When it comes to foreclosures ...

... It's all about the mortgage loan servicers!

(Op-Ed) — This is bigger than the BIG CON! And while I can’t give legal advice, I sure can point the finger (my middle one) in the right direction and at the right party, especially when experience factors into the equation. Every mortgage loan servicer has a document manufacturing unit … OR … in the alternative … a third-party document manufacturing mill that churns out crap at an alarming rate and causes it to be “electronically recorded” (18 U.S.C. § 1343) in land records that allow for such; or the mill mails the document for recording using the United States Mails (18 U.S.C. § 1341) … and what the the U.S. Department of Justice do about it? NOT ONE F**KING THING! So it’s up to us as consumers to “grow a pair” and launch a “full spread” against them!

Again, I refer you to the section in Paragraph 19 or 20 of your Mortgage or Deed of Trust unilateral adhesion contract that spells out the Note you signed will be sold, sometimes multiple times over, sometimes the Note will be split up and put into tranches (slices) on Wall Street in some securitized trust. This happens BEFORE you even get to the closing table! (I know, what was I thinking, right?)

Simply put, when you signed the Note at the closing table, you created a debt instrument for yourself, but you created an equity instrument for the “lender”.

BUT! The security was already being traded on Wall Street!

So you’re the maker of the Note. What did you get in return? Did you actually SEE the funds transferred into the seller’s account? No. You only got a paper statement called a HUD-1. That’s a government-issued and mandated mortgage statement, which means the U.S. government is in on the scheme. I call it a scheme because there are things that are not disclosed to you at the very beginning of the loan transaction (see the article “Attention Loan Applicants!”)

So where does the servicer fit into the equation?

1. The servicer for the mortgage loan originator (working in conjunction with the interim funding lender) was given your loan package (application, income statements, credit reports, etc.) and it opened an account in the MERS System® and obtained a MIN and caused that Mortgage Identification Number (18 digits) to be placed on Page 1 of your security instrument.

2. The servicer likely created all of your mortgage packet (paperwork) for you to sign. Neither the servicer nor the title company told you that the originating mortgage broker was being paid in full at closing, plus its commission for setting up the securitization scheme, backed by your collateral (your home).

3. There’s nothing in the paperwork that indicates that the originating lender told you that you loan application was turned into a security. But the servicer will take over your loan after you sign all the paperwork at closing … and THAT is in the paperwork.

4. The servicer is a member of the MERS System®. However, the Depositor that was supposed to be the middleman in the securitization transaction is not only NOT a MERS member, the Depositor doesn’t show up in the chain of custody or title to anything. The “lender” is counting on the fact you don’t understand that part of the equation. This is where the originating “lender” misled you into believing that YOU were the Borrower.

5. The servicer has already set up an escrow account (unless you choose NOT to escrow funds to pay property taxes and hazard insurance) and the monthly payment is then doled out to its appropriate account after you make your first payment. The “lender” always wants to make sure you can pay on your mortgage for at least the first 90 days. And why is that? Those of you who are paying to see the balance of this post will get the answers!