The Enormous Clouded Title Problem

http://quiettitleaction.com

Rescission and Quieting Title
What is a Quiet Title action?
Regarding the context of property financed through a mortgage loan that has been rescinded the
legal action to remove the lien is known as Quieting Title. This is an operation of law. A Quiet Title
action is a Court procedure that is required in order to get a Court Order confirming that the
procedures undertaken by the homeowner in performing rescission was done in accordance with
Truth In Landing Act. Thus, when the 20 day requirement for the mortgage lender fails to tender
first the the title should be free and clear of any liens or encumbrances by operation of law.
Quiet Title is a method of taking adverse possession, (basically changing the title (deed) of the
property from one person to another person without buying it but taking control though legal
action.
It is a means of involuntary transfer by operation of law.
An action to quiet title is a lawsuit filed to establish ownership of real property (land and
buildings affixed to land). The plaintiff in a quiet title action seeks a court order that prevents the
respondent from making any subsequent claim to the property. Quiet title actions are necessary
because real estate may change hands often, and it is not always easy to determine who has
title to the property.
The homeowner shall have the right to rescind
According to Title 15 § 1635 (a) the obligor (homeowner) shall have the right to rescind the
transaction and [see § 1635 (b)] when an obligor exercises his right to rescind under subsection
(a) of this section, he is not liable for any finance or other charge, and any security interest given
by the obligor, including any such interest arising by operation of law, becomes void upon such a
rescission. Within 20 days after receipt of a notice of rescission, the creditor shall return to the
obligor any money or property given as earnest money, down payment, or otherwise, and shall
take any action necessary or appropriate to reflect the termination of any security interest
created under the transaction. If the creditor has delivered any property to the obligor, the
obligor may retain possession of it. Upon the performance of the creditor’s obligations under this
section, the obligor shall tender the property to the creditor, except that if return of the property
in kind would be impracticable or inequitable, the obligor shall tender its reasonable value.
Tender shall be made at the location of the property or at the residence of the obligor, at the
option of the obligor. If the creditor does not take possession of the property within 20 days after
tender by the obligor, ownership of the property vests in the obligor without obligation on his
part to pay for it. The procedures prescribed by this subsection shall apply except when
otherwise ordered by a court.
Tender shall be made at the location of the property or at the residence of the obligor
(homeowner), at the option of the obligor.
In our opinion when it comes to rescission if the lender does not respond to the rescission letter
within the 20 day requirement to tender, ownership of the property vests in the homeowner
without obligation on his part to pay for it and title can be transferred to the homeowner by
operation of law in a quiet title action.
In real estate terms, title is the right of ownership and possession of a particular property, so to
quiet title means to take legal action to settle a title dispute. A title dispute can arise when there
are conflicting claims of ownership over a piece of property. Therefore, in a quiet title action, a

court proceeding removes a "cloud" or possible encumbrance on the title to real property to
firmly establish in law ownership of the property. Thus, this action would "quiet" any challenges
or claims to the title.
For more information: Establish Ownership Quiet Title
Bank Fraud is Against the Law
Along with the exceptionally low interest rates of recent years has come an unfortunate
companion: bank fraud. The commercial noise of all the competing lenders in the home
mortgage loan market often obscures the very real problem of bank fraud. If you've recently
taken on a mortgage or are thinking of refinancing your home, it's critical that you are aware of
the inherent dangers of borrowing money.
Though bank practices are most prevalent among those with lower incomes, the tactics are
extend to all consumers. It's important to educate yourself in order to avoid being taken in
inadvertently. Anyone using the right terminology and offering great rates can appear to be a
legitimate banking-related business, but beware the many signs of those who are simply looking
to defraud you and your family.
Among some of the most common warning signs of bank fraud are the following: excessive fees,
severe prepayment penalties, "Yield Spread Premiums," which are kickbacks to brokers, and loan
flipping. This is the common practice of repeated refinancings on one home. These transactions
garner the broker/lender repeated profits from closing fees and more, but are of no benefit
whatsoever to the borrower.
Foreclosures Break All-Time High
Many consumers with ARM (adjustable rate mortgage) loans are beginning to have the price
reset to a higher monthly payment and inevitably, some of the buyers can't handle these higher
payments.
The problem with these loans, is that when home values goes down, it takes all options away
from the property owner as far as refinancing goes. The borrower has no equity.
In effect, they're locked into a that loan. Adding to the problem is that the real estate market is
currently soft and people who are falling behind on their payments are finding it almost
impossible to keep their homes.
Most of these ARM loans were given to consumers at the closing table. Where the borrower
thought he was getting a 30 year fixed mortgage he was getting an adjustable rate mortgage.
When the interest rate increases it is a total surprise and the borrower and he/she cannot afford
the higher payment and falls behind. The lender starts to foreclose and the borrower is in trouble
and may lose the home. for more information.
Banks to Seize One Million Homes in 2012
http://quiettitleaction.com is here to educate consumers and to help victims recover
their losses and keep their homes. If you are a victim of bank fraud or predatory
lending, it is possible to sue your lender for free clear title and money damages. We
show you how to stop foreclosure and sue your lender.
It is possible to find out if you have broker fraud and/or TILA violations with a simple
20 minute phone call.
We believe that if you don't know your rights, you don’t know your options.

