City of Springfield Banned all Foreclosures! How Will The Supreme Court Rule On That?

 

BOSTON – A group of Western Massachusetts banks argued before the state’s highest court on Thursday that the city of Springfield’s anti-foreclosure ordinances should be overturned.

The banks say the local ordinances contradict state laws, and a bond levied on lenders constitutes an illegal tax. “It’s not that banks are opposed to mortgage laws and reform, but to how it’s being done,” said Craig Kaylor, general counsel for Hampden Bank, one of the banks that brought the lawsuit. “These are for the state to decide, not city by city.”

But the city disagrees and says the laws are necessary to avoid blight and protect neighborhoods that have high rates of foreclosure.

“This is the city’s response to the foreclosure crisis,” said Springfield Assistant City Solicitor Thomas Moore, who argued the case before the Supreme Judicial Court. “It’s a response from the city council and mayor based on what they see every day in the city. They’ve taken the strongest stance to protect homeowners and the city itself.”

The city of Springfield passed two anti-foreclosure ordinances in 2011 as the city was being hit hard by the mortgage foreclosure crisis. One ordinance requires a bank that forecloses on a home to pay for a $10,000 bond, which can be used by the city to maintain the foreclosed properties, if the bank fails to do so.

The other ordinance requires the establishment of a mandatory mediation program to help homeowners facing foreclosure. The bank would be responsible for paying most of the cost of the mediation.

Springfield is among the top cities in the state in the number of distressed properties it has. The city says high rates of foreclosures lead to health and education problems for children in families that lose their homes, and high rates of blighted or vacant properties lead to crime and violence in those neighborhoods.

Six western Massachusetts banks, with Easthampton Savings Bank as the lead plaintiff, challenged the ordinances. A U.S. District court judge upheld the ordinances. However, on appeal, the U.S. Court of Appeals issued a stay preventing Springfield from enforcing them. The federal court then asked the Supreme Judicial Court, the state’s highest court, to answer two questions related to state law before the federal court makes its ruling. The case is Easthampton Savings Bank and others vs. City of Springfield.

The SJC must decide whether the local foreclosure ordinances are preempted by existing state foreclosure laws. The court must also decide whether the $10,000 bond is a legal fee or an illegal tax. Cities and towns cannot create taxes without legislative approval.

The banks also argue that the ordinances violate the contract clause of the U.S. Constitution by impairing the contract between the homeowner and the mortgage-holder, a question that remains before the federal court.

During Thursday’s arguments, Tani Sapirstein, an attorney representing the banks, argued that the bond is a tax because banks do not get any particular benefit from paying it – which is the criteria for calling something a fee. The way the bond works is when a foreclosed property is sold, if the city did not have to use the bond money to maintain it, $9,500 would be returned to the bank and $500 is kept by the city as an administrative fee, used to maintain blighted properties and implement the foreclosure laws.

Chief Justice Ralph Gants questioned Sapirstein on whether the bank does not actually receive benefits. “You have an interest in preserving the value of your property,” Gants said. “If there are foreclosed properties going to hell all around your property, it diminishes the value of your property and diminishes the value of what you receive on the foreclosure. Why is this concern about avoiding blight not something that would benefit the bank as well as the city?”

Sapirstein replied that eliminating blight would benefit the bank “as well as the city and other property owners in the neighborhood.” “How is that a particularized benefit?” she said.

Moore argued that the bond is a fee, which the city needs to hire code inspectors and create a database of who controls foreclosed properties.

But Justice Geraldine Hines said if she pays for a copy of her birth certificate, she gets a document in return for the fee. “Here I don’t see that,” she said. “The property owners, the mortgagees, don’t have something tangible.”

Moore said the banks get a “well-regulated industry” and preservation of their property values. In addition, when a bank registers ownership in the database, the city knows who is responsible and problems can be resolved more easily.

Sapirstein also argued that local law cannot require more than state law in an area that is regulated by the state or the result would be “a patchwork of ordinances.”

