1

Mortgages Defined and Analyzed………………………………………………………..

1

2

Promissory Notes Defined and Analyzed………………………………………………..

3

Relating to Foreclosure Matters………………………………………………………….

3

Location of the Promissory Note Under Routine Servicing……………………………..

5

When a Default Foreclosure Takes Place………………………………………………..

5

The Promissory Note as Evidence……………………………………………………….

6

Who Owns the Promissory Note and Who Owns the Securities………………………...

6

3

Where’s the Note, Who’s the Holder…………………………………………………….

8

UCC Section 3-309………………………………………………………………………

9

Who’s the Holder………………………………………………………………………...

9

Brief Review of UCC Provisions ………………………………………………………..

9

The Rules………………………………………………………………………………...

10

Standing………………………………………………………………………………….

10

A Brief Aside: Who is MERS?..........................................................................................

11

Rules of Evidence – A Practical Problem………………………………………………..

11

Foreclosure or Relief from Stay………………………………………………………….

11

Some Recent Case Law…………………………………………………………………..

12

Ohio…………………………………………………………………………………….

13

Illinois………………………………………………………………………………….

13

New York………………………………………………………………………………

14

California………………………………………………………………………………

14

Texas…………………………………………………………………………………..

14

Summary…………………………………………………………………………………

15

4

Essay on Lost Notes……………………………………………………………………...

16

Lost note / Destroyed Note………………………………………………………………

16

Nominal Lender………………………………………………………………………….

16

Early Amortization Event (EAE)………………………………………………………...

17

Toxic Waste……………………………………………………………………………...

18

5

Mortgage Securitization…………………………………………………………………

21

About the Mortgage Pooling and Servicing Agreement…………………………………

22

Procedure in Foreclosure Cases………………………………………………………….

25

Finding Pooling and Servicing Agreements for Securitized Mortgage Loans…………..

25

6

The Mortgage Backed Security Pooling and Service Agreement……………………….

28

Introduction………………………………………………………………………………

28

Mortgage Backed Securities……………………………………………………………..

28

Pooling and Servicing Agreement……………………………………………………….

28

Parties Involved in a PSA………………………………………………………………..

28

Contents of a PSA………………………………………………………………………..

29

Article I: Definitions…………………………………………………………………...

30

Article II Conveyance of Mortgage Loans; Representations and Warranties…………

32

Article III: Administration and Servicing of Mortgage Loans………………………...

34

Article IV: Distributions……………………………………………………………….

36

Article V: Certificates………………………………………………………………….

37

Article VI: Depositor…………………………………………………………………..

37

Article VII: Default…………………………………………………………………….

38

Article VIII: Concerning the Trustee…………………………………………………..

38

Article IX: Administration of the Mortgage Loans by the Master Servicer…………..

40

Article X: Concerning the Securities Administrator…………………………………..

44

Article XI: Termination………………………………………………………………..

46

Article XII: Miscellaneous Provisions…………………………………………………

46

Chapter 2 – Foreclosure Requirements, Practice and Procedure

Judicial vs. Non Judicial Foreclosures…………………………………………………..

48

1

Non Judicial Foreclosures………………………………………………………………..

48

Procedure in Non Judicial States………………………………………………………...

49

Deed of Trust Defined………………………………………………………………….

49

Example of Timeline: California ………………………………………………………

51

Example of Timeline: California – Chart……………………………………………...

52

2

Judicial Foreclosures……………………………………………………………………..

53

Elements of a Foreclosure Complaint……………………………………………………

53

Execution………………………………………………………………………………

53

Legal Description………………………………………………………………………

53

Plaintiff’s Status………………………………………………………………………..

53

Joinder………………………………………………………………………………….

54

Description of default…………………………………………………………………..

54

Acceleration Clause……………………………………………………………………

54

Caveat: Right of Redemption…………………………………………………………..

55

General Foreclosure Practices and Procedures…………………………………………..

55

Discussion of Terms, Definitions and Procedures……………………………………….

55

Standing………………………………………………………………………………..

55

Notice of Lis Pendens………………………………………………………………….

55

Service of Process……………………………………………………………………...

56

Response……………………………………………………………………………….

56

Default………………………………………………………………………………….

56

Proof Necessary………………………………………………………………………..

