County Clerks Suing MERS in a Lost Cause

9 November 2011 by Bob Hurt

The following news stories explains the Florida Duval County Clerk lawsuit against MERS and MERSCORP.

http://www.mortgageservicingnews.com/dailybriefing/2010_471/fla-clerk-del-ag-sue-mers-1027375-1.html#.Trm_SSxjslk.twitter

http://www.nationalmortgagenews.com/dailybriefing/2010_471/fla-clerk-del-ag-sue-mers-1027375-1.html

The lawsuit complains:

“MERS has usurped the rights and privileges of the Florida Clerks of Court by establishing, maintaining and inducing lenders to use its private recording system, which unlawfully interferes and competes with the public recording system.”

The clerk alleged that both the note and mortgage must go on the county record. MERS attorney rebutted the complaint, claiming inaccuracy, and said MERS owns the mortgage and no law require the recording of a note.

I agree with MERS, but I also think the squabble could result in a beneficial change in the laws.

I consider this the core problem: Smart people will always seek ways to keep their wealth while taking the wealth of others, particularly the stupid. This case merely punctuates the problem.

Furthermore, Government operatives incessantly try to invade privacy rights of the people, and requiring the recordation of notes would reveal wealth in a way that would definitely invade privacy.

Most importantly, Florida law does not give the Clerk the authority to require recordation of notes. Florida statute 28.222 lists all the instruments the Clerk (County Clerk or Clerk of Courts) must record. Notes do not appear in the list. 28.2222 (3) (h) names “Any other instruments required or authorized by law to be recorded.

Additionally, one’s possession of the note, or one’s name on the note or an allonge as beneficiary or assignee, proves one’s beneficial interest in the note, such as a stream of repayments. Any law requiring recordation of notes would impose an undue burden on commerce and unduly enrich the Clerk.

Imagine the insanity of filing every issuance of every Federal Reserve Note with a Clerk, and paying associated fees to the clerk. The Clerk has neither a right nor a privilege to record notes, nor a right to receive fees related to registration of the notes with MERS.

Society’s big problem with recordation of notes lies in the mess caused by promissory notes (“Notes), mortgage security instruments (“Mortgages”), securitization, and mortgage foreclosures.

The mortgage loan borrower signs a Mortgage when buying a house. The Mortgage contains language that protects the lender and abuses the borrower through rights-stripping. Borrowers almost never read it. If they did, and they thought about it, they might wonder why they need to convey the realty to the lender as part of the mortgage. That conveyance makes the lender the legal owner of the realty. It also implies that the “loan” consists of the realty, not the alleged money which the borrower allegedly borrowed and typically never sees. Instead, the closer hands the purchase check directly to the seller. In effect, the lender bought the realty and lent it to the borrower. This makes the typical closing into a scam that leaves the borrower owning nothing but a debt, equitable interest in the realty, and the obligation to maintain and insure it.

Neither the Note nor the Mortgage contain language requiring the lender or assignee to keep the note and mortgage united as one package of documents, nor to return the Note and Mortgage security instrument to the borrower upon satisfaction of the terms of the Note. The borrower typically relieves the lender of the obligation both to inform the borrower of every assignment of the note, and to comply with the UCC’s notice and demand cycle. Worst of all, no language in the Note actually conveys the Note to the lender, and yet lenders sell and securitize the note as though it constitutes their own chattel, depriving the borrower of all the fruits of such conversion.

Various rumors and facts surround the mystery of what happens to the physical Note after the borrower signs it at closing. These have caused confusion so great that the mishandling of notes confounds judges in the real estate trial courts across America. For decades, lenders or assignees held the notes securely in vaults and never brought them to court or the trustee in foreclosure matters. They merely provided proof of loan payments and a copy of the note to prove its existence. When challenged for the original, they claimed they had lost or accidentally destroyed the note, and maybe they did. In recent years when the foreclosures began to mount and defendants demanded to see the original note, plaintiffs magically found them. Companies like DOCX specialized in re-creating “original” loan documents, a crime for which no court has yet punished anyone.