Gants indicated that the court may move to narrow the ordinances – for example, applying them only to a bank that has taken possession of a house, not a bank that is in the process of foreclosure when the homeowner is still living there. Gants said the ordinance as written could fine a bank for not maintaining a property where the homeowner still lives. As a homeowner, Gants said, “I’d say I’m still living here. This is my home. How can they be punished for not invading what’s still my home just because they happen to be foreclosing on it?” Gants said.

Moore acknowledged that the ordinance may be overbroad and said the city does not anticipate pursuing a violation in a case like that. Moore said the lenders’ lawsuit is premature because there is no information yet about how the city will enforce the laws. “We have the lenders essentially saying the sky will be falling, we are worried about x, y, z happening. None of that has happened and none of that may happen,” Moore said.

Moore said the city is still writing the regulations for the ordinances and if they are upheld, “The city is ready to go forward with implementation within a period of weeks.”

Similar foreclosure ordinances were established in Lynn and Worcester, and local banks challenged those as well. That lawsuit is pending in U.S. District Court in Worcester. The case involving Lynn and Worcester could be affected by the SJC’s ruling in the Springfield case.

Several activists supporting homeowners came in from Lynn and Springfield to hear the arguments. Candejah Pink, a Springfield homeowner and community organizer battled foreclosure for four years before reaching an agreement to keep her home. She helped write the Springfield ordinances. Pink said the bond is there to ensure that homes are maintained, which keeps crime and violence down. The mediation program, she said, is important to help homeowners come to an agreement with lenders. “We’re not asking to live in our homes for free. We’re asking for some mediation,” she said.

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SHEEPLE AWAKEN!!!

Once Upon a Time…. I Thought the Worst We Had To Face Was Foreclosure Hell, I WAS WRONG!

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Ya know, I used to think that Foreclosure Hell was the worst thing we in this Country had to face.  Wow, Was I Wrong!

I didn’t realize that just like in Japan, they will cook us to death with radiation, and not even bother to tell us.  I have condemned the Japanese for nuking the world and not telling us the truth about it, but fuck me, this country is doing the same thing.

While most people go about their daily business, they never think about the fact, that a pleasure of getting rained on is killing them.  We are the walking dead, and being asleep to the fact is just fucking us up more.

I would apologize for my slang, no, crude language, but something needs to wake these sleeping zombies up!

So, they are not only going to take every house they can get their grimy paws on, but they are going to continue the slow kill of humankind from the planet.  

It is not the kids growing up now that will suffer so much, it is like the butterfly test in Fukushima.  It is the children’s children that will be riddled with deformities. 

No matter what they try to tell us, we cannot be stupid, and believe that radiation is ok.  The thought of believing that, well, it is, stupid.  The sheeple that make up this country now, is amazing.  If the government says the radiation is not hurting us, we’ll just believe them.  Because the government says so?  Yall need to get out from under the rock, and out of the sun, cause damn!  You been drinking too much water with fluoride in it, for too long, and it has made you dumb!  I take that back, it has made you dumber than dirt!

For years, they have been doing things with the weather, with our food, with our prescriptions, our health!  They have taken healthy human beings and turned them into out of shape, fat slugs that have lives that are meant for cattle.  Chemtrails is no lie either.  What about HARP?  I guess that you also believe that 911 was not an inside job.

No, I am not a conspiracy theorist, I believe in taking what is put before me, studying it, seeing it for what it is, listening to scientists, listening to experts, and deducing my own opinion.  You see, we woke up.  We quit drinking the tap water.  We quit watching the regular news.  The news media is brainwashing you sheeple, which is not hard for them to do.

Terrorists are here, they are going to get you, so we have to militarize the Police forces.  These false flag shootings, are to outrage you sheeple, so that you will agree that guns are bad, and they can confiscate our guns.  We are told that our rights have to be taken, so that we can be protected from the terrorists, etc.,

If you are so blind you cannot see your nose on your face, you will not notice that Fannie Mae, and the banks are throwing our elderly out on the street.  Right now, in Goodyear, Arizona, an 83 year old woman and her 86 year old husband are being thrown out of their home.  No one cares.  In Colorado Springs, CO, an 82 year old woman is being thrown out of her home.  No one cares.