56

Judgment……………………………………………………………………………….

56

Sale of Property………………………………………………………………………...

56

Objection to Sale……………………………………………………………………….

57

Redemption…………………………………………………………………………….

57

Certificate of Title……………………………………………………………………...

57

Possession……………………………………………………………………………...

57

Deficiency Judgment…………………………………………………………………...

57

Setting Aside Completed Sale………………………………………………………….

57

3

Alternatives to Foreclosure………………………………………………………………

58

Reinstatement of Loan…………………………………………………………………...

58

Refinance…………………………………………………………………………………

58

Repayment Plan………………………………………………………………………….

58

Forebearance……………………………………………………………………………..

59

Deed in Lieu of Foreclosure……………………………………………………………...

59

Cash for Keys…………………………………………………………………………….

59

Short Sale………………………………………………………………………………...

59

Short Sale Guidelines…………………………………………………………………..

61

Credit Repair……………………………………………………………………………..

63

Mortgage Modification…………………………………………………………………..

63

Loss Mitigation Defined…………………………………………………………………

63

If No Complaint Has Been Filed…………………………………………………………

64

Morality Issue……………………………………………………………………………

64

Contact Your Lender…………………………………………………………………….

64

Pitfalls……………………………………………………………………………………

66

Default Servicing………………………………………………………………………...

67

Modification Rates……………………………………………………………………….

67

Bankruptcy……………………………………………………………………………….

68

Avoiding Foreclosure Scams…………………………………………………………….

69

4

Taxes and IRS Form 1099……………………………………………………………….

70

Legal Arguments…………………………………………………………………………

70

Mortgage Forgiveness of Debt Relief Act of 2007………………………………………

71

5

Borrower’s Procedure in Foreclosure Matter……………………………………………

72

If You Have Been Served with a Complaint……………………………………………..

72

Modifications…………………………………………………………………………..

72

Qualified Written Requests…………………………………………………………….

72

Audit……………………………………………………………………………………

72

Proof of Ownership…………………………………………………………………….

73

Loan history……………………………………………………………………………

73

Legal Response………………………………………………………………………...

73

QWR…………………………………………………………………………………...

73

Notice of Appearance and Unavailability……………………………………………...

73

Borrower’s Demand for Disclosure Required by RESPA……………………………..

73

Demand for Written Verification of Reinstatement and Payoff Figures……………...

73

Motion to Dissolve Lis Pendens………………………………………………………..

74

Motion to Abate………………………………………………………………………..

74

Motion to dismiss for Lack of Standing……………………………………………….

74

Motion for More Definite Statement…………………………………………………..

74

Discovery………………………………………………………………………………

74

Additional Motions to Dismiss………………………………………………………...

74

Negotiate……………………………………………………………………………….

75

Settlement and or Mediation…………………………………………………………...

75

Answer Affirmative Defense and Counterclaims……………………………………...

76

Plaintiff’s Motion for Summary Judgment…………………………………………….

76

Pitfalls………………………………………………………………………………….

77

Foreclosure Requirements……………………………………………………………...

77

Summary Judgment Hearing…………………………………………………………...

78

6

How to Avoid Foreclosure………………………………………………………….........

80

What Happens When I Miss My Mortgage Payments? …………………………………

80

What Should I Do? ………………………………………………………………………

80

What Are My Alternatives? ……………………………………………………………..

80

Special Forbearance……………………………………………………………………

80

Mortgage Modification………………………………………………………………...

80

Partial Claim…………………………………………………………………………...

81

Deed in Lieu of Foreclosure……………………………………………………………

81

How Do I Know if I Qualify for Any of Those Alternatives? …………………………..

81

Should I be Aware of Anything Else? …………………………………………………..

81

Are There Any Precautions I Can Take? ………………………………………………..

82

What Are the Main Points I Should Remember? ………………………………………..

82

Chart Outlining Foreclosure Procedure in Each State…………………………………...

83

Foreclosure Law in Each State…………………………………………………………...

86

Arkansas………………………………………………………………………………..

86

Connecticut…………………………………………………………………………….

88

Delaware……………………………………………………………………………….

89

Florida………………………………………………………………………………….

90

Iowa…………………………………………………………………………………….

91

Illinois………………………………………………………………………………….

92

Indiana………………………………………………………………………………….

