futile search in Jerusalem, they were about to return to Ur when Zacharias met them and disclosed his belief that Jesus was the object of their quest and sent them on to Bethlehem, where they found the babe and left their gifts with Mary, his earth mother. The babe was almost three weeks old at the time of their visit.

122:8.7 These wise men saw no star to guide them to Bethlehem. The beautiful legend of the star of Bethlehem originated in this way: Jesus was born August 21 at noon, 7 B.C. On May 29, 7 B.C., there occurred an extraordinary conjunction of Jupiter and Saturn in the constellation of Pisces. And it is a remarkable astronomic fact that similar conjunctions occurred on September 29 and December 5 of the same year. Upon the basis of these extraordinary but wholly natural events the well-meaning zealots of the succeeding generation constructed the appealing legend of the star of Bethlehem and the adoring Magi led thereby to the manger, where they beheld and worshiped the newborn babe. Oriental and near-Oriental minds delight in fairy stories, and they are continually spinning such beautiful myths about the lives of their religious leaders and political heroes. In the absence of printing, when most human knowledge was passed by word of mouth from one generation to another, it was very easy for myths to become traditions and for traditions eventually to become accepted as facts.



122:9.1 Moses had taught the Jews that every first-born son belonged to the Lord, and that, in lieu of his sacrifice as was the custom among the heathen nations, such a son might live provided his parents would redeem him by the payment of five shekels to any authorized priest. There was also a Mosaic ordinance which directed that a mother, after the passing of a certain period of time, should present herself (or have someone make the proper sacrifice for her) at the temple for purification. It was customary to perform both of these ceremonies at the same time. Accordingly, Joseph and Mary went up to the temple at Jerusalem in person to present Jesus to the priests and effect his redemption and also to make the proper sacrifice to insure Mary’s ceremonial purification from the alleged uncleanness of childbirth.

122:9.2 There lingered constantly about the courts of the temple two remarkable characters, Simeon a singer and Anna a poetess. Simeon was a Judean, but Anna was a Galilean. This couple were frequently in each other’s company, and both were intimates of the priest Zacharias, who had confided the secret of John and Jesus to them. Both Simeon and Anna longed for the coming of the Messiah, and their confidence in Zacharias led them to believe that Jesus was the expected deliverer of the Jewish people.

122:9.3 Zacharias knew the day Joseph and Mary were expected to appear at the temple with Jesus, and he had prearranged with Simeon and Anna to indicate, by the salute of his upraised hand, which one in the procession of first-born children was Jesus.

122:9.4 For this occasion Anna had written a poem which Simeon proceeded to sing, much to the astonishment of Joseph, Mary, and all who were assembled in the temple courts. And this was their hymn of the redemption of the first-born son:

  1. 122:9.5 Blessed be the Lord, the God of Israel,
    For he has visited us and wrought redemption for his people;
    He has raised up a horn of salvation for all of us
    In the house of his servant David.
    Even as he spoke by the mouth of his holy prophets—
    Salvation from our enemies and from the hand of all who hate us;
    To show mercy to our fathers, and remember his holy covenant—
    The oath which he swore to Abraham our father,
    To grant us that we, being delivered out of the hand of our enemies,
    Should serve him without fear,
    In holiness and righteousness before him all our days.
    Yes, and you, child of promise, shall be called the prophet of the Most High;
    For you shall go before the face of the Lord to establish his kingdom;
    To give knowledge of salvation to his people
    In the remission of their sins.
    Rejoice in the tender mercy of our God because the dayspring from on high has now visited us
    To shine upon those who sit in darkness and the shadow of death;
    To guide our feet into ways of peace.
    And now let your servant depart in peace, O Lord, according to your word,
    For my eyes have seen your salvation,
    Which you have prepared before the face of all peoples;
    A light for even the unveiling of the gentiles
    And the glory of your people Israel.

122:9.6 On the way back to Bethlehem, Joseph and Mary were silent—confused and overawed. Mary was much disturbed by the farewell salutation of Anna, the aged poetess, and Joseph was not in harmony with this premature effort to make Jesus out to be the expected Messiah of the Jewish people.


