Breaking The Predatory Lender Matrix 3

Breaking the Predatory Lender Matrix 3
By Jim Krage of www.AmericanLoanAudits.com
Today, we will review 7 pages from before,

Then pages 9-17 will cover Tactics for Fighting
Predatory Lenders in Court:
1) Causes of Action,
2) Procedural Blocks
3) Stopping Unlawful Detainer Eviction
4) Consolidate and prove Buyer is not “Bona Fide
Purchaser for Value without Notice”
5) Finally, 2 Sample Dismissals of UD
What we discussed last time:
1) Depression was caused by Lenders & Wall Street (Lehman)
2) Lehman crashed Sept. 08–Lenders & Trusts are crashing NOW
3) Lehman conned Investors to pay – 30% bought Notes, 70% profit?
4) PreviouslyResult
(pre-2005), Lenders
= Buyer is not alent Credit, not Money
5) 2005-2008“Bona
TrustsFide
bought Notes,
Purchase forLenders got Commissions to lie
Value without
6) No Disclosure that Lender didn’t Loan, and Trust Bought the Note
Notice”
7) Nominal Lender now bankrupt, so Servicer or Trustee foreclose
8) MERS not Beneficiary, but often Assigns & Substitutes illegally
9) AIG got bailed out, because it paid insurance against defaults
10) Did the investors in your Trust get insurance – why foreclose?
11) Loan Audits find Violations (& may get Trust Name)
12) Homeowner Options (Loan Mod, Short Sale, Lawsuit..)
13) What www.AmericanLoanAudits.com does for you
• Foreclosure Sales are Avalanching from Predatory Lending:
• Since October 2008, Hard Money Loans have gone into Foreclosure massively.
• Now, Option ARMs are predicted to start a new Cataclysm.
KFWB – Market Wrap with Moe Ansari – Sat 12 Noon – Predicted new Downturn to DEPRESSION – Option ARM
• Probably DEPRESSION with Hi Inflation – Dollar Will Lose Value, eveything will be more expensive.
• Past Mistakes in FOREX: many bought EUROs – Canadian $ and some small currencies were Better
• Gold and Precious Metals skyrocketed – Real Estate is now cheaper, and may get cheaper still.
• Predatory Mortgage Loan elements = Variable Interest, Negative Amortization, Balloon Payments,
Prepayment Penalties, Interest Only Periods, Lack of Disclosures
YSP (Yield Spread Premiums) – Lender bribed Broker to get Borrower to accept Higher Interest Rate
If you have a Predatory Mortgage, what can you do?:

1) Sell it (Lose Money or Bank agrees to take less)
2) Bankruptcy (Adversary Proceeding or Reformation)
3) Offer a Deed in Lieu of Foreclosure
4) Short Sale to a Friend
5) Sue the Lender
6) Short Refinance
7) Loan Modification (often turned down – won’t lower principal)
• Short Sales and Loan Modifications with TEETH are most popular.
• Good Lawyers doing Loan Mods get an Audit of Loan Docs and Sue to wake up Negotiations.
• TOOLS #1: File a Rescission, File a Lis Pendens (for your Complaint filed) = CLOUD TITLE
• TOOLS #2: Forensic Audit of Origination Loan Documents for Violations of TILA, RESPA, State Laws
• TOOLS #3: Audit Recorded Documents–Assignments, Substitutions, NOD, Notice of Sale, Trustee’s Deed
Short Sales and Loan Modifications with TEETH are most popular.
• Good Lawyers doing Loan Mods get an Audit of Loan Docs and Sue to wake up Negotiations.
• TOOLS #1: File a Rescission, File a Lis Pendens (for your Complaint filed)
• TOOLS #2: Forensic Audit of Origination Loan Documents for Violations of TILA, RESPA, State Laws
• TOOLS #3: Audit Recorded Documents–Assignments, Substitutions, NOD, Notice of Sale, Trustee’s Deed
Check with a Lawyer to see what’s Best for You:

1) Rescinding the Contract (Note) and all documents based on it (like the
Trust Deed) = can remove the Security of the Deed of Trust
(The Rescission may need to be validated by a Judge for full effect)
2) If a Loan Audit finds Violations in Origination Loan Docs = Leverage

(Some Lenders will ignore Audit Findings, unless they are in a
Lawsuit)
3) If an Audit of Recorded Docs finds errors, the Sale may be reversible

(Often Eviction by Unlawful Detainer can be stopped)
(Results can be used for Quiet Title and Wrong Foreclosure Procedure
Causes of Action in a Lawsuit)
• Some Reasons to Rescind – then Examples:
• 1) TILA Violations of Notice of Right to Cancel

(for Refi’s TILA offers 3 years to Rescind)
• 2) TILA Violations of APR

• 3) TILA Violations of undisclosed Finance Charges

• 4) Violations of Misrepresentation, Fraud, Consideration

(Calif. Civil Code 1689 & 1691 allow Rescission)
• Rescission can Void the Security Interest of the Lender