http://quiettitleaction.com
Action to Quiet Title
A proceeding to establish an individual's right to ownership of real property against one or more
adverse claimants.
An action to quiet title is a lawsuit filed to establish ownership of real property (land and
buildings affixed to land). The plaintiff in a quiet title action seeks a court order that prevents the
respondent from making any subsequent claim to the property. Quiet title actions are necessary
because real estate may change hands often, and it is not always easy to determine who has
title to the property.
A quiet title suit is also called a suit to remove a cloud. A cloud is any claim or potential claim to
ownership of the property. The cloud can be a claim of full ownership of the property or a claim of
partial ownership, such as a lien in an amount that does not exceed the value of the property. A
title to real property is clouded if the plaintiff, as the buyer or recipient of real estate, might have
to defend her full ownership of the property in court against some party in the future. A
landowner may bring a quiet title action regardless of whether the respondent is asserting a
present right to gain possession of the premises.
For example, assume that the seller of the property agreed to sell but died before the sale was
finalized. Assume further that the seller also gave the property to a nephew in a will. In such a
situation, both the nephew and the buyer have valid grounds for filing a suit to quiet title
because each has a valid claim to the property.
The law on quiet title actions varies from state to state. Some states have quiet title statutes.
Other states allow courts to fashion most of the laws regarding quiet title actions. Under
COMMON LAW, a plaintiff must be in possession of the property to bring a quiet title action, but
many state statutes do not require actual possession by the plaintiff. In other states possession
is not relevant. In some states only the person who holds legal title to the real estate may file a
quiet title action, but in other states anyone with sufficient interest in the property may bring a
quiet title action. Generally, a person who has sold the property does not have sufficient interest.
When a landowner owns property subject to a mortgage, the landowner may bring a quiet title
action in states where the mortgagor retains title to the property. If the mortgagee keeps the title
until the mortgage is paid, the mortgagee, not the landowner, would have to bring the action.
The general rule in a quiet title action is that the plaintiff may succeed only on the strength of his
own claim to the real estate, and not on the weakness of the respondent's claim. The plaintiff
bears the burden of proving that he owns the title to the property. A plaintiff may have less than
a fee simple, or less than full ownership, and maintain an action to quiet title. So long as the
plaintiff's interest is valid and the respondent's interest is not, the plaintiff will succeed in
removing the cloud (the respondent's claim) from the title to the property.
A lawsuit to establish a party's title to real property against anyone and everyone, and thus
"quiet" any challenges or claims to the title. Such a suit usually arises when there is some
question about clear title, there exists some recorded problem (such as an old lease or failure to
clear title after payment of a mortgage), an error in description which casts doubt on the amount
of property owned, or an easement used for years without a recorded description. An action for
quiet title requires description of the property to be "quieted," naming as defendants anyone
who might have an interest (including descendants---known or unknown---of prior owners), and
the factual and legal basis for the claim of title. Notice must be given to all potentially interested
parties, including known and unknown, by publication. If the court is convinced title is in the
plaintiff (the plaintiff owns the title), a quiet title judgment will be granted which can be recorded