Bob Hurt    bhB• Email  f
2460 Persian Drive #70
Clearwater, FL 33763(727) 669-5511
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BITCOIN Your Way to Wealth and Power

Tor, Silk Road, BITCOIN Reveal How to Get PRIVATE MONEY and KEEP It

Copyright © 19 August 2011 by Bob Hurt. All Rights Reserved.

Crummey Money


Article I Section 10 of the US Constitution provides that “No State shall make any Thing but gold and silver Coin a Tender in Payment of Debts.”

You might not have noticed, but state governments ignore that mandate because the US Congress declared the US Dollar in the form of Federal Reserve Notes (FRNs) legal tender in spite of the fact that you cannot redeem them for gold or silver coin, and government does not any longer circulate gold or silver coins nor coins containing gold or silver, except numismatically.  Why don’t people use those numismatic gold and silver coins for commerce?  See this blog entry. There I explain that the courts interpret any dollar as merely a dollar.  That is, a silver eagle dollar equals a federal reserve note dollar officially, according to the U.S. 5th Circuit Court of Appeal ruling in Crummy v Klein

Why does this matter?  Because incessant deficit spending by Congress and bloating the money supply by the Federal Reserve (which injected $16 trillion into the economy through loans to foreign and domestic banks since 2007) over the decades has diminished the value  of FRNs to a fraction of the value of a Silver Eagle.  Today a FRN dollar has a value only 1/42 of a Silver Eagle’s value, if you can even find a Silver Eagle to buy.  Six years ago the FRN had a value 1/5 of the Silver Eagle’s value.  That means the FRN dollar has suffered a 950% devaluation because of the Congressional spending and the Fed.  Government and Bank-authored bailouts have destroyed our currency value, and that has destroyed equity in homes and the value of savings, leaving America and Americans broke and largely devoid of their “nest eggs.”

You might recall that the US dollar (FRN) has no gold or silver backing.  That means you cannot redeem it for gold or silver at a Federal Reserve Bank or the US Treasury.  You can redeem it for “lawful money” in the form of pennies, nickels, dimes, quarters, and half dollars.   A penny weighs 2.5 grams, about 1/10 ounce, so an ounce of pennies will cost you ten cents, or you could get ten ounces for a dollar or 10 pounds for $16.00 (FRN).  Scrap copper sells for $40 per ten pounds.  So you can easily double your money by buying pennies and selling them to scrap copper buyers.  

Except for one problem.  The US Mint doesn’t make pennies from copper any more.  It makes them from copper-clad (2.5%) zinc, and scrap zinc goes for only $1 a pound.  And it makes a nickel from 25% nickel and the rest copper.  So 10 pounds of pennies only has a scrap value of $10.40,  only 65% of the cost of the pennies. Nickel at $10 a pound puts the scrap value of US minted nickel coins at $85 for 10 pounds.  Nickels weigh 5 grams, so 907 of them weigh 10 pounds and at a nickel each, cost $45.  The $4 per pound gross profit will get eaten by transport and broker costs, so it makes little sense to buy them and sell them as scrap.

Thus, the US Mint continually adjusts the metal content of our coins to make them worth less than the scrap value of the metal they contain.  And, we simply cannot beat inflation by saving US money, except by buying minted gold and silver.US coins.  Unless we own shares in a mine, we’re fucked financially.  Thank you, Congress.  

I see one bright spot only.  You can use the disparity of the FRN dollar value to the Silver Eagle dollar value to your advantage in only one way that I know of.  Do all of your selling transactions in US minted gold and silver coins and declare the face value of those coins on your income tax forms as taxable income.  Do all of your buying transactions in FRNs, and use their face value on your income tax forms as tax deductions.  Then go ahead and sign up for welfare and food stamps because you’ll qualify.

For more on US money, watch this interview of Harvard-educated law scholar Dr. Edwin Vieira.

