LivingLies.me

In the ongoing struggle to save homes from foreclosure, homeowners often find themselves backed into a corner, feeling as if they’re facing an unstoppable force. The clock is ticking, the auction date is looming, and desperation sets in. But, what many don’t realize is that there are powerful tools available to fight back, even in the eleventh hour. One such tool that can shift the balance of power is the adversarial action in bankruptcy court.

What is an Adversarial Action?

An adversarial action is not just another step in the bankruptcy process; it’s a full-blown lawsuit within your bankruptcy case. When you file for bankruptcy, you’re not simply waving the white flag. Bankruptcy initiates an automatic stay, effectively halting the foreclosure process in its tracks. This buys you time – time you can use to challenge the claims being made by your lender. And with an adversarial action, you’re taking that challenge directly into the courtroom, forcing the party attempting to foreclose to prove they even have the right to do so.

Why is This Critical?

Understanding the shaky foundation many foreclosure claims rest upon is key. The party trying to foreclose often lacks the proper legal standing. Whether through sloppy paperwork, questionable mortgage assignments, or sheer negligence, lenders frequently fail to maintain the proper documentation or authority to foreclose. The mortgage may have changed hands multiple times, sold to different entities, or bundled into securities. In many cases, the party claiming to own your loan isn’t even the rightful holder of the note. By filing an adversarial action, you compel the lender to prove their case in front of a judge, a move that can stop a foreclosure dead in its tracks.

Livinglies Weblog

Did You Take a Loan?

We've all been there, sitting in a courtroom, listening as the judge fires off a familiar question: "Did you take a loan?" Whether you're defending yourself or you've got a lawyer by your side, this moment can be nerve-wracking. But listen up, it's crucial to hold your ground.

Your response should cut straight to the point: "Your Honor, I've had my share of loans over the years. But the key thing here is, I've never taken a dime from these folks or anyone they took over from. So, when it comes to this loan, this debt, this default, this note, and this mortgage—I deny it all. I've got zero business dealings with them. If they say otherwise, it's on them to prove it."

**Note**: This approach specifically applies to cases involving securitized loans. These are loans that were supposed to be bundled and sold off, but often that didn't happen the way it should. Investment bankers sometimes just ignored this process. So, the claim that you owe them money? It's on shaky ground.

LivingLies.me

As Neil Garfield explained to me and many of his clients and readers, the only thing most judges are interested in is where did the money go, who paid, who received and whether it was paid, and if in part, to what extent. One must be very careful to distinguish this from the “show me the note” defense, which was effective for a while in obtaining dismissal of judicial foreclosures without prejudice. Our belief is that the Banks, servicers, and lawyers, through Loan processing Services and its various progeny overcame the missing note with the use of color printers, copiers and rob signing or surrogate signing.

LivingLies.me

Hello, Lance Denha esq. of Livinglies here again to help you in the fight against illegal foreclosures. Homeowners often find themselves overwhelmed and uncertain about their rights. The complex legal processes can leave homeowners feeling powerless and isolated. However, it’s crucial to remember that you have rights as a homeowner, and understanding these rights can make a significant difference in your foreclosure defense strategy. In this blog post, I will explore the four key rights of homeowners in foreclosure, empowering you with knowledge and guiding you towards effective solutions.

By Neil Garfleld
LivingLies.me

I think the biggest problem for homeowners can be summed up in two sentences. First they believe there is something they should feel guilty about. Second, they don’t know the difference between (a) documents that can say anything and be prepared at any time and (b) original source (best evidence) documents.

Homeowners are regularly outwitted by Wall Street investment firms. They are the victims of a crime practically every time they sign “loan” documents. Each scheme is designed to prevent them from knowing that they are entitled to a fair share of the securitization scheme. They are victims and they have nothing to be guilty about.

For most lay people, a document is a document and as soon as you call it a document it is evidence of the truth of the matter asserted in the document. So if someone produces an assignment or endorsement even the homeowner assumes that there was a source transaction for which there are source documents (e.g. cancelled checks, correpsodnece etc.).