Now, amidst all this confusion, county clerks have started suing MERS in an effort to stop MERS from registering note assignments, and to force the assignees to file the assignment along with any changes in the mortgage with the county clerk, and to pay corresponding recordation fees. This would of course bring a windfall of much-needed money into the court coffers. But, as I have explained, that would constitute malfeasance, invasion of privacy, and a ball and chain on the ankle of commerce.

The assignment-in-blank and bearer instruments like bonds and currency constitute an additional major fly in the ointment of the clerks’ nefarious scheme to record notes. If they get their way, people will, out of logical consistency, have to record every I.O.U., promissory note, bond purchase, and currency transaction, even when it does not relate to a mortgage. For further consistency, people might also have to record purchases and transfers of chattel, and pay a corresponding fee. This would amount to a tax on all commerce, on top of existing luxury tax, sales tax, and other excise taxes. The clerks would have a monumental, new outrage from the public to deal with, a brand new justification for a Boston Tea Party uprising.

In addition, the clerks don’t seem to grasp the significance of MERS and MERSCORP. The MERS concept started because lenders wanted it and funded it so they could keep track of notes and simplify foreclosures while reducing the cost of assigning notes. All major lenders own shares in MERSCORP for that reason. Thus, MERSCORP operates as their special-purpose alter-egos with perfect legitimacy.

For the foregoing reasons, I predict that the clerks will lose and lose badly in their effort to force note assignees to record the assignment and pay a fee for it. They will fail in their effort to shut down the legitimate operation of MERS.

However, MERS does cause a certain problem. When the holder of the note and the mortgagee sue under separate names to foreclose, they have no standing to force a foreclosure sale of the mortgaged realty. These points explain why.

  1. The holder named on the note or allonges has the right to foreclose the note, but because the mortgage bears the servicer’s name (MERS) as mortgagee, and not the holders, the holder has no authority to force a sale UNLESS the holder has made the mortgagee the holder’s agent for that purpose. That almost never happens.
  2. The mortgagee (MERS) has no standing to sue to force the foreclosure sale because the borrower’s failure to make timely mortgage payments injured only the holder, not the mortgagee. Only injured parties have the right to sue.

If these sticky issues become salient in the clerk’s lawsuit against MERS, maybe the legislature will take the hint and clarify the issue in statutes that prevent splitting the note from the mortgage. This would force the assignees of the note to file and pay a recording fee. I doubt that will happen, however. The lenders could combine the note and mortgage in a single document, but for a variety of sound reasons chose not to.

# # #

Bob Hurt    bh   Blog 1  2  3 • Email    f
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More Pesky Questions about Adverse Possession

10 November 2011 By Bob Hurt

 

Roxann from Broward County Florida called and informed me of Fitzroy Ellis sentencing related to Adverse Possession, and to ask about AP of a house of a deceased, intestate, heirless owner. Lola from Duval County Florida called and informed me of Statewide Prosecutor Nick Cox persecution of Demetrius Lewis and Chris McDonald for AP-related crimes, and to ask about AP of an abandoned, moldy, overgrown place bought by the lender for $100 at auction.

I estimate that only a high appeals court like the state Supreme Court can adequately and with reasonable finality answer the questions. They involve an understanding of the English Law of Florida with roots 600 years deep. And neither the courts nor the Florida Legislature have ever published that law fully for the people to know and use.

I pointed the callers to Florida Statutes Chapter 86 and my article on AP strategy. Questions arose that might provide topics for declaratory judgment naming Sheriff, State Attorney, Statewide Prosecutor, Attorney General, Police Chief.

