Submitted by Charles Koppa. 6/9/2010
Editor’s Note: We are starting to look at events AFTER the sale has taken place and we are discovering a number of things:
- CREDIT BID: Only the Creditor can submit a credit bid. All others must pay actual money. If a non-creditor submitted a credit bid (essentially bidding the “amount due” which as we have seen from the FTC action against BOA is incorrectly stated) then the procedure has been violated, the sale has not legally occurred. At least that is my interpretation.
- Also the submission of a credit bid locks in the position of the parties. So if you are suing for wrongful or fraudulent foreclosure, they no longer have the option of fabricating documents as you raise one objection after another.
- The obligation to return money rightfully owed to the homeowner continues but it is ignored. Thus even if the property is not sold to a bonafied purchaser for value without notice of defects, the net accounting due is the same. So the receipt of third party insurance, credit default swaps, or other credit enhancement payments is still required to be allocated to this loan. Hence there is a damage claim against the participants in the foreclosure and sale.
- More later. For now read Charles’ comments below
REO’s and OREO’s have NO MERS Identification Numbers.
1. Loan Servicer (as a MERS member) initiates the NOD and NOTS.
2. When the auctioneer pronounces “Back To Beneficiary”, the securitized bond trust receives the MinBid at averages of 46% below the NOTS amount posted the day before. Bondholder “paper certificate losses” are unconscionably assigned against the Real Estate asset. “The Paper Trust” gains an untitled transfer of the Real Estate Asset which it NEVER Wanted!
3. The Auction extinguishes the Toxic Security on Wall Street. Counterparties collect on their bets. Investor lose their investments” and the monthly cash interest streams are terminated.
4. Simultaneously, the Servicer (and MERS) are extinguished from all public records. Servicer collects on MGIC or other mortgage insurance to cover ALL their contrived losses and costs.
5. When the re-sale is completed, “The Bookkeeping Trust” ALSO disappears from County Property RECORDS!!!
6. Until re-sold, the real property travels at ZERO book value into an off balance sheet private entity (mostly controlled by the BHC) which was the SIV “depositor” (as an off balance entity) in setting up the REMIC and/or the Investment Trust in the first place.