Tag: perfected

In RE Androes – World Savings Bank lien avoided in Kansas Bankruptcy in February 2008

Seal_of_KSIn RE Androes – World Savings Bank lien avoided in Kansas Bankruptcy in February 2008

By Daniel Edstrom
DTC Systems, Inc.

In this Chapter 7 bankruptcy the trustee was able to avoid the lien from a World Savings Bank loan because the mortgage acknowledgement was missing a date.  As such the lien was never perfected.

Excerpt 1

Trustee Carl B. Davis seeks summary judgment on his complaint against debtor Mark Androes and World Savings Bank (“World Bank”).1 Trustee’s complaint seeks (1) to avoid World Bank’s mortgage on Androes’ homestead as unperfected because the acknowledgment of the debtor’s signature is undated and (2) to avoid as preferential World Bank’s lis pendens to the extent it attached to the home. World Bank filed a response to the Trustee’s motion and a counter motion for summary judgment.2 The Trustee filed a reply to World Bank’s response, which also served as his response to World Bank’s motion for summary judgment.3 World Bank filed a reply to the Trustee’s response to its motion for summary judgment.4 Debtor filed no response. Continue reading “In RE Androes – World Savings Bank lien avoided in Kansas Bankruptcy in February 2008”

Investors Admit Criminal Enterprise at David J. Stern Law Firm in Florida

Investors Admit Criminal Enterprise at David J. Stern Law Firm in Florida

By Daniel Edstrom
DTC Systems, Inc.

Note the following from Neil F. Garfield on LivingLies:

Posted on January 5, 2012 by Neil Garfield

EDITOR’S COMMENT: This is the start of what we have been waiting for. Investors who purchased David Stern’s operation — a foreclosure mill that had been bank-rolled literally by the Banks. They actually have the necessary files, documentation and proof needed because they now own the company and they realize they were induced to buy a “criminal enterprise.”

This is what I have been talking about. Investors of all shapes and sizes are starting to awaken to the fact that the entire foreclosure process has been permeated by false statements as to the amounts due, the identity of the creditor, and the documents that “perfected” the lien, transferred the loan and were the basis for foreclosure. None of the foreclosures are real. That is a grandiose statement, but it will prove to be true. Continue reading “Investors Admit Criminal Enterprise at David J. Stern Law Firm in Florida”

The Internal Revenue Service is Investigating the Tax-Exempt Status of REMICs

The Internal Revenue Service is investigating the Tax-Exempt Status of REMICs

By Daniel Edstrom
DTC Systems, Inc.

Reuters has announced that “The Internal Revenue Service has launched a review of the tax-exempt status of a widely-held form of mortgage-backed securities called REMICs.”  This comes after many years of homeowners, lawyers and securitization experts having discussed the shenanigans of Wall Street.  The standard industry practice is that loans were never perfected into these REMICs, which required the loans as “qualified mortgages” to be in the REMIC within 90 days of the “startup day”, which corresponds with the trust “closing date”.  However, in nearly every case we have seen, the REMIC servicers are doing an assignment of the security instrument into the trust after the loan is in foreclosure in order that whoever is foreclosing has the right to foreclose.  Unfortunately once a loan is in default it is no longer a “qualified mortgage” under REMIC laws, not to mention that it is years past the REMIC “startup day”.  Nor as Judge Arthur Schack puts it in New York, why is the trustee accepting the conveyance of a non-performing loan into the trust?

Specifically the article says “These banks’ transgressions, confirmed in court decisions and through recent action by federal bank regulators, include the failure to formally transfer ownership of mortgages to the trusts that invested in them and the subsequent creation of fraudulent mortgage assignments and other false documents.”  Cease and Desist Consent Orders were just issued against Bank of America, Citibank, HSBC, JP Morgan Chase, US Bank, Wells Fargo, Aurora Bank, EverBank, EverBank Financial Corporation, IMB HoldCo LLC, OneWest, Sovereign Bank, DocX, LPS Default and MERS.  Just wait until the Securities and Exchange Commission decides to investigate Sarbanes-Oxley legislation against the statements these entities have made under oath with what the bank regulators found actually happened with them. Continue reading “The Internal Revenue Service is Investigating the Tax-Exempt Status of REMICs”

World Savings Bank, A Living Legacy of the Subprime Crisis

World Savings Bank, A Living Legacy of the Subprime Crisis

By Daniel Edstrom
DTC Systems, Inc.
http://www.dtc-systems.net
http://livinglies.wordpress.com

World Savings Bank loans were the worst of the worst loans that were packaged up and sold to homeowners from the 1990’s until 2008.  These loans consisted of pick a pay loans with negative amortization.  Typical predatory negative amortization loans allow for the original loan balance to increase to 110% maximum.  Meaning if the loan was originally issued at $100,000.00, the loan balance can keep going negative until it reaches $110,000.00.   World Savings Bank decided that this wasn’t enough and allowed their negative amortization loans to reach 125% of the original principal balance.  This is the gift that keeps on giving.  As home values have been decimated by the meltdown and continue to drop, properties with World Savings Bank loans have principal balances that keep going up and up and up.  No underwriting was given on these loans, the value of the properties and the promise and belief they would ever rise was the only consideration given to support the loan.  The other consideration used in “lending” the money had nothing to do with the homeowners.  World Savings Bank wanted to entice investors into parting with their money.  Lots of money.  In fact BILLIONS and BILLIONS of dollars.  It turns out that World Savings Bank had NO STAKE in the transaction, they were only the middleman.  One big fat rich middleman.  This was at the expense of both borrowers and investors who purchased certificates from the many REMICs setup by World Savings Bank.  What REMICs?  What securitizations?  Didn’t Wells Fargo tell you that these loans were securitized?   Why does the Office of the Comptroller of the Currency (the OCC) allow Wells Fargo Bank to foreclose in their own name on the tens of thousands of World Savings Bank foreclosures?  The OCC knows much more than the American people what World Savings Bank, Wachovia and Wells Fargo Bank are doing to the American homeowners.  Namely that Wells Fargo Bank is walking into court claiming to be the real party in interest, claiming that they own these loans and that they were never securitized.   Of course this is nothing new for Wells Fargo Bank or Wachovia.  Just look at the auto loans securitized by Wachovia Dealer Services.  Wachovia Dealer Services did not loan the money as these were table funded automobile loans.  The money used to fund the automobile loans came from various trusts that pooled the loans and sold them to investors.  The trusts and/or the investors allegedly own the loans and not Wachovia Dealer Services or Wells Fargo Bank.  But you would never know this by going to just about any state court in this country and looking at who the plaintiff is thats filing a judicial lawsuit on these automobile loans: Wachovia Dealer Services.  Reading the Prospectus for these deals is a real eye opener:  Title will remain in the name of Wachovia Dealer Services and even though the loans are sold, the abstract of title given to the DMV will not be updated to reflect the correct ownership.  They go on to admit that title has not been perfected and that the certificateholders are at risk.  It even goes on to say that the loan contracts will not be updated to reflect that ownership has changed (endorsement under state UCC laws).  So you have no endorsement and no transfer (no perfection).  The beneficial and equitable rights have been sold.  The above all describes predatory banking, lending and servicing at its worst.

Continue reading “World Savings Bank, A Living Legacy of the Subprime Crisis”