I am making this thread to hopefully help all of you who either own a home or have someone close to you who is buying one.

As some of you know, I've been battling my bank (Bank of America) in their attempt to foreclose on my home.

As of yesterday, their attorney was served with cease and desist paperwork regarding our home.

I am going to explain this process so that you guys can be better educated about current mortgage loans and hopefully, some of you can put the squeeze on these banks and get what is rightfully yours.

NOTE: I don't know exactly what you can do if not in a foreclosure, but I'm sure there is something that can be done.

It all began when we got the original loan on our home. We paid money down, met with the closing attorney's and all was great! We regularly made our payments and, again, all was great.

Then we got a notice that our loan had been sold to Taylor Bean and Whitaker. No big deal there either, loan originators rarely ever keep a loan they have produced.

In fact, we actually had no issues with any of our mortgage stuff until we had to re-finance the second time. The originators put us into a 3 year adjustable rate mortgage (which is now considered predatory lending). We signed all the paperwork expecting things to get better and to be able to re-fi again into a more desireable loan.

Trouble actually started when they sold our loan to Countrywide. I became unemployed and we fell behind on our payments. The bank was threatning to foreclose.

I'll stop telling my story now so that I can actually explain what happened.

Countrywide bought the loan along with a few million other loans that were high risk. Banks do this all the time as they can absorb more bad loans than the originating company can. Here is where the fraud begins.

Countrywide wrapped our loan up with about 100 other loans, and sold the promissary notes (That note you sign when you take out a loan that states if you don't pay they can foreclose, and also serves as your promise to pay) on wallstreet. The promissary note then became a stock and the title to the property can no longer follow the note (the promissary note and title are tied together and the title ALWAYS follows the note, unless it is turned into a stock).

At this point the bank has committed Securities fraud. Once that note is turned into a stock, the note actullay becomes null and void because the note has been paid in full (it was SOLD, remember that).

This is referred to as securitizing a loan. It is illegal. It is the best example of double dipping.

Now is where it really gets tricky and the banks make MILLIONS of dollars. Follow me so far?

Say that each loan is $100k - 10 homes, sold at full market value on wallstreet = $1mil - do this for a 100 loans and the bank makes $10,000,000 just like that. Now, keep in mind that most loans are annuatized over 30 years. That means they will make another $300,000 when you finally pay the loan off. So, with securitizing, they actually will make about $400,000 off EACH loan, or $50,000,000 total.

How many multi million dollar homes have been foreclosed on?? You get the picture.

In addition to the afore mentioned fraud, the banks then take out MULTIPLE insurance policies on EACH loan, as many as 15 per loan! This is to protect themselves (remember, they already have won) from a loss if the borrower defaults.

Now lets look at the other side of things, when the borrower defaults. Now we really get our hands dirty!

Remember, they already got paid for the property and the promissary note goes away. Well, what they do is forge documents to make it appear as though the note never left their possession.

At this point there are more parties involved to the fraud that is taking place.
A- The Bank (Servicer - as it states on the monthly bill)
B- A crooked lawyers office (Or un-knowing one) - OR Foreclosure mill
C- MERS ( See THIS link)
D- Certificateholders
E- Other 3rd party banks (Bank of Mellon New York, comes to mind)

In my case, I have an attorney that was working for the lawyers office foreclosing on our home actually signed an assignment as the VP for MERS! WTF? How can you be working for BOTH companies morrally and/or legally? Nope - it's called robosigning.

He was actually confronted by a local news team a few months ago - READ THE ARTICLE ON HIM. <<There is also a small clip on the left of the page with the confrontation. I just took my paperwork for the cease and desist to Prommis Solutions yesterday.............

Further info - foreclosurefraud.org

Now, when that note was sold as a stock, the actual note ceased to exist and a vast number of investors actually becaome part owners of your property. 10 - 20 -or a 100! Here is the problem when the loan is defaulted on.

A- A LEGAL note is sold as a stock, thus converting it to a stock.
B- The note can NOT be turned back into a note once it becomes a stock.
C- The bank loses ALL legal rights to foreclose as they are no longer parties of interest or legal holders of the promissary note (Which they may not even have the original)

I know - HOW do they foreclose without legal right? That is where foreclosure mills like McCalla Raymer come in - the mass produce these docs, forge assignments to make it appear legal when it is not.

Once you know that your loan was securitized, you can contact a knowledgable lawyer and get affadavits sent to the bank to request certain legal, financial statements that HAVE to show what happened to a loan. Even though they are defrauding people, they still have to keep track of the note and WHO bought it.

Also, getting copies of the allegations and/or affdavits sent to RESPA - will get them involved and cause RESPA to investigate your claim. This will give you at least 60 days.

It's at this point you will need to secure a securitization audit. These are wonderful things! All those closed books the bank is keeping on what happened to that loan now has to be presented for review. This is what you need IF you are going to fight the bank. You can prove that the bank has committed forgery, but being able to prove that they already were paid for the loan is the most damaging evidence you can bring against them.