What the hell is wrong with you sheeple?  It’s not you, so it is Ok?  The Bank With the Most Homes in the End Wins, Get Used to It!!!

Sheeple Awaken!

By Paul Craig Roberts – Police Are More Dangerous To The Public Than Are Criminals, (Explained to Where Even Sheeple Can Understand!)

A MUST READ FOR EVERY AMERICAN!

From:  http://www.paulcraigroberts.org/2013/09/16/police-are-more-dangerous-to-the-public-than-are-criminals-paul-craig-roberts/

Latest Book

 PCR’s new book, HOW AMERICA WAS LOST, is now available:In Print by Clarity Press and In Ebook Format by Atwell Publishing

 

Police Are More Dangerous To The Public Than Are Criminals — Paul Craig Roberts

The goon thug psychopaths no longer only brutalize minorities–it is open season on all of us –the latest victim is a petite young white mother of two small children

http://www.informationclearinghouse.info/article36211.htm

Police Are More Dangerous To The Public Than Are Criminals

Paul Craig Roberts

The worse threat every American faces comes from his/her own government.

At the federal level the threat is a seventh war (Syria) in 12 years, leading on to the eighth and ninth (Iran and Lebanon) and then on to nuclear war with Russia and China.

The criminal psychopaths in Washington have squandered trillions of dollars on their wars, killing and dispossessing millions of Muslims while millions of American citizens have been dispossessed of their homes and careers. Now the entire social safety net is on the chopping bloc so that Washington can finance more wars.

At the state and local level every American faces brutal, armed psychopaths known as the police. The “law and order” conservatives and the “compassionate” liberals stand silent while police psychopaths brutalize children and grandmothers, murder double amputees in wheel chairs, break into the wrong homes, murder the family dogs, and terrify the occupants, pointing their automatic assault weapons in the faces of small children.

The American police perform no positive function. They pose a much larger threat to citizens than do the criminals who operate without a police badge. Americans would be safer if the police forces were abolished.

The police have been militarized and largely federalized by the Pentagon and the gestapo Homeland Security. The role of the federal government in equipping state and local police with military weapons, including tanks, and training in their use has essentially removed the police from state and local control. No matter how brutal any police officer, it is rare that any suffer more than a few months suspension, usually with full pay, while a report is concocted that clears them of any wrong doing.

In America today, police murder with impunity. All the psychopaths have to say is, “I thought his wallet was a gun,” or “we had to taser the unconscious guy we found lying on the ground, because he wouldn’t obey our commands to get up.”

There are innumerable cases of 240 pound cop psychopaths beating a 115 pound woman black and blue. Or handcuffing and carting off to jail 6 and 7 year old boys for having a dispute on the school playground.

Many Americans take solace in their erroneous belief that this only happens to minorities who they believe deserve it, but psychopaths use their unaccountable power against everyone. The American police are a brutal criminal gang free of civilian control.

Unaccountable power, which the police have, always attracts psychopaths. You are lucky if you only get bullies, but mainly police forces attract people who enjoy hurting people and tyrannizing them. To inflict harm on the public is why psychopaths join police forces.

Calling the police is a risky thing to do. Often it is the person who calls for help or some innocent person who ends up brutalized or murdered by the police. For example, on September 15 CNN reported a case of a young man who wrecked his car and went to a nearby house for help. The woman, made paranoid by the “war on crime,” imagined that she was in danger and called police. When the police arrived, the young man ran up to them, and the police shot him dead. http://www.cnn.com/2013/09/15/justice/north-carolina-police-shooting/

People who say the solution is better police training are unaware of how the police are trained. Police are trained to perceive the public as the enemy and to use maximum force. I have watched local police forces train. Two or three dozen officers will simultaneously empty their high-capacity magazines at the same target, a minimum of 300 bullets fired at one target. The purpose is to completely destroy whatever is on the receiving end of police fire.