93

Kansas………………………………………………………………………………….

94

Kentucky……………………………………………………………………………….

95

Louisiana……………………………………………………………………………….

96

Montana………………………………………………………………………………..

97

North Dakota…………………………………………………………………………...

99

Nebraska………………………………………………………………………………..

100

New Jersey……………………………………………………………………………..

101

New Mexico……………………………………………………………………………

102

New York………………………………………………………………………………

103

Ohio…………………………………………………………………………………….

104

Oklahoma………………………………………………………………………………

105

Pennsylvania…………………………………………………………………………...

107

South Carolina…………………………………………………………………………

108

Utah…………………………………………………………………………………….

109

Vermont………………………………………………………………………………..

110

Wisconsin ……………………………………………………………………………..

113

Non-Judicial Foreclosure States………………………………………………………….

115

Alabama………………………………………………………………………………..

113

Alaska…………………………………………………………………………………..

117

Arizona…………………………………………………………………………………

119

California………………………………………………………………………………

121

Colorado……………………………………………………………………………….

123

Washington DC………………………………………………………………………..

125

Georgia…………………………………………………………………………………

126

Hawaii………………………………………………………………………………….

127

Idaho……………………………………………………………………………………

129

Massachusetts………………………………………………………………………….

130

Maryland……………………………………………………………………………….

132

Maine…………………………………………………………………………………..

134

Michigan……………………………………………………………………………….

135

Missouri………………………………………………………………………………..

136

Minnesota………………………………………………………………………………

137

Mississippi…………………………………………………………………………......

138

North Carolina…………………………………………………………………………

138

New Hampshire………………………………………………………………………..

141

Nevada………………………………………………………………………………….

143

Oregon………………………………………………………………………………….

145

Rhode Island…………………………………………………………………………...

147

South Dakota…………………………………………………………………………...

149

Tennessee………………………………………………………………………………

151

Texas…………………………………………………………………………………...

153

Virginia………………………………………………………………………………...

154

Washington…………………………………………………………………………….

156

West Virginia…………………………………………………………………………..

158

Wyoming……………………………………………………………………………….

160

The Mortgage Forgiveness Debt Relief Act and Debt Cancellation …………………… 

162

Chapter 3 – Form Letters

Introduction………………………………………………………………………………

167

Qualified Written Request……………………………………………………………….

167

12 U.S.C. Section 2605…………………………………………………………………...

168

Debt Dispute Letter……………………………………………………………………… 

169

Truth in Lending Act……………………………………………………………………..

169

Form 1 – Request for Exclusive RESPA Address for a Qualified Written Request…….

171

Form 2 – Qualified Written Request……………………………………………………..

172

Form 3 – Qualified Written Request……………………………………………………..

174

Form 4 – Qualified Written Request (Bankruptcy) ……………………………………..

176

Form 5 – Qualified Written Request (Bankruptcy) ……………………………………..

178

Form 6 – Qualified Written Request (Bankruptcy) ……………………………………..

182

Form 7 – Debt Dispute Letter……………………………………………………………

184

Form 8 – Debt Dispute Letter 2. ……………………….……………………………......

185

Form 9 – When Answer to QWR is Insufficient…………………………………………

186

Chapter 4 – Affidavits, Assignments and How to Spot Fraud

Affidavits………………………………………………………………………………...

188

Reasons Why Tour Affidavit is False of Fraudulent…………………………………..

189

Foreclosure Tips………………………….…………………………………………….

189

MERS…………………………………………………………………………………..

190

JPMorgan Chase Bank…………………………………………………………………

191

David Stern Law Offices……………………………………………………………….

191

Discovery……………………………………………………………………………….

192

Requirements for a Valid Affidavit……………………………………………………...

193

Affidavit’s Competency………………………………………………………………..

193

Affidavit Properly Notarized…………………………………………………………...

193

Affidavit’s Personal Knowledge……………………………………………………….

194

Must Be Based on Ultimate Facts……………………………………………………...

194

Documents Must be Attached and Verified……………………………………………

195

Discretion………………………………………………………………………………

195

Freddy Mac Handbook…………………………………………………………………

195

Assignments………………………………………………………………………………

197

Assignment Defined……………………………………………………………………

197

Assignments are Offered……………………………………………………………….

