Tag Archives: Bankruptcy

Bank of America Slammed For Pursuing Nonexistent Debt and Filing False Foreclosure: Judgment for Borrower $204,000

Goodin v Bank of America N.A.

(with many thanks to J. Larry Nemec who forwarded this to me).

A Jacksonville federal judge has issued a sharp critique of Bank of America in a case involving a Jacksonville couple where the bank mishandled court filings and began a years-long process of trying to collect a non-existent debt and falsely filing for foreclosure.

Bank of America ruined their retirement, Deborah and Ronald Goodin testified, and it may have ruined their marriage, too.

The Goodins, like many American families, made a bad business decision just as the Great Recession began. By 2009, they filed for bankruptcy. They never missed a payment into a bankruptcy trust that was supposed to take care of their mortgage.

But then a year after taxpayers gave Bank of America a $45 billion bailout, that bank took over the mortgage from another lender in August 2009, and Bank of America, which handles trillions of dollars of deposits, failed to file a routine legal motion that would give it access to the bankruptcy trust.

BOA like the other banks is in pursuit of foreclosures for many reasons. They have no right to foreclosure and the real creditor is being blocked out of the equation. The so-called investor doesn’t even know the foreclosure was filed. And they are contractually stopped from even inquiring, just as the Trustees of the REMIC Trusts don’t know anything, don’t have anything and are not allowed to do anything or ask anything.

The plain truth is that BOA and other banks are pursuing foreclosures not because they are the lender or a successor to a lender or even an authorized representative of the real creditor. They are actually using the illusion of a default and foreclosure to cover up the fact that they are really suing for themselves — even if they are not the lender, the successor or authorized representatives. They are getting title to homes in which they have no investment.

SO THE FREE HOUSE IS GOING TO BOA AND OTHER BANKS, NOT THE BORROWER.

ORDERED:

1. Bank of America’s Motion to Amend Pleadings is DENIED.

2. The Court intends to enter judgment in favor of Plaintiffs Ronald and Deborah Goodin and against Bank of America in the amount of $204,000 once attorneys’ fees have been decided. The Goodins have until July 15, 2015 to file a motion for attorneys’ fees and costs, and Bank of America has until August 10, 2015 to respond.

DONE AND ORDERED

23 June 2015 Timothy J Corrigan Goodin v Bank of America Jacksonville Florida

Reference Info:Federal, 11th Circuit, Florida | United States

THE COST OF THE GENERAL MOTORS BAILOUT: Is Racism or Race the Cause for the Failure of Black Run Cities like Detroit & Gary? Paul Kersey, SBPDL, August 15, 2012

Wednesday, August 15, 2012, Paul Kersey, SBPDL, August 15, 2012

The General Motors Bailout: When Corporate Fiscal Responsibility Collides with Black-Run America

PK Note: This had to be published, in light of the revelation that the General Motors (GM) bailout is going to cost the US Treasury even more money — $25 billion. Why no one in the mainstream media (MSM) will point out what Steve Rattner exposed in his book on the auto industry bailouts is beyond me, but it must be stated. Also, send in an e-mail to sbpdl1@gmail.com and let me know which city should be next for the Detroit/Atlanta treatment; I’m thinking Chicago or Birmingham. 

GM wanted to move its headquarters from Detroit to its Tech Center location in Warren to save money and potentially avoid receiving TARP funds. Government said “no” — Detroit is 90% Black; Warren is 78% white

Reading Steve Rattner’s Overhaul: An Insider’s Account of the Obama Administration’s Emergency Rescue of the Auto Industry  brought about a politically explosive revelation that has been completely ignored in the whole TARP narrative. With the bailout of General Motors by the US tax payer continuing to grow in costs (the Detroit News reports the costs will now put the bailout of GM in the red to the tune of $25 billion), Rattner’s revelation regarding a plan that would have potentially kept GM from receiving TARP money – that was shot down because of a devotion to political correctness – must enter the discussion.
But first, a quick history lesson.
GM, the company that was bailed out with your tax-dollars through the Troubled Asset Relief Program (TARP), is headquartered in the GM Renaissance Center (RenCen), which at 73 stories is the tallest building in Detroit. Built in 1977 as part of the effort to revitalize the downtown area amid growing urban decay after the disastrous Black Riots of 1967 led to the abandonment of the city by white people (white flight had rebuilt Detroit in the suburbs, with the remaining Black population under Mayor Coleman Young busy bringing ruination to what was left behind), the Renaissance Center complex never lived up to its name. Built for $350 million, but sold for a mere $76 million to GM in 1996 – The New York Times reported there were absolutely no takers at $125 million – was an abysmal failure from the start.
With the white abandonment of Detroit to the suburbs (which thrived, while Black-run Detroit slipped into a coma – kept alive by generous infusions of cash by the white tax-payers) the RenCen was built as a “fortress of solitude” for whites commuting to the city, where they could be safe from ‘scary Black people’. Francis Desiderio, writing in the Michigan Historical Review noted (“A Catalyst for Downtown”: Detroit’s Renaissance Center):

