VICTORY IN ARIZONA: COURT STOPS SALE WHERE BORROWER PRESENTED EVIDENCE OF FRAUDULENT NOTICE OF TRUSTEE’S SALE

May 31, 2010

On Friday afternoon, May 28, 2010, an Arizona state court entered a restraining order cancelling a June 1, 2010 Trustee’s Sale of the borrower’s home which sale had been scheduled by Defendants MERS, Aurora Loan Servicing, and Quality Loan Service. The borrower presented evidence that the Notice of Trustee’s Sale prepared by Defendant QLS was fraudulent, as it claimed that the “current beneficiary” was Defendant Aurora when in fact the purported MERS assignment to Aurora did not occur until one month after the Notice of Trustee’s Sale was generated.

The borrower also cited to the Court the recent decision of the Arizona Bankruptcy Court in the matter of In Re Weisbrod, in which the Bankruptcy Court essentially stripped MERS of its purported authority and which case cites the In Re Sheridan decision from the Idaho Bankruptcy Court and others. The Weisbrod decision has been hailed as a rejection of the Blau and Cervantes pro-MERS decisions from 2009, and is in line and consistent with the findings of the Supreme Courts of Kansas, Nebraska, and Arkansas; the states courts of Vermont, Missouri, and South Carolina; and the Bankruptcy Courts of Idaho and Nevada which have dissected the purported expansion of MERS’ alleged “authority” in mortgages and Deeds of Trust where MERS on the one hand attempts to confine itself to “only a nominee” but later attempts to anoint itself with the power to assign mortgages and notes and institute or further foreclosures.

The great majority of the courts are finally starting to see though MERS’ facade and relegate MERS to what it really is: nothing more than an entity which tracks the transfer of mortgages.

The borrower is represented by Jeff Barnes, Esq., who prepared the litigation and memorandum of law, and local Arizona counsel Lynn Keeling, Esq. who obtained the restraining order.

Jeff Barnes, Esq., www.ForeclosureDefenseNationwide.com

CASE FILE California BANKRUPTCY In Re HUBBEL and PEREZ RELIEF FROM STAY DENIED TILA QUESTION N.D.Cal.-03506637146

TILA Rescission, BK Court questions validity of “Creditor’s” claims, BAP Affirms denial of relief from stay.

source:PhilUp

non edited version: CASE FILE California BANKRUPTCY In Re HUBBEL and PEREZ RELIEF FROM STAY DENIED TILA QUESTION2

IndyMac got IndySMACK Down via Hon. Samuel J. Bufford!

From BMcDonald

This is a bankruptcy case in which IndyMac Bank wanted relief of stay so they could proceed with a foreclosure. The judge ordered them to produce the original note and deed, which they did but ended up having to admit they didn’t own them. This judge Bufford goes into great detail about the issues of “party in interest” and “real party in interest” and who has the right to foreclose. Only a party with a real investment in the property has a right to collect on the debt.

§ 152. Concealment of assets; false oaths and claims; bribery

 

 TITLE 18 > PART I > CHAPTER 9 > § 152
Prev | Next
http://www.law.cornell.edu/uscode/html/uscode18/usc_sec_18_00000152—-000-.html
 

§ 152. Concealment of assets; false oaths and claims; bribery

How Current is This?
A person who­
(1) knowingly and fraudulently conceals from a custodian, trustee, marshal, or other officer of the court charged with the control or custody of property, or, in connection with a case under title 11, from creditors or the United States Trustee, any property belonging to the estate of a debtor;
(2) knowingly and fraudulently makes a false oath or account in or in relation to any case under title 11;
(3) knowingly and fraudulently makes a false declaration, certificate, verification, or statement under penalty of perjury as permitted under section 1746 of title 28, in or in relation to any case under title 11;
(4) knowingly and fraudulently presents any false claim for proof against the estate of a debtor, or uses any such claim in any case under title 11, in a personal capacity or as or through an agent, proxy, or attorney;
(5) knowingly and fraudulently receives any material amount of property from a debtor after the filing of a case under title 11, with intent to defeat the provisions of title 11;
(6) knowingly and fraudulently gives, offers, receives, or attempts to obtain any money or property, remuneration, compensation, reward, advantage, or promise thereof for acting or forbearing to act in any case under title 11;
(7) in a personal capacity or as an agent or officer of any person or corporation, in contemplation of a case under title 11 by or against the person or any other person or corporation, or with intent to defeat the provisions of title 11, knowingly and fraudulently transfers or conceals any of his property or the property of such other person or corporation;
(8) after the filing of a case under title 11 or in contemplation thereof, knowingly and fraudulently conceals, destroys, mutilates, falsifies, or makes a false entry in any recorded information (including books, documents, records, and papers) relating to the property or financial affairs of a debtor; or
(9) after the filing of a case under title 11, knowingly and fraudulently withholds from a custodian, trustee, marshal, or other officer of the court or a United States Trustee entitled to its possession, any recorded information (including books, documents, records, and papers) relating to the property or financial affairs of a debtor,

shall be fined under this title, imprisoned not more than 5 years, or both.

