Why You Must Defend Your Foreclosure
Why You MUST Defend Your Foreclosure
I have seen thousands of cases, where the homeowner that is facing a potential foreclosure or is already in foreclosure, simply give up and walk away from their home. I can readily understand the pain and hopelessness that goes with this tragedy.
Once someone gets behind on their mortgage payments for a multitude of reasons, they are already ‘teetering" on the brink of credit disaster. Being in the credit industry for so many years, I have had hundreds of clients come to me and after reviewing their credit reports, the one single entry that triggered denials for a mortgage approval was the mention of "MORTGAGE LATES" on a credit report.
Once you have that MORTGAGE LATE on your credit report, the lending industry looks at it in this fashion. Now, whether or not, you "didn't want to make the payment" "couldn't make the payment" or "simply forgot to make the payment" don't make any difference to the underwriters. You see, in the mortgage industry, there is a function called "desk top" underwriting. Your loan file is sent in and the credit report is analyzed automatically and those mortgage late payments automatically trigger a denial.
Now, let's get back to "why you should defend your foreclosure". When you defend your foreclosure you force the lender to produce the original note or a certified copy of it. But, if you have been reading any of my previous articles, or any of the other articles available relating to "lost note affidavits" you have to understand how your note was securitized and used and collateral to fund an "ASSET BASED TRUST" of which you knew nothing about. PERIOD. I can rant and rave about the scams and fraud in the industry, but I have already published enough articles on that portion of the industry that when combined might be a small book.
Read the following paragraphs over and over. It, just might affect your family's entire credit future. You see, once you are late on a mortgage payment, it is reported to the credit bureau, either Experian, Transunion or Equifax as being (30) days late. When, you, miss the next months payment the mortgage payment is reported as (60) days late. When the third payment is reported you have a (90) day late on your credit report. Mind you, there is no foreclosure reported on your credit report.
Here is where so much mis-information has been thrown upon average people and those that provide the information should be sanctioned for it. Even though, there is no foreclosure on your credit report at this time, those in the lending industry already know that being (90) days late means the lender can start the foreclosure proceedings. So, now enough damage is already done to your credit report to eliminate any future credit approvals for another mortgage loan.
These peddlers of "credit trash" tell you in their fancy brochures to "sign here" and eliminate the "foreclosure" showing on your credit report. Hell, the majority of the damage is already done by then. The process down the line, once a foreclosure has been legally filed is the "lis pendens" which is the notice to foreclose. You still have the option at that time to sign a "deed in lieu of foreclosure" with the bank and that simply eliminates the additional cost to them. They like this, because it saves them money. You might not be aware, but a foreclosure action costs the bank thousands of dollars.
You save them money by signing a "deed in lieu of foreclosure". This is how the event is kept off of public records. But, let's get back to the defense of your mortgage. When you are sued by the lender, who is the plaintiff in this scenario, you defend this by asking the court to have the plaintiff produce the actual note or a certified copy thereof.
Now, there are some states that allow a lender to re-produce the note under oath. But, even though, they might have produced a copy of the note, UNDER OATH, the same rules prevail with that re-production as with the original note. The note must have shown all assignments and endorsements along with it. The endorsements and assignments MUST be recorded in the county records to show the public that the note is legally owned by the party of which it was endorsed to.
Okay, let's make it simple. IF, I give you a check made payable to you and you give it to another party, guess what? You have to sign the back of the check and endorse it, in order for the next person to legally own the check and be able to cash it.
A mortgage note follows the same procedure. Now, when you appear in court, or even if you answer the complaint and make the plaintiff produce the note, in the majority of cases they fail. Now, here is what the Judges have ruled throughout the country. You can get samples of these cases by going to my website. The Judges have ruled that the "plaintiff has no standing in court because they are NOT the owner of the note".
This is so important for you regarding your credit report. We know the credit reporting agencies have reported what the furnishers of information have provided to them. BUT, when you confront the credit reporting agencies with a copy of the court's ruling regarding the ownership of the note, the credit reporting agencies are reporting information from someone, whom the courts have determined do not own the note, illegally.
How can someone that has NO INTEREST in a debt, report information on a consumer? This would be tantamount to letting strangers report information to a credit bureau because they had a grudge. This is the ONLY ammunition that I know of, that gives you a chance to eliminate those ninety day lates and even the foreclosure entry.
Now, if you fail to defend your foreclosure, and the plaintiff gets a default judgment, you have given up any chance of helping yourself. Run this by your attorney or accountant. Hell, they don't understand this portion of the law and they will say "let me research it" and you spend thousands of dollars letting them practice on you.
Hope this gives some light to your candle of life. You deserve some honest answers and a total understanding of our system.