The Renaissance Center’s development was the result of private interests working to create a built environment in downtown Detroit that was comparable to the malls and office parks offered by the suburbs. Businesses that supported the development wanted to create a private space that could easily be controlled and monitored to fashion a safe, crime-free place for shopping, work, and nightlife. People could park, work, eat, shop, and see a movie all at one site, and the result was the creation of a minicity within Detroit. It was not only physically separated from the rest of the city–making pedestrian access difficult-but also the stores inside catered to a middle- to upper-class clientele. Some critics came to see the center as a “fortress” for the middle- and upper-class whites who still wanted a downtown experience. Symbolically, the center brought the suburbs to downtown Detroit. It was not only physically separated from the rest of the city–making pedestrian access difficult-but also the stores inside catered to a middle- to upper-class clientele. Some critics came to see the center as a “fortress” for the middle- and upper-class whites who still wanted a downtown experience. Symbolically, the center brought the suburbs to downtown Detroit.

Even this minacity within the dying Black-run city of Detroit wasn’t enough of a “Fortress of Solitude” – quickly, the building depreciated in value but still remained a viable tax-revenue producer for the terminally ill city.
Before the TARP was passed, a conversation took place where the COO of GM, Fredrick Henderson, discussed moving out of the GM RenCen and having all operations be based out of the Tech Center in suburban Warren. It should be pointed out that Warren was one of the first Whitopia’s where the fleeing white population from Detroit set up shop:

In 1970, whites made up 99.5% of the city’s total population of 179,270; only 838 non-whites lived within the city limits. Racial integration came slowly to Warren in the ensuing two decades, with the white portion of the city dropping only gradually to 98.2% in 1980 and 97.3% as of 1990. At that point integration started to accelerate, with the white population declining to 91.3% in 2000 and reaching 78.4% as of the 2010 census.

The Black population of Warren is now 13 percent; in time, as that percentage grows, the city will come to resemble Detroit.
The move would have saved billions for GM and helped restructure the company, potentially keeping GM from receiving TARP money and becoming known as “Government Motors.”
But this couldn’t happen in Black-Run America (BRA); though terminally ill, 90 percent Black Detroit can’t be allowed to die.
As stated, Overhaul reported this conversation initiated Fredrick “Fritz” Henderson, then COO, about the possibility of moving from the GM Renaissance Center to a suburban location. On p. 237-238:

The politics around GM, with its great size and complexity, not to mention its iconic status, promised to be even more intense. Our loving to-do list was full of pitfalls. One day Fritz called me to propose moving GM headquarters from the Renaissance Center to GM’s Tech Center in suburban Warren, where we had driven the Volt back in March.

The move would cuts costs, he said, as well as symbolize the leadership’s determination to become more to down-to-earth and hands-on. I thought the idea was great, just the kind of action I was hoping to see from Fritz. But when I described it to [Brian] Deese (who served on President Obama’s Economic Policy Working Group), he went nuts. “Are you out of your mind?” he said. “Think what it would do to Detroit!”

Though small in financial implications for the company – the headquarters was worth perhaps $165 million – compared to the $626 million that GM had paid for it just a year earlier (Sic … GM would spend only $76 million to buy the building in 1996, but spend $500 million renovating the complex) – GM’s departure would be a major blow to Detroit. In a one-year period, the once proud city was already suffering with one of the worst unemployment rates in the country, and among the worst murder rates, would see two of its biggest employers go bankrupt, its flamboyant ex-mayor Kwame Kilpatrick convicted of perjury, and its NFL franchise, the Detroit Lions, become the first in football history to go 0-16.

Deese had some people analyze what a mostly vacant RenCen would mean to Detroit real estate. The estimate: a double-digit hit on already deflated real estate prices. Fritz proposed donating the RenCen to the city- though who actually would use it was unknown.
 Leaving the RenCen made strategic sense, however, and was supported by Harry and David. The Tech Center had lots of empty space and much larger floors, so more departments and people could sit near each other, improving teamwork and communication in a culture that desperately needed more of both.
 The debate, not surprisingly, soon moved beyond Team Auto. Gene Sperling was one of the many to fight the move. “It’s over for Detroit if you do this,” he yelled in a meeting at [The United States] Treasury. “Don’t do this to Dave Bing” – the city’s new mayor, a former NBA star and successful auto-supplier entrepreneur. “He’s a good man trying to do a good thing.” The city relied on GM for $20 million a year in tax revenue, Gene pointed out, and the blowback would be fierce. Deese checked with Larry, who in turn spoke to Rahm [Emmanuel], and word came down that the move would be a bridge too far.

Fortunately, this unique intervention into a specific GM matter was never leaked to the press, saving us from having to explain how it comported with our policy of letting GM and Chrysler manage their own affairs. 

Rahm Emmanuel is now the mayor of Chicago, who pleads with the middle class to stay in what many believe to be the most violent city in the world. For those wondering, Chicago is on pace to be Detroit-ed as well.
Why does any of this matter? Because Investors Business Daily reported this on August 14, 2012 (Obama’s $25 Billion Government Motors Lemon):

As the Obama campaign continues to tout the GM bailout as an industrial policy success, the Treasury Department continues to revise upward the staggering losses inflicted on U.S. taxpayers.