and thus provide legal "good title." Quiet title actions are a common example of "friendly"
lawsuits in which often there is no opposition.
From Wikipedia, the free encyclopedia
An action to quiet title is a brought in a court having jurisdiction over land disputes, in order to
establish a party's title to real property against anyone and everyone, and thus "quiet" any
challenges or claims to the title.
This legal action is "brought to remove a cloud on the title so that the plaintiff and those in
privity with him/her may forever be free of claims against the property.
This lawsuit is also sometimes called a Try title, trespass to try title, or ejectment action "to
recover possession of land wrongfully occupied by a defendant." However, there are slight
differences. In an ejectment action, it is typically done to remove a tenant or lessee in an eviction
action, or an eviction after a foreclosure. Nonetheless, in some states, all terms are used
synonymously.
Grounds for a quiet title action or complaint
It comprises a complaint that the ownership (title) of a parcel of land or other real property is
defective in some fashion, typically where title to the property is ambiguous – for example, where
it has been conveyed by a quitclaim deed through which the previous owner disclaims all
interest, but does not promise that good title is conveyed. Such an action may also be brought to
dispel a restraint on alienation or another party's claim of a non-possessory interest in land such
as an easement by prescription.
Other typical grounds for complaint include:


adverse possession where the new possessor sues to obtain title in his or her own name;



fraudulent conveyance of a property, perhaps by a forged deed or under coercion;



Torrens title registration, an action which terminates all unrecorded claims;



treaty disputes regarding the boundaries between nations;



tax taking issues, where a municipality claims title in lieu of back taxes owed (or a
subsequent purchaser of land at a tax sale files action to gain insurable title);



boundary disputes between states, municipalities, or private parties;



surveying errors



competing claims by reverters, remainders, missing heirs and lien holders (often arising in
basic foreclosure actions when satisfied liens are not properly discharged from title due to
clerical or recording errors between the county clerk and the satisfied lien holder)

Limitations
Unlike acquisition through a deed of sale, a quiet title action will give the party seeking such
relief no cause of action against previous owners of the property, unless the plaintiff in the quiet
title action acquired its interest through a warranty deed and had to bring the action to settle
defects that existed when the warranty deed was delivered.
One has to be careful about talking about quiet title actions in the context of registration
systems. Quiet title actions really have no applicability where a registration system is in place,
having been wholly replaced by the registration statutes. Quiet title actions derive in common
law jurisdictions from a common law equitable cause of action by the same name. In many
jurisdictions they have been supplemented or replaced by a statutory cause of action, which may

or may not have the same legal elements of the common law action. Where dealing with
statutory quiet title it is more appropriate to talk about actions in the nature of quiet title.
Quiet title actions do not “clear title” completely. They are actions for the purpose of clearing a
particular, known claim, title defect, or perceived defect. Contrast title registration which settles
all title issues, both known and unknown. Quiet title actions are always subject to attack and are
particularly vulnerable to jurisdictional challenges, both subject matter and personal, even years
after final court decree in the action. It usually takes 3-6 months depending on the state where it
is done.
A quiet title action is also subject in many a Geographic Jurisdiction, to a Statute of Limitations.
This limitations of action is often 10 or 20 years.[citation needed]
Quiet Title
An equitable action to determine all adverse claims to the property in question; a suit in equity
brought to obtain a final determination as to the title of a specific piece of property; such a suit is
usually the result of various individuals asserting contradictory rights to the same parcel of land.
In such a situation, the court, in order to prevent a multiplicity of suits, will bring all interested
parties together to determine the right and ultimately issue an injunction. 164 N.W. 338, 341. A
"quiet title" action is distinguished from an action to remove cloud on title. The latter is brought
to determine and resolve problems of instruments conveying a particular piece of land, rather
than to resolve the actual claims to that land.
For more information about the Right of Rescission: http://mortgage-home-loan-bankfraud.com/legal/Right_of_rescission.htm
Preliminary Consultation Form: http://mortgage-home-loan-bankfraud.com/tila_services_app.html
http://quiettitleaction.com is here to educate consumers and to help victims recover
their losses and keep their homes. If you are a victim of bank fraud or predatory
lending, it is possible to sue your lender for free clear title and money damages. We
show you how to stop foreclosure and sue your lender.
It is possible to find out if you have broker fraud and/or TILA violations with a simple
20 minute phone call.
We believe that if you don't know your rights, you don’t know your options.

