Every Bank Mortgage in America is a Fraud!

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 Contract.

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.

ROUND ONE
“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.

ROUND TWO
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 has occurred.

ROUND THREE
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”).

Step 1
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.

Problem 1
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”.

Problem 2
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.

Step 2
“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.

Problem 3
“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!!

Step 3
“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.

Problem 4
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 war.

Hows that for doom and gloom?

So I take it that this is the mess that Fanny and Freddie are still caught up in as well as others. Pretty sticky stuff. Any ideas on how to fit it? It would be good if the process becomes simpler instead of even more complex. There is finally some moves going on with the G20 and IMF to stabilise the economy, but will still take a while. Perhaps start looking at how other nations manage there housing issues and where the common ground is? After the GFC this was identified as the main reason for the collapse, quite possibly more to it but it is a big issue. A few band aids have been applied but there has been no real signs of accountability and reform. All this stuff swept under the carpet ain't going away and is just rotting away. The next main issue is what system is going to replace it, or is it fine just the way it is?

reply to post by hawkiye


While reading that i don't understand something and need a little clarification, you said the lender gives the money to the borrower who holds the prom note and then sells that for cash, this continues a few times.
Why does the borrower get the money??? From what i am reading you are suggesting that if I were to go to a bank, pick a house get them to pay for it and then have them sell the note a few times that i get the house. Sounds like a great deal a free house PLUS 50k cash!
Something doesn't sound right with what you are saying there.
In a worst case scenario from what you suggested the borrower would now owe 3 different sets of lenders / investors. If not what have i misunderstood?

Ask yourself this?

Why the rush to foreclose on millions of homes?

Why would the banks be so stupid to foreclose on millions of homes so quickly - surely they would know that this would cause a collaspe of the housing market when the market became flooded with foreclosures?

What would possibly be the motive? As Dr. Phil would ask "what's the payoff?

Remember the BANKS DO NOT OWN YOUR MORTGAGE. They are only servicing them - meaning collecting the monthly payment - skimming off their profits of course first - then forwarding the balance to the investor.

They are always looking for another source of income.

They make millions in "foreclosure fees". So they foreclose.

But now the investors are angry. The investors that own these mortgages. Do you know who owns these mortgages? Most likely YOU DO. These mortgages are owned by Pension and Retirement accounts.

And now those investments are loosing 30% - 75% of their values. 2011 will be the year of Investor Lawsuits. The Pension Fund managers are just starting to wake up and go WTF?

The only way to stop this is a national moratorium on foreclosures (which will never happen). The system is broken.

How is it someone pays on their mortgage lets say for 20 years timely every month and then Wham - they loose their job. Hopefully this is just a temporary setback - but Whoa, they loose their home in 120 days. What is wrong with this picture. There needs to be a new system, a system that includes some "homeowner bill of rights". Hardship workouts written into the contracts that AVOID foreclosure. And that foreclosure in only a LAST resort - not a first resort.

When the housing market plays such a HUGE role in our national economy, there needs to be a system in place to protect us from an "instant massive housing crash".

I actually support the decline in housing values as there was definately a "bubble". (But the bubble was caused by FRAUD). But a slow deflating of the bubble would not have caused such an economic catastrophe like we are seeing today.

If you want to know more about the fraud - See the link in my signature.


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Originally posted by Scaledown
reply to post by hawkiye

 

While reading that i don't understand something and need a little clarification, you said the lender gives the money to the borrower who holds the prom note and then sells that for cash, this continues a few times.
Why does the borrower get the money??? From what i am reading you are suggesting that if I were to go to a bank, pick a house get them to pay for it and then have them sell the note a few times that i get the house. Sounds like a great deal a free house PLUS 50k cash!
Something doesn't sound right with what you are saying there.
In a worst case scenario from what you suggested the borrower would now owe 3 different sets of lenders / investors. If not what have i misunderstood?

What you are misunderstanding is there was never any money loaned. The borrower did not get any money, he just thinks he did, this is the fraud. The bank got your promissory note and a contract enslaving you to 30 years of payment and made ten times what the house was worth without ever bringing anything to the table. The Promissory note funded the whole transaction and several others you were unaware of.