  • Why does lender get property for only $100 at auction (auction sham works like a scam)?
  • Why does clerk turn down opposing bids?
  • How does court determine fair market value of foreclosure auction property?
  • If APer makes repairs and improvements can APer put lien on property for costs?
  • Can APer prevail in a law suit against owner for payment of such lien?
  • Can owner prevail in a lawsuit against the APer for rent or unauthorized changes like adding on a room, re-landscaping the property, planting a garden where grass existed, uprooting a tree, etc.?
  • Does chapter 82/83 apply – must owner sue for ejectment/writ of possession to eject adverse possessor who possessed realty more than 30 days, or may owner remove APer with mere trespass warning filed with sheriff?
  • How much time does APer have to vacate property on receipt of writ or possession or trespass warning?
  • Does time of filing Notice of AP affect the above, given that law requires AP Notice only within the first year of AP?
  • For abandoned realty with house open to the air, should County health dept check air quality and other inhabitability issues like mold/rats/pigeons/insects/vermin in A/C ducts, attic, main house?
  • Can APer hold owner liable for health problems resulting from mold/rats/pigeons/insects/vermin?
  • Does the English Law of Florida provide that AP statutes/common law constitute only a remedy for adverse possession or also a right adversely to possess untended realty?
  • Does Florida statute violate the English Law of Florida, by removing a common law right without providing a suitable statutory substitute, such as by requiring notice to the property appraiser and owner and Sheriff/police, such that police harass the APer without complaint by owner?
  • Does sheriff/police violate APer rights by harassing, and warning APer of arrest for entry on AP property?
  • Must notice to owner of record include notice to both equitable owner (mortgagor) and legal owner (mortgagee/lender/assignee)?
  • Does such notice require uniting or mortgage and note under one common beneficiary?
  • Does such notice become unduly burdensome when beneficiary has assigned note in blank?
  • Does APer have right to rent the AP realty to someone else?
  • What law or principle of law prohibits an APer from taking AP of numerous realties, fixing them up, and renting them out, so long as APer does not misrepresent the APer’s status as an APer, or the fact that the owner of record might act to repossess the realty within the statutory period?
  • Does the APer have the right to demolish a structure unfit for its intended use (such as human habitation) on the AP realty and replace it with a new one or not replace it at all?
  • Approximately how much would it cost to prosecute a declaratory judgment lawsuit on these and related questions, seeking injunctions against law enforcers and prosecutors from harassing APers or acting against APers criminally, and forcing harassers to compensate victims of such harassment?
  • If an APer takes AP of a house that belonged to a free-and-clear owner who died without will or heirs, what right does the APer have to defend possession against the State of Florida and any probate court?
  • What if the owner did have heirs but no will? Does APer have any priority of right over the heirs, and if so, what?
  • What if the owner had a will that ignored the house, and no heirs?
  • At a foreclosure auction where lender takes realty for the “value” at a cost of $100, why does the auction detail not list the purported value instead of $100 as the purchase price?
  • Why do courts not (in equity) force lenders to cram down loan balances to present actual value minus paid in equity – why does lender as sophisticated investor who caused the collapse of values not have to shoulder the brunt of equity loss?

     

A white paper answering the above questions could become a good promotional item for a title attorney.

 

# # #

He Is Gone

A Tribute to Norman Eugene Hurt (13 Mar 1948 – 19 Oct 2011)

Copyright © 6 November 2011 by Bob Hurt. All rights reserved.

 

He is gone,

But he still lives on,

In every heart and mind

Of those he left behind.

 

Folks truly loved him much,

Because their souls he touched.

And he loved them so,

That they won’t let him go.

 

He gave their hearts a tickle

That always made them giggle.

Closer they would wriggle

Till he felt them jiggle.

 

Then he’d give a piercing look

And open up that book.

He’d speak into our hearts

Of our adventures in the stars

 

He’d share with us a dream

Of what our lives could mean

If we work to be like he

Who gave it up for you and me.

 

And then he’d say…

 

[Mountain Spiritual Rap interlude]

 

Night falls early in the desert of a life.

It cuts off the day like the edge of a knife.

Don’t wait till dark to do your day’s work,

Or you’ll lose the fruit of everything shirk.

