This is what the majority do not understand about their mortgage. Here is how it works and how you are defrauded.
Step One: “Borrower” signs the Promissory Note to borrow “money” from the “Lender”.
Step Two: “ Supposed Borrower” signs the Mortgage Contract to “secure” the Promissory Note and the “Lender’s” interest, by pledging the
property as collateral. What the Borrower doesn't know is the Promissory note is payment in full and the contract conveys the property to the you
forever and then when you sign the mortgage contract you "re-convey" the the property to the bank "for monies received". But you never received any
monies. You can't convey something you do not own. In a matter of minutes you owned your home free and clear and gave it away to the bank.
Here is a good audio that explains it even better. www.freedomsphoenix.com...
Step Three: Title Company then processes the paperwork as the “Lender’s” closing agent and
1)Authorizes the funds to be transferred
2)Records the Mortgage Contract at the County Register of Deeds as a 1st position lien on the property
3)Forwards paperwork to the “Lender”
4)Typically gives “Borrower” an unsigned or “Borrower” only signed copy of the closing package that includes the Promissory Note and Mortgage
At this point is appears that a commercial transaction has occurred and that the “Borrower” owes the “Lender” the amount borrowed plus
interest and should pay according to the terms of the mortgage contract. It is worth noting that the primary document and only financial instrument is
the Promissory Note and it is NOT recorded in the County Register of Deeds. The Promissory Note is the BASIS of the entire purported transaction. It
is the “Borrowers” promise to pay back the “loan”.
For clarity let’s put some numbers down to show the purported transaction.
Amount “borrowed” $100,000
Term of “Loan” 30 years
Payment and interest calculations and amount are irrelevant for this example.
Now it gets interesting as we go into the “Mortgage Netherworld” and creative financing.
“Lenders” quickly, within weeks not months, sell the Promissory Note to a company that gathers multiple promissory notes into a big bundle. This
company “pays” a discounted rate for all the notes because they will not be paid off until some future date. There are accounting and finance term
and methodologies that are used to arrive at the value to the notes at the current point in time. Some terms you might hear are Net Present Value,
Risk Factor, Future Value Money, etc. But let’s assume that the “Borrower’s” is worth $75,000 or 75% of face value at this point. The original
lender is paid $75,000 and sells the note to the company purchasing promissory notes to gather into a “pool” for investments.
So at this point in time the original “Lender” now has received $75,000 or 75% of the “money” that they provided to the original
“Borrower”. So logically, the original “Borrower” should only owe the original lender $25,000 if the original “Lender” applied the $75,000
received for the note to the original “Borrower’s” account. THIS DOES NOT HAPPEN! Theoretically, the original “Borrower’s” Promissory Note
to pay over 30 years is now owned and in possession of the company that is going to put it in a pool and its current value is now $75,000 (what they
paid for it) and the original “Borrower” is on the “hook” for this amount to the new “Holder in Due Course” of the Promissory Note, but
the “Borrower” only owes the original “Lender” $25,000, not $100,000.
The company gathering all the Promissory Notes now, in a matter of weeks ,at most, either hires another company or sells the bundle to another company
that processes the notes and pools them together. If they sell it to another company, it will be at a discounted rate on the face value of $100,000,
let’s say $70,000 or 70%. Now the original “Borrower’s” Promissory note has been sold again. So, logically, another $70,000 should be credited
to the “Borrower’s” account. So now the “Borrower” should actually have their “loan” paid off and gotten a check for the balance.