On the day Government Motors, aka GM, announced it was recalling at least 38,000 of its vehicles — Impalas used by police nationwide and in Canada — due to a crash risk, a new Treasury report said it now expects to lose $25 billion on the bailout, $3.3 billion more than forecast earlier.

As the Detroit News reported, this loss was based on GM’s stock price at the time of the report, which was 15% higher than the previous report. Because the stock price has fallen since then, the latest report likely understates taxpayers’ real losses. 

“A bridge to far.” That’s how Rahm described the move from the RenCen Tower to the Tech Center. Though it would have saved the US Treasury – ahem, the tax payer – billions, it would have killed 90 percent Black Detroit (which, ahem, requires billions in federal and state aid each year to fester in a deep coma).
So yes, a “racist” site must be the only outlet for broadcasting this important news, which clearly shows that the government was more than willing to lose billions of tax-payer money to keep alive a terminally ill city that loses billions in tax-payer yearly (remember, they must bribe students with Nike shoes so state and federal money can remain flowing to the city) to merely be kept running as it is.
This is the awesome power of Black-Run America (BRA).
Posted by Stuff Black People Don’t Like at 8:05 AM

23 comments:

countenance said…
This is a point that must not be missed: The auto “bailout” wasn’t as much of a bailout as it was a special Congressionally-created bankruptcy path for GM and Chrysler alone, because standard Ch 11 bankruptcy procedure would have put the pensions and health benefits of retired union employees at the bottom of the pecking order. The UAW knew it, so they called Obama who called Pelosi and Reid to create this special bankruptcy path.

Even if GM and Chrysler would have declared Ch 11, they would not have been allowed to go out of business. No judge in the country would have permitted it.

Even if GM would have gotten TARP money instead of the special bankruptcy path, they still would have had to declare Chapter 11, and back to square one with the UAW.

August 15, 2012 9:37 AM
Anonymous said…
BURN DOWN THE SUBURBS!!

http://www.nationalreview.com/articles/312807/burn-down-suburbs-stanley-kurtz

Just connecting the dots-Know what I’m saying?

August 15, 2012 9:39 AM
Anonymous said…
GM will probably go backrupt in a few years at a cost of only a few hundred billion dollars of taxpayer’s money.

Then Detroit will be finished and blacks can rejoice that Detroit is an all black ghetto

August 15, 2012 9:47 AM
Discard said…
Do Chicago, not Birmingham. Chicago is BHO’s turf, and reflects on him more directly.

August 15, 2012 11:15 AM
Zenster said…
The politics around GM, with its great size and complexity, not to mention its iconic status, promised to be even more intense.

It is precisely GM’s “iconic status” which should have obviated the need for any TARP bailout.

Capitalism has a wonderful self-correcting feature which addresses mismanagement and poor product quality. It’s called bankruptcy.

This entire “too big to fail” mentality is so anti-Capitalist as to defy description. Does anyone honestly believe that the brand names of GM, like Chevrolet and Pontiac, would be allowed to slide into obscurity? Hell, that’s like thinking Xerox or Kleenex would go quietly into the night.

No, some other more responsibly run automotive manufacturer, or a group of them, would intervene if only for the established buyer loyalty enjoyed by these products.

Instead, by bailing out these mismanaged corporations, we have rewarded incompetence. No sounder defeat of Capitalism’s wholesome self-correcting features could be accomplished than by these bailouts.

Why has this incompetence been rewarded? Consider Wall Street. Why haven’t any of those financial geniuses who orchestrated this nation’s economic meltdown been frog-marched into open court and charged with collusion or malfeasance?

Guess who signs the reelection campaign checks?

We are in a one party system of the almighty dollar. Period.

Crony Capitalism (something that should be a total oxymoron) has, through political manipulation, morphed America’s industries and its financial institutions into a form of Consumerist Corporatism whose Globalist, Transnational PCMC (Politically Correct Multi-Cultural) goals dovetail at so many levels whereby they are rapidly becoming indistinguishable from Socialist bodies like the UN and EU.

It is also of interest to note what countenance observed about how:

This is a point that must not be missed: The auto “bailout” wasn’t as much of a bailout as it was a special Congressionally-created bankruptcy path for GM and Chrysler alone, because standard Ch 11 bankruptcy procedure would have put the pensions and health benefits of retired union employees at the bottom of the pecking order. The UAW knew it, so they called Obama who called Pelosi and Reid to create this special bankruptcy path.

Clearly, this is an election year nod by 0bama and his minions to blue collar unions and their traditional support for the Democratic Party. Too bad most of the Whites in those unions do not understand how any wealth that they are frantically trying to preserve will be leached out of them through hyper-inflation of the money supply and continuing trans-generational theft of our grandchildrens’ earnings by these Corporatist Bernie Madoff wannabes.

August 15, 2012 11:46 AM
SomeGuy said…
Civil stability hangs by a thread in this country. I can only assume that the MSM purposely mask the grand story in an attempt to keep the patch on this busted tire. I cannot wait for the day when being respectable means being truthful and logical, because until then my very livelihood is at stake.