197

Relating to Foreclosure Cases………………………………………………………….

198

Ten Quick Foreclosure Tips Regarding Assignments…………………………………

198

Twelve Legal Reasons Why the Assignment is Either Invalid or Fraudulent…………

199

Endorsement……………………………………………………………………………

204

Yes……………………………………………………………………………………

204

Negotiable Instrument………………………………………………………………..

204

Negotiability…………………………………………………………………………

205

Indorsement…………………………………………………………………………..

205

Conclusion……………………………………………………………………………

206

Endorsement II: Timing of Assignment………………………………………………..

206

Pooling and Servicing Agreements…………………………………………………..

206

Sample PSA Language …………………………………………………………...

207

Assignment Dated After Commencement of Foreclosure Action…………………..

208

Remedies……………………………………………………………………………..

210

Fraud on the Court and a Decision of the Remedies Available………………………….

211

Citations and Notes……………………………………………………………………….

218

Appendix A……………………………………………………………………………….

222

200 Signs the You Have A False Document…………………………………………...

223

Chapter 5 - Motions – Tested Motions, Responses and Directions

Motions Defined………………………………………………………………………….

231

Tested Motions and Pleadings……………………………………………………………

231

Chapter 660 Trust Business. …………………………………………………………...

234

CD Version……………………………………………………………………………….

243

Notice of Appearance and Unavailability. ………………………….…………………...

245

Motion to Dissolve/Discharge Lis Pendens and For Attorney Fees…………………….. 

246

Motion for Order Quashing Service of Process…………………………………………. 

248

Borrower Demand for Disclosure Required by RESPA…………………………………

250

Defendants Demand for Written Verification of Reinstatement and Payoff

Figures for Consumer Debt…………………………………………………………….

251

Motion to Abate…………………………………………………………………………..

252

Defendants Motion To Set Aside Plaintiff’s Order For Substitution 

And Motion To Dismiss Plaintiff’s Complaint, Or In The Alternative, 

Motion For More Definite Statement…………………………………………………. 

255

Defendant’s Motion to Dismiss/Abate Action for Failure to Substitute Plaintiff………

265

Defendant’s Motion to Dismiss/Abate Action for Failure to Substitute Plaintiff………

267

Defendant’s Motion to Dismiss/Abate Action for Failure to Substitute Plaintiff………

269

Defendant’s Motion to Dismiss Complaint, Alternatively to Make More

Definite and Certain……………………………………………………………………

271

Defendant’s motion to Dismiss…………………………………………………………..

274

Motion to dismiss Amended Complaint for Fraud on the Court………………………...

279

Defendant’s Memorandum in Support of Defendant’s Motion to Dismiss Action……..

284

Motion to Compel………………………………………………………………………...

291

Defendant’s Motion To Cancel Summary Judgment Hearing, Dismiss Plaintiff’s 

Complaint, Or In The Alternative, Motion For More Definite Statement …………….

296

Defendant ‘S Verified Affidavit And Motion To Set Aside Default, Cancel  

Summary Judgment Hearing, For More Definite Statement And For Leave To File  

Belated Answer, Affirmative Defenses, Counterclaims And Cross-Claims………….. 

300

Chapter 1 Defendant ’S Response To Plaintiff’s Motion For Summary Final  

Judgment, And For Attorney’s Fees And Costs………………………………………..

304

Defendants Memorandum In Opposition to Summary Judgment………………………. 

310

Affidavit of Your Name in Support of Defendant’s Response to

Plaintiff Motion for Summary Judgment…………..…………………………………..

315

Affidavit of Your Name in Support of Defendant’s Response to

Plaintiff Motion for Summary Judgment………………………………………………

317

Defendant’s Response to Plaintiff’s Motion for Summary Judgment of

Foreclosure and to Re-Establish a Lost Instrument……………………………………

319

Defendant’s Motion for Final Summary Judgment……………………………………..

324

Amended Motions for Summary Judgment……………………………………………...

335

Defendant’s Motion for Protective Order………………………………………………..

337

Chapter 6 – Discovery

Definitions, Types, Objections & Forms……………………………………………….. 

339

Discovery……………………………………………………………………………….

339

Parties…………………………………………………………………………………..

339

Witnesses……………………………………………………………………………….

340

Deponent……………………………………………………………………………….