US prosecutors seem to be the equal to police in terms of the psychopaths in their ranks. The United States, “the light unto the world,” not only has the highest percentage of its population in prison of every other country in the world, but also has the largest absolute number of people in prison. The US prison population is much larger in absolute numbers that the prison populations of China and India, countries with four times the US population.

Just try to find a prosecutor who gives a hoot about the innocence or guilt of the accused who is in his clutches. All the prosecutor cares about is his conviction rate. The higher his conviction rate, the greater his success even if every person convicted is innocent. The higher his conviction rate, the more likely he can run for public office.

Many prosecutors, such as Rudy Giuliani, target well known people so that they can gain name recognition via the names of their victims.

The American justice (sic) system serves the political ambitions of prosecutors and the murderous lusts of police psychopaths. It serves the profit motives of the privatized prisons who need high occupancy rates for their balance sheets.

But you can bet your life that the American justice (sic) system does not serve justice.

While writing this article, I googled “police brutality,” and google delivered 4,100,000 results. If a person googles “police brutality videos,” he will discover that there are more videos than could be watched in a lifetime. And these are only those acts of police brutality that are witnessed and caught on camera.

It would take thousands of pages just to compile the information available.

The facts seem to support the case that police in the US commit more crimes and acts of violence against the public than do the criminals who do not wear badges. According to the FBI crime Statisticshttp://www.fbi.gov/about-us/cjis/ucr/crime-in-the-u.s/2010/crime-in-the-u.s.-2010/summary in 2010 there were 1,246,248 violent crimes committed by people without police badges. Keep in mind that the definition of violent crime can be an expansive definition. For example, simply to push someone is considered assault. If two people come to blows in an argument, both have committed assault. However, even with this expansive definition of violent crimes, police assaults are both more numerous and more dangerous, as it is usually a half dozen overweight goon thugs beating and tasering one person.

Reports of police brutality are commonplace, but hardly anything is ever done about them. For example, on September 10, AlterNet reported that Houston, Texas, police routinely beat and murder local citizens.http://www.alternet.org/investigations/cops-are-beating-unarmed-suspect-nearly-every-day-houston?akid=10911.81835.yRJa7d&rd=1&src=newsletter894783&t=9&paging=off

The threat posed to the public by police psychopaths is growing rapidly. Last July 19 the Wall Street Journal reported: “Driven by martial rhetoric and the availability of military-style equipment–from bayonets and M-16 rifles to armored personnel carriers–American police forces have often adopted a mind-set previously reserved for the battlefield. The war on drugs and, more recently, post-9/11 antiterrorism efforts have created a new figure on the US scene: the warrior cop–armed to the teeth, ready to deal harshly with targeted wrongdoers, and a growing threat to familiar American liberties.”

The Wall Street Journal, being an establishment newspaper, has to put it as nicely as possible. The bald fact is that today’s cop in body armor with assault weapons, grenades, and tanks is not there to make arrests of suspected criminals. He is there in anticipation of protests to beat down the public for exercising constitutional rights.

To suppress public protests is also the purpose of the Department of Homeland Security Police, a federal para-military police force that is a new development for the United States. No one in their right mind could possibly think that the vast militarized police have been created because of “the terrorist threat.” Terrorists are so rare that the FBI has to round up demented people and talk them into a plot so that the “terrorist threat” can be kept alive in the public’s mind.

The American public is too brainwashed to be able to defend itself. Consider the factthat cops seldom face any consequence when they murder citizens. We never hear cops called “citizen killer.” But if a citizen kills some overbearing cop bully, the media go ballistic: “Cop killer, cop killer.” The screaming doesn’t stop until the cop killer is executed.

As long as a brainwashed public continues to accept that cop lives are more precious than their own, citizens will continue to be brutalized and murdered by police psychopaths.

I can remember when the police were different. If there was a fight, the police broke it up. If it was a case of people coming to blows over a dispute, charges were not filed. If it was a clear case of assault, unless it was brutal or done with use of a weapon, the police usually left it up to the victim to file charges.

