Fascinating information is being gathered in my Adversarial Proceeding case against OneWest Bank (formerly Indymac), Deutsche Bank National Trust Corporation, and the Trust that securitized my house. If you are in danger of foreclosure, you will find this information very, very interesting, and possibly very useful.
To be brief: my legal team and I have found that the Note on my property which was initially assigned to a certain local mortgage broker, whom we’ll call FRU (Fraud R Us, I won’t reveal it for the moment) was not actually paid for FRU. I obtained the Incoming Wire from Chicago Title, the title company that handled the transaction. It shows that Indymac Bank, NOT FRU, supplied the funds for the transaction and it went into FRU’s sub-escrow account at Chicago Title.
Why is this important?
Let’s go back to a post I made last week. The Note says:
1. BORROWER’S PROMISE TO PAY
In return for a loan that I have received, I have promised to pay $ U.S. _______ (this amount is called “Principal”), plus interest, to the order of the Lender. The Lender is [FRU] A California Corporation…..
I understand that the Lender may transfer this Note. The Lender or anyone who takes this Note by transfer and is entitled to receive payments under this Note is called the “Note Holder”.
Very clearly, the document says “The Lender is [FRU] A California Corporation“. Oh, no it isn’t. OH, NO IT ISN’T ! The lender is Indymac Bank, not [FRU]. The incoming wire, which was pretty easy to obtain, clearly shows this!
This means that the Note, which is the central document that allows foreclosure, is voidable because it says something that is provably false. Furthermore, once it is shown to be false, every Assignment of the Note that comes afterward is also voidable, because an entity that has no title to the property does not have the right to assign it to anyone else.
That means that the entity that foreclosed on the property had no right to do so. Now, I understand that these arguments, being made in state court (California Superior Court for me), have run up against pro-business judges that have found in favor of the banks.
A US Bankruptcy Court, however, is overseen by a judge whose job it is to discharge debt. In the Adversarial Proceeding, it is the creditors responsibility to validate the debt. That is, to prove that they are the party to which the payment is owed. That is proven by producing the Note. But the Note has [FRU] listed as the Note Holder, and not the bank that paid for it! So they can’t prove it. But additionally, all assignments of the debt that are downstream are legally faulty and voidable as well.
The wire was obtained by noting the Wire Number on the Deed of Trust, and calling the local office of Chicago Title. I spoke with the lady in charge of the Payoff Department, and gave her the number. She asked if I was the lender and I just said yes. I don’t know if it wouldn’t have happened if I hadn’t said yes. She had to contact the bank, and it took three days or so. But I received a fax with smoking gun information.
There is one final legal bomb in this story, which I will discuss in my next post.
— Your Host