Debt and the Money Supply


The chart that follows shows the effect of inflating the money supply with deficit spending and low cost gifts or loans by the FED and Congress to bail out the financial industry and its insurers.  As dollars diminish in value, each dollar injected into the economy through debt (spending above income) results in fewer jobs and less productivity than previously.  This causes a decline in the GDP unless money issuers inject proportionately more money into the economy through debt.  

In other words, borrowed money produces ever fewer jobs than earned money does until money injection reaches the point of debt saturation.  After that, every dollar injected into the economy causes increased loss of jobs.

For more on this, see Professor Antal Fekete’s article on the Marginal Productivity of Debt.  

Foreclosure Defense Scam and Financial Crisis

You might know that I have focused on mortgage foreclosure defense studies for the past three years.  As a consequence I have concluded that most defense attorneys in that industry cheat their clients and commit malpractice by dragging out the foreclosure when they should attack the appraisal fraud and other torts and contract breaches underlying the mortgage.  

I also learned that the foreclosure pandemic arose as a consequence of decades of over-appraising as realtors, mortgage brokers, and sellers jacked realty prices ever higher, claiming “market” value determines prices.  They refuse to acknowledge today that they engage in price gouging, even though foreclosure auctions bring 1/5 to 1/6 of the 2005 house price. Mortgage brokers refuse to admit that they routinely falsified family income, elevating it to make prospective unqualified home buyers seem financially worthy.   As a consequence of these crimes,predatory lending collapsed the realty prices, destroyed homeowner equity, caused massive job loss broadly across America and throughout the Western world, and precipitated trillions of dollars in bailouts of insurance and banking corporations by Congress and the Federal Reserve.  

Worst of all, government encouraged the misdeeds that caused the crisis.  You might recall the efforts of Bill Clinton and George W Bush to ensure that everyone gets a house.  If you don’t, read the Financial Crisis Inquiry Commission‘s Report.

The Crucial Importance of Virtual Currency

So you see that the US Government caused and continues to cause the destruction of the value of money and real estate holdings.  And that destruction of money forces state governments to violate the US Constitution’s mandate to use gold and silver coin as legal tender for paying debts.  Thus lawlessness seems to have become law.

Pundits claim that the productivity of the American People back the Federal Reserve Notes, the universal medium of exchange in the USA.  Wikipedia’s article, linked above, claims the assets of the Federal Reserve back it.  In reality, since you cannot redeem it for minerals equal to it in value, only the world’s faith in it gives it the value people perceive it as having. When the FED or government puts more into circulation, its value goes down.  It has the nature of FIAT currency, established by decree of Congress and not by its intrinsic value.  You might say it has no more value than the cost of paper, printing, and distribution.

So, naturally, people have lost faith in government as creator and manager of money.  And people increasingly lose faith in the US Dollar because Congress and the Bureau of Public Debt have borrowed America into oblivion, inflating the money supply, and deflating the value of the dollar..  How could Monopoly (the game) money disappoint the people more than FRNs have?  

Stop and think how the foregoing realities affect your life and prosperity, and your plans for future prosperity, college for the kids, and your retirement.  If money becomes worth ever less, how do you benefit from saving it in a bank account?  If your money diminishes in value the longer you save it in a bank or a rathole in your wall, how should you invest it so you can watch it grow from interest or usage earnings?  If government agents or other thieves can rob your physical mineral wealth from a bank vault or safety deposit box, where can you hide it for safekeeping?   How can you become the master instead of the slave, financially when you remain hog-tied to a failing currency and the impossibility of defending physical wealth?


Why shouldn’t the people resort to creating and using their own currency that has nothing backing it but its own scarcity and buying power?  And since government has not yet managed totally to invade cyberspace, why shouldn’t the people develop and use a virtual currency in cyberspace?    Why shouldn’t people develop a way to prevent the IRS and other government agencies from knowing every financial transaction the people make, so as to tax the people into into the hell of poverty, dependency, economic micromanagement, and financial slavery to filthy rich banking families?

Good questions.

Answer:  People have done precisely that, as I explain in the following paragraphs.