Originally posted by kwakakev
So I take it that this is the mess that Fanny and Freddie are still caught up in as well as others. Pretty sticky stuff. Any ideas on how to fit it? It would be good if the process becomes simpler instead of even more complex. There is finally some moves going on with the G20 and IMF to stabilise the economy, but will still take a while. Perhaps start looking at how other nations manage there housing issues and where the common ground is? After the GFC this was identified as the main reason for the collapse, quite possibly more to it but it is a big issue. A few band aids have been applied but there has been no real signs of accountability and reform. All this stuff swept under the carpet ain't going away and is just rotting away. The next main issue is what system is going to replace it, or is it fine just the way it is?

The G20 and IMF will not stabilise the economy. This is a scam, what they want to do is reboot the fraud system with a new currency at 8 to 10 cents on the dollar. This will cause a world wide crash and transfer the remaining wealth/property to the utlra rich banksters and then they will offer low interest loans to everyone "to help get everyone back on thier feet" and resell the wealth/properties back to us effectively rebooting the money from nothing system that led us to disaster in the first place so they can blow up another bubble and do the same thing again.

The collapse came precisely because of the mortgage scam described above where they can create money from nothing on the spot based on the promissory notes millions walk into banks daily and sign. This is how they blew the bubble up so large. Bundling these notes is how they contrived the Derivatives scam. This way they can resell these notes over and over. But now that everyone knows they are worthless nobody is buying and they have yet to purge this fake debt from the system or everything would have crashed already.

They have been hiding them but that is about to change. The full measure of this depression has not hit but when the derivatives bubble finally is deflated it will be the SHTF. That is why they are trying to devise a scam like the IMF BS to cover up the scam and reboot it.

I love how people are JUST NOW learning this stuff...

I've known for a while and have taken action and got bastardized by the masses here on ATS (the high in moral/ethical fiber ones), called a "dead-beat" and things of that nature for doing what MANY will soon be doing once reality is no longer avoidable...

Originally posted by Sly1one
I love how people are JUST NOW learning this stuff...

I've known for a while and have taken action and got bastardized by the masses here on ATS (the high in moral/ethical fiber ones), called a "dead-beat" and things of that nature for doing what MANY will soon be doing once reality is no longer avoidable...

Well its never too late learn. I have been trying to teach people for years but few wanted to listen. More are listening now. However the courts have sanctioned the banksters for years along with the politicians so I am afraid it will all have to come unravelled before there is a real change.

reply to post by hawkiye

The G20 and IMF will not stabilise the economy. This is a scam, what they want to do is reboot the fraud system with a new currency at 8 to 10 cents on the dollar

This is my understanding of the situation, could be wrong. China is just as upset about this situation as you and me and they help take the policy control at the IMF away from the CFR and give it tho the G20. The current plan is to look at using the SDR as the basis for an international currency. The SDR has a history as an international trading tool so this sounds reasonable. America has flooded the market with money, so taking taking out 20% USD with help strengthen the USD greatly. Things are a mess so some rebooting, throwing out machines and building new ones is going to take place.

The end game I want is for money to gradually fade away as the introduction of free energy and technology comfortably meets our needs, some trading will still take place as humans do what they do, but the slavery of the system is what I want seen gone. A standard international currency is one step I see on this road. To achieve this America has to be reined in from its debt based economy. Eventually all the worlds economy will have to find the common ground and learn how to communicate across cultures, a single economic law that gets over the challenges of multiculturalism. I still need some more info, the G20 next step is depending the metrics to measure the goals for the SDR.

Originally posted by kwakakev
reply to post by hawkiye

 

The G20 and IMF will not stabilise the economy. This is a scam, what they want to do is reboot the fraud system with a new currency at 8 to 10 cents on the dollar

This is my understanding of the situation, could be wrong. China is just as upset about this situation as you and me and they help take the policy control at the IMF away from the CFR and give it tho the G20. The current plan is to look at using the SDR as the basis for an international currency. The SDR has a history as an international trading tool so this sounds reasonable. America has flooded the market with money, so taking taking out 20% USD with help strengthen the USD greatly. Things are a mess so some rebooting, throwing out machines and building new ones is going to take place.