 

[Back to the main tune…]

 

And now he is gone,

But he still lives on

In every heart and mind

Of those he left behind.

 

Farewell Norman Eugene Hurt (3/13/1948 – 10/19/2011)

Farewell Norman Eugene Hurt (3/13/1948 – 10/19/2011)

Our precious brother Norman Eugene Hurt, at the age of 63, passed away at about 7:30 PM, 19 October 2011 from lung complications resulting from radiation therapy for a cancer tumor under his left jaw over 3 years ago. He struggled with health problems in his jaw, throat, epiglottis, taste buds, saliva glands, and lungs since the radiation treatments. His darling daughter Ashley Marie Hurt survives him, as do brothers Robert M and Darryl H Hurt, and sisters Guyneth Kraus and Debra Tru. Brother Darryl has helped Ashley with administrative matters. Norman expressed the wish that his body go to the service of science, so no cremation or burial will occur. Ashley or others will schedule a collective celebration of Norman’s life.

I shall miss Norman till we meet again. He provided a glowing brightness in my life since his birth at my age of 5 in Houston, Texas. I loved him joyously his whole life as did everyone who met him. He lived with our family of parents and six children on England Street in Foster Place in Southeast Houston. I saw him as a delightful child, full of interest in and fascination about everything. He had a speech impediment till he had it corrected as an adult. At four he told me “Come quickly Wobuht, theahs a biwd unda the wagon!”. Family, friends, and neighbors doted on him, and of course the girls always loved him because he made them laugh and feel at home. As an adolescent, he s went to live at Buckner’s Baptist Children’s home where he spent his teenage years, worked for the campus radio station, and hobnobbed with a girlfriend or two. Our sisters Claudia and Debra lived there for a time too, and he loved them dearly. I went to visit him occasionally during my last year in high school in Oak Cliff (Dallas) in 1961, and gave him a bicycle to get around on. Norman moved back to Houston at 16, but decided soon to return to Buckner’s, and there he lived till he graduated from high school.

After taking a whirlwind round-trip tour to California in an old Volkswagen in the mid 1960’s with his orphanage buddy Fletcher Hurst, Norman joined the US Army in 1969. He became a clerk and typist for the Military Police and worked a year for a General in VietNam.

At the end of his single term of military service in 1971, Norman returned home to Houston. He moved to Fort Worth where he worked as assistant manager for the notorious Jim Hill of the notorious Cellar Club, a popular rock and roll night club. Norman contracted Hepatitis B, and Jim nursed him back to health. Norman returned to Houston and enrolled in the University of Houston while living in our mother’s home.

In that same year, Norman attended a seminar at the U of H intended to introduce students to The Urantia Book. Its teachings captivated Norman’s heart. He became a strong but subtle advocate of the book and its teachings for the remainder of his life. Norman pretty much lived his religion and delivered unselfish loving service to everyone he knew.

Norman spent several years earning a bachelor’s degree in psychology, during which time he worked as a reporter for the U of H newspaper, The Cougar, and in the campus radio station. There he met and received inspiration from a CBS Records promotion manager who wanted radio stations to give their artists’ new records air time.

Around 1977 Norman became a Houston area Promotion Manager for CBS records. He spent several years at CBS promoting records for a variety of famous recording artists, and taking photographs and mingling with them during concert tours. Around 1984 Norman lost his CBS job in a massive company-wide layoff, and worked at a variety of jobs in the Houston area.

On 11 October 1984 Norman married Jeannie Sue Duke who gave birth to Ashley Marie in 1985. On 17 August 1988, Norman and Jeannie divorced. Thereafter Norman reared Ashley alone, and with the eager support of his mother, Ruby “Tommie” Hurt who cared for Ashley while Norman worked.

In 1986 Norman began work for a Rainsoft water treatment system dealer. He served several dealers till he settled in at Quality Water Systems of Texas where he excelled in in-home sales and sales training and motivation. He helped make QWS the number one dealer in the world.

