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ML-Implode Exclusive: Foreclosure Expert Mildred Wilkins Blasts Industry in “Fraudclosure” Report

Direct Impact of Title Uncertainty

Those consumers who have or are facing foreclosure are directly impacted by the actions of lenders, the inclusion of their mortgage in mortgage-backed securities and the ensuing uncertainty of who is the true holder of your mortgage and note. The question is not “do you owe a mortgage on your home?” The true questions are

  1. Who is the rightful holder of your mortgage and note?
  2. Who has the authority to grant a workout or make a modification to your loan?
  3. Who has been receiving payments? (not who you paid them to but who received them)
  4. Who has an accurate accounting of how much you have paid?
  5. Whom should you turn to for an accurate accounting of any costs you are obligated to pay under the terms of your mortgage agreement?
  6. Who should be the decision maker in any dispute you may have about something, such as force-placed insurance which, you have asserted was erroneously placed on your mortgage at costs sometimes as high as 8-10 times the customary amount?
  7. Who has the true authority to make a decision on a modification—lenders have been quoted in sworn statements as denying they have the ability to do that based on investor instructions, yet I have read servicing rights granted by investors which grant authority to lenders to make modifications (both interest rate as well as principal reduction) ? (See End Note 4)
  8. Who has the final authority to make decisions on acceptable short sales? Lenders claim their hands are tied, again, because the investors have to tell them what to do. (See End Note 5)
  9. Who has the right to foreclose if you are not able to pay? Who has legal standing?
  10. Who will bear the ultimate loss on your obligation if it remains unpaid?

All these questions (and more) will track back to ‘the holder in due course of your mortgage and note’. Not one or the other, but the two documents as a cohesive unit, married at your loan closing and inseparable as a legitimately enforceable document. Each carrying 50% of 0 value; but together worth 100% value.

Direct Impact of a Note which cannot be located…

Or the Official Holder cannot be identified.

Borrowers who are current:

  • Have payments been credited to the CORRECT holder of your mortgage?
  • If payments have not been credited to the correct holder in due course, what is the actual status of your mortgage?
  • If your note remained in the possession of your original lender, who has since been swallowed by another institution (or died of natural causes), your note can NOT legally be transferred to catch up with your mortgage which has been transferred multiple times. Your mortgage obligation remains but is now unsecured and to whom you owe is in the million dollar question
  • When your mortgage is paid off, can you know, with certainty, that the true holder, was, in fact, PAID?
  • Since Nationwide Title Servicing employees testified in sworn testimony on
    November 4, 2010 that they robo-signed both assignments and satisfactions of
    mortgage—without verifying anything—has your mortgage been properly released?

While the foreclosure crisis has drawn attention to the ambiquity of ‘who’s holding the note’, the essential issue is equally critical for ALL homeowners and must be addressed as we continue to move through the crisis. In point of fact, I would be more concerned if I was current or had a paid off home that I had a clear title or was paying the correct holder of my note than if I was about to lose my home to foreclosure. If you are sitting on the sidelines and blaming the ‘deadbeats’ you might want to check your title since your mortgage/note has been handled
by the same robo-signers, document procurement companies and the same entities who are now wrongfully foreclosing on homes across the country.

Chain of Title—More Important Than Ever

Securitization on steroids—accomplished with the implementation of MERS—has
scrambled the chain of title for mortgages which have been securitized via that system during the past 15 years. At the heart of the “show me the note” foreclosure defense is the legal issue of who is in possession of the note which:

  1. Grants ‘standing’ to the person who can demonstrate they have custody of the note
  2. Demonstrates who is the ‘real party of interest’ or has an enforceable claim
  3. Allows the person who has been identified in #1 and #2 to pursue a foreclosure once a default has occurred.

“Produce the Note Act of 2009”

It is extremely frustrating as a consumer advocate to watch what has happened in this country with unchecked foreclosures based on fraudulent or missing documents, legal counsel operating with total disregard for the legal system and a legislative system only now beginning to show any interest in listening to the complaints which have been raised by both legal defense counsel and individual consumers for several years now. Congresswoman Marcy Kaptur, a Democrat from Ohio gets it. But Marcy did not jump on the band-wagon AFTER the robo-signing was exposed. Marcy drafted and sponsored the “Produce the Note Act of 2009” in February of 2009. I have studied the document and believe it would have prevented more than a million people from losing their homes had it been passed and implemented last year when it was presented. It went nowhere which is a strong testament to who is being supported and protected by the majority of our elected officials. I strongly urge you to google the document, study it and push to have it re-introduced in the next session of Congress. It’s already written (very well I might add) so they can just brush the dust off and change the year. It would put an instant and complete halt to fraudulent foreclosures by pretender lenders who are not in possession of the note. While this would not address the cloud on the titles already scrambled, it would go a long way toward marking a turning point in our battle to stop the bleeding.