The end game I want is for money to gradually fade away as the introduction of free energy and technology comfortably meets our needs, some trading will still take place as humans do what they do, but the slavery of the system is what I want seen gone. A standard international currency is one step I see on this road. To achieve this America has to be reined in from its debt based economy. Eventually all the worlds economy will have to find the common ground and learn how to communicate across cultures, a single economic law that gets over the challenges of multiculturalism. I still need some more info, the G20 next step is depending the metrics to measure the goals for the SDR.

Here's the problem, the SDR is a debt based currency also. EVERY currency is and they are all centrally managed by the banksters. All this would do is make the debt based economy officially a world debt based economy so they could blow the bubble up a little more till it all crashes. It might give a temporary lull but NOTHING I repeat nothing will pull this out.

These banksters will never allow money to be phased out as long as they have control, because they can create it out of nothing that is why they are in control and the ultimate rich.. I personally don't believe there will ever be a moneyless society as there will always be convenient mediums of exchange however it needs to be sound money and left up to people in complete freedom with no government intervention whatsoever.

reply to post by hawkiye


I did get my calculations wrong when you said 8 - 10 cents in the dollar, that is a 90 - 92% reduction, not the 20% I mentioned. Sudden jumps to that extreme is bad. I know the banking industry can be heartless bunch with most of the extremely wealthy just making matters worse. Most politicians are not informed enough to know the differences and can easily be sold of with a few benefits without knowing the complete situation and full repercussions.

It is important to identify problems before they can be fixed, you have done that. The next step is to identify solutions. Do we send in the army to eliminate the banking industry? The ATM's will stop handing out money, people will not get paid and society crumbles as there in no standard way to trade. New trading systems will develop but not in time to preserve a lot of current infrastructure.

Congress has failed in getting to the bottom of a lot of the problems going on in America. Ron Paul has tried to make some ground into it to he clean up the mess but having a hard time being part of a minority party. There does appear to be trillions floating around in worthless debt ridden assets and trying to get some accountability and resolution is tough. While it is a real messy picture and a reality check will be painful for some, more action and regulation is needed to pull the system back in line.

The role of money is to balance the forces of supply and demand throughout society. It is sad how some people have become addicted to it and introduced imbalances into the system. I do not know if China has a debt based economy, if they do then it will make economic standardisation a lot easier. It is in the common ground between nations economic policy where the answers through this mess will be found. From my understanding of the SDR it is based on national currencies. So if those currencies are based on debt, so is the SDR indirectly.

left up to people in complete freedom with no government intervention whatsoever.

Within the current economic game this is counterfeiting and is a serious risk to national security. I have no problem with sending in an air strike to end these practices. Generally a squat team will be enough, but a zero tolerance to this practice will help with the global economic stability.

But I can see where you are going with this and can see a hazy way out, with conditions. I got the idea first from Jared Loughner (the shooter) in one of his videos about the economy. In it he talks about each of us being our own treasurer with our own currency. This is where the SDR comes in, currently there are only 4 or 5 national currencies in the basket. Now that the G20 has picked up this basket, work is going on in how to incorporate other currencies into this basket as well. The first time is always the hardest, but once this process becomes more streamlined with all 19 countries in the basket, then it can expand to include all the worlds currencies. Once this has been achieved then a process will be open for different groups and individuals to also create their own currency and still trade within the global economy.

Another idea is to have the volume of money within a national currency fixed to the number of people in that nation. It will be the governments responsibility to introduce new money as the population increases and take old money as the population declines. This will put an end to the issues of inflation as long as there is no extravagant hoarding of money. An award system to define income levels for work performed will aid in the fairness of the system and limit this multi million and billion dollar looting from executives.

reply to post by hawkiye


Very well put and right on point!!!

Second line