Norman bought a house in Northwest Houston around 1999.

In 2000, the Rainsoft parent company Aquion Partners recognized Norman as the number one salesman in the world. During his time at QWS Norman wrote many articles and speeches related to selling Rainsoft systems, and provided articles for Water Technology Magazine. His brother Robert featured Norman on web sites http://normanhurt.com, and http://rainsoft.com.

In 2004 Norman attended University of Houston again and earned a Bachelor’s degree in Journalism.

Norman guided his daughter wisely during her formative years, teaching her self-reliance, common sense, and the importance of standing up for herself while also treating others with respect. Norman had an infectious sense of humor, and insisted on making everyone feel at home in his presence. He said that his reading of How to Win Friends and Influence People as a teenager forever influenced his own attitude about treating people with with friendship and respect.

Norman encouraged Ashley to expand her world of knowledge, funding a summer in Europe to further her French studies and cultural experience, and providing a safe, sane environment for her to pursue her own Studio Artist degree program at the U of H, from which she graduates in December 2011.

In summer, 2011 Aquion Partners recognized Norman’s contributions by giving him a lifetime achievement award. In all, Norman gave 25 years as a salesman and manager for Rainsoft dealers.

In 2009 Norman noticed a sore area under his left jaw. A doctor diagnosed it as cancer. On the doctor’s advice, Norman accepted chemotherapy and radiation treatments. Apparently they cured the cancer, but the radiation killed him over a periof of three years of agonizing lock jaw, racking pain and discomfort, inability to taste, loss of saliva, inability to swallow food, and inability to control drainage into the lungs. The complications caused a blood infection in July 2009, and double pneumonia and a blood infection in early October 2011. Ashley took him to the Houston VA Medical Center on 2 October 2011 because he could not breathe well. The complications killed him today.

I know Norman’s soul rests in peace, and that he welcomed the liberation from suffering death could bring. He told me repeatedly he wanted the “plug pulled” rather than to live on life support. He said he wanted others to celebrate his life, not mourn his death. So, I celebrate, and invite all others to do likewise.

Norman Eugene Hurt beneficially, positively affected everyone his life touched. A truly good man has left us.

Note: I, Norman’s oldest brother Bob Hurt, request anyone with additions to make to the above commentary on his Norman’s life to send them to me by clicking the Email link below. I do not know all Norman’s friends, so any who receive this should forward it to others. I personally thank Bill McGraw, CEO of QWS, for his gracious and wise support of Norman during the years of Norman’s illness. Note also that I shall keep Norman’s personal web site alive indefinitely and post on it any comments people send me about him, his life, or his effect on their lives.

Bob Hurt

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2460 Persian Drive #70

Clearwater, FL 33763 USA

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Journey from Tipperary

Copyright © 28 September 2011 by Bob Hurt. All rights reserved.

We set off in dark of night from Tipperary,

Three of the girls I could, but two I couldn’t, carry.

The wee ones I nestled warmly in a potato sack.

Faith, I heaved those bulky treasures o’er my back,

While the bigger girls took bundles under arm.

We skittered from our loft at Widow’s Inn farm.

I had tried to save my wife Oh Lord I tried,

But she worsened in that terrible winter and died.

I couldn’t pay the fees for inn or car,

So we snuck out in the wee hours to go afar.

We skittered over rooftop – it covered us in soot-

And betook our torturous journey on foot.

The wind howled at our departure from the town.

We trekked the hills and woods; rain poured down.

We warmed us beside fires of sticks and peat,

And sucked cows’ milk freshly from the teat.

I made the girls smile with tales of elf and fairy,

To forget their mum, dead and cold in Tipperary.

Now and then we’d stop; I’d dry their tears;

Give hope for better lives; calm their fears.

In a week and more our travel finally ended;

The girls’ aching, broken hearts eventually mended.

I found farm work near Cleggan, by the sea

And a small cottage for my girls and me.