Private Money – Three Items for Your Radar:

1. TOR – this universal anonymity service lets you browse without others capturing your IP address. Installation?  Uber-einfach.  Just download, unpack to USB or hard drive, run TOR, then browse with Firefox portable.  Its portability lets you browse without detection or traces on any PC. 

2.  Silk Road – a USE of TOR for drug trafficking.  Yeah, I know, we don’t use drugs. But, forewarned = forearmed.  Drug traffickers’ safe and continued use of TOR proves that  you Whistleblowers and political activists may safely use it.   I know you don’t want to buy illegal drugs.  But maybe you want to see the proof with your own eyes, and not merely take my word for it.  For curiosity’s sake and academic reasons only,  you may contact Silk Road through TOR, free from government’s prying eyes (you must install and browse through TOR).

  • See Silk Road: http://ianxz6zefk72ulzz.onion/
  • There you will encounter a somewhat new currency symbol:  ฿.  What does it mean?  It means BITCOIN.

3. BITCOIN – a new virtual (digital) currency that operates without government control or issue authority (don’t worry, control will soon arrive).

  • With enough computer hardware and software you can create BITCOINs, but normally you get them in trade, and you can actually buy drugs form them on the SILK ROAD above.  I mention the drugs only as an example of use.
  • BITCOINs operate similarly to QQ Coins.  Tencent released QQ chat software over a decade ago, and issued digital coins as awards for gamers.  Soon people started selling items on line for QQ coins.  Tencent actually minted the coins and did over $800 million in business with them, flouting Far East government efforts to crush the unauthorized virtual currency.
  • Now many people have begun to trade BITCOINs.  Expanding their use might frustrate the IRS effort to steal Americans blind.  So far, government has no clear and easy way to track BITCOIN transactions to people.  So if you earn a million BITCOINs, how will the IRS know?  Who says attorneys and prostitutes can’t contract with clients for BITCOINS?
  • Get your BITCOIN software:  http://www.bitcoin.org/
  • Read more 
  • Recent happenings – Google BITCOIN for more blogs 
  • Charts
  • Where to buy BITCOINs 

Bob Hurt’s Highest Recommendation


RUN, don’t walk, to invest in and use BITCOINs for your commerce; encourage others to do so too.  Sure, BITCOINs can fail to provide stable value, but for the immediate future they suffer from NO government intrusion, NO banking industry finagling, and NO issue authority mismanagement.  Furthermore, if you buy and employ enough computing power, you can create your own BITCOINS.  While that has an inflationary effect, it also faces a limit – the number of BITCOINs possibly in circulation.  This guarantees increasing scarcity and therefore increasing demand as more people find out about and start using them.

Go back and review what has happened with QQ coins and you will see the power of virtual money not managed by government.  Then realize that not even a corporation controls the issue of BITCOINs.  Its value will remain driven by scarcity, increased demand, and freedom from governmental interference.

Also, for the time being, use of TOR and other anonymity tools (like PGP/GPG for email, encryption tools for your drives, tiny, easy-to-hide Micro SD memory chips embeddable in jewelry and common items like ball point pens) all make it easier for you to hide from government’s prying eyes while you engage in commerce and hide your assets with relative secrecy and security.  

Take note that every security tool stimulates greater efforts by hackers and government snoops to discover details of your secret, private world.    So it will pay you to educate and arm yourself with knowledge and tools.  Keep finding and using ever better ways to increase and retain your privacy, wealth, and power.


Bob Hurt    bh   Blog • Email    f

2460 Persian Drive #70  Clearwater, FL 33763 USA
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How to Rebuild America from the Ground Up

We have to start a nationwide, worldwide push to go out 2×2 and minister to the families in our neighborhoods, starting with those on our block.  That means we go in and find out how they’re doing by asking them this one simple question:

“What troubles or difficulties do you have with your (home, family, kids, work, house, neighbors, government, church, finances).” 

