Real Deal REInvestor Network

We hear so much about how the banks in their haste to make the big money and land grab, falsified and forged documents. The use of so-called "robo-signers", who are people that do not really exist and whose names pop up all over various documents, for instance; the same name might show up as a Vice President of one company, but then (sometimes within the same chain of title) pop up again as an officer of another company. This, in and of itself is fraud. What does that mean, well it means a breach of contract, and it carries a criminal penalty as well... theoretically. A contract that has been breached due to fraud is null and void. What does that mean? Well, it's complicated to say the least.

How is the fraud being dealt with? The Attorney Generals of all fifty states have given big notice to the citizens of this fine country that they will look into the situation, and that the guilty parties will be held accountable for their actions. Their plan is to allow for a correction of the deficiencies in the chain of title, and to reach some type of settlement with the banks to allow troubled mortgages to be modified. You know, it's really hard for me to say all of this with a straight face. All of this is more or less being chalked up to a clerical error.

Now, for the "Beyond" part that I so dramatically titled this post. Indeed it is dramatic, and I hope you will listen up. All of the events of the past couple of years were no accident. High default was created by design, in order to take your property and your money, so far it has been a huge success for the bank. The robo-signing thing was just sloppiness on their behalf and a bit of a ploy to keep everyone distracted from the bigger fraud. The banks began re-constructing the transaction, so that the mortgage note itself was equal to it's face value as money, based upon your signature and credit. Essentially, the note is what funds the deal, the bank not only risks nothing, they are paid in full within a very short period following the closing of the transaction. The receipt of the face value of the note goes onto their books as a liabilty, and indeed, they claim it as a debt owed to you when they file their taxes. Meaning that it is recognised as an asset that you created, that they are borrowing to use. None of this was disclosed to you, the alleged "borrower".

It gets better. When the originating bank sells the note, which actually tracks through a very complex path, it eventually ends up deposited into a pooling trust. At that time, it is converted from a negotiable instrument, into a stock certificate or equivalent. This is called securitization. Once this type of securitization takes place, the note ceases to be tied to the property, because it has now been forever severed from the deed of trust or mortgage. (This is one way that the bank creates money, read "Modern Money Mechanics, which is the guideline pamphlet published by the Federal Reserve). The trust which contains your note is ruled by a lengthy set of documents called the 424B-5 Prospectus, within that set of docs is a sub set of docs called the Pooling and Servicing Agreement (PSA). This is what the bank never wants you to see, because this Prospectus is filed with the SEC, it can only be filed if the note has been converted, which makes it cease to be attached to the property. The note can NEVER be converted back, this is a permanent change, and within a short time after the note is deposited into the trust, it becomes a permanent fixture of that trust, it can NEVER be removed. The trust itself can never own property, it's against the rules.

When you make a payment, you have a statement that shows how much principle and interest you are allegedly paying. However, when the paper trial of your payment is followed, all of the money is being dispersed partially to the Servicer (your so-called "lender") partially in other fees and partially to the trust itself. The only accounting for your payments is one that is made up for purposes of sending you a statement, it's theoretical, there is no actual accounting that shows a "loan" being paid down. All of this is major fraud, never disclosed to you the borrower, and millions of dollars were made by the bank and investors because your signature appears at the bottom of the note, not because the note has anything to do with the property. In the case of default, everybody is insured, the servicer and the trust, so everyone is paid, then, the property is taken back, (illegally, because only a creditor or holder in due course of the negotiable instrument, ie; the note can foreclose) and the property is sold. To recap, they make money from you on payments, they make money from selling it many times to investors and fractional banking, they collect insurance, and they take over the property and sell it, that looks like quadruple dipping to me! At the very least it's insurance fraud, how are they able to collect insurance money, AND take the property too to resell, all of that money is more icing on the cake.

Stay tuned for more when Part 2 of this post comes out in a couple of days.