340

Evidence………………………………………………………………………………..

340

Types of Discovery……………………………………………………………………….

340

Written Interrogations………………………………………………………………….

340

Request for Production of Documents…………………………………………………

341

Request for Admissions………………………………………………………………...

341

Depositions……………………………………………………………………………..

341

Objections to Discovery………………………………………………………………….

342

Motion for Protective Order……………………………………………………………

342

Overcoming Objections to Discovery & Failure to Respond……………………………

342

Motion to compel. ……………………………………………………………………..

342

Specifically Relating to Foreclosure Cases……………………………………………

342

Foreclosure Defense……………………………………………………………………...

343

Request for Admissions Checklist……………………………………………………….

343

Standing………………………………………………………………………………...

343

Assignments…………………………………………………………………………….

344

Endorsements…………………………………………………………………………..

344

Witnesses……………………………………………………………………………….

344

Loan Servicing………………………………………………………………………….

345

Servicing Requirements-HAMP………………………………………………………..

345

Servicing Requirements-HUD………………………………………………………….

346

Loan Origination………………………………………………………………………..

346

Fees / Charges…………………………………………………………………………..

346

Payment History………………………………………………………………………..

347

Lost Note………………………………………………………………………………..

347

Truth In Lending………………………………………………………………………..

347

Securitized Trusts………………………………………………………………………

347

MERS…………………………………………………………………………………..

350

Certificate of Authority………………………………………………………………...

353

General / Misc………………………………………………………………………….

353

Service of Process………………………………………………………………………

353

Negotiable Instrument………………………………………………………………….

354

Federal / Florida Debt Collection Practices Act

Mortgage Revenue Bond Program…………………………………………………...

355

Interrogatory Checklist…………………………………………………………………...

356

Standing………………………………………………………………………………...

356

Evidence………………………………………………………………………………..

357

Assignments…………………………………………………………………………….

357

Servicing Requirements………………………………………………………………..

359

Witnesses……………………………………………………………………………….

361

Fees / Charges…………………………………………………………………………..

362

Payment History………………………………………………………………………..

364

General………………………………………………………………………………….

365

Lost Note……………………………………………………………………………….

366

MERS…………………………………………………………………………………..

366

Securitized Trusts………………………………………………………………………

367

FDCPA/FCCPA

Truth In Lending……………………………………………………………………..

368

Force-Placed Insurance…………………………………………………………………

369

Broker Price Opinions………………………………………………………………….

371

Request for Production Checklist………………………………………………………...

373

Standing………………………………………………………………………………...

373

Assignments…………………………………………………………………………….

373

Evidence………………………………………………………………………………..

373

Servicing Requirements………………………………………………………………..

375

Property Inspections…………………………………………………………………...

377

Loan Origination………………………………………………………………………..

377

Fees / Charges…………………………………………………………………………..

379

Payment History………………………………………………………………………..

382

Lost Note……………………………………………………………………………….

383

MERS…………………………………………………………………………………..

383

General / Misc………………………………………………………………………….

384

Reinstatement…………………………………………………………………………..

384

Securitized Trusts………………………………………………………………………

385

Truth in Lending………………………………………………………………………..

387

Federal / Florida Debt Collection Practices Act……………………………………….

387

Forced Insurance……………………………………………………………………….

387

Broker Price Options…………………………………………………………………...

388

Forms……………………………………………………………………………………..

389

Defendant Request for Production of Documents……………………………………..

389

Defendant’s First Request for Production……………………………………………...

391

Defendant Request for Production of Documents……………………………………..

395

Defendant’s Request to Produce……………………………………………………….

402

Defendant’s First Interrogatories to Plaintiff………………………………………….

412

Defendant’s Interrogatories to Plaintiff Regarding Standing and Fraud………………

414

Interrogatories on Standing…………………………………………………………….

419

Defendant’s First Interrogatories to Plaintiff………………………………………….

423

Defendant’s First Set of Interrogatories to Plaintiff…………………………………..

430

Defendant’s First Set of Interrogatories to Plaintiff Bank ……………………………

436

Defendant’s First Request for Admissions…………………………………………….

443

Notice of Taking Deposition Duces Tecum ………………………………………….

447

Definitions ……………………………………………………………………………..