Then ask if they’d like some help or counsel with those difficulties.  Many will lie “Everything’s just fine”  If so, I hand them a card with the following words on it from L. Ron Hubbard’s Awareness Characteristics, point to the bottom and say start at the bottom and look at each word going up, and tell me the first one you see one that reminds you of what’s going on in your life.  It will dawn on them that their life needs some help. 

When they tell me one I ask for an explanation of how it reminds them of something going on in their lives.  And they open Pandora’s Box and give me a peek into the hell of their lives.

I have a general patter I use to bring people up the awareness scale till they feel bright as much as they can.  I mock up the emotional tones associated with the characteristic right above the one they mention, and talk them up to the next condition.


Awareness Characteristics

Total Freedom
21 Source
20 Existence
19 Conditions
18 Realization
17 Clearing
16 Purposes
15 Ability
14 Correction
13 Result
12 Production
11 Activity
10 Prediction
9 Body
8 Adjustment
7 Energy
6 Enlightenment
5 Understanding
4 Orientation
3 Perception
2 Communication
1 Recognition
-1 Help
-2 Hope
-3 Demand for Improvement
-4 Need of Change
-5 Fear of Worsening
-6 Effect
-7 Ruin
-8 Despair
-9 Suffering
-10 Numbness
-11 Introversion
-12 Disaster
-13 Inactuality
-14 Delusion
-15 Hysteria
-16 Shock
-17 Catatonia
-18 Oblivion
-19 Detachment
-20 Duality
-21 Secrecy
-22 Hallucination
-23 Sadism
-24 Masochism
-25 Elation
-26 Glee
-27 Fixidity
-28 Erosion
-29 Dispersal
-30 Disassociation
-31 Criminality
-32 Uncausing
-33 Disconnection
-34 Unexistence


After I finish with a cycle to the point that the person feels brighter and willing to ask for help, I tell them improvement,  change, and help have become possible, if they can come to a get together with neighbors to deal with problems we have in common.

At these meetings we discuss problems and solutions, and set up projects where we gather at each other’s home and help one another as teams.  I evolve that into becoming court watchers and attending city council, county commission, and legislator meetings, encouraging political activism.

Meanwhile, we work together to encourage one another in our moral, ethical, and legal dilemmas, and start a law study workshop one or two days a month where we learn the ideals of good government, how the courts work, the court rules, and principles of litigation.

What does this accomplish?

It strengthens families and rebuilds neighborhoods, teaching people that caring about neighbors and letting them peek into our own family lives does not put us in danger, but instead makes us stronger individually, as families, and as a community.

We find out who has leadership skills, common sense, and good knowledge of government ideals and history, and we support those neighbors in running for office.  Eventually we replace bad politicians with good ones.

That’s my general  plan.  That’s what we must do all over America and the world, Larry.  

Spread this plan far and wide. Implement it immediately in your family and community.


Bob Hurt


2460 Persian Drive #70
Clearwater, FL 33763

(727) 669-5511
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Neil Garfield a Foreclosure Pretender Defender?

by bobhurt » Fri Aug 19, 2011 1:38 am

Three years ago I started digging into mortgages, foreclosure, and defenses. I discovered no mainstream mortgage foreclosure defense industry existed, outside of a bunch of rescue scammers. By this I mean that the mainstream legal community seemed clueless about foreclosure defense. Mostly nobody defended against foreclosure because people generally knew (but have begun to waver from their certainty) that if you don’t pay, you lose the house, a principle they learned before entering kindergarten.

Now the mainstream legal community has evolved a foreclosure defense industry of sorts, but it has become laden with scammer-attorneys.

I explain this in the below interchange with Neil Garfield on his Livinglies blog. See the link below for the discussion.

One more thing: Neil has turned his blog into a sales organ for his audit service with this ad:


It linked to his service. If you really want a good service click here. I removed the link to his service because I don’t trust it. I explain why in my comments.  Neil is a hero for educating people, but anything that doesn’t lead to the house free and clear or a financial settlement wastes time at possibly serious financial cost.