Let’s see, “Borrower” only now owes $25,000, and their note was sold again for $70,000 so not only is their original “loan” paid off and
they own their property free and clear (the mortgage lien should be released), but they should have received a check for $45,000 ($75,000 minus
$25,000). THIS DOES NOT HAPPEN! If the company hires another company to do the processing and pooling then they will incur expenses that they will
pass on to the next company in the process in the form of a lower discount. Either way, the original Promissory Note is absorbed into a pool with
thousands of other promissory notes to create a “mortgage backed security”, and another transaction using the “Borrower’s” Promissory Note
Now it’s time to make some real money using the “Borrower’s” Promissory Note! The pooled “mortgage backed security” is now ready to be
underwritten (of course at a minimum fees will be charged) by one of the large “investment banks” like Bear Stearns, Lehman Brothers, Credit
Suisse or Merrill Lynch. Now, guess what, the pools of promissory notes are sold to investors, at a discounted rate on the face value. The investors
include pension funds, hedge funds, mutual funds and “foreign investors”. Let’s say the investor’s get a great discount on the face value of
the “Borrower’s” Promissory Note and only pay 40%, because they will only get interest and dividends from their investment over the next 29
years. So now, they “Borrower” should have/get another $40,000 from the sale of their Promissory Note AGAIN. The “loan” has been paid off to
the original “Lender”, so the “Borrower” should be getting a check for $40,000, right. THIS DOES NOT HAPPEN!
And the big question is…Where is the original wet ink signed Promissory Note that is the financial instrument and basis for the original transaction
(and all subsequent transactions) and who is/are the “Holders in Due Course” and actually can claim an interest in the Mortgage Contract and
property collateral that is securing the original purported transaction?
So now that we have followed the promissory note, let’s see what happens to the Mortgage Contract, again assuming that the “Lender” actually did
lend the “Borrower” some of the “Lender’s” assets (“money”).
The Mortgage Contract is either retained by the original “Lender” (usually only with small lenders) or it is assigned to a “Servicer” to
manage and collect the monthly payments. Either way, the Mortgage Contract is no longer “connected” to the Promissory Note that is the sole and
only basis for the Mortgage Contract.
Without the “Lender” or “Servicer” having possession of the Promissory Note, they have no way to prove that the Mortgage Contact is valid. Of
course, no one bother to mention this detail to the “Borrower”.
Even if you allow a year for the Promissory Note securitization process, the Mortgage Contract is satisfied and the original “Lender” has been
paid off from the multiple transactions described above. Yet the “Borrower” is receiving a payment coupon each for a payment on a Mortgage
Contract that has been satisfied.
“Borrower” makes their “payments” on time and continues to pay on a “loan” that should have been paid off and satisfied based on the
transactions using their financial instrument (Promissory Note) in the first year. In their ignorance of the fraud being perpetuated, they may
re-finance their home or sell it to move into another home with a “new” mortgage, and they cycle starts again.
“Borrower” has been defrauded and conned into paying for something that they don’t owe anything for. At worst case, if the original “Lender”
actually lent the “Borrower” any of the “Lender’s” assets (“money”), the “Lender” got paid within the first year. But what would
happen if the “Borrower” became unable to pay the monthly bill… Default & Foreclosure!!
“Lenders”, “Servicers”, “Nominees” (i.e. Mortgage Electronic Registration System (MERS)) and “Trustee” have been foreclosing on void
Mortgage Contracts at unprecedented rates and the Attorneys, Judges & Courts have been allowing it to happen over the last three years. With this
financial disaster unfolding over the last several years, we have also seen the numbers of bankruptcies soar.
The vast majority of these foreclosures and forcible evictions have been illegal and based on Mortgage Contracts that are satisfied at best and null
and void based on the securitization of the corresponding Promissory Notes.
There is no money in reality, they stole it in 1933 when they confiscated the gold and silver, then they passed laws allowing promissory notes to act
as money instead and pledged the peoples labor and property as collateral (HJR 192). Where do you think the largest supply of promissory notes comes
from? It is not federal reserve notes, it is mortgage notes. They don't have to run the printing presses this way, they create it on the spot and log
it on a computer screen. Then they sell and trade the note many times over. They know you do not understand the above so they use your lack of
knowledge to take advantage of you and have destroyed the country blowing up a bubble so huge it will crash the world economy.
And what did you get for lending your signature to them to make millions with? 20-30 years of servitude to a phony mortgage. It is the greatest
ponzi scheme in the history of the world! The Mafia wishes they have a scam this good.
They have sucked the whole world into this scam selling this phony paper which is probably why they are giving the country away to China to avoid
Hows that for doom and gloom?
edit on 19-2-2011 by hawkiye because: (no reason given)