Respectfully,
Regis Sauger Author/Speaker
I have seen thousands of cases, where the homeowner that is facing a potential foreclosure or is already in foreclosure, simply give up and walk away from their home. I can readily understand the pain and hopelessness that goes with this tragedy.
Once someone gets behind on their mortgage payments for a multitude of reasons, they are already ‘teetering" on the brink of credit disaster. Being in the credit industry for so many years, I have had hundreds of clients come to me and after reviewing their credit reports, the one single entry that triggered denials for a mortgage approval was the mention of "MORTGAGE LATES" on a credit report.
Once you have that MORTGAGE LATE on your credit report, the lending industry looks at it in this fashion. Now, whether or not, you "didn't want to make the payment" "couldn't make the payment" or "simply forgot to make the payment" don't make any difference to the underwriters. You see, in the mortgage industry, there is a function called "desk top" underwriting. Your loan file is sent in and the credit report is analyzed automatically and those mortgage late payments automatically trigger a denial.
Now, let's get back to "why you should defend your foreclosure". When you defend your foreclosure you force the lender to produce the original note or a certified copy of it. But, if you have been reading any of my previous articles, or any of the other articles available relating to "lost note affidavits" you have to understand how your note was securitized and used and collateral to fund an "ASSET BASED TRUST" of which you knew nothing about. PERIOD. I can rant and rave about the scams and fraud in the industry, but I have already published enough articles on that portion of the industry that when combined might be a small book.
Read the following paragraphs over and over. It, just might affect your family's entire credit future. You see, once you are late on a mortgage payment, it is reported to the credit bureau, either Experian, Transunion or Equifax as being (30) days late. When, you, miss the next months payment the mortgage payment is reported as (60) days late. When the third payment is reported you have a (90) day late on your credit report. Mind you, there is no foreclosure reported on your credit report.
Here is where so much mis-information has been thrown upon average people and those that provide the information should be sanctioned for it. Even though, there is no foreclosure on your credit report at this time, those in the lending industry already know that being (90) days late means the lender can start the foreclosure proceedings. So, now enough damage is already done to your credit report to eliminate any future credit approvals for another mortgage loan.
These peddlers of "credit trash" tell you in their fancy brochures to "sign here" and eliminate the "foreclosure" showing on your credit report. Hell, the majority of the damage is already done by then. The process down the line, once a foreclosure has been legally filed is the "lis pendens" which is the notice to foreclose. You still have the option at that time to sign a "deed in lieu of foreclosure" with the bank and that simply eliminates the additional cost to them. They like this, because it saves them money. You might not be aware, but a foreclosure action costs the bank thousands of dollars.
You save them money by signing a "deed in lieu of foreclosure". This is how the event is kept off of public records. But, let's get back to the defense of your mortgage. When you are sued by the lender, who is the plaintiff in this scenario, you defend this by asking the court to have the plaintiff produce the actual note or a certified copy thereof.
Now, there are some states that allow a lender to re-produce the note under oath. But, even though, they might have produced a copy of the note, UNDER OATH, the same rules prevail with that re-production as with the original note. The note must have shown all assignments and endorsements along with it. The endorsements and assignments MUST be recorded in the county records to show the public that the note is legally owned by the party of which it was endorsed to.
Okay, let's make it simple. IF, I give you a check made payable to you and you give it to another party, guess what? You have to sign the back of the check and endorse it, in order for the next person to legally own the check and be able to cash it.
A mortgage note follows the same procedure. Now, when you appear in court, or even if you answer the complaint and make the plaintiff produce the note, in the majority of cases they fail. Now, here is what the Judges have ruled throughout the country. You can get samples of these cases by going to my website. The Judges have ruled that the "plaintiff has no standing in court because they are NOT the owner of the note".
This is so important for you regarding your credit report. We know the credit reporting agencies have reported what the furnishers of information have provided to them. BUT, when you confront the credit reporting agencies with a copy of the court's ruling regarding the ownership of the note, the credit reporting agencies are reporting information from someone, whom the courts have determined do not own the note, illegally.
How can someone that has NO INTEREST in a debt, report information on a consumer? This would be tantamount to letting strangers report information to a credit bureau because they had a grudge. This is the ONLY ammunition that I know of, that gives you a chance to eliminate those ninety day lates and even the foreclosure entry.
Now, if you fail to defend your foreclosure, and the plaintiff gets a default judgment, you have given up any chance of helping yourself. Run this by your attorney or accountant. Hell, they don't understand this portion of the law and they will say "let me research it" and you spend thousands of dollars letting them practice on you.
Hope this gives some light to your candle of life. You deserve some honest answers and a total understanding of our system.
Respectfully,
Regis Sauger Author/Speaker
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