Securitization Audit

On January 7, 2011, Antonio Ibanez from Springfield, MA permanently prevented his mortgage lenders from foreclosing on his house. He and his legal team successfully argued from the lower court, through appellate court, all the way to the Massachusetts Supreme Court. The lenders, US Bank and Wells Fargo, were unable to prove to the court that they had legal possession of the Mr. Ibanez's mortgage note, and therefore did not have the legal right to foreclose. So this actually was a situation where the homeowner who was foreclosed upon was actually able to REVERSE the foreclosure because he proved to the court that the bank had no legal right to foreclose.

Needless to say, this caused shock waves through the mortgage and foreclosure industry. How could a lender not have the right to foreclose?

In another case, on March 30, 2011, an Alabama judge issued an order that permanently stopped foreclosure on the home of a beleaguered family, the Horace family from Phoenix City, Alabama, and also prevents the same bank in the case from trying to foreclose against that couple, ever again. This may not seem like big news -- but upon review of the underlying documents, the extraordinarily important nature of the decision and the case becomes obvious.

No Securitization, No Foreclosure

The couple involved, the Horaces, took out a predatory mortgage with Encore Credit Corp in November, 2005. Apparently Encore sold their loan to EMC Mortgage Corp, who then tried to securitize with Bear- Stearns. If the securitization had been done properly, in February 2006 the trust created to hold the loans would have acquired the Horace loan. Once the Horaces defaulted, as they did in 2007, the trustee would have been able to foreclose on the Horaces.

And that's why this case is so big: the judge found the securitization of the Horace loan wasn't done properly, so the trustee -- LaSalle National Bank Association, now part of Bank of America -- couldn't foreclose. In making that decision, the judge is the first to really address the issue head-on: If a screwed-up securitization process meant a loan never got securitized, can a bank foreclose under the state versions of the Uniform Commercial Code anyway? This judge says no, finding that since the securitization was busted, the trust didn't have the right to foreclose, period.

The Horace v. LaSalle case is currently the case precedent that is being cited in foreclosure cases all across the country.

Judge Albert Johnson, in his finding, stated:

"… the court is surprised, to the point of astonishment, that the defendant LaSalle Bank, did not comply with the terms if it's own pooling and servicing agreement, and further did not comply with New York law in attempting to obtain assignment of plaintiff Horace's note and mortgage. Consequently, plaintiff's (the Horace family) Motion for Summary Judgment is granted to the extent that LaSalle Bank is permanently enjoined (restrained) from foreclosing on the subject property…"

What do these cases have in common?

The commonality on these two cases as well as dozens more is… consumers are now fighting back. AND, during the course of that fight, it has become clear that the electronic system created by the mortgage industry in the 1990's, MERS (Mortgage Electronic Mortgage Systems) is, in fact, illegal. It violates New York Trust Laws put in place to prevent such abuse.

New York trust law requires strict compliance with the trust documents; any transaction by the trust that is in contravention of the trust documents is void, meaning that the transfer cannot actually take place as a matter of law.

How did this happen?

These people, the Horaces and the Ibanezes didn't know it at the time, but they were and are the trendsetters that could now virtually tear down the modern mortgage lending system as we know it.

Have you been through the anger and frustration of dealing with the banks, and all they do is continue to ask for paperwork, and more paperwork, and then even MORE paperwork in an attempt to make you believe they were going to help you obtain a modification? Well all the bank's paperwork will now be their undoing. Because of all the paperwork they have been asking from you, they are missing the key financial documents that prove that they even have the legal right to collect payments from you, let alone foreclose on you. This is a problem's of the mortgage industry's own making. Now they are paying the price.

The solution?

The solution is to fight back. The solution is to PROVE the bank that they don't have the legal right to foreclose on you. If you don't fight back, the banks will abuse your rights as a U.S. homeowner. Banks are illegally foreclosing on people's homes every single day. The problem is that in more and more of these foreclosures are turning out to be illegal. Is your bank threatening foreclosure? Is your bank threatening you due to non-payment of your mortgage? Chances are, they don't have the legal right to do so. Now, we can prove it…

NHC Law specializes in pre-litigation data gathering, analysis and support. Call NHC Law Group today and order your SECURITIZATION AUDIT.

The Securitization Audit will show you if your lender has the legal right to foreclose. Increasingly, cases are found where the bank DOES NOT have the right to do so.

When that doesn't work, the banks have resorted to out and out fraud. That's right. This problem has nothing to do with "questionable lending practices" or "sub-prime loans" or "mortgage brokers", etc. This problem is a mess of the banks own making. Banks have been committing massive mortgage and foreclosure fraud upon the homeowners of the U.S.

More bank fraud.

In Ohio, the Attorney General issued a decree stopping ALL foreclosures from Allied Bank / GMAC in the state of Ohio. Why? Because the banks were illegally and fraudulently foreclosing on innocent people's homes.

"This is absolute, intentional fraud" says attorney and former FBI fraud investigator Lynn Szymoniak. On April 4, 2011, the day after she appeared on 60 Minutes, her foreclosure case was dismissed.

Watch the 60 Minutes video here.

In Summary:

If you want your mortgage restructured, you are going to have to fight the bank. The day of asking for, and receiving, a loan modification are almost over. And we are happy to say, that as time marches on, more and more lenders will be forced to withdraw their foreclosure attempts on homeowners who are informed, and know how to fight back.

A Securitization Audit is the key.

In order to know who REALLY owns your home, and who is REALLY entitled to foreclose on your home, you must be able to prove it. How do you prove it? With a Securitization Audit. A Securitization Audit combined with a Forensic Loan Audit will force the bank to work with you. And if they don't want to work with you on a modification, you will now have everything you need to get even, and get revenge in the U.S. Court System.

These banks, which demand that the homeowners have all their paperwork just right, these same banks have fouled up their own paperwork to a historic degree.

This is now the first time in recent history that YOU have the chance to turn the table on the bank. Others are doing it, now you can too. Call your NHC Law representative today to get started.