Remember that I said it was gonna get tricky? Here it goes - when the "loan" is defaulted on, the banks collect on all those insurance policies with the addition of one more - the FDIC! Being a bank, the money they have is automatically (?) protected by uncle sam and the FDIC will actually pay up to 80% of the value of the loan.

This means another $80,000 on each of those loans for a grand total of $58,000,000!!

The securitization audit will show ALL of this. Depending on how bad it is, you could get your house free and clear!

This is ,by no means, the end all of the fraud that is committed, but it's enough. I will update this post with more information as I get it.

The banks want you to fail and they want you to be ignorant of what they are doing. They get paid when you don't know.

That is why I'm detailing all of this here. I don't want the bank to win. This is why I'm fighting for my home. They are in wrong and someone needs to do something!

Stand up and take charge! You never know, your loan could be so jacked up that you could get punitive damages for the money they made off of you!

.......... all I can say is OUCH my head now hurts. I am happy to hear it worked out for the better for you most of the time it does not

Good luck. Sounds like you have a capable lawyer. The banks really need to clean up their act, It's sickening how they squeeze us and screw everybody over... hope you get your house and everything cleared up.

I read through this at lunch. Man, that sounds rough....and I wish you luck for sure.

We bought a house almost 2 years ago now and had to deal with Bank of America after our loan was sold off twice.

What a pain in the butt. It is and pathetic that people in our country can get rich off of screwing people over with these mortgages.

We felt horrible and had to get a loan from family because the bank totally screwed us over on paying the contractor who was approved to replace the siding. We had it rolled into the loan and kept getting the run around while the contractor was stuck eating the cost after having done the work.

I was so pissed after each pointless phone call I made. It was months later that we received part of the payment, long after what we were told.

They did this to thousands of people too. There were tons of complaints all over the Internet and voicemail was full every time you would try to contact someone who could actually give a status update (aka lie to you).

[quote="[BBF"] Paco]
I read through this at lunch. Man, that sounds rough....and I wish you luck for sure.

We bought a house almost 2 years ago now and had to deal with Bank of America after our loan was sold off twice.

What a pain in the butt. It is and pathetic that people in our country can get rich off of screwing people over with these mortgages.

We felt horrible and had to get a loan from family because the bank totally screwed us over on paying the contractor who was approved to replace the siding. We had it rolled into the loan and kept getting the run around while the contractor was stuck eating the cost after having done the work.

I was so pissed after each pointless phone call I made. It was months later that we received part of the payment, long after what we were told.

They did this to thousands of people too. There were tons of complaints all over the Internet and voicemail was full every time you would try to contact someone who could actually give a status update (aka lie to you).
[/quote]

Paco - I urge you, if you have a loan with BOA - go to the county courthouse where you live and pull up the assignment paper work and anything related to BOA - you will be looking for MERS or Mortgage Electronic Registration System. IF you find this, I can almost guarantee that your loans promissary note was sold on wallstreet.

If you do find MERS is involved, get a securitization audit done, mine is going to cost me $2,000, but the information could get you your house for free, OR you may even be able to file a lawsuit because they literally used your name to make money and you did not get anything while being told that you have to pay them for a loan they don't even have!

Seriously, bro - look into it. Wouldn't you like to have your payments in your pocket each month?

These things need to stop, and you, myself and any other mortgage payer has the right to know if the bank has made more money from your house and your signature than you will see in a life time.

We have legal recourse, but we have to get educated first. That is the point of this thread.

Investigate it! I bet you anything you'll be surprised by what you find.

@ Yun and Dark - Thanks for the encouragement! I plan on getting my house for free after this duelling 5 year struggle. They have no right to foreclose and I plan to prove that this debt was payed off when the note was sold and that the bank committed security fraud in the process.

Privately, I want my mortgage eliminated - if it goes public I will be going for that AND for punitive damages from the harrassment and humiliation of having our names repeatedly appear in the paper and the flyers, mailings and cards that say ,"SAVE YOUR HOME FROM FORECLOSURE!! WE CAN HELP STOP FORECLOSURE!!". My mailman knows what is going on and there is no telling who he's told. Their best out is to just quiet the title back to me and leave me alone!

Above all this, I got GOD on my side!!

No weapon formed against me shall prosper!!

Yeah that stuff is complicated and you explained it well. I actually watched a movie about that entire process, (the process that had a very large part of the 2008 crash).
It was called "To Big To Fail". Also i have recently read that the U.S. Government has filed suit against major banks that sold Fannie and Freddie "Toxic" High risk mortgage secruties, and BofA is one of them.

I'm not going to put myself in more debt to try and fight BOA. Too risky. I do agree they are crooks though.

[quote="[BBF"] Paco]
I'm not going to put myself in more debt to try and fight BOA. Too risky. I do agree they are crooks though.
[/quote]

I understand, but if you ever get in a jam - refer back to this thread.

Woah Morph that is crazy. My parents are having fun with stuff like this (although theirs is the courts they're fighting) as well and I'm trying to learn as much as I can while finding it all incredibly boring. I never want to be stuck in a situation where people are taking advantage of me and I can't do anything about it. Good on you for not allowing yourself to be in that situation!