The thing to remember always is that nobody ever produces the source documents that occurred at the time of the source transction (assignment or indorsement). The homeowner must ask for that and if they can’t produce it, they no longer have a valid legal claim for anything.

I receive many emails every day that basically complain about the corruption of the courts or why they should win any case brought against them by lawyers seeking the remedy of foreclosure on behalf of a name (usually a long name) that may or may not identify an actual legal entity like a natural person, business entity trust. Much of what they say is correct.

By Neil Garfield
LivingLies.me
 

The two things most overlooked by most lawyers for homeowners in litigation are discovery demands (and enforcement) and mediation. These strategies bring the real issue to the early attention of the court --- that the opposition is unable or unwilling to produce the corroborating evidence that the lawyer wants the court to simply presume to be true.

I stumbled upon the mediation strategy when I was in mediation in one case. The mediator asked us to state our appearances. I said said my name and that I was the attorney for the homeowner. The other lawyer stated her name and she said she represented OCwen. So I tried to help her (she was young) and prompted her to say that she represented US Bank (as trustee blah blah). She refused, saying her client was Ocwen Loan Servicing.

The voice on the hone was from a person who said he worked for Ocwen. Smelling blood in the water, I then asked the voice on the phone if he presented the Plaintiff US Bank. He also refused to say that and he said, somewhat absurdly that my question was inappropriate.

All mediation orders require two things. First the parties to the dispute must be present. Second, they must have full powers and authority to settle the case on whatever terms they deem fit.

So after several attempts to get either the lawyer or the "representative" of Ocwen to state their appearance for US Bank (i.e., the "trust") I then terminated the mediation and field a motion for sanctions because US Bank had failed to appear.

As usual the the court ordered us back into mediation and reinforced the order that the parties be present and authorized to consider any possible settlement. So on round two, someone did appear saying they represented US Bank, but the only thing he was authorized to do was to hand my client an application for modification. that is not settlement. That was neither an offer or acceptance and so it wasn't mediation or settlement. That caused a second round of my motion for sanctions, in which I explicitly stated my client was willing to make a cash offer.

So the court ordered a third round along with $1,000 per day sanctions if the lawyer and U.S. Bank failed to comply. We actually and a hearing at which the "representative" was explicitly asked by the judge whether the representative would have authority to consider or reject a cash offer to settle the case. The representative replied in the affirmative.

So then we went for the third time and this time the opposing attorney realized that he had to at least make an offer that might be accepted by my client, vastly reducing the amount demanded and extending out an interest free balloon for 20 years. My client responded that he accepted the deal, that he would pay off the full balance up front and that upon receipt of instructions from US Bank as to where to pay the money, he would wire the funds. In short his acceptance was better than the offer since they would not need to wait for the money.

The response was exactly what I had expected. They did not have the authority because this wasn't about any loan account. It was about the securitization infrastructure that was built up around the loan, referring to the "loan." And the kicker was that they refused to have US Bank even acknowledge the settlement much less issue instructions on how to pay US Bank.

The reason was obvious. US Bank was never intended to receive any money because it and no claim. And the judge entered a final judgment in which he arrived at the conclusion that the named Plaintiff did not have a case or claim. Almost all my objections to evidence were sustained.

By Neil Garfield
LivingLies.me

Homeowners have always legally and morally been entitled to bargain for and share in the infinite profits generated by securitization. So far they have received nothing. Homeowners have never been in default because to be in default there must be a lender, successor lender or creditor who has paid value for an unpaid underlying obligation due from the homeowner. No such party exists in the world of Wall Street "innovation."

The only thing propping up fake securitization infrastructures is the inability of homeowners to comprehend their own transaction and the unwillingness to protect their huge (often hidden) equity in their homestead.

Wall Street has been extremely effective at buying articles on media outlets that downplay foreclosure activity. The fact is that the only reason why foreclosures declined is because of responses to the COVID pandemic.

Foreclosures are continuing to rise and even spike in various counties around the nation. And they are draining the entire economy of stimulus that is needed to offset the financial blows suffered by ordinary Americans. People are losing their wealth every day and it is going to investment banks and the third-party players who act in concert with them.