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originally saved as; 7-20-9jerrykaneFORECLOSURES&JIM'SLIST.doc Angela Stark Private Call at talkshoe, http://www.talkshoe.com/tc/39904 [hard to hear or assumed words, or my comments, in square brackets] [other transcriptions at www.4shared.com/dir/19018661/440bf21/sharing.htm ]

23:30 This is Jim in California.. I do legal research for a real estate law firm..I have been able to successfully reduce the value of my note down to the current net present market value. I'm in California so its a deed of trust state and a non judicial foreclosure state. And the method that I used, a little bit different that we're talking about but I'm glad to hear your info, but very simply I did a dispute of debt validation letter along with a counter claim and an offer to contract with the bank. First they did not [ask] for a full accounting. FR 2046, all FASB accounting standards for these banks. I'm very in depth oriented with commercial bank law. When they refuse a full accounting, they tried to file the notice of default and the notice of trustee sale but it went back to the simple fact that they failed to respond to the counter claim. Well recoupment and counter claim and the notice of the disputed debt validation, until they answer that they can't foreclose, non judicially or judicially. The trustee has no standing because in commercial banking there is no holder in due course. After a note is securitized and it goes into the foundational banking instrument, after the note is securitized, according to Article 9 of the UCC this is no longer, there's no holder in due course that can show up. So, and they appeared in court..I've actually got a pending case right now and they showed up in court via telephone and the judge shut them down. They have a permanent injunction and restraining order against the bank, which is a large bank, and they're offering me three hundred and four thousand dollars less than what's owed on the note and just to start a new note. And this procedure we are currently introducing it into two other litigations pieces right now and banks are freaking out. They don't know what to do. It is effective. JK: That's certainly a good way to [ ] that. I'll give you that. We're talking about getting down on [anything]. We don't owe them anything. That's the whole point of all of this. And we need to negotiate a lower amount on the note because the note has already been satisfied. Jim: I agree 100%. I was simply letting you know what they've offered. We have refused it since we know that we've tendered payment with the original promissory note. Promissory note falls under Article 3 of UCC but once it becomes securitized, and by the way its a fraudulent securitization and its actually illegal what they do but once they securitize it, its all under Article 8 and 9. You can stick them on their own laws and it goes under what's called FASB under the General Accepted Accounting Practices [GAAP] which Title 12 mandates the bank's file with, and its a simple proof sheet. I'd be happy to forward some information to Angela that we formulated and they can't answer it. If they answer it they automatically default. The bank transaction will show that an FR 2046 balance sheet that there is no balance. There's no principle due. JK: Except for you. There's a principle due to you. Jim: That's correct and that's the original amount of the note. JK:More than that. There's the original amount of the note, there's every payment you've made, there's every single penny of interest that they've made off the transaction, there's what they sold the note for, there's all the income tax benefits that they got as a result of it, there's all the insurance proceeds that they got as a result of it, then not to mention the factual reserves benefits that they got as a result of it. They can never ever ever give you back an account for all of your money. Its an impossibility. 28:07 That's why when you word the 90, 91 and 28 properly and you don't talk about the house. You only talk about the money they have no where to go. They can't do anything but give you the house back. They can't give you the money it doesn't exist. Jim: Well remember its the deed of trust contract that they're foreclosing on. The property you already have an entitlement right and a possessory right, a claim too. We've gone beyond proving that and that's why our bank is unable to foreclose and we are seeking remedies and restitution. We haven't put a figure on it yet, but the closest that we can come up with right now is in the millions on a six hundred thousand dollar note that we can prove. 28:55 JK: Right, that you can prove. And I don't want to narrow myself to anything. That's why I say give it all to me. How much you got? Give it all too me. And they will not do that. They can not do that. Another thing that you're letting slip by here is that word property. That doesn't just mean the legal description of where you live. Its also
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talking about the promissory note. .. Jim; Well when I say property I'm talking about anything that I have submitted because obviously my signature monetized the entire transactional process. 30:04 JK: ...and so is the money that they [sold] for it and so is the insurance [set of deeds] so is the income tax refunds if any and on and on. Jim; Well there's also been something called a derivative.. Under FASB 133 they've basically done a conversion and they create derivatives of hedge funds. These are sold to the DTC and that's where our mortgage backed securities come from. The typical bank makes on average 9 to 11 times of the original promissory note, but the FASB is the fundamental accounting that is the all OMB numbers. These are mandatory disclosures under Title 5 and they have to use them under Title 12. And when you basically hang them on their own rules and regulations there is no way out for them. But when you mandate disclosure because disclosure was why the [ ] Maxwell case was won, they must provide you these documents. And when these documents are scrutinized by a special auditor which is auditing the liability side of the books of the bank. [You get an] off balance sheet entry and you alone were paid the day that it was closed. That's why they call it closing. And what they did was they basically took the liability side which was your note, which was your asset to begin with and they did an off balance sheet entry which is called a derecognition, is what the industry calls it. 32:16 A derecognition only comes with the total sale of an asset that's both the benefit as well as the liability and that's not what they do.