Though they all grew up, and fine men did marry,

Sure, we deeply miss her who stayed in Tipperary.

###

First Romantic Kiss

First Romantic Kiss

Copyright © 14 September 2011 by Bob Hurt. All rights reserved.

In hushed and velvet dark of sultry night,

My mind awhirl in urgent, fearsome fright,

Just shortly after we as one did dance,

She and I, we saw and took our chance,

I embraced her, breasts and waist and all,

She somewhat short, I somewhat tall,

On the walk beside the park, senses so alight,

In hushed and velvet dark of sultry night

I her timid lips did kiss and kiss,

Then stumbled home in shock and yearning bliss.

And thus began my hunger and my thirst

For kisses of which this became my first.

Force Government to Curb Lender Abuse

Florida Foreclosure Mediation Program Insufficient.

Copyright© 8 September 2011 by Bob Hurt. All rights reserved.

Back on 29 December 2009 the Florida Supremes ordered mediation for foreclosures:

http://www.housingwire.com/2009/12/29/florida-supreme-court-adopts-foreclosure-mediation-program

The Florida Supreme Court yesterday adopted a mediation program to reach out to borrowers facing foreclosure, according to a court order. The bill may help aid distressed borrowers who are too far along in the foreclosure process to benefit from next year’s Home Affordable Foreclosure Alternatives Program (HAFA)

The Task Force on Residential Mortgage Foreclosure Cases was established in late March to respond to the nation’s third highest mortgage delinquency rate by state; its worst foreclosure inventory; and the most foreclosure starts in the nation. At the end of 2009, the state estimates 456,000 pending foreclosure cases statewide.

The 15-member task force issued a final report in August recommending the program and identifying a lack of communication between plaintiffs and borrowers as the largest impediment to early resolutions in the foreclosure process.

Under the statewide managed mediation program, all foreclosure cases in the state courts that involve residential property will be referred to mediation. (etc.)

I wrote this to the author of the above article:

Jon, try to understand why Lenders and borrowers don’t comm well during or prior to foreclosure:

LENDERS WANT TO FORECLOSE AND WANT NOTHING TO INTERFERE.

You see, Jon, nearly all loans have a predatory nature, and foreclosure brings with it windfall profits through bilking of insurance agencies and FDIC.  In Florida 95% or more of single family homes have had over-inflated prices and appraisals for the last 4 decades because EVERYONE INVOLVED makes profits by it EXCEPT the Borrower.  SO all have MOTIVE to CHEAT the borrowers.  Appraisers have gladly gone along with the program.

Otherwise, Jon, (THINK about this) how could the residential realty values possibly have collapsed to 60% or 70% (still falsely inflated) of their prices 5 years ago?  Have you noticed the prices houses bring at foreclosure auctions?  Routinely 1/5 to 1/6 their 2006 price.   Why?  Because they collapsed closer to ACTUAL VALUES.

Lenders also want foreclosures to stimulate more Loan Modifications, the grandest scam since appraisal fraud.  Here borrowers desperate to save their overpriced homes from foreclosure negotiate a new loan at the SAME LOAN BALANCE (exorbitant) WITHOUT A VALID APPRAISAL (overpriced), and a FAT BALLOON a few years in the future, which the borrower will not have the resources to pay.  So the borrower will lose the house anyway.

Thus, lenders LOVE foreclosures.

Why do so many loan mod offers fall apart?  Because the servicer who offers it doesn’t own beneficial interest in the note, and must negotiate to buy it as junk paper after default forces the trustee to pull it out of the securitization trust.  Often someone else outbids the servicer and so the servicer has to withdraw the offer because without owning the interest in the note the servicer has no loan to modify.

See, Jon?  It’s a constant series of very clever scams.

 

Bottom line, the mediation program has zero practical value because it does not tackle the problem: Lenders cheated borrowers systematically for decades. THAT constitutes the problem.

