August 21, 2013 at 8:10pm
EVERYONE WITH A MORTGAGE SHOULD READ THIS.
Pull out your Mortgage or Deed of Trust. (You should have the recorded/signed copy of this. If you don't, check online or go down to the County Recorders Office and get it.) Now look at paragraph 20 (or sometimes 19 or close to that) titled "Sale of Note; Change of Loan Servicer"
Now first, let me explain something... An UNSECURED debt is simply a loan, like a personal loan or a credit card, where if you don't pay it back all they can do is give you annoying phone calls or report it to the credit bureaus. By contrast, a SECURED debt is a loan attached to real property as collateral, like a car loan or a mortgage loan, where you ALSO sign a Deed that basically says "if I don't pay back this loan, they can repossess my car/house". UNSECURED debts operate in the world of UCC 9 (Uniform Commercial Code, Article 9) where they can be split up and sold to multiple people electronically without any paperwork and it's no big deal. SECURED debts operate in the world of UCC 3, where physical contracts have to stay together and be transferred together and the transfers need to be recorded into public record to show a chain of title in order to have RIGHTS to repossess/foreclose. And that should be common sense - the reason we have car TITLES and register them with the DMV is to prevent someone from "selling" their car to 10 different people at once, making them all think they own it and really nobody owns it. You can't cut a car into 4 pieces and you can't cut a house into 4 pieces, so you can't split a car loan or mortgage loan into multiple pieces and then pretend it's still attached to / secured by the physical car or house. If you split up the loan, it's no longer UCC3 and no longer a SECURED debt. Make sense so far?
Now, go look at Covenant 20 (usually) of your Mortgage or Deed of Trust. It most likely says something like "A Note or a partial interest in the Note may be sold one or more times without prior notice to the borrower." Read it again. "OR A PARTIAL INTEREST IN THE NOTE". Right there they are telling you exactly what they were planning to do, and what they actually did do (98% of the time), which is to sell only PART of your loan into a securitization Trust, without bothering to indorse/transfer the Note or assign/transfer the Mortgage or Deed of Trust.
This means that (A) your mortgage loan is most likely UNSECURED, which means that the person collecting your money probably doesn't have an actual legal right to foreclose if you know how to argue it properly, and (B) means their was "fraud in the factum" in the original mortgage contract, making it null/void as if you never had a mortgage at all, if you know how to argue it properly.
Also, paragraph/covenant 16 (or close to that) usually says something like "This Mortgage will be governed by federal laws and the laws of the jurisdiction in which the Property resides." Yet their actions of splitting up the loan and not recording the assignments with the county recorders office go AGAINST federal and state commercial-code laws. In other words, that's a breach of contract right there. They nullified their own contract before you even signed it, by saying they were going to do illegal things and also saying they were going to follow the laws, which contradicts itself.
THEY ARE ADMITTING TO THEIR CRIMES, RIGHT THEIR IN YOUR MORTGAGE. They just counted on you never noticing or understanding. But now you know. :)
Thanks to Bradley on facebook