I’m just SomeGuy, desperately wishing we didn’t have to have this conversation…

August 15, 2012 12:10 PM
Anonymous said…
I originally found your website via a link on a “ruin porn” website that featured some of Detroit’s landmarks. It was sad to see so many beautiful old brick buildings in such a state of decay. Some of them weren’t even that old (less that 10-20 years) but they were already past the point of saving either through neglect or through outright destruction (arson, etc.). The trees and plantlife are coming back and in some of the pictures, you can’t even tell that there had ever been a building there. All of the rubble is slowly disappearing under a sea of green.

August 15, 2012 12:18 PM
Whisky Tango Foxtrot said…
http://news.cincinnati.com/article/20120815/NEWS0107/308150032

August 15, 2012 12:23 PM
countenance said…
Zenster:

Your point can’t be understood well enough, either. The debate about Social Security is a bit of a red herring. People will still get their checks, but the whole check won’t buy a loaf of bread.

August 15, 2012 12:32 PM
Anonymous said…
Paul,

You should really do a story on Gary, Indiana. It collapsed under BRA before the fall of Detroit or Chicago.

Mayor Hatcher, elected in 1968 was the first black mayor of Gary, and is still hailed as an icon.

Gary, Indiana is a total and complete failure. The media and academia still blame whitey for its demise.

August 15, 2012 12:34 PM
Anonymous said…
http://ca.sports.yahoo.com/news/guinea-ivory-coast-athletes-missing-london-151217689–spt.html

apparently, white privilege and racism is so awful that blacks must sneak into our countries to avoid going back to their own, indepedent black nations.

now if you’re thinking that doesn’t make any sense, congratulations: you’re not a libtard.

August 15, 2012 1:19 PM
Anonymous said…
“But when I described it to [Brian] Deese (who served on President Obama’s Economic Policy Working Group), he went nuts. “Are you out of your mind?” he said. “Think what it would do to Detroit!”” – Then the name should be changed to General Detroit. Whats worse, this is why the workers there have to commute. the jobs can’t be allowed to follow them away from the rotted edifice.

August 15, 2012 1:20 PM
Zenster said…
countenanceYour point can’t be understood well enough, either.

Thank you. I agree completely that Big Government™ will maintain the pretense of both Social Security and welfare but will quietly gut Social Security in order to finance all the EBT, TANF and Section 8.

August 15, 2012 1:46 PM
Sam said…
I have not seen nor heard any information to confirm my suspicion, but I highly suspect GM shut down Saturn as a condition of the bailout from the feds. Saturn, a non-union operation, was THE moneymaker for GM, and I have suspected the reason GM started up Saturn, in Tennessee if I remember correctly, was to get out from under, and away from, the UAW. Saturn was producing some good cars, with many satisfied customers, so it would make no sense to shut it down, unless due to pressure from the feds, and we know how pro-union the feds are. A continuing successful Saturn operation would have been a huge black eye (no pun intended, well, maybe)for the socialist/communist/leftist element in the federal government. And now that the truth has been raised regarding GM’s intention to move its headquarters to Warren (gasp!, a predominately WHITE location), and the feds saying “no” to that move, it shows even more how corrupt this whole mess is.

August 15, 2012 2:14 PM
Dissident said…
Have you ever noticed that all the Japanese and Korean automotive companies that have located in the US; have located as far away from the urban centers as possible. They have built in places such as Kentucky, Indiana, West Virginia, Texas, Ohio, etc.

There’s a reason for that you know.

August 15, 2012 2:18 PM
R Neville said…
Penske tried to buy Saturn, but the feds shut that deal down.

August 15, 2012 2:29 PM
So CAL Snowman said…
The best part about all of this is that 70% of GM’s automobiles are MADE IN CHINA! That’s right we didn’t save “American jobs” we didn’t save any manufacturing jobs whatsoever. Listen to the CEO of GM talking about all of GM’s partnerships with China.

GM Is Becoming China Motors

“GM in 2010 said that it had repaid the 2009 loans. It did, too, and then borrowed money back at 5%. It had been paying 7%, which was a subsidy at that low rate to a busted company. Such a deal!

Over half of the bailout money went to buy GM shares, not make loans. That $26 billion in shares will be repaid (bought back by GM), we are assured, when GM’s shares hit $50. GM’s shares are under $25 today.

You say you didn’t know all this. You say it smells like crony capitalism to you. Me, too. But our sense of smell doesn’t count.”

*I vote for Chicago to be the next city tackled by SBPDL. Chicago has a nice demographic balance (if you like Brazil) which makes the black crime stats all the more eye popping.

August 15, 2012 2:54 PM
MuayTyson said…
Give me Chi-town. My second choice would be St. Louis.

I have an ex who fancied herself a model which consisted of going to races and hustling cigarettes. At a race in St. Louis it started to rain so everyone ducked under a bridge. Now I’ve never been there but according to her these bridges are huge and hundreds of people can fit under them. Well as can be expected there were blacks there and of course a full scale riot between rival gangs broke out.