NO STANDING: MORTGAGE ELECTRONIC REGISTRATION SYSTEM, INC., APPELLANT, VS. SOUTHWEST HOMES OF ARKANSAS, APPELLEE

 

The Kansas appellate court noted that MERS received no funds and that the mortgage required the borrower to pay his monthly payments to the lender. just as in the case at hand, that the notice provisions of the mortgage “did not list MERS as an entity to contact upon default or foreclosure.” declaring that MERS did not have a “sort of substantial rights and interests” that had been found in a prior decision and noting that “a party with no beneficial interest is outside the realm of necessary parties,” the Kansas court concluded that “the failure to name and serve MERS as a defendant in a foreclosure action in which the lender of record has been served” was not such a fatal defect that the foreclosure judgment should be set aside. at 331, 192 P.3d at 181-82.

It is my opinion that the same holds true in the instant case. Here, Pulaski Mortgage, the lender for whom MERS served as nominee, was served in the foreclosure action. But, further, neither MERS’s holding of legal title, nor its status as nominee, demonstrates any interest that would have rendered it a necessary party pursuant to Ark. R. Civ. P. 19(a).

For these reasons, I concur that the circuit court’s order should be affirmed.

IMBER and WILLS, JJ., join.

 

Foreclosure FRAUD?: Tell it to the Attorney General Bill McCollum 5/8 MIAMI

PICKET…anyone??

Posted by Harriet Brackey on April 30, 2010 10:46 AM SunSentinel

If you want to speak to Florida’s Attorney General about foreclosure or loan modifications or mortgage fraud, here’s your chance.4823741.thl.jpg

Saturday, May 8, in Miami, Attorney General Bill McCollum will be on hand for a Mortgage Fraud Community Forum. He’s hosting the event with Florida’s Interagency Mortgage Task Force.

The session is on “The Housing Crisis, Who to Trust and Where to Turn.”

It’s open to the public and free, but reservations are required. Call 877-385-1621.
It will be held from 10 a.m. to 4 p.m. at Miami Dade College, Wolfson Campus, Chapman Conference Center, 300 N.E. Second Ave.

The AG’s office says you can get help on how to face foreclosure, housing scams, mortgage fraud, loan modifications and finding legal assistance.

Certified housing counselors, volunteer lawyers, as well as representatives of Bank of America, JP Morgan Chase, Wells Fargo/Wachovia and SunTrust will be on hand.

Also attending will be representatives of:
Florida Department of Law Enforcement, Office of Financial Regulation, Department of Business and Professional Regulation, Florida Bar, Dade County Bar Legal Aid Society, Cuban American Bar and the Collins Center Foreclosure Mediation Program.

For more information, go to www.myfloridalegal.com/mortgagefraud.

Attorney general investigating Tampa foreclosure firm: TBO.com

Florida Default Law Group, a huge foreclosure law firm has angered judges with its practices.
Florida Default Law Group, a huge foreclosure law firm has angered judges with its practices.

By MICHAEL SASSO | The Tampa Tribune

Published: April 30, 2010

TAMPA – The Florida Attorney General’s Office is investigating a Tampa-based foreclosure law firm that has become one of the state’s largest foreclosure mills.

On the agency’s Web site, the attorney general showed it has an “active public consumer-related investigation” into Florida Default Law Group. The agency notes that it is a civil investigation, rather than a criminal one, and the fact that is has an investigation isn’t proof of any violation of law.

Without going into much detail, the attorney general’s Web site says Florida Default Law Group, “Appears to be fabricating and/or presenting false and misleading documents in foreclosure cases.

“These documents have been presented in court before judges as actual assignments of mortgages and have later been shown to be legally inadequate and/or insufficient. Presenting faulty bank paperwork due to the mortgage crisis and thousands of foreclosures per month.”

Attempts to reach the Attorney General’s Office and Michael Echevarria, the head of Florida Default Law Group, were unsuccessful Thursday.

Based in a business park just off the Veteran’s Expressway, Florida Default Law Group files hundreds of foreclosure lawsuits alone in Hillsborough County on behalf of banks and mortgage servicing companies. The Tribune profiled Florida Default Law Group in January.

According to the Tribune’s review of 1,994 circuit court records, the firm filed initial legal documents for 323 foreclosure lawsuits in October. That was second only to the Law Offices of David J. Stern, a Broward County-based foreclosure firm that filed 352 foreclosure cases in October.

Florida Default Law Group operates in numerous counties in Florida, but it’s not clear how many lawsuits it files outside of Hillsborough County.

Reporter Michael Sasso can be reached at (813) 259-7865.

!BAM! Foreclosure Lawyers Face New Heat In Florida: Wall Street Journal AMIR EFRATI

Again…AMIR…SETS IT OFF!!