When I lived in England, the police walked their beats armed only with their billysticks.

When and why did it all go wrong? Among the collection of probable causes are the growth or urban populations, the onslaught of heavy immigration on formerly stable and predictable neighborhoods, the war on drugs, and management consultants called in to improve efficiency who focused police on quantitative results, such as the number of arrests, and away from such traditional goals as keeping the peace and investigating reported crimes.

Each step of the way accountability was removed in order to more easily apprehend criminals and drug dealers. The “war on terror” was another step, resulting in the militarization of the police.

The replacement of jury trials with plea bargains meant that police investigations ceased to be tested in court or even to support the plea, usually a fictitious crime reached by negotiation in order to obtain a guilty plea. Police learned that all prosecutors needed was a charge and that little depended on police investigations. Police work became sloppy. It was easier simply to pick up a suspect who had a record of having committed a similar crime.

As justice receded as the goal, the quality of people drawn into police work changed. Idealistic people found that their motivations were not compatible with the process, while bullies and psychopaths were attracted by largely unaccountable power.

Much of the blame can be attributed to “law and order” conservatives. Years ago when New York liberals began to observe the growing high-handed behavior of police, they called for civilian police review boards. Conservatives, such as National Review’s William F. Buckley, went berserk, claiming that any oversight over the police would hamstring the police and cause crime to explode.

The conservatives could see no threat in the police, only in an effort to hold police accountable. As far as I can tell, this is still the mindset.

What we observed in the police response to the Boston Marathon bombing suggests that the situation is irretrievable. One of the country’s largest cities and its suburbs–100 square miles–was tightly locked down with no one permitted to leave their homes, while 10,000 heavily armed police, essentially combat soldiers armed with tanks, forced their way into people’s homes, ordering them out at gunpoint. The excuse given for this unprecedented gestapo police action was a search for one wounded 19-year old kid.

That such a completely unnecessary and unconstitutional event could occur in Boston without the responsible officials being removed from office indicates that “the land of the free” no longer exists. The American population of the past, suspicious of government and jealous of its liberty, has been replaced by a brainwashed and fearful people, who are increasingly referred to as “the sheeple.”

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About Dr. Paul Craig Roberts

Paul Craig Roberts was Assistant Secretary of the Treasury for Economic Policy and associate editor of the Wall Street Journal. He was columnist for Business Week, Scripps Howard News Service, and Creators Syndicate. He has had many university appointments. His internet columns have attracted a worldwide following. Roberts’ latest books are The Failure of Laissez Faire Capitalism and The Failure of Laissez Faire Capitalism and Economic Dissolution of the West and How America Was Lost.

Bundy Ranch And Rights of the American People

Bundy Update: If This Politician Has His Way, The Feds Could Start Taking Out The Militia

“Get rid of these armed separatists.”


Photo Credit: Facebook/U.S. Rep. Tony Cárdenas

Along with Nevada Sen. Harry Reid, state Rep. Steven Horsford has been a constant voice of opposition against those who came to his state to support Cliven Bundy against federal agents they believed were using excessive force. Despite a dearth of evidence to back up his claim, Horsford has publicly stated that militia members in the Bunkerville area have established armed checkpoints and are routinely harassing local citizens.

His latest call to rid the area of these protesters came this past weekend during comments he made at an event in a neighboring town.

According to his account, an unidentified fifth grader told him Bundy suffers from a “sense of entitlement,” which apparently prompted Horsford to once again protest the presence of armed militiamen in his district.

“And that is why I am calling on [Gov.] Brian Sandoval, Sen. Dean Heller, the sheriff and any other elected official in Nevada to do their part to get rid of these armed separatists.”

Despite the fact that Nevada law allows individuals to carry firearms, Horsford wants local law enforcement to force these concerned citizens out of the community. Furthermore, he has called for a federal investigation into the activities of the remaining protesters.

Both Sandoval and Heller are Republicans who have, to varying degrees, spoken out against the invasion of federal Bureau of Land Management agents last month in Clark County.