Lenders have been successful in operating the BANK GAME with their preferred way of doing things partly because

  1. almost nobody knew there are official rules they were obligated to follow
  2. they were quick to yell “ we are being regulated”
  3. they managed to get legislation passed which increased their control over
  4. consumers were not desperate enough to attempt legal action until banksters
    became so flagrant in their deeds that the public conscious said ‘no more’
  5. the public bought into their “God complex”
  6. they created a model for operation which became their industry standard and only retired bankers rat them out about all the crazy, fraudulent, underhanded stuff they do
  7. consumers felt powerless to fight back even when they knew the bank was wrong because they felt guilty about being in their situation
  8. because the internet had not made it possible for so many from across the entire country to compare notes about what they were experiencing
  9. because it is hard for even me and the small circle of seasoned consumer advocates whom I talk with who have been aware of the issues for years to get our heads around the magnitude of the greed, willingness to swear to known lies, disavow long term employees (Countrywide/Bank of America in the Matter of Kemp v. Countrywide Home Loans, Inc. 08-02448, U.S. Bankruptcy Court for the District of New Jersey, Cambridge)
  10. The lack of regard for the laws of our country and a willingness to compromise the same at the most fundamental level is almost too much to comprehend. And yet, the facts are indisputable. The magnitude cannot be overlooked.

American banks created a whole new rule book, quietly agreed among themselves to ignore any law or right which interfered with the goals of maximizing profits at every conceivable opportunity. They have all played by their rules with the ultimate cost to be financial upheaval around the world. Our investors in foreign countries will not soon forget the castrophe which we are about to bring down on their heads as well.

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There Are 9 Responses So Far. »

  1. My family’s saga is being told on nhjustice.net. It is a very ugly story about how a small state has been captured by big financial interests, and has used the ‘color of law’ to take private property from the average citizen and turn it over to the large financial/business interest. In our case, the State overtly took $100,000, but there may have been more trading that we are not aware of.

    Today, I am schedule to have a competency hearing. The State’s Office of Forensic Examiners found me not competent because I essentially reported exactly what you are reporting in this paper. The only difference was that I used the specifics of my case. And, the names are very well know. And, on is about to get the medal of freedom award for his assistance in the 2008 bailout of the banksters.

    Thank you for continuing to write on this issue. Individual citizen families cannot fight the foreclosure fight alone. We continue to pray that some authority will intervene on our behalf. Perhaps I will know more after 1Pm today. That is the time of the competency hearing.


    Jean E. Allan aka Jean E. Allan Sovik

  2. […] 1 2 3 4 5 6 […]

  3. For anyone who has had their property fraudulently sold, they have another battle to fight – that of the Title companies that insured the forged deeds.

    After having Astoria Federal S & l ,Successor in Interest to Fidelity NY FSB state in New York Supreme Court in front of Judge Alice Schlesinger, Its Indemnify, Indemnify Indemnify , we are stepping aside and the title coompanies are stepping in.(Astoria Federal with corrupt debt collector attorneys Mullooly, Jeffrey Rooney & Flynn auctioned off my two NYC condos to straw buyers without even owning my two properties.

    Fast forward – The Bank got rid of these corrupt attorneys MJRF and has new attorneys. At that point when the banks new attorneys said it’s Indemnify , I should have been given back possession of my two condos.

    Instead corrupt attorney Thomas Malone for Fidelity National Title and corrupt attorney David K Fiveson of Coronet Title did not want to indemnify the forged deeds they insured but wanted to be Intervenors instead and be heard and what they told the court is time makes forged deeds good.


    The Title Companys , Judge Alice Schlesinger of NY Supreme Court, and I all know there is no “equity” in a forgery.

    With the fraud being discovered at William P Foley’s (CEO) Fidelity National Title ,Fidelity National Financial and Lenders Processing Service (DOCX) the title attorneys statement to Judge Schlesinger “we have equity”,
    only meant there was money under the table for the judge and Judge Schlesinger said to me, “it doesn’t look good for you” and she ruled against the law.

    Judge Alice Schlesinger perpetrated Title fraud with Fidelty National Title and Coronet Title.

    I am the true owner of apts xx and xx at xxxxxxxxx and I will continue to pursue to get possession of my two condos.

  4. Hi Mildred:

    Great article on the title crisis. I am giving a CLE class on foreclosures and title and in my research have found what you are saying regarding MERS, securitization and standing to foreclose.