I didn’t hear anything from MSM about this but she said there were injuries and multiple ambulances and police cars responded. This was the late nineties St. Louis has been going down for a long time.

August 15, 2012 4:35 PM
Big Bear said…
Police were more struck at how cocky the boys were for being so young. 

Simple enough answer to that. Strip the little thugs naked and beat them with rubber hoses, then throw them in a hole with no toilet. The next day, drag them out, and a variation of the rubber hoses (say, waterboarding) then back in the hole.

By day three, those cocky, arrogant looks will be gone from their faces, perhaps forever.

August 15, 2012 4:50 PM
rjp said…
Dissident said…

Have you ever noticed that all the Japanese and Korean automotive companies that have located in the US; have located as far away from the urban centers as possible. They have built in places such as Kentucky, Indiana, West Virginia, Texas, Ohio, etc.

There’s a reason for that you know.

Where they built in Kentucky, Indiana, West Virginia and Ohio were all areasformerly dominated by unions. Places where people might have been out of real jobs 5 or 10 years or more. The union back has to be broken before the jobs will return.

Give the area where I am from another 10 years and the United Steelworkers will no longer have a stronghold on those people and the jobs will come back there too. It takes a long time to break that union mentality.

Henry Ford thought he had a good idea, hiring negroes to keep the unions out. Turned out to be the worst idea ever. Once the unions broke on allowing negroes to join, Detroit was done. Unions accomplished some great things a long ago, now they are just protection for bad workers and extortionists.

August 15, 2012 5:07 PM
rex freeway said…
When will we stop running from this parasitic race and say no? I’m half a century old. I sold my house two years ago as the second to the last white on the block. I’m in an area now where the black pop. is 3 percent. I’ve finally grown accustomed to not hearing sirens and helicopters 24/7. people go outside and enjoy themselves. neighbors talk to neighbors. The only break in was a racoon getting in the trash. Speaking of trash, there is none. yards are mowed, trash picked up. People caring about their property. I guess the parasites will never evolve into civilized productive citizens. But the government will always be there to coddle them and to try and force them upon everyone else.

August 16, 2012 8:12 AM
Concerned Citizen said…
My vote is for Chicago. Let’s continue the assault of Northern liberal cities falling apart.

August 16, 2012 8:38 PM
Anonymous said…
As an individual I can only speak for myself. Stuff that I don’t like is simply random, not because I am black. Do you understand? Are you so defeated that you have no self pride of individual opinion? I admit I did not bother to even read this blog, but decided to rant about the silly title “stuff black people don’t like.”
Just one more thing…I HATE GOD…THAT INCLUDES EVERYTHING!!!

August 23, 2012 10:57 AM

The Inadvertent Message of Gomes v. Countrywide: File Bankruptcy First—Shift the Burden of Proof in Foreclosure, all debt collection cases