Right of Rescission/Right to Cancel
The Right to Cancel or the Right of Rescission is a right given to borrowers within Regulation Z of
the Truth in Lending Act. Sometimes known as a "cooling off period," the right of rescission gives
borrowers of certain types of loans three business days (in some cases three years) to cancel the
loan and to receive a full refund on any money they've already paid up front. It's an extremely
important right, and one that every borrower should be aware of in advance of signing loan
papers.
As experts in mortgage document auditing and with seven years of experience we strive to make
sure consumers are informed of their rights before they get into trouble. In this current
countrywide foreclosure epidemic, for instance, it's easy to get over excited about reducing your
mortgage payments and fall prey to a bad lender. Regulation Z and the Right of Rescission lets
you take a couple of days to make sure your decision is the right one.

The Right of Rescission also applies to personal loans you may agree to that use your home as
collateral. The law gives you that crucial extra time to reconsider the loan or to even consider
other options for financing. It's equally important to know that the Right of Rescission does not
apply in the case of loans for purchasing or building your primary residence, or when you're
refinancing with the lender who currently holds the mortgage on your home.
The following is a list of fees and finance charges and refunds that the broker must comply with.
You will also be able to keep all funds transferred into your account and if the broker pays off
your old mortgage you get free clear title.
Rescission Fees Credit
1. Finance Charges including all Finance Charges already accrued;
2. All closing costs;
3. Security interest charges; Even if it is part of the amount financed as opposed to a finance
charge;
4. All other charges incurred for the actual credit transaction;


Membership fees



Commitment fees



Appraisal fees



Survey fees



Broker fees



Credit report fees



Filing fees



Title search fees



Attorney fees

5. Any money given as earnest money, down payment or otherwise;
6. Credit any payment made on the entire loan;
7. All cost incurred outside of the credit transaction must be refunded or else they become an
actual damage.
See an example right to cancel form.
Failure to comply is automatic violation; 15 USC § 1640 with $200.00 to $2000.00 penalty per
violation at courts discretion depending on severity of the liability.
The right to rescission is granted by 15 U.S.C. § 1635(a). Section 1635(b), as it
currently reads, details the procedure to be followed:
(b) When an obligor exercises his right to rescind under subsection (a) of this section, he is not
liable for any finance or other charge, and any security interest given by the obligor,
including any such interest arising by operation of law, becomes void upon such a
rescission. Within ten days after receipt of a notice of rescission, the creditor shall return to the
obligor any money or property given as earnest money, down payment, or otherwise, and shall
take any action necessary or appropriate to reflect the termination of any security interest
created under the transaction. If the creditor has delivered any property to the obligor, the

obligor may retain possession of it. Upon the performance of the creditor's obligations under this
section, the obligor shall tender the property to the creditor, except that if return of the property
in kind would be impracticable or inequitable, the obligor shall tender its reasonable value.
Tender shall be made at the location of the property or at the residence of the obligor, at the
option of the obligor. If the creditor does not take possession of the property within ten days after
tender by the obligor, ownership of the property vests in the obligor without obligation on his
part to pay for it.
15 U.S.C. § 1635(b) (1976). Under the 1980 amendments to the Truth-in-Lending Act, the ten day
periods referred to in § 1635(b) have been changed to twenty days. Also, a sentence was added
at the end of the section which states: "The procedures prescribed by this subsection shall apply
except when otherwise ordered by a court." Pub.L.No.96-221, 94 Stat. 132, 175 (codified at 15
U.S.C. § 1635(b) (Supp. IV 1980)). These amendments do not take effect until October 1, 1982.
Case Law [1] Powers v. Sims and Levin, 542 F.2d 1216 (4th Cir. 1976),
Congress recently amended the Act so as to make this interpretation even more obvious. As
previously stated, see note 1 supra, Congress added a sentence to § 1635(b) which provides,
"(t)he procedures prescribed by this subsection shall apply except when otherwise ordered by a
court." Pub.L.No.96-221, 94 Stat. 132, 175 (codified at 15 U.S.C. § 1635(b) (Supp. IV 1980)). In
discussing this provision, the Senate Report states:
Upon application by the consumer or the creditor, a court is authorized to modify this section's
procedures where appropriate. For example, a court might use this discretion in a situation where
a consumer in bankruptcy or wage earner proceedings is prohibited from returning the property.
The committee expects that the courts, at any time during the rescission process, may impose
equitable conditions to insure that the consumer meets his obligations after the creditor has
performed his obligations as required under the act.
S.Rep.No.96-368, 96th Cong., 1st Sess. 29 (1979), reprinted in 1980 U.S.Code Cong. & Ad.News
236, 264-65. Congress has therefore explicitly approved the application of equitable principles to
the right of rescission granted by the Act.
Case Law [2] French v. Wilson, 446 F.Supp. 216 (D.R.I.1978)
Moreover, the Fifth Circuit has questioned the continuing validity of the Sosa case insofar as it
holds that rescission need not be conditioned upon a return of the creditor's property. In Rollins v.
Dwyer, 666 F.2d 141 (5th Cir. 1982), the Fifth Circuit noted:
The state court cited this Court's decision in Sosa v. Fite, 498 F.2d 114 (5th Cir. 1974) as
authority for relieving the obligors of the obligations of tendering the loan proceeds. In view of
Gerasta v. Hibernia National Bank, 575 F.2d 580 (5th Cir. 1978), the correctness of this ruling is
doubtful, at best.
666 F.2d at 144 n.5. END
Consumer protection laws are out there, but as you can see, they don't protect everyone in every
case. To learn more about your rights and you legal options if you need them, contact the Bank
Fraud Victim Center today. Simply fill out our free preliminary audit form below or call us at 401349-4717. You can also email our friendly staff at [email protected]
For more information about the Right of Rescission: http://mortgage-home-loan-bankfraud.com/legal/Right_of_rescission.htm
See Also: The Truth in Lending Act and Rescission
Preliminary Audit Form: http://mortgage-home-loan-bankfraud.com/tila_services_app.html