—–Original Message—–
From: Livinglies’s Weblog <no-reply@wordpress.com>
Sent: Wed, Aug 17, 2011 12:25 pm
Neil Garfield | August 17, 2011 at 9:24 am |

I held back on writing this post until I was sure beyond a reasonable doubt that I was right. I’ve said it one form or another, but not like this. It is my opinion (to be checked with licensed attorney) that most mortgage liens over the last 10 years+ were never perfected and improperly filed. If you check with cases involving mechanics liens, mortgage liens, bankruptcy etc., the issue is always about priority of liens and perfection of liens. The essential tests I have distilled from many sources are as follows:

1.    The most important test of the perfection of a lien is whether the lienholder could issue a satisfaction of that lien.

2.    The other statutory steps in establishing the lien and giving it the right place in the priority of the lien must be fulfilled to the letter. Each state differs slightly on such procedures.

Be careful here because this is not one size fits all. There are two classes of such mortgages, and this conclusion regarding the perfection, priority, enforcement and viability of the lien only applies to one class. The first class is the minority by far, but it is a significant minority. There were some actual lenders, apparently like World Savings, that did in fact make loans out of their own cash or credit. That they were later sold into the secondary market does nothing for you if you are challenging the original loan, which presumably was otherwise executed and properly filed. Hence, at the time of origination neither misrepresentation of the creditor nor the PSA were involved.

The other class, including subclasses, accounts for at least 85% of all loans during this period. In most cases the loan originator was either a thinly capitalized mortgage broker who was called “the lender” even though they never gave the borrower one penny and never intended to do so. If there were any borrower claims arising out of the loan transaction itself it would, the strategy goes, be filed against the loan originator (except now we know they were not the lender and were acting as an agent for an undisclosed principal).

The fact that the loan originator was not the lender/creditor means that the real creditor was outside the transaction. Thus a satisfaction of the obligation could only be given by or on behalf of the undisclosed creditor. By definition there is no way of knowing, but for off-record communication, who to go to for a satisfaction. Factually the Promissory Note is a lie. And therefore the “Security instrument” which misstates the terms itself, is based upon a document that does not properly recite the terms of repayment (i.e., including the terms of the PSA).

It does not properly recite the terms of repayment because (1) it provides a nominee instead of the real name of the creditor/lender and (2) it does include all the terms and parties to the deal (see the PSA). If MERS was used, you have a nominee for title, a nominee for creditor, and therefore no real party on the side of the lender, in terms of on-record activity. This results in the lien being imperfect or never perfected. Check the cases and statutes. This conclusion is unavoidable based upon the factual assumptions I have made here.

The focus on forgery, fabrication and misrepresentation (robo-signing) is important. After all this shows fraudulent intent. But it begs the question as to whether the original lien was perfected. And by the way (see previous post) invalidating the lien does not eliminate the obligation or even the possibility of a judgment lien if it is available to the creditor (depends upon the state).

So the narrow issue addressed here ONLY relates to the perfection of the mortgage or deed of trust, which is only one method of enforcement of a debt. These issues are important as to discharge-ability of the obligation in bankruptcy and enforceability of the putative lien in state or Federal Court. There are obvious ramifications as to lawsuits to Quiet Title as well.

Add a comment to this post

Bob Hurt Commented as follows, and Neil Garfield graciously approved it for posting, then further discussed it.

bobhurt, on August 18, 2011 at 8:54 pm said:

I don’t quite agree, Neil. The borrower makes a valid deal with the lender. The borrower gets funds, buys the house with the funds. It does not matter how the lender got the money or what he does with the note afterward. Until the borrower pays that note off, the mortgage controls any default, and the court must give the lender redress. Period. End of subject.

Eventually, the holder of the note will sue or demand foreclosure from the trustee and the court or trustee will order it. Rightly so.

Aside from tricks, loopholes, and sloppy litigation, only one thing will permanently block the foreclosure and sale of the realty to pay the debt off: some malfeasance that invalidated the deal – contract breaches or tortious conduct underlying the mortgage. Most famous torts: lender agent lies about the value of the realty, and lender agent falsehoods on the loan application.