Heller has been more supportive of Bundy and his supporters, however, describing protesters as “patriots.”

Sheriff Doug Gillespie did not immediately comment on the latest demand made by Horsford. For his part, Sandoval offered a measured response to a question regarding whether Gillespie is planning to use force in removing the protesters.

“No,” he said, “and even if he had said that, I wouldn’t share that with you; because certainly that’s a conversation between the two of us.”

Late last week, a post on the Bundy Ranch Facebook page indicated the family was calling on protesters to join them in filing a criminal complaint against the BLM. A lengthy post published Friday offered a transcription of a statement delivered by Ammon Bundy at the Clark County Sheriff’s Office earlier that day.

 

Photo Credit: Facebook/U.S. Rep. Tony Cárdenas


Read more at http://www.westernjournalism.com/nevada-democrat-wants-feds-return-time-take-militiamen/#bBl45xzbyVYtHy0X.99

Cops Killing Dogs, and Loving It!

Stay Away From Oklahoma With Your Pets!

Oklahoma Police Officer Shoots Family’s Dog Then Brags It was ‘Awesome’

 
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An Oklahoma family is devastated after a police officer shot their family pet for simply jumping the fence and getting loose.

Cali, a 2-year-old pit bull had escaped from the yard and had been reported by neighbors to be running loose in the neighborhood. When police and animal officers arrived, Cali evaded the officers, who then decided that the only way to handle the situation was the kill the dog.

Officer Brice Woolly shot one round into the neck of Cali, who was still breathing after the first shot. The police officer then instructed the animal control officer to finish the job.

A neighbor present when the shooting occurred claims Woolly seemed to take delight in downing the dog and overheard him saying to the animal control officer, ”Did you see the way its collar flew up into the air when I blew it’s head off? It was awesome!”

The neighbor also heard Woolly coach the animal control officer on how to fill out the report to avoid trouble.  ”We are just going to write this up in the report as the dog tried to attack me and you and others in the neighborhood,” Woolly told the other shooter, according to the neighbor’s account.

Cali’s death is also not the first time, or even the first time this month, that Officer Woolly used deadly force on an animal because it was ‘aggressive’ and the owner could not be located. On March 14, Woolly shot a dog twice. The owner of that dog was never found.

Despite the questions in the case, the Ardmore Police Department claims the matter has been closed and that Officer Woolly acted within the line of duty in shooting the dog.

Local residents and animal lovers, however, disagree. A petition that has already garnered over 17,000 signatures on Change.org  is calling for Woolly’s firing for his cruel action. A peaceful rally is also planned for March 29 to protest Cali’s killing by Officer Woolly.

Photo Credit: Facebook/Justice for Cali

Never Ending Foreclosures

      Foreclosure filings were reported on 124,419 U.S. properties in January 2014, an 8 percent increase from December but still down 18 percent from January 2013.  Foreclosure filings were reported on 1,361,795 U.S. properties in 2013, down 26 percent from 2012 and down 53 percent from the peak of 2.9 million properties with foreclosure filings in 2010.  But still, 9.3 million U.S. residential properties were deeply underwater representing 19 percent of all properties with a mortgage in December 2013, down from 10.7 million homes underwater in September 2013.[1] 

            In 2006 there were 1,215,304 foreclosures, 545,000 foreclosure filings and 268,532 Home Repossessions.  By 2007 foreclosures had almost doubled – up to 2,203,295 with 1,260,000 foreclosure filings and 489,000 Home Repossessions.  2008 saw an even further increase to 3,019,482 foreclosures, 2,350,000 Foreclosure filings and 679,000 Home Repossessions.  In 20093,457,643 foreclosures, 2,920,000 foreclosure filings, and 945,000 Home Repossessions.  2010:  3,843,548 foreclosures, 3,500,000 foreclosure filings, and 1,125,000 Home Repossessions.  2011:  3,920,418 foreclosures, 3,580,000 foreclosure filings, and 1,147,000 Home Repossessions.  Then January to September 20121,616,427 foreclosures 1,382,000 foreclosure filings and 572,844 Repossessions.  The remainder of 2012 – September through December saw an additional 2,300,000 foreclosures, 2,100,000 foreclosure filings and 700,000 Repossessions.  In other words, from 2006 through 2012, there were a total of  21,576,117 foreclosures; 17,637,000 foreclosure filings; 5,926,376 Home Repossessions.  The foreclosures added to the repossessions is equal to:  27,502,493[2].  The numbers are staggering.

