The Legal Tides Are Turning In Homeowners’ Favor

For centuries the courts have been rigged in favor of the banks.  The banks have the kind of time and money that homeowners could never dream of, and they are more than willing to use both to get their way.  You’d be wrong, however, to think that’s the only way the system was crooked.

If a homeowner whose loan was securitized tried to force the bank to show the chain of title, the court would tell the homeowner that they didn’t have standing to make that demand.  The homeowner then is left with no way of proving that the foreclosing bank/entity does not have the authority to foreclose.  Not anymore! 

In the case of Steinberger v OneWest Bank, et al, the court ruled in a special action that the homeowner does have the standing to demand that the foreclosing bank/entity provide a securitization timeline in order to establish their claim of authority to foreclose.  This timeline of assignments and transfers would prove whether or not assignments were made after a note had already been transferred to a securitized trust and could be declared invalid.

This is a huge win for homeowners because we now have the right to demand that banks prove their authority to foreclose before the court.

But wait, there’s more!

In a separate case the Rhode Island Supreme Court found the grounds that could establish that a mortgage was validly assigned.

In the case of Chhun v Mortgage Electronic Registration Sys Inc. the court stated that defects in the assignment process void the assignment and therefore do away with the foreclosure.

The court reached this decision based on the fact that when MERS tried to assign the loan to Aurora, an Aurora employee, Theodore Schultz, signed the assignment as a Vice President or Assistant Secretary of MERS.  He had no authority to sign the assignment, therefore the assignment was not valid and Aurora did not have the authority to foreclose on the property.

Taken individually, each of these rulings would be huge wins for homeowners who are standing up against the banks who are still stealing homes based on fraudulent loans.  When combined, they signal a major turn of the tides in homeowners’ favor.  We now have the standing to force the banks to show a chain of title, and the precedent is set that if the chain of title is improper or fraudulent, the bank has lost their authority to foreclose.

So what does this mean for real estate investors?  It means we have a GIGANTIC opportunity sitting in front of us.  There has never been a better time to buy defaulted notes.  Banks are more willing than ever to sell these defaulted notes not only because it means immediate cash in their pockets, but it also takes away the possibility of a future lawsuit.

If you know of anyone with a defaulted note, you need to get in contact with my office immediately at (706)-485-0162.  I have spent the last 22 months building up a team of experienced attorneys and fraud examiners/forensic auditors who specialize in exposing exactly this sort of fraud and negotiating the sale of notes.

We have a huge opportunity to help homeowners and do some great deals with multiple exit strategies by exposing this unbelievable and blatant fraud.  We finally have the leverage we need to get the banks negotiating on our terms.  It doesn’t matter if the homeowner has already been foreclosed on, we might be able to help. If you would like more information on this awesome strategy, give my office a call at 706-485-0162!