http://quiettitleaction.com is here to educate consumers and to help victims recover
their losses and keep their homes. If you are a victim of bank fraud or predatory
lending, it is possible to sue your lender for free clear title and money damages. We
show you how to stop foreclosure and sue your lender.
It is possible to find out if you have broker fraud and/or TILA violations with a simple
20 minute phone call.
We believe that if you don't know your rights, you don’t know your options.

Bank Fraud Victim Center
Are you a victim of Predatory Lending or
Mortgage broker Fraud?...



Are you unable to Refinance your Mortgage?



Did you get an inflated appraisal? See This



Were you charged single premium insurance?



Were you charged High Fees?



Are you being locked in by Prepayment Penalties?



Were you charged Yield-Spread Premium?



Did your mortgage note get securitized? (if it did it is worthless and uncollectable) See
This

There are many different ways that banks, lenders and brokers can trick homeowners into giving
up their homes.
There is a legal remedy to recover Truth In Lending Act violation fines, void the lenders security
interest in the property and collect money damages.
You may be a victim of Predatory Lending Practices...Find out more about how your Broker or
Lender may have violated the Truth in Lending Act and other consumer protection laws...Click on
this link: http://mortgage-home-loan-bank-fraud.com/report.html
Have you ever thought of challenging the lending process as a scam?
Is your Bank or Mortgage Lender Foreclosing? You may be a Victim of Predatory Lending
Foreclosure Click Here
The Enormous Clouded Title Problem
For a free preliminary consultation CLICK HERE
Banks to Seize One Million Homes in 2012
RealtyTrac Inc. released data that indicates a possible 25% increase in property repossessions in
the next year. Banks to Seize

Our mission is to educate homeowners about predatory lending practices and bank fraud and the
legal options available to them. We believe that if you don't know your rights, you don’t know
your options.
We are not a mortgage elimination company. We help homeowners who are victims of predatory
lending and bank fraud.
We are the leaders in document auditing and predatory lending litigation and defense. And an
authority on the subject of predatory lending practices, foreclosure defense, consumer protection
and debtor’s rights.
We are affiliated with trained attorneys all over the United States.