2011 Comm. Fin. News. 18
Commercial Finance Newsletter
Professor Dan Schechtera
February 28, 2011
Borrower Cannot File Suit to Determine Whether MERS Has Authority to Commence Foreclosure, and Trust Deed Expressly Authorized MERS to Do So. [Gomes v. Countrywide Home Loans, Inc.,(Cal.App.).]
A California appellate court has held that a borrower questioning the authority of MERS to commence a nonjudicial foreclosure cannot file suit to determine whether MERS has the authority to do so; in addition, the deed of trust executed by the borrower expressly authorized MERS to conduct the foreclosure. [Gomes v. Countrywide Home Loans, Inc., 2011 WL 566737 (Cal.App. 4th Dist. 2011).]
Facts
A California borrower executed a deed of trust, in which Mortgage Electronic Registration Systems (MERS) was designated as the nominee for the lender. Following the borrower’s default, an agent acting on behalf of MERS initiated nonjudicial foreclosure proceedings. The borrower filed suit challenging the authority of MERS to act on behalf of the underlying owner of the note and deed of trust. The trial court sustained the defendants’ demurrer, and the court of appeal affirmed.
Reasoning
The court held that the borrower had no factual basis for believing that MERS lacked authority to act on behalf of the beneficial owner of the note and deed of trust, and there was no statute permitting a private action seeking to determine whether MERS had such authority. As a fallback, the court also held that MERS did, indeed, have the authority to initiate a foreclosure, under the express terms of the deed of trust.
In holding that MERS had the authority to conduct the foreclosure, the court declined to follow Landmark Nat. Bank v. Kesler, 289 Kan. 528, 216 P.3d 158 (2009), holding that MERS had no standing to intervene in a foreclosure case (and, by implication, that MERS was simply irrelevant to the foreclosure process). The court noted that under Cal. Civ. Code § 2924(a)(1), “[t]he trustee, mortgagee, or beneficiary, or any of their authorized agents shall first file… a notice of default.” Therefore, since MERS was an “authorized agent,” it necessarily acted properly in commencing the foreclosure.
Author’s Comment
By holding that the borrower could not even file suit in state court in order to determine whether the proper party had commenced the foreclosure, the court has sent a clear (and perhaps inadvertent) message to borrowers and their attorney’s: instead of filing suit in state court, file a bankruptcy petition. That shifts the burden to the creditor, who will have to file a motion for relief from stay in the bankruptcy court and will have to establish its right to foreclose as part of that motion. Unlike the California state courts, the California bankruptcy courts have been critical of poorly documented mortgage transactions and sloppily conducted foreclosure proceedings.
As to the substantive issue, i.e., whether MERS really has the authority to act on behalf of the lender, the case law is decidedly mixed. The cases in California tend to be more sympathetic to MERS, while the cases in much of the rest of the nation are much less deferential to MERS. For discussions of some of those cases, see:
  • — 2010 Comm. Fin. News. 51, Foreclosure Is Valid Because MERS Has Power to Designate New Trustee Under Deed of Trust, Even Though It Holds No Interest in Underlying Note.
  • — 2009 Comm. Fin. News. 103, Assignee of Mortgage Lacks Standing to Foreclose Because Assignee Failed to Show That MERS Assigned Underlying Promissory Note, Along with Mortgage.
  • — 2009 Comm. Fin. News. 59, Assignees of Mortgages Cannot Enforce Unendorsed Notes in Their Possession Because MERS Documentation Does Not Expressly Authorize Assignment of Notes.
  • — 2009 Comm. Fin. News. 57, Assignee in Possession of Mortgage Note May Not Enforce It Because Note Is Not Endorsed to Assignee.
  • — 2008 Comm. Fin. News. 104, Mortgagee May Not Obtain Relief from Automatic Stay in Order to Foreclose When Necessary Evidence Is Supplied by Low-Level Clerk Without Personal Knowledge of Underlying Facts.
  • — 2008 Comm. Fin. News. 95, Mortgage Assignee’s Failure to Record Assignment Does Not Empower Mortgagor’s Trustee in Bankruptcy to Avoid Underlying Mortgage.
  • — 2008 Comm. Fin. News. 86, Mortgagee’s Agent May Not Foreclose if Agent Cannot Properly Trace Assignment of Mortgage from Original Lender to Assignee Pursuant to Securitization.
  • — 2007 Comm. Fin. News. 93, Mortgage Holder Seeking Relief from Automatic Stay in Order to Foreclose May Be Denied Relief for Failure to Establish Chain of Title from Loan Originator to Ultimate Assignee.

Copyright Thomson Reuters

Footnotes

These materials were written by Dan Schechter, Professor of Law at Loyola Law School, Los Angeles, California. The opinions expressed herein are solely those of Professor Schechter.
End of Document © 2011 Thomson Reuters. No claim to original U.S. Government Works.

Kokopelli Community Workshop (Catherine Bryan’s) List of “Recommended Attorneys” in Southern California

I have to say I am NOT in the business of making attorney referrals. I am much more interested in “disbarring the entire profession” and thereby restoring free-market competition based on competence alone to the legal profession.  I submit that abolition of the Court-licensed “integrated” bar, abolition State Supreme Court issued law licenses, and allowing all people who care to educate themselves or obtain education formally to engage in the same freedom of speech, freedom of association, and free exercise of the right to petition as enjoyed by John Adams, Thomas Jefferson, James Madison, John Marshall, Roger Brooke Taney, Samuel Jones Tilden, and yes, even Abraham Lincoln.  I would thus like to restore robust freedom to think, create, and imagine the best ideals, rather than the most practical and politically effective expedients, to the actual practice of law and legal advocacy.  

But having been at least “roped into it” by publishing my response to one reader’s letter, earlier today, I feel obliged to publish my good friend Catherine Bryan’s Response and HER (Kokopelli Community Workshop’s) list of “Recommended Attorneys”.  But for the record, I have had NO personal contact, direct or indirect, with even a single one of the lawyers whose names are listed (at Catherine’s/ Kokopelli’s behest alone, without crosschecking or any other due diligence exercise) below, except as mentioned in my own article/blog-post earlier today.  

BUT ONCE MORE, WITH FEELING, LET ME MAKE THIS ONE THING VERY, VERY CLEAR:

I DO NOT RECOMMEND WORKING WITH LICENSED ATTORNEYS—I RECOMMEND RELIEVING THEM OF THEIR MONOPOLY STATUS, THEIR FAUX STATUS and TITLES OF NOBILITY “ESQUIRE” and “OFFICERS OF THE COURT” and ABOVE ALL I RECOMMEND, ADVOCATE, AND AS U.S. SENATOR WOULD FIGHT TO DESTROY FOREVER LAWYERS’ SPECIAL DEPENDENT RELATIONSHIP ON AND WITH THE JUDGES BEFORE WHOM THEY MUST APPEAR:

From:
catherine bryan <koldesigns@yahoo.com> writes: 


In my opinion, All the people Charles referenced below are even worse than the banksespecially  Micheal Pines and Dennis Russel who actively engage in publicity stunts to get their name in the news so that people turn to them for help . !

multiple complaints tell us  these attorneys all rake in big money and never do any effective work!
tell me more about any Paul Nguyen winning cases- please!