(Always check with a Lawyer for What’s Best for You)
• [NEXT = 2 Notices of Right to Cancel with no Date, and a CE Audit]
In these Securitization Trusts, Lehman got
people to invest, used 30% to buy notes,
used 70% for commissions & reserve funds
(to pay investor back partially – to keep ‘em
quiet), and bought the notes outright without
disclosing it to the homeowner.
The Lender got a Commission to be a Front by
putting its name on Note and Trust Deed.
Lehman and the “nominal Lender” fraudulently
misrepresented the actual nature of the
transaction to defraud both the investor and
the homeowner.
More and more Foreclosures are happening,
where the Servicer is foreclosing without
even an Assignment to them.
Often MERS signs Assignments and
Substitutions of Trustee as Beneficiary.
All of the above should be VOIDABLE.
If you’re lucky enough to get a good judge, you
may win in court in the above circumstances.
Sometimes, you may stop the Foreclosure Sale or the
Unlawful Detainer Eviction, if you present it properly.
Audits help you know. Get a Lawyer to present it.
Are YOU or a FRIEND in Foreclosure?
Who is Foreclosing?
1) The “Lender” on the Note?
2) The Servicer? (Aurora, Litton, etc)
3) The Trustee? (Deutsche Bank, Wells Fargo,
OneWest, Chase, etc)
4) Was an Assignment recorded to them?
5) Was the Substitution of Trustee proper?
6) Who signed the Assignment & Substitution?
7) Was FRAUD at inception and in foreclosure?
• Stop Banks w/ Lawsuit - 3 courts to sue

• a) State Court (Complaint)
• b) Federal District Court (Complaint)
• c) Federal Bankruptcy Court (Adversary
Proceeding)
Causes of Action in a Complaint :

• a) Fed = TILA (HOEPA), RESPA, FDCPA
• b) State = Quiet Title, Improper
foreclosure Procedure, Fraud, Unfair
Business Practices, Finance Code,
• Federal Causes of Action in a Complaint :

• 1) TILA - if APR wrong, undisclosed Finance
Charges, bad Notice of Right to Cancel
• (HOEPA = if high interest rate)
• 2) RESPA - if they ignored QWRs you sent
– (20 days to Acknowledge, 60 days to answer)
• 3) FDCPA 15 USC 1692 - if you dispute debt
30 days after NOD (Notice of Default)
• (some) State Causes of Action in a Complaint:
• 1) Quiet Title
• 2) Improper Foreclosure Procedure - violations of
Civil Code
• 3) Fraud - no disclosure / false disclosure
• (specify ALL elements – Lazar v Superior Court)
• 4) UCL – Unfair Competition Law
• a) Unfair Business Practices - B&P 17200
• b) Unfair Advertising - B&P 17500
• 6) Finance Code
• 7) Usury (?)
STOP EVICTION AFTER FORECLOSURE

– UNLAWFUL DETAINER
• Allege Plaintiff has No Standing:
a) Trustee's Deed not recorded in 15
days
b) DBA not current
c) no Assignment
d) no standing - other
STOP EVICTION AFTER FORECLOSURE – UNLAWFUL
DETAINER
• Allege Plaintiff used Wrong Court Procedures
-> (if you didn't file a complaint) file a Demurrer:
1) Summons not Served properly (Motion to Quash)
2) Faulty Eviction Notice
3) Plaintiff is not the proper party (not beneficiary)
4) Not Perfected Title (this is summary proceeding)
5) Improper Verification - client didn't verify –
lawyer verified (& branch in same county)

– UNLAWFUL DETAINER
• Allege Plaintiff has No Standing:
a) Trustee's Deed not recorded in 15 days
b) DBA not current
c) no Assignment
d) no standing - other

– UNLAWFUL DETAINER (UD)
• File a Complaint
• File a Notice of Related Cases (w/UD)
• Consolidate the Complaint and UD
STOP EVICTION AFTER FORECLOSURE –
UNLAWFUL DETAINER (UD)
Steps to Prove that Foreclosure Buyer is not a
“Bona Fide Purchase for Value without Notice”
1) Prove that Foreclosure sale Buyer was not a
Bona Fide Purchaser for Value
2) Record Lis Pendens, Rescission, Notice of
Civil Code 2923.5 violation, Preservation of
Interest, etc - to “Cloud Title”
3) Hand out Notices at Auction
At www.AmericanLoanAudits.com, we can help:
1) We Audit Origination Loan Docs in 2 Steps:
a) A Compliance Ease Audit to recalculate APR, etc
b) A Manual Audit that scours the documents
2) We also check Recorded Docs for errors.
3) We provide a Qualified Written Request to
try to get the Trust Name and other Docs
4) We work with your lawyer, to help them
understand the potential issues, including
the Trust, which some don’t want to hear.
If you want help, call Jim at (562)867-3230 or
visit www.AmericanLoanAudits.com
Read more about Securitization Trusts and the current situation at:
http://www.americanloanaudits.com/fraud/
Watch our Sept. 2, 2009 Video at:

http://www.americanloanaudits.com/video/
A video of this 1/23/10 Presentation will be posted

soon.

Breaking The Predatory Lender Matrix 3

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Breaking the Predatory Lender Matrix 3

By Jim Krage of www.AmericanLoanAudits.com

Today, we will review 7 pages from before,

If you have a Predatory Mortgage, what can you do?:

Check with a Lawyer to see what’s Best for You:

2) If a Loan Audit finds Violations in Origination Loan Docs = Leverage

3) If an Audit of Recorded Docs finds errors, the Sale may be reversible

• 1) TILA Violations of Notice of Right to Cancel

• 2) TILA Violations of APR

• 3) TILA Violations of undisclosed Finance Charges

• 4) Violations of Misrepresentation, Fraud, Consideration

• Rescission can Void the Security Interest of the Lender

• Stop Banks w/ Lawsuit - 3 courts to sue

Causes of Action in a Complaint :

• Federal Causes of Action in a Complaint :

STOP EVICTION AFTER FORECLOSURE

STOP EVICTION AFTER FORECLOSURE

STOP EVICTION AFTER FORECLOSURE

Watch our Sept. 2, 2009 Video at:

A video of this 1/23/10 Presentation will be posted

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