Foreclosure Help
Foreclosure Help
Are you a victim of a Predatory Lending Mortgage Foreclosure?
Help is available to borrowers who have claims against their lenders for violating the Truth in
Lending Act and other laws regulating credit transactions. Such violations may be a defense to a
mortgage foreclosure. If there is a violation, you may be able to void the mortgage and apply
100% of your payments to principal. You may also be able to recover money damages.
You Can Stop Foreclosure and Put The Lender on The Defense
To recover on a promissory note, the plaintiff (the Lender in the case of foreclosure) must prove:
(1) the existence of the note in question; (2) that the party sued signed the note; (3) that the
plaintiff is the owner or holder of the note in due course; and (4) that a certain balance is due
and owing on the note.
Predatory Lending Claims Available to Borrowers in Foreclosure
In handling mortgage foreclosure cases around the country, attorneys and paralegals should be
aware that in addition to your state mortgage foreclosure laws, which is the main statute that is
relied on by attorneys defending a foreclosure suit, a variety of defenses exist at both at federal
and state levels. These statutes, however, focus more on the lending practice of the lender
rather than on the ability of the client to pay. Volunteers should therefore pay attention to the
nuances between laws listed below and figure out whether the mortgage company has engaged
in illegal lending practices.
Defense of Mortgage Foreclosure
Many lawyers and judges have long assumed that if a mortgage company seeks to foreclose, the
defendant probably owes the money and has no defense. In fact, as recent publicity concerning
the widespread problem of predatory lending has made clear, many mortgage lenders overreach.
In a substantial portion of residential mortgage foreclosures, the homeowner has a valid defense
to at least part of the claim. Either they are not in default at all...
State Foreclosure Information
If you develop a definite plan of action with well-timed, well-informed steps, you can stop the
foreclosure process and save your home. To learn about your state's foreclosure process, click
on your state below.

HUD: Predatory Lending
Are you a victim of predatory lending practices there are Federal agencies that can help...
Debtors Rights
A federal statute known as the Fair Debt Collection Practices Act (often called the "FDCPA") gives
you specific legal rights to sue debt collectors who unlawfully threaten, berate, intimidate or
harass you; call you during odd hours, make false representations about the the debt or their
intentions, or otherwise act in ways prescribed by the act (and their are many).
Sample Legal Documents
Click on item below to open:
Motion to Lift Automatic Stay
Sample Complaint
Sample Motion for Foreclosure by Sale
Sample Motion to Reopen

Sample Legal Documents
Foreclosure Filing Schedule:

You receive a Summons and
Complaint...

(The plaintiff--bank, lender or other creditor--starts the foreclosure
by having a marshal serve the defendant--owner or borrower--with
a Summons and Complaint.)

Within 2 days of the Return Date
File an Appearance
on the Summons...

File and send an Answer. Be sure to put a certification of service at
the end of your answer, and that you have sent your Answer to
everyone who has Appeared in the case. You will need to sign the
certification separately from your signature on the Answer.
Within 15 days of the Return
Date on the Summons...

If you choose foreclosure by sale, file a Motion for Foreclosure by
Sale
OR

Within 25 days of the Return
Date on the Summons...

Apply to the court if you think you are eligible for protection based
on temporary unemployment or underemployment

SAMPLE COMPLAINT
ABC MORTGAGE CORP

: SUPERIOR COURT

VS.

: JUDICIAL DISTRICT OF (YOUR CITY)

TERRY HOMEOWNER

: February 23, 2003

COMPLAINT
1. On August 11, 2000, the defendant, Terry Homeowner, owed the Plaintiff fifty thousand ($50,000) dollars
as evidenced by his note dated on said date and payable to the order of the Plaintiff, together with interest at the
rate of ten (10%) percent per annum and together with all costs of collection, including reasonable attorney's
fees, in the event of foreclosure of the mortgage securing the note.
2. On said date, by deed of that date, the defendant, Terry Homeowner, to secure said note, mortgages to the
plaintiff the real estate described in Exhibit "A" attached hereto and made a part hereof. Said deed is
conditioned upon the payment of said note according to its tenor and was recorded on August 11, 2003 in
Volume 12, Page 134 of the Smallcity Land Records.
3. Said note and mortgage are still owned by the plaintiff and the debt is due and wholly unpaid.
4. The defendant, Terry Homeowner, has defaulted under the terms of the mortgage note and deed.
5. Although the note is in default and demand was made upon the defendant, said defendant has neglected
and refused to make payment.
-------------------------------------------------------------------------------------------------------WHEREFORE, THE PLAINTIFF CLAIMS:
1. Monetary damages and that the amount, legal interest or property in demand is greater than $15,000.00
exclusive of interest and costs.
2. Strict foreclosure of said mortgage, but in the event that the United States of America is a part defendant at
the time of judgment, then a foreclosure by sale.
3. Possession of mortgaged premises.
4. A deficiency judgment.
5. Such other equitable relief as the Court may deem necessary.
6. Reasonable attorneys' fees as called for in the note.
Dated at Small City, Connecticut, this 23rd of February, 2003
NOTICE
NOTICE: A person who is unemployed or underemployed and who (for a continuous period of at least two
years to the commencement of this foreclosure action) owned and occupied the property being foreclosed as