This explains why nearly all defaults result in foreclosure and forced sale of the realty to pay the debt. Yes, the tricky stuff like robosigning, bad notarizations, assignments in blank, splitting the note from the mortgage, wrong entity suing, and securitization snafus often delay the foreclosure sale, but the sale happens eventually in, I guess, at least 99% of the foreclosures(or some other mind-bogglingly huge percentage).
This means the foreclosure defense industry operates generally like feckless boobs furtively lurching around for some gotcha like robosigning. This delays the sale, but it also increases the interest damage and legal fees and other costs, all to the detriment of the borrower who generally ends up with such a whopping judgment lien as to justify bankruptcy.

The legislature should order general reparations against the lending industry for their policies that collapsed the housing values and destroyed everybody’s home equity, even for those who never face foreclosure. It constitutes an industry-wide tort that injured and damaged every home owner. Just as Congress liberated the slaves and ordered reparations, Congress ought to enact similar relief for homeowners to liberate them from and compensate them for economic enslavement to the financial industry.

Where’s our model legislation and model lawsuit for that, Neil?.

I now comment further:

I believe the vast majority of foreclosure victims would deserve their foreclosure but for the fact that the real estate and finance industry operatives blatantly cheated them through falsely inflating the apparent value of real estate. I have estimated that at least 90% of single family residential loans have appraisal fraud at their root.

But instead of attacking that or the tradition of mortgage broker falsification of family income to make the borrower seem qualified for a loan for which the borrower did not qualify, foreclosure defense lawyers charge the victim $1500 to $2500 retainer and $500 to $1000 a month to forestall the foreclosure by badgering the court over robosigning, note split from mortgage, lack of standing, etc. Generally, the plaintiff either refiles with corrected paperwork or appeals and wins. The victim stays in the house longer with the lawyer pocketing money the victim should have saved for buying the next house.

Delaying the foreclosure might constitute malpractice, for two reasons: 1) the lawyer thereby increases the client’s cost of litigation and exposing the client to additional interest charges, late fees, and opposing counsel fees; the lawyer could have gone after a legitimate cause of action like contract breaches and torts by the lender’s agents. Furthermore, dilatory actions violate Bar rules and cheat the client out of a good advocacy.

Even worse, the victim didn’t need the lawyer to delay the foreclosure. The victim could have haggled over loan modification, short sale, and cash-for-keys and delayed the foreclosure another 6 to 18 month. If the victim receives $10,000 in a cash-for-keys deal and saves $15,000 to $25,000 that the victim would have paid the lawyer, the resulting $35,000 will fund the purchase of a house at a real estate auction where houses go for 1/5 to 1/6 of their 2007 selling price.

I believe foreclosure victims should stay away from foreclosure pretender defender lawyers who bilk them, and go to personal injury attorneys with a new appraisal that shows the REAL value of the house at the time of the mortgage. Most would find the house worth 50% to 70% of its selling price at the time of the mortgage.

A good personal injury attorney would probably get a comprehensive examination of the mortgage done, and then lobby the lender for a settlement or sue. He might end up with a result like this

I asked some foreclosure pretender defender attorneys how many clients they had. One had 5, one had 40, and one claimed to have 200. An attorney cannot handle more than 5 active cases at once by himself UNLESS he files boilerplate pleadings and does a delaying action that strings foreclosures out for a year or two. THEN, if he only pretends to defend, he might handle dozens. I asked them how many cases they had won. They generally said “That depends on what you mean by win.” They believed they won by keeping the client in the house longer, regardless of the downside. None of them ever won a house free and clear like Jim Bordas did in the West Virginia Quicken Loans story cited above.

For the foregoing reasons, I believe the mainstream foreclosure pretender-defenders have won themselves a rightly deserved peg on the Quatloos Hall of Shame board.

Alongside them belong all the foreclosure mill attorneys who committed the sins to which Garfield alluded, and the judges who failed to file criminal charges against them for those sins.

Bob Hurt bh  Blog  Email  f
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