I have a pile of homeowner complaints on my desk from multiple homeowners say  they  were ripped off by Paul and Diane Beal and no good reports on either won of them.

Kokopelli Community Workshop foreclosure relief project (link) has recently received an enormous number of urgently requested legal referrals for victims of predatory lending who urgently require the services a qualified attorney.

There are currently around 1,000 foreclosures recorded each day in San Diego County alone and unfortunately good legal help for any reasonable cost is quite difficult to come by. Anyone interviewing an attorney should insist that the attorney in question provide a list of several cases they have actually won! Our ongoing investigation into wrongful attorney practices reveal that many attorneys who have wonderful predatory lending web-site but are really interested in acquiring your property and their real business is their real estate brokerage.

The sad news is a majority of attorneys charge hefty retainers and have never or seldom actually won a case or even assisted the homeowner to negotiate with their creditor. To make matters worse there any a number of people including attorneys selling quick fixes through filing commercial liens and other instant rescue systems, none of which work and all of which drain the homeowners pocket book. There seem to be far more predatory attorneys and predatory rescue scams than true remedy.

The bad news is there are a multitude of homeowners currently reporting that they are enticed into default by loss mitigation specialists who work for the servicer or the bank. The good news is some judges are considering loan mod fraud as valid grounds for taking affirmative action and in a few cases have found the bank instead of the homeowner to be at fault.
Anyone who can provide us with the name(s) an attorney(s) who have achieved settlement or won a trial against a foreclosing creditor in one case or more please provide us with case #, and contact information for our special list of attorneys who can actually provide remedy, in exchange for a retainer.

Kokopelli Workshop Project is actively involved in large analysis and statistical study of how judges review cases where homeowners pursue affirmative against banks for wrongful foreclosure and which cases settle out of court, and we study which cases actually win, and why. Here is our  list of qualified attorneys who have won or settled one or more predatory lending cases; and no complaints!

THEODORE E. BACON (CA Bar No. 115395)
tbacon(âAlvaradoSmith.com
SCOTiJ. STILMAN (CA Bar No. 120239)
sstilman(âAlvaradoSmith.com
NANETtE B. BARRGAN (CA Bar No. 240116)
nbarragan@AlvaradoSmith.com
AL V ARADOSMITH
A Professional Corporation
633 W. Fifth Street, Suite 1100
Los Angeles, CA 90071
Tel: (213) 229-2400
Fax: (213) 229-2499Law Offices of Kenneth Graham
(925) 932-0170
1575 Treat Blvd. #105, Walnut Creek,
California  website, www.elaws.com.
Attorney Barry Mills
3588 4th Ave
San Diego, CA 92103
(619) 295-5000

Attorney John E. Mortimer 

44489 Town Ctr Way #D-466
Palm Desert, California 92260

Phone: 1-951-330-0063


ALAN L. GERACI, ESQ.
Geraci & Lopez, Attorneys at Law (619) 231-3131
817 W San Marcos Blvd
San Marcos, CA 92078

Karen S. Spicker, SBN 127934 Doan Law Firm, LLP 2850 Pio Pico Drive, Suite D Carlsbad, CA 92008
(760) 450-3333
L. Quintana, Esq. (SBN 157291) and Victoria Carry, Esq. (SBN 256872) QUINTANA SARTE REYNARD LLP 101 W. Broadway Suite 1050, San Diego, CA 92101 Tel: 619.231.6655
ARBOGAST & BERNS LLP, Jeffrey K. Berns (SBN 131351), David M. Arbogast (SBN 167571) 6303 Owensmouth Avenue, 10th Floor, Woodland Hills, CA 91367-2263 Tel: 818.961.2000
Powell and Powell, Attorneys at Law
402 West Broadway, Suite 400
San Diego, CA 92101 (619) 232-6363 Office

To all this, William Daniels (teamworker@msn.com) would add:
Pines just got out of jail on bail and is trying to raise money for his case.
I heard that Paul Nguyen’s ‘win’ was because the bank defaulted and that was only temporary as they appealed and, last I heard, Paul is still fighting the case – they’ve had no other wins that I know of . . . 
To all this I would just like to reiterate that I expressed my reservations about Paul Nguyen and Michael T. Pines, but included direct PACER-derived links showing the actual history of their cases.  I now strongly suspect that EVERYTHING connected with A. Howard Matz’ Court in the Central District of California should be regarded with the UTMOST suspicion.  Chase Bank’s default in that case almost seemed, itself, to me to be engineered by Matz—the whole thing in Matz courts—and others—appears to be the effect of a what was called in the days of Josef Stalin’s USSR a “SHOW TRIAL”—what Joseph Zernik, Ph.D., has recently started calling “Simulated Litigation”—thus avoiding the ugly, but probably accurate, implied historical connection between Soviet Communist Practice in the 1920s-40s and the mortgage/foreclosure/eviction litigation now practiced throughout the United States, but especially in California and other Western States (even though it now appears it was invented in Massachusetts….almost exactly 100 years ago….)
Jennifer Lee wrote to after midnight on June 12, 2011 (Pentacost Sunday):
Thanks Charles
As for Paul Nguyen he stole 4 k from my mom and promised an adversarial complaint and never did it and I could give you a list of horrible things he did to her including a chapter 11 bankruptcy that he botched so badly and abandoned her when she had paid in full to him. He then told us he has 100 customers and can’t possibly help them all so he had to pick which ones he is going to let loose and he doesn’t care less if they loose and get evicted. He told us he chose us to loose as our case was more difficult and he doesn’t care. I just spoke to a lady I saw tonight who told me he did the same to her and many more people she knows and she has someone who is going to go after him for her. I was given advice of how to report him. I have been too busy but I really need to report him to the bar and judicial review. Don’t remember off hand the place.he is a con man. Diane beall was upset to hear what he did to us but she told me she was losing all her cases so she needed to learn from him and she needs money even though she didn’t want to be there and she was sick to watch what he did to mom. She tried to confront him for what he did to us and she got in trouble for it.