such person's principal residence, may be entitled to contain relief provisions under Connecticut General Statute
49-31W, as amended. You should consult an attorney to determine your rights under this law.
THE PLAINTIFF
BY: __________________________
Jane Doe for
SMITH & SMITH PC

SAMPLE MOTION FOR FORECLOSURE BY SALE
Docket No.
ABC MORTGAGE CORP.

: SUPERIOR COURT

vs.

: JUDICIAL DISTRICT OF (YOUR CITY)

TERRY HOMEOWNER

: MARCH 10, 2003

MOTION FOR FORECLOSURE BY SALE
To all counsel and pro se parties of record:
The defendant Terry Homeowner moves that, if a judgment of foreclosure is rendered in the above entitled
action, it be for a foreclosure by sale.

THE DEFENDANT,
BY:________________________(Signature)
PRO SE
(Only if you are filing without an attorney)
NAME ________________________
ADDRESS _____________________
ORDER
The foregoing motion having been heard, it is hereby ordered GRANTED/DENIED
BY THE COURT,
Judge of the Superior Court Clerk
CERTIFICATION
This is to certify that a copy of the foregoing motion has been sent to:
by first class mail, postage pre-paid on this 10 of March, 2003.
__________________________
(Signature)

SAMPLE MOTION TO REOPEN
Docket No. (Copy from judgment)
ABC MORTGAGE CORP.

: SUPERIOR COURT

vs.
: JUDICIAL DISTRICT OF (YOUR CITY)
TERRY HOMEOWNER

: APRIL 20, 2003
MOTION TO REOPEN
To all counsel and pro se parties of record:
The defendant in the above entitled matter respectively represents:
1. On March 15, 2003, the Court entered a judgment of strict foreclosure against me.
2. My law day is set for May 5, 2003.
3. Someone has submitted a contract to purchase the property for more than the full amount I owe,
including all court costs and fees. They will need at least 60 days to close on the property. A copy of the
contract is attached as Exhibit A.
4. I feel that I need an additional 90 days to sell the property and redeem the mortgage.
THE DEFENDANT,
BY: ___________________ (Signature)
PRO SE (Only if you file without an attorney)
NAME ___________________________
ADDRESS________________________
ORDER
The foregoing motion having been heard, it is hereby ordered GRANTED/DENIED
BY THE COURT,
Judge of the Superior Court
Clerk
CERTIFICATION
This is to certify that a copy of the foregoing motion has been sent to:___________________________
by first class mail, postage pre-paid on this 20 of April, 2003.
_____________________________________
(Signature)

Sample Counter Complaint
See Also: Sample Combined "Violations Notification and
Qualified Written Request" Letter

Sample Combined "Violations Notification and Qualified
Written Request" Letter
This letter has been edited to protect the clients name and certain proprietary
information that is used by the author.
This letter notifies the Lender that they are in violation of several provisions of
Consumer Protection Act and the Real-Estate Procedures Settlement Act and,
puts them "on notice"
"As a result of Lender’s aforesaid violations, Lender is liable to Borrower in an
amount not less than $200.00 and up to $2,000.00 for each and every violation
and clear title to property with fixtures in fee simple as a result of the
aforementioned all with damages. The credit transaction is also rescindable."
In this case there are 31 violations which means the amount of violations fines
that may be available to the homeowner would be $62,000.00

Please read on.......
Example Violations Letter:
LOAN NUMBER: xxxxxxxxx
To:

Homecomings Financial
P. O. Box 78426
Phoenix, AZ 85062-8426

Re:

(street address)
Chester, IL 62233

Dear Sir or Madam,
After seeking advice of council, it has come to my attention that you are in
violation of several provisions of the Consumer Protection Act and the Realestate Procedures Settlement Act all at 15 USC §1601 et seq. and 12 USC
§2601 et seq. as more fully set out below.