            Many of the homes have been wrongfully foreclosed upon, where either the party had not been in default, or the foreclosing party lacked standing to foreclose.  It has become almost as lawless as the wildwest, or comparable to a shark feeding frenzy.


[1] All of the foreclosure figures came from RealtyTrac:  http://www.realtytrac.com/content/foreclosure-market-report

[2] http://www.statisticbrain.com/home-foreclosure-statistics/Statistic Verification  Source: RealtyTrac, Federal Reserve, Equifax

New Legal Issues – Jeff Barnes Esq., Foreclosure Defense Nationwide

NEW LEGAL ISSUES COMING UP IN TRIAL AND APPELLATE COURTS

DECEMBER 16, 2013

December 16, 2013

With the release of the US Bank admissions per our post of November 6, 2013; the issuance of the opinions from the Supreme Courts of Oregon and Montana holding that MERS is not the “beneficiary”; and recent opinions from various jurisdictions which are now, finally, holding that securitization-related issues are relevant in a foreclosure, a host of new legal issues are about to be litigated in the trial and appellate courts throughout the country. It has taken six (6) years and coast-to-coast work to get courts to realize that securitization of a mortgage loan raises issues as to standing, real party in interest, and the alleged authority to foreclose, and that the simplistic mantra of the “banks” and servicers of “we have the note, thus we win” is no longer to be blindly accepted.

One issue which we and others are litigating relates to mortgage loans originated by Option One, which changed its name to Sand Canyon Corporation and thereafter ceased all mortgage loan operations. Pursuant to the sworn testimony of the former President of Sand Canyon, it stopped owning mortgage loans as of 2008. However, even after this cessation of any involvement with servicing or ownership of mortgage loans, we see “Assignments” from Option One or Sand Canyon to a securitization trustee bank or other third party long after 2008.

The United States District Court for the District of New Hampshire concluded, with the admission of the President of Sand Canyon, that the homeowner’s challenge to the foreclosure based on a 2011 alleged transfer from Sand Canyon to Wells Fargo was not an “attack on the assignment” which certain jurisdictions have precluded on the alleged basis that the borrower is not a party to the assignment, but is a situation where no assignment occurred because it could not have as a matter of admitted fact, as Sand Canyon could not assign something it did not have. The case is Drouin v. American Home Mortgage Servicing, Inc. and Wells Fargo, etc., No. 11-cv-596-JL.

The Option One/Sand Canyon situation is not unique: there are many originating “lenders” which allegedly “assigned” mortgages or Deeds of Trust long after they went out of business or filed for Bankruptcy, with no evidence of post-closing assignment authority or that the Bankruptcy court having jurisdiction over a bankrupt lender ever granted permission for the alleged transfer of the loan (which is an asset of the Bankruptcy estate) out of the estate. Such a transfer without proof of authority to do so implicates bankruptcy fraud (which is a serious crime punishable under United States criminal statutes), and fraud on the court in a foreclosure case where such an alleged assignment is relied upon by the foreclosing party.

As we stated in our post of November 6, the admission of US Bank that a borrower is a party to any MBS transaction and that the loan is governed by the trust documents means that the borrower is, in fact, a party to any assignment of that borrower’s loan, and should thus be permitted to seek discovery as to any alleged assignment and all issues related to the securitization of the loan. We have put this issue out in many of our cases, and will be arguing this position at both the trial and appellate levels beginning early 2014.

Jeff Barnes, Esq., http://www.ForeclosureDefenseNationwide.com

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