By now I imagine that everyone recognizes a pandemic of legally flawed foreclosures has infected America’s land records. But not everyone realizes how deep the greed and “corner cutting” goes. For example, a significant percentage of the flawed proceedings tainting our hundreds-year-healthy system of tracking land ownership may reflect nothing more than mortgage servicers’ unwillingness to get the original promissory note, mortgage and assignments from the vault. That is, using the real, accurate documents (and complying with the rules and law) is too expensive.
(Sorry officer, I recognize I was going 80 in a 35 mile an hour zone. It was costing me too much money to drive the speed limit. Time is money.)
Using the real documents is a hassle because the vault often isn’t at the mortgage servicer’s, but at a “document custodian” such as Deutsche Bank. So instead of getting the originals, the evidence I discuss below indicates that mortgage servicers print out the scanned images of notes that are already in their databases, the images the servicers received to start servicing the loans. These scans were typically made before the notes were endorsed, which means that the servicer is giving the court a printout that is not the “true and certified” copy of the note that the mortgage servicer is claiming it is and the rules require it to be.
It also means, in the case of securitized loans; that nothing will appear on the Note to tie the Note to the Securitized trust of Trustee in whose name the Servicer try to foreclosure (to put it simple, at least between 2002-2008 here were NO Trust as a legit corporation were ever formed, these are fake, fictitious non-existing entities whose name Servicers, like Wells Fargo bank uses to foreclose, with support from judges many of whom are either Big Banks shareholders or receive money from Banks lawyers for elections. )
That is, these printouts won’t prove standing even though the document in the vault, if property securitized, would be endorsed in a way that did.
So, by using these convenient and cheap printouts, Servicers cut costs while creating two kinds of problematic foreclosures for the rest of us.
If foreclosures based on unendorsed scans aren’t challenged and the foreclosure happens even though the foreclosure record does not establish the bank had the right to foreclose, THE PROPERTY TITLE IS CLOUDED.
Full article can be found here:Mortgage Servicers Screw Up foreclosures