Why Quiet Title Won’t Stop Foreclosure Fraud

bryan blyI’ve been studying Quiet Title since 2009 while searching for a remedy to stop a greedy pretender lender from stealing my family’s New York property. Our situation was unique because we were making payments, even when the house was not liveable due to a 2005 fire that led to a 3-year battle against Allstate that we eventually won. In August of 2009, Bayview Loan Servicing, LLC appeared as the new “lender” or “servicer” depending on what they wanted to call themselves on a particular day, ignoring previous payments made to CitiMortgage, Inc., the previous lender. Not only did they ignore our payments after we continued to provide proof, they made it nearly impossible to receive any of the $100k balance they were holding from insurance proceeds needed to repair the home. In other words, their plan was to steal the home and keep the money…but that hasn’t happened!

Needless to say, over the past 5 years I’ve seen a lot and learned a lot through this process. I became involved with A Quiet Title Workshop, a legal training that was approved by the Bar Associations in several states for their attorneys to earn continuing legal education credits. We were excited to educate the legal community to help keep families in their home by fighting these fraudulent foreclosures by the banks and mortgage companies.

I was blown away to realize that the banks never lent any of their own actual money to fund these mortgage loans, and through the use of fiat currency, the banks are able to monetize the borrower’s mortgage notes up to 10 times the original value! So, the note is actually funded by the borrower’s signature and the funds are derived from a private treasury account they are not even aware of. On top of that, there are insurance policies and mechanisms in place to compensate creditors for the debtor’s non-performance, so it’s in the best interest of the lender for homeowners to default on their mortgages, because as soon as they do the lender is paid in full…and then some!

I’ve worked with several attorneys who specialize in foreclosure defense and they were excited to pioneer the quiet title brigade and provide relief to homeowners being victimized by the mortgage lenders and in desperate need of assistance. However, we quickly learned that quiet title arguments as it relates to bank fraud just isn’t working in court cases. Not to mention, these attorneys quickly found themselves unpopular in the court. While quiet title makes perfect sense when used to obtain a clear title in the traditional sense, such as situations involving an encumbrance or minor lien on a property. Quiet Title also makes sense in cases dealing with the statute of limitations or even for investors purchasing properties at tax deed sales and will be in need of title insurance in order to sell these investment homes.

It’s obvious that the banks and the court are working together, and it seems that regardless of how much evidence is brought up to prove the fraud or that the lender has no standing, the judges go back to the same question, “Did you pay your mortgage?” It doesn’t matter that the original note, which is the basis for the action, no longer exists, or that the assignments are drawn up by attorneys and executed by robo-signers after the fact. You can bring all of the forensic mortgage audits, securitization reports and expert witnesses you want, but unless you are fortunate enough to get a jury trial (which usually is not an option in foreclosure), you are wasting your time and money because the court doesn’t care. They know the deal, they understand how it works and where the money came from…or should I say, didn’t come from!

Anyway, this is not to discourage you, but to share what I’ve experienced in working on and reviewing hundreds and hundreds of cases in Florida and around the country over the years. Many people are under the assumption that Quiet Title is a magic trick to making a foreclosure disappear and gaining a home free and clear, and their forensic mortgage audit will act as the magic wand to be waived around the court. I’m sorry to tell you but this isn’t going to happen in most cases. Also, hiring an attorney may not be the best bet since they are on the same team as the other attorney and the judge, and have an obligation to the court before their client! Don’t get me wrong, I have attorney friends that I have a great deal of respect for and think they are a valuable resource for many situations, but unless you are interested in doing a loan modification or looking to delay the inevitable, I don’t believe an attorney can help you save your home.

The best way to win is to stay focused on the current case (if there is no judgment yet) and learn the court procedure. You have to do some research, look at sample pleadings, read the court rules online. Many attorneys don’t even read the court rules so you’ll be one up on them. In order to win you need to hold the judges accountable and this cannot be done without understanding. More importantly, you should give yourself a foundation because you can argue many points in court that the attorney cannot due to his or her relationship with the court. If you are facing any type of litigation I highly suggest Jurisdictionary, a legal training course taught by a highly successful trial attorney. This will give you the tools necessary to win in court. Learn how to depose and subpena witnesses for trial, how to respond at the trial, the proper use of verified evidence and more.

If you are absolutely paranoid about walking into a courtroom, then be sure to hire an attorney who will truly fight for you. Don’t take their word for it either, get samples of their work. Ask for a court transcript. Not ever attorney has the ability to fight at a trial, nor do some even want to. Many will just make consensual agreements with the opposing side. For example, Gingo and Orth, P.A. in Titusville, Florida are some attorneys willing to fight at trial. And while they don’t use Quiet Title, they argue every aspect of the note and mortgage to ensure accuracy. I don’t know either partner and gain nothing for their mention, but I was quiet impressed with the sample court transcripts provided on their web site. Have a look for yourself below…

Transcript of George Gingo, Esquire

Transcript of James Orth, Esquire

Good luck on your journey!