Notice to Potential Bidders:

You will be bidding on a lien, not on a property


“Next up is this $400,000 lien, um, I mean property, that was stolen by a bank. As with all our items for sale, this Note was intentionally destroyed years ago, so the Deed/lien has nothing to attach to. All the assignments of mortgage have been forged and fabricated by the mortgage industry, rendering the title fatally-flawed and unmarketable. But the industry has secret oral contracts with most of our local judges demanding they give value to your worthless purchase, and have streamlined the litigation process to conclude within 5-20 years.

OK… we have a bid for $400,000 from the fool in the back - do I hear $425? ...” 


George Mantor | 11/21/14

The Notice to Potential Bidders is now included in all Notice of Trustee Sale recordings in California. I’ll bet most foreclosure buyers still think they are bidding on actual property. They aren’t; they are bidding on a debt that the current owner can’t collect on.

When a big powerful collection agency gives up on a debt, they auction it off on the Courthouse steps just as though real property were involved.

It is well known, yet never discussed, that the mortgage-backed securities are backed by nothing at all. The same mortgages were used over and over again. The investors are mostly pension funds which, as a result, are substantially underfunded. The only people who don’t know about this are the pensioners themselves.

Not satisfied with that, many lenders are further engaged in the process of stealing people’s homes. As everyone now knows, fraudclosure victims got little of the tens of billions of dollars from all of those fraudclosure settlements. The agreements themselves were gifts to the big banks and servicers, allowing them to take billions on tax credits for reducing mortgage balances on mortgages they didn’t even own.

I got no money in my settlement agreement with a party I did not sue. Did you get that? An unnamed party to my law suit settled on behalf of several other defendants. But, the new entity sent me a 1099 for nearly half a million dollars. That 1099, along with other provisions of the government settlements, net $1.3 million off of the settlements total obligation without this party ever paying out a dime.

The joke is, I know, that these people have no right to any money I am paying them, and they totally lack the legal ability to foreclose. I’m just waiting for the legal landscape to catch up to what we know.

Within the terms of the government settlements, was the agreement to stop fraudclosing on homes they couldn’t prove their claim to. Pretty much all of them. This in part has led to the term “zombie foreclosure” because the majority of securitized loans have irreparable breaks in the chain of ownership since they were used as collateral in many different pools of made up loans.

Up until the settlements, Fidelity Title subsidiary, Lender Processing Services (LPS), unit DOCX would simply fabricate and forge documents for a fee.  Servicers would robosign and falsely notarize them. Then the foreclosure mill law firm, posing as a substituted Trustee by virtue of the paperwork in hand only, recorded them to get a stamp of authenticity.

The banks and major servicers agreed to stop doing it, although most continue simply because there is no deterrent to doing so, or they have created shell companies who do it for them.

Bank of America wound up with a warehouse full of old Countrywide predatory loan files that they could no longer pursue; but that wouldn’t apply to an entity not a signatory to the settlement agreement. So, those boxes of files were sold off to new servicers, many of whom weren’t even in the game until the settlements were agreed to.

These companies (Nationstar, Greenpoint, etc.) were formed, often by former senior executives of now defunct mortgage originators, with the express purpose of coercing as many revenue streams as possible out of boxes of trash, essentially loan origination files, not custodial files.

There are no custodial files and many of the loan origination files were destroyed when street level originators went out of business.

These new entities send letters saying they are the new servicer and they are ready to modify the loan. Why not? If ten people out of 100 agree to send them $2,000 per month on the “Modified” loan, that’s a great business model. They know that there are no legal parties who could lawfully foreclose, and because 96 percent of foreclosures are uncontested, there is almost no obstacle to them threatening or attempting to foreclose.

This is actually a new loan that winds up waiving many of the borrower’s rights going forward. Foreclosing isn’t the primary purpose of these entities, blackmail is. “Start paying me or I will steal your home because I can manufacture the documents needed to do it.”

So, nothing has changed. Despite the billions in settlements and the promise to never do it again, nothing has changed. They are thumbing their noses at the justice system because they know that there will be no consequences. It’s a low risk business plan that converts worthless documents into either revenue streams or valuable real property while everyone looks in the other direction.

If the servicer doesn’t really know who the Trustee is, then who are they sending the payments to? They aren’t sending anything to anyone. It’s all a scam.

To further illustrate, here is an excerpt from a letter I wrote on behalf of a fraudclosure victim to the Vice President of Bank of New York Mellon, Mr. Gavin Tsang, and supposed Trustee for many, many pools of tranched-up loans.

Regardless of the current status of your loan, you should challenge the Trustee. You may have no obligation to continue making your payments. Feel free to use this with appropriate changes.