April 29, 2010, 12:46 PM ET

By Amir Efrati The Wall Street Journal

Foreclosure DrThese are precarious times for lawyers in the business of filing foreclosure cases for banks. This is particularly true in one of the epicenters of the foreclosure crisis, Florida.

As we’ve noted before, the feds in Jacksonville recently started a criminal investigation of a company that is a top provider of the documentation used by banks in the foreclosure process. And a state-court judge ruled that a bank submitted a “fraudulent” document in support of its foreclosure case. That document was prepared by a local law firm.

For more Law Blog background on the foreclosure mess in our nation’s courts, this post will help.

The news today: the Florida Attorney General’s office said it has launched a civil investigation of Florida Default Law Group, based in Tampa, which is one of the largest so-called foreclosure-mill law firms in the state.

According to the AG’s website, it’s looking at whether the firm is “fabricating and/or presenting false and misleading documents in foreclosure cases.” It added: “These documents have been presented in court before judges as actual assignments of mortgages and have later been shown to be legally inadequate and/or insufficient.”

The issue: judges are increasingly running into situations in which banks are claiming ownership of properties they actually don’t own. Some of them end up chewing out the lawyers representing the banks.

The AG’s office said Florida Default Law Group appears to work closely with Lender Processing Services — the company we referenced earlier that is being investigated by the Justice Department.

LPS processes and sometimes produces documents needed by banks to prove they own the mortgages. LPS often works with local lawyers who litigate the foreclosure cases in court. Sometimes those same law firms produce documents that are required to prove ownership.

We’ve reached out to Florida Default Law Group and LPS and will let you know if we hear back.

*BREAKING NEWS* Economic Crimes Division in Ft. Lauderdale, Florida *INVESTIGATING* FLORIDA DEFAULT LAW GROUP “FORECLOSURE MILL” & LENDER PROCESSING SERVICES “DOCx, LLC”

UPDATE: Cannot confirm YET but others might be as well! Stay Tuned!

FDLG, LPS’ DocX is being investigated…lets see who’s next!

If you have evidence of Fraud make sure you contact them.

Active Public Consumer-Related Investigation

The case file cited below relates to a civil — not a criminal — investigation. The existence of an investigation does not constitute proof of any violation of law.
Case Number: L10-3-1095
Subject of investigation: Florida Default Law Group, PL
Subject’s address: 9119 Corporate Lake Drive, Suite 300, Tampa, Florida 33634
Subject’s business: Law Firm, Foreclosures
Allegation or issue being investigated:
Appears to be fabricating and/or presenting false and misleading documents in foreclosure cases. These documents have been presented in court before judges as actual assignments of mortgages and have later been shown to be legally inadequate and/or insufficient. Presenting faulty bank paperwork due to the mortgage crisis and thousands of foreclosures per month. This firm is one of the largest foreclosure firms in the State. This firm appears to be one of Docx, LLC a/k/a Lender Processing Services’ clients, who this office is also investigating.
AG unit handling case: Economic Crimes Division in Ft. Lauderdale, Florida
View contact information for Ft. Lauderdale.
Related Stories:

MISSION: VOID Lender Processing Services “Assignments” (LPS)

Lassiter Notwithstanding: The Right to Counsel in Foreclosure Actions

Fast forward it’s getting much worse! Where are our rights heading??

ARTICLE: Lassiter Notwithstanding: The Right to Counsel in Foreclosure Actions

January / February, 2010

43 Clearinghouse Rev. 448

Author

By John Pollock

Excerpt

As I write, 250,000 new households are going into foreclosure every three months. 1 In the first three months last year, 22 percent of homeowners were “underwater” (i.e., owed more than their homes were worth), while a third of home sales in the previous year were either short sales or purchase of bank-repossessed properties. 2 Few signs of improvement are on the horizon: 1.5 million foreclosures occurred in the first half of 2009 alone, and some estimate that 8.1 million mortgages will be in foreclosure over the next four years. 3 The result is a tidal wave of cases swamping the state and federal courts–cases whose sheer volume and procedural irregularities strain the promise of due process.

The shortage of legal assistance during this crush of “foreclosure actions” compounds the due process concerns: no state provides a statutory right to counsel in any foreclosure proceedings, and consequently more than half of foreclosed homeowners are handling their cases without counsel. 4 Yet having an attorney is critical: while even a delinquent borrower may have a variety of options (e.g., mediation, modification, relief under federal law, various state-law claims and defenses) only an attorney can evaluate the options properly and advise the homeowner as to the most efficacious strategy.

Establishing a Fourteenth Amendment right to counsel in foreclosure actions requires an advocate to contend with the U.S. Supreme Court’s decision in Lassiter v. Department of Social Services. 5 Where there is no threat to “physical liberty,” by which the Court meant incarceration, …

Copyright (c) 2010 by Sargent Shriver National Center on Poverty Law
Clearinghouse Review: Journal of Poverty Law and Policy