Remember that the average American family moved every 7 years. That means those who could purchase a house with a mortgage would get a new mortgage (refinance) every 7 years. Lenders, greedy, wanted to shorten that time. Why? Because with a 30-year note, almost all of the first 7 years of payments constitutes INTEREST. For faster turnover of 3, 4, 5, or 6 years between new mortgages, lenders get an even bigger percentage of every payment as interest. They make ever bigger fortunes.

So they developed tricks like these (in addition to those I mentioned above):

  1. Add the first year or two of insurances and taxes into the loan amount. This lets the borrower make payments for a year or two between 10% and 20% smaller than payments in succeeding years which must include escrow amounts for taxes and insurance. At the end of the first or second year, the borrower get hits with the higher payment. Most already spent everything they made and that made it impossible for them to pay the higher mortgage payment. As a consequence, many headed for foreclosure because they simply could not afford their houses.
  2. The FED lowers interest rates and many people rush to buy a new house because now they can afford more house with the same payment. Many related loans have adjustable interest rates. When the lending market improves and interest rates go up, the borrower has to pay the higher interest and can no longer afford the house. So the borrower heads for foreclosure.
  3. The mortgage broker or lender will falsify the loan application, particularly in the area of family income, to make to seem that the unqualified borrower qualifies for the loan. The borrower buys the house but soon realizes the inability to make the monthly payments, and heads for foreclosure.
  4. Lenders, mortgage brokers, realtors, sellers, and appraisers conspire wittingly or unwittingly to drive the prices of houses way up high, way above the actual replacement cost, income capitalization, and market value. Almost everybody pays 30% to 50% more for houses than they should. This fact, along with loan application falsification, constitute the most opportune grounds for loan fraud litigation against the lender and the lender’s agents.
  5. The lenders do such shenanigans and frauds on such a wide scale that it collapses realty values and causes massive job loss. Now many borrowers cannot afford their house payments and they head to foreclosure.
  6. Lenders and courts conspire to put the burden of equity loss from the above collapse onto the shoulders of borrowers rather than on the shoulders of the more sophisticated investors who caused the collapse: the lenders. Courts should force lenders to cram down their unconscionable loans to the present value of the realty minus all paid in equity, and then restart the mortgage at the present remaining term.
  7. Lenders and the courts conspire to create a public policy that allows lenders to use the borrower’s chattel in commerce without compensating the borrower for it. The chattel consists of the promissory note, the mortgage note. This document belongs to the borrower and the holder in due course (the lender or assignee for value) must return that chattel to the owner/maker upon satisfaction of the terms of the note. Meanwhile the lender may sell and assign beneficial interest in the note, but not the note itself, unless an borrower agreement confers ownership of the note to the lender. Mortgages typically allow the lender to sell the note, but that can only happen if the lender pays the owner of the note (that is the maker/borrower) for it, and mortgage agreements stipulate no contradiction to that point. When the lender or assignee fraudulently securitizes the note and the trustee becomes the holder in due course. The so-called trust (not really a trust, but an LLC) and associated beneficiaries of the Pooling and Servicing Agreement (PSA) earn a fortune from the sale of security certificates, but never pay the borrower a penny of that money, nor include the borrower in any of the enormous associated tax benefits. They thereby massively cheat the borrower.
  8. Fractional reserve lending, deficit spending, and widespread abuse of the Article I Section 10 mandate for the states to use Gold and Silver Coin as tender in payments of debt both conspire to destroy the wealth of the people by diminishing the value of savings over time, and by making it impossible for people to amass wealth based on precious minerals as traditional, government supported mediums of exchange.

The People of America need to take swift action to toss legislators and judges who refuse to reign in such abuse by lenders, servicers, trustees, realtors, appraisers, mortgage brokers, and realty sellers. The People need to make it plain that the note belongs forever to the maker, and all money a holder earns from it directly or indirectly belongs to the maker.

Bob Hurt        My Blog
2460 Persian Drive #70
Clearwater, FL 33763
Email; Call: (727) 669-5511
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