Dear Mr. Tsang:

Please find enclosed a copy of an Assignment of Deed of Trust purporting to transfer the alleged note to my property to Bank of New York Mellon as Successor Trustee to JP Morgan Chase as Trustee for The Holders of SAMI II Trust 2005-AR8 for value received, by MERS, an entity claiming to be the holder of the Deed of Trust.

I am certain that you will immediately note that there are numerous irregularities that conclusively prove that the Assignment is fabricated, forged, robosigned, falsely notarized, and unlawfully recorded in violation of California Law.

Nonetheless, these fabricated documents are being used to coerce me into taking out a loan with an entity named Nationstar Mortgage.

For months, in numerous correspondences, Nationstar insisted that JP Morgan Chase was the beneficiary of the note referenced in the Assignment and that Chase had retained them to commence foreclosure upon the property referenced in the assignment of Deed of Trust.

They advised me to address any questions to Chase.

On July 21, 2014, JP Morgan Chase wrote, “In response to your inquiry, we have determined that CTX Mortgage is servicing your loan. We have no record of any mortgage loans for you.”

Upon providing Nationstar Mortgage with the written statement from Chase, they now insist that you are the one who initiated the foreclosure. They imply, but do not come right out and say, that you sent them the Note so that they could proceed.

But, there is no evidence that MERS, you, or anyone other than CTX ever possessed the note.

Consider the facts.

Fact: The SAMI II trust is a REMIC trust formed in 2006 under the laws of New York State and governed by a Pooling and Servicing Agreement.

Fact: The Pooling and Servicing Agreement clearly requires the original Mortgage Note with all applicable riders, bearing all intervening endorsements showing a complete chain of endorsement from the originator to the last endorsee, endorsed "Pay to the order of _____________, without recourse" and signed in the name of the last endorsee forwarded to the Trustee within 90 days of the closing of the trust.

If we believe the forged Assignment, that requirement of the Pooling and Servicing Agreement was not met.

Fact: The assignment of Deed of Trust, transferring the Note with it for valuable consideration was, according to the four corners of the document, executed on September 27, 2011, by Alice Rowe.

Fact: As Trustee for the Holders of SAMI II Trust 2005-AR8, Mortgage Pass Through Certificates, you could not have, nor would you have, accepted that late transfer because applicable law governing the agreement, EPTL 7-2.4, specifically prohibits such transfers as ultra vires acts that are void ab intio.

Fact: If you received and accepted the Note in 2011, you would have tax filing requirements and would have needed to disclose this transfer on the Trust’s Federal REMIC annual tax return, Form 1066, Schedule J, Part III, which shows the Trust’s taxable mortgage loan contributions after the startup or closing date for each taxable year.

Fact: That would have cost investors substantial tax penalties.

Fact: The so called endorsements of the Note are also forged and are ineffective in that they are not on the original Note but what appears to be a separate sheet of paper with three rubber stamps.

Fact: The undated endorsement of the Note, if that is the Note, by CTX employee, Danita Ford, is a forgery since Danita Ford left CTX Mortgage more than five years before the loan was even originated. This fact alone unavoidably creates the impression of willful deceit since you or your agents are the party proffering this dubious document as a tenuous link to collect an alleged debt.

Unavoidably, these circumstances create several questions as to whether or not I am attempting to modify my loan with an entity that has any legal authority to actually do so and they are fabricating documents to hold over me the threat of foreclosure if I do not agree to a new loan with them.

Where was the Note from the closing of the loan until you received it from Alice Rowe sometime in late September or early November of 2011?  It had to be somewhere other than the Trust. MERS didn’t have it, they are nothing but a member accessed data-base with no custodial operations.

California has no requirement that the Assignment of the Deed of Trust be recorded so why would Nationstar record it?

Because, according to the chain of title, excluding the fabricated 2011 void assignment, Bank of New York has no link to the transaction and CTX remains the beneficiary under the Deed of Trust and the only party with whom I could negotiate a modification.

CTX is the last known party to actually have possession of the Note and Trust Deed.

Either the loan was placed in the trust or it wasn’t. The production of Form 1066 establishes the truth, one way or the other.

If you are not participating in this obvious fraud, you are involved by implication. They have no legal authority and are using you to facilitate interstate criminal activity. If you have the note, it should be reconveyed to me since, as you know, it has already been satisfied.

Please advise Nationstar and their accomplices, Sage Point, to withdraw and cause to be rescinded all forged documents creating a cloud on my title. 

And for those of you considering bidding on a foreclosed property, take note of the title of the article and the title to the property….very closely. The scams continue.