449

Motion to compel………………………………………………………………………...

458

Chapter 7 – Answers, Affirmative Defenses and counterclaims

Answer……………………………………………………………………………………

459

Affirmative Defenses……………………………………………………………………. 

460

First Affirmative Defense……………………………………………………………….. 

462

Sample Pleading – First Affirmative Defense…………………………………………

462

Second Affirmative Defense……………………………………………………………..

464

Sample Pleading – Second Affirmative Defense………………………………………

464

Third Affirmative Defense……………………………………………………………….

465

Sample Pleading – Third Affirmative Defense………………………………………...

465

Fourth Affirmative Defense……………………………………………………………...

468

Sample Pleading – Fourth Affirmative Defense……………………………………….

468

Fifth Affirmative Defense………………………………………………………………..

469

Sample – Fifth Affirmative Defense…………………………………………………...

469

Sixth Affirmative Defense………………………………………………………………. 

470

Sample – Sixth Affirmative Defense…………………………………………………..

470

Seventh Affirmative Defense…………………………………………………………….

471

Sample – Seventh Affirmative Defense………………………………………………..

471

Eighth Affirmative Defense……………………………………………………………...

475

Sample – Eighth Affirmative Defense…………………………………………………

475

Ninth Affirmative Defense……………………………………………………………….

477

Sample – ninth Affirmative Defense…………………………………………………..

477

Tenth Affirmative Defense……………………………………………………………….

478

Sample – Tenth Affirmative Defense………………………………………………….

479

Counterclaim……………………………………………………………………………..

480

Counterclaims in Mortgage Foreclosure…………………………………………………

481

Sample Pleading For Counterclaim Declaratory and Injunctive Relief………………… 

482

Consumer Collections Act Violations……………………………………………………

484

Sample Pleading for Counterclaim Consumer Collections Act Violation…………….

484

Breach of Fiduciary Duty………………………………………………………………...

486

Sample Pleading for counterclaim Brach of fiduciary Duty…………………………..

486

Breach of Obligation of Good Faith and Fair Dealings………………………………….

487

Sample Pleading Breach of Obligation of Good Faith and Fair Dealings……………..

487

Breach of Contract………………………………………………………………………..

488

Sample Pleading for Counterclaim Breach of Contract…………………………..…...

488

Florida Deceptive and Unfair trade Practices Act……………………………………..

489

Forms – Sample Pleadings in Full………………………………………………………. 

491

Defendant’s Answer, Affirmative Defenses, Counterclaim and Demand for Jury trial

492

First Affirmative Defense – Failure to Cause a State of Action………………………...

495

Second Affirmative Defense – Failure of Contractual Condition Precedent…………… 

496

Third Affirmative Defense – Plaintiff Failed to Comply With Applicable Pooling

And Servicing Agreement Loan………………………………………………………..

496

Fourth Affirmative Defense – Failure of Good Faith Dealing and Unfair

And Unacceptable Loan Servicing……………………………………………………..

498

Fifth Affirmative Defense – Illegal Charges Added to Balance…………………………

498

Sixth Affirmative Defense – Unclean Hands…………………………………………….

498

Seventh Affirmative Defense – Tila Violations………………………………………… 

499

Eighth Affirmative Defense – Improper Collection and/or Credit of Payments………..

502

Ninth Affirmative Defense – Failure to Join Indispensible Party………………………. 

503

Tenth Affirmative Defense – Failure to Comply with Florida Statute 559.715………...

503

Counterclaim Count I Declaratory and Injunctive Relief……………………………….. 

505

Count II Consumer Collections Act Violations………………………………………..

506

Count III Breach of Fiduciary Duty……………………………………………………

507

Count IV Breach of Obligation of Good Faith and Fair Dealings……………………..

508

Count V Breach of Contract……………………………………………………………

508

Count VI TILA. ………………………………………………………………………..

508

Demand for Jury Trial. …………………………………………………………………..

512

Defendant’s Answer to First Amended Complaint………………………………………

513

Defendant’s Answer Affirmative Defenses and Counterclaims………………………… 

531

Defendant Answer, Affirmative Defenses and Counterclaim………………………… 

542

Sample Alabama Answer Affirmative Defenses and Counterclaim…………………….

570

Sample Pleading State of Oregon………………………………………………………...

595