Foreclosure Prevention

If you are in jeopardy of losing your home to foreclosure, the lender threatening to take your home may not have a legal right to take it from you. You may be a victim of the biggest financial scam in the history of our country.

Prior to 2001, banks would lend money to a borrower/homeowner, take a security interest in the borrower’s home (mortgage or deed of trust) and foreclose on that security interest if the borrower/homeowner defaulted on the monthly payments. The original lender, the bank that put up the money, would keep an accounting of the monthly payments and apply the payments to the borrower’s/homeowner’s account each month. If the borrower/homeowner didn’t make the monthly payments the lender was absolutely entitled to foreclose.

Beginning in 2001, the protocol for mortgage lending secretly changed. Wall Street began buying mortgages through a process called “securitization of mortgages” or “mortgage backed securities.” Since that time, now no one knows who puts up the money (investors) for mortgage loans, or who is entitled to payment. Even more perplexing is the fact that no one knows to whom and where the borrower’s/homeowner’s monthly payment are applied.

Please understand it is presently an investor who puts up the mortgage loan money, not the “lender” who is now seeking to foreclosure. The “lender” who is seeking to foreclosure on homes across America already got paid, and now they want your house too without being able to prove that they are entitled to payment.

If you live in a state where the foreclosure process is initiated with a court proceeding (Judicial Foreclosure) you can answer the foreclosure complaint with a demand that the “lender” prove they are entitled to payment. It isn’t up to the borrower/homeowner to prove that they do not owe the money. It is up to the “lender” to prove that they are entitled to payment. In a state where the foreclosure process is performed outside of a court proceeding (non-judicial foreclosure), the borrower/homeowner can file a bankruptcy petition and demand the “lender” prove they have a legitimate claim to foreclose. Homeowners can also file a separate lawsuit seeking the same proof.

These “ pretender lenders” are getting away with foreclosing on properties in which they are not the party entitled to payment, simply because 57% of homeowners are just walking away rather than putting up a fight. Keep the pressure on the “pretender lenders” to prove that they are the ones entitled to payment.