Their FASB regs 125, 140, 133, 5 and 95, and then there's an FR 2046, there's an FDA registration statement* that actually shows where they sold the note to. And they immediately did a credit on the payable side of their books which is their asset and their liability. But if you go to the other side of the books on the liability side, that note, because its deposited into a transactional account with the bank. And that transactional account at the bank its mandatory that it shows as a cash proceed. And who's cash was it? Yours! 33:07 JK; What was the next to the last one for proving who they sold the note to? Jim; Well that is called an S3A registration statement*. That's not FASB that's bank protocol. Its an OMB number. And the bank originator has to have that statement. They're required. They're mandatory. That's a 424B5 prospectus (security filing). What I'm gonna do is I'm gonna to forward to you every bit of information that I've got and you're welcome to shoot these out and I'll keep you in the loop as to how the litigation goes because we're still in the middle of it and they still haven't answered and what we're doing right now is we're actually moving it from state court because the state courts in California just knock these things off their desk. They wont answer to them. So we're taking them to US District because we got a lot more availability of regs on our side. 34:21 I just did an entire [protest] today for the law firm that I work with and we're real estate specialists. And the attorneys have no idea what this stuff is. They just look at it and they can't believe it, until they see it. 34:52

The following from mortgage fraud notes; 2046 balance sheet, as it relates to the original loan", shows the banks' ledgering of the account. Will show the off balance sheet entry and extinguishment of the "loan". Mandatory filing pursuant to Title 12 U.S.C. 248 & 347. 1099 OID report: The 1099 OID will identify who the principal is from, which capital and interest was taken, and who the recipient or payer of the funds are, and who is holding the account in escrow, un-adjusted. S3-A registration statement: shows when and where the instrument was sold... they can't claim "lost" note 424 B-5 prospectus (security filing) RC-S & RC-B call schedules. FASB (Financial Accounting Standards Board) part of GAAP (Generally Accepted Accounting Standards)
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FAS 125, 133, 140, 5, 95. These will direct the auditor to the liability side of the banks' books and also create the trail of exactly where the money came from and where it went. A promissory note falls under UCC Art. 3 because it is a negotiable instrument, once it is securitized it falls under UCC Art. 8 & 9 as a security. The banks are illegally selling your un-registered instrument. Deeds of trust and mortgage deeds are always registered as evidences of debt... notes are never registered.. .. selling un-registered securities is an automatic right of rescission of the original contract. You possess entitlement rights and possessory rights to your original note... it is negotiable. UCC 3-305 is about recoupment, UCC 3-306 is the claim you must make to apply the set-off from the account ledger, this counterclaim is mandatory. Title 12 1813 (L)(1) states that when you deposit a promissory note, it becomes a cash item to the bank, you were supposed to get a receipt for it. But you didn't ask for it. These notes are deposited into a transactional account and the credit goes to the accounts payable side of the ledger (assets) of the bank, but on the liability side, the note has been sold already after it was monetized by your signature. You are, therefore, the first funds transferor and have the right to either your note, or the cash equivalent. Under Civil Rule 13, if you fail to bring a counterclaim, you waive your rights to the note. Because you were ignorant of the rules of procedure. Ask for all documents in discovery, under Civil rule 36 if they don't produce them, they are admitted. We loaned them the note, we started the process, so we need to show them where to fix the problem. At law, we are presumed to be knowledgeable in banking since we deal in commercial paper every day. FRN's are nothing more than registered promissory notes, that's why they are recognized as deposits and you receive a receipt from the bank for your deposit. You should register your promissory note on a UCC-1 or UCC-3 to show a public interest in the note itself. This is recognizable in Court. Otherwise, your only public interest is shown by your payment to the bank, on the receivable (asset) side of their ledgers.

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