    My read is that the new owners of the homes who bought foreclosures or REO’s probably won’t be thrown out avoiding a claim to the title company. The original homeowner, although delinquent and subject to a legally done foreclosure, may have a claim against the lender who foreclosed illegally and took their house.

    It is somewhat confusing unless I do a flow chart, but in your opinion who is going to be held culpable including the referee. Thanks.

    Mike Haltman

  5. Great article but you miss real valid arguments. 99% of the notes are unenforceble if transfered correctly into the trust. Why?

    )1 Because once the notes enter into the REMIC they are no longer notes but have been converted into bonds. Once done, they can not be undone.

    2) Likewise the mortgages/DOT also need to transferred, assigned and recorded at the local level in order to get into the trust. The problem is the trust can’t hold assets or they lose there IRS tax free status and their ability to be bankruptcy remote.

    What you have here realy is the sale of unregistered securities to unknowing investors (homeowners). The banks and securities underwriters knew this all along and that’s why nothing was ever transferred and they used MERS to hide it all.

    Let’s follow the rabbit further down the hole. When a homeowner makes a payment that payment was never truly credited on the books of his loan. Why? Because the money was paid into a pool(trust) where the bonholders were paid in their tranches. This why they will not and cannot produce the loan level files.

    On top of that you need to also factor in the over$ 7 trillion dollars in bailout money the FED(foreign owned) gave out and the billions of dollars the FDIC bought back of MBS from all the players. Also, the CDOS, CDS, insurance money that has already been paid off.

    There is no money owed and their is no clear title! How do you fix that mess?

    Iit is FRAUD from the creation at every juncture of the game and all the players are complicit including thegovernment for the coverup.

  6. This is directed to Michael Haltman’s question. As I’ve read it,if fraud was used in a lawsuit, and then, post judgment proved, then the original lawsuit is deemed VOID ab initio…. (or “at initiation”)that means it’s as if the judgment was never rendered! Ergo, the “new owners” own nothing! How could they? They were, after all, only a part of a fraudulent scheme. And the correct procedure for the “victims” who originally lost their homes would be to submit a motion to vacate a void judgment and once ruled on, to file an eviction notice. Woe befalls those who participated in the fraud, the buyers & the sellers of the illegally foreclosed on property.

  7. I read the article with great interest although I am already familiar with this mess. However, great as the information may be, it still doesn’t answer any questions. For example, here’s my predicament:

    1. I refinanced my mortgage in Nov. 09 with BofA. At the time of the closing, I was provided with blank copies of all my docs. Shortly thereafter, I received a notice telling me that they had already shuffled the mortgage around to someone else. When this mess hit the public eye, I started to track my papers but to no avail. My payments are going to (what seems) is BofA and I’m receiving statements from what seems to be BofA. I requested a copy of my Deed and Note and, instead, received a copy of my appraisal report which tells me that they don’t have the original documents. I hold a recorded Deed, Note and Title from Chase (my prior mortgagor) but have not received the discharged papers from them either. So what does that mean? What am I supposed to do? Where do I start looking? What are my options? Coincidentally, my mortgage is in good standing and I’m in no danger of losing the home that I know of.

  8. Lots of fraud folks. Many of the crooked attorneys who foreclose very homes are financed by the mortgage companies they foreclose for. Many of the judges are taking bribes thru their homes also being financed multiple times and then paid off by robo signers. Basically check the records they’ll get loans totaling $200,000 up to millions on the same home some show 2-3 loans a year. The loan is quickly paid off, a few months later they’re given another loan. No one can do this, but they can. The government doesn’t inquire about a fat check like this. They walk away with big bribes to go against borrowers no matter even though they know it’s a fraudulent loan. Many of these attorneys and judges allegedly make no house payments.

    Their income would not sustain this but they have been also trustees for predatory lenders also and trustees for home improvement companies that defrauded borrowers which turned into predatory loans. This is how they proved themselves worthy to be judges and hold a license to defraud the borrowers. This has been going on for years. They are being paid by the title companies and banks to do this folks. This is a big network all the attorney bar associations want to keep the crooks on the bench. This the very reason when folks have been defrauded by mortgage and title companies most attorneys refuse to take the case or if they do take the case won’t fight and just take clients money. They know what will happen if they challenge the crooks, they won’t ever win another case in court. This thing is sinister folks, but true

  9. I am involved in several loans with Ocwen as servicer. They have unbelievably sent me copies of bills they have submitted in my case (one for a property already sold at auction to them; one which they refuse to sell despite my many requests to do so)which total over $30,000 for two BPO letters, which normally run around $100 apiece. Clearly they’re milking somebody – I guess the taxpayer. Isn’t anyone watching these thieves?

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