Another Note on MERS claims in Bankruptcy Court, this time from Idaho

2009 Comm. Fin. News. 59
Commercial Finance Newsletter
Professor Dan Schechtera
July27,2009
Assignees of Mortgages Cannot Enforce Unendorsed Notes in Their Possession Because MERS Documentation Does Not Expressly Authorize Assignment of Notes [In re Wilhelm (Bankr. D. Idaho)]
A bankruptcy court in Idaho has held that the assignees of pooled mortgages cannot enforce unendorsed promissory notes in their possession, because the controlling MERS documentation does not expressly authorize MERS to assign the notes. [In re Wilhelm, 2009 WL 1988812 (Bankr. D. Idaho 2009).]
Facts:
A group of financial institutions filed motions in separate consumer bankruptcy cases, seeking relief from the automatic stay in order to enforce the borrowers’ promissory notes and to foreclose. Each of the deeds of trust named Mortgage Electronic Registration Systems, Inc. (MERS) as the nominal beneficiary, but the trust deeds did not state that MERS was authorized to transfer the underlying notes. On its own motion, the court questioned the lenders’ standing to enforce the promissory notes.
Reasoning:
The court first noted that all of the lenders were assignees, rather than the original holders of the notes. The court then held that since none of the notes was endorsed to the assignees, the assignees bore the burden under state law of showing possession of the notes, which they failed to do in an evidentiary-competent manner.
Most importantly, the court held that even if the lenders were in possession, they could not enforce the notes because they had not adequately documented the authority of MERS to assign the notes:
[The lenders] apparently rely upon an assignment document to show that the notes were transferred to them. The signature block in these assignments typically indicate that MERS executed the assignments on behalf of the original lender and that lender’s successors and assigns. [The lenders] seem to presume that the assignments, standing alone, entitle them to enforce the underlying notes. Such a presumption is unfounded, however, because [the lenders] have not established MERS’s authority to transfer the notes at issue…. [T]he relevant deeds of trust name MERS as the “nominal beneficiary” for the lender. Further, MERS is granted authority to foreclose if required by “custom or law.” But what this language does not do–either expressly or by implication–is authorize MERS to transfer the promissory notes at issue. [Citations omitted.]
Comment:
This opinion calls to mind an ancient joke: “They said cheer up, things could be worse. So I cheered up, and sure enough, things got worse.” Just recently, a few bankruptcy courts have held that the failure of the originating lender to endorse the notes to the assignee meant that the assignee lacked standing to enforce the notes; see, e.g., 2009 Comm. Fin. News. 57, Assignee in Possession of Mortgage Note May Not Enforce It Because Note Is Not Endorsed to Assignee. I thought that was alarming enough, since it is so difficult to obtain those endorsements after the fact.
This latest case goes much further, however: even if the assignee is physically in possession of the note, the assignee may not have standing to enforce it because MERS, the original beneficiary, had no authority to assign it in the first place. That problem cannot be solved by ex post facto redocumentation.
This seeming lack of authority is particularly alarming because the apparent defect in the MERS documentation is system-wide. There are millions of mortgages, originated during the last several years, that use MERS as the nominal beneficiary. If MERS has no authority to assign the mortgages, then all of those mortgage pools holding “infected mortgages” will have no way to enforce them.
Although this decision may be technically (even hypertechnically) correct, I predict reversal, probably by the Ninth Circuit or the Ninth Circuit BAP. The consequences of stripping the mortgage pools of their ability to foreclose are too severe. My guess is that a reviewing court will find, by implication, that if MERS has the power to foreclose, it also has the power to assign. There is no express prohibition on assignment contained in the documentation, and virtually all contractual rights can be assigned, unless there is some supervening reason to forbid assignment (such as, for example, in the case of personal services contracts). Therefore, the power to assign is inherent in the status of MERS as the original beneficiary, even if that power is not expressly contained in the documents.

Copyright Thomson Reuters

Footnotes

These materials were written by Dan Schechter, Professor of Law at Loyola Law School, Los Angeles, California. The opinions expressed herein are solely those of Professor Schechter.
End of Document © 2011 Thomson Reuters. No claim to original U.S. Government Works.