1. The year of my loan is June 2, 2003 and is not beyond the statue of
limitations thereof.

2. I received no signed documents at time of closing or within a
reasonable amount of time of signing.

3. Lender failed to give to the Borrowers signed copies (Borrower and
Lender) of the complete loan transaction, as required by 15 USC
§1601 et seq. within a reasonable amount of time or never during the
entire period of the loan agreement.

4. Loan appears to be an “Alternative Mortgage” as defined by 12 USC

§3801, 3802, 3803 et seq. Provide proof, per Borrower’s income and
credit history at time of loan origination, that Borrower could only
qualify for an “Alternative Mortgage” and that this Loan meets the
definition of per above and applicable Federal Regulations governing
such loans.

5. The Lender did not acquire a UCC-1 Lien on the property as required
by revised Article 9. The Borrower must sign the UCC-1 papers for
the Original Loan and each time the NOTE is sold. The Borrower
must sign again for each new assignee.

6. The Borrower did not sign papers acknowledging receipt of Notice of
the UCC-1 Lien.

7. The disclosures made in relation to the consumer credit transaction

were not presented in the manner required by law. The disclosures
were not grouped together and were not segregated from everything
else as required by Title 12 Code of Federal Regulations, (reference
Federal Code/Regulation)

8. There were no interest disclosures provided as required by ......
(reference Federal Code/Regulation)

9. Lender failed to give to the borrowers the required 3 day cool off
period as required by Regulation Z, Part ....(reference Federal
Code/Regulation).

10. There was no Good Faith estimate given as required by 12 Code of
Federal Regulation, §226.18©, 12 USC §2601 et seq. and ....

11. The finance charge, using that term, and a brief description as to the
dollar amount the credit will cost the Borrower was not given, as
required by .....

12. Lender failed to disclose the amount of its “finance charge” because
no disclosure statements were given, using the term “finance
charge”...(reference Federal Code/Regulation)

13. There was not contained in the loan documents a disclosure of the
total sales price....(reference Federal Code/Regulation)

14. There was no separate disclosure given for the prepayment penalty
as required by....(reference Federal Code/Regulation)

15. The Borrower was not given the option....(reference Federal
Code/Regulation)

16. There was not statements that the consumer should refer to the

appropriate contract document and clause for information about
nonpayment, default, the right to..... Federal Regulation, §xxx.xx(p).

17. There was no TIL disclosure given as required by.... Title 12 Code of
Federal Regulations §xxx.xx and .........(reference Federal
Code/Regulation)

18. The two required statements under 15 USC §1639(a)(1)(A) and (B)
are completely missing.

19. The required disclosure statements are completely missing under 15
USC §xxx.xx......and Regulation Z, Part xxx.xx et seq.

20. Lender failed to disclose in or with the disclosure statements, because
no disclosure statements were given, the amount of the balance to
which the rate was applied and an explanation of how that balance
was determined. Lender further failed to disclose the fact that the
balance is determined by first deducting all credits and payments
made as required by Title.....(reference Federal Code/Regulation)

21. Lender has failed to use the proper forms, approved by the Federal

Reserve Board, as required by Regulation Z, Part 226 et seq. and the
forms used do not display OMB numbers.

22. Lender failed to give all the required sentences in the unsigned loan
documents as required by 15 USC §1601 et seq. and Regulation Z,
Part 226 et seq.

23. The Lender failed to disclose to the Borrower that the finance fee, if
adjusted to maximum allowed by the Note, would be usury as
required by Regulation ......(reference Federal Code/Regulation)

24. Lender failed to disclose that the margin added to the index exceeded
the amount allowed by 15 USC §1602 et seq.

25. Lender failed to disclose that the detention of any money over the

disclosed amount would amount to usury as required by Title 12 Code
of Federal Regulations §226 et seq.

26. There was no NOTICE of the Right to Rescind in the case of usury in
the transaction as required by Title 12 Code of Federal Regulations
§226.23.

27. There was no FORM for rescinding the contract in the event of usury
as required by Title 12 Code of Federal Regulations §226.23(b)(1).

28. Lender failed to disclose to the Borrowers that the settlement fees
could not be a part of the amount financed as required by
Regulation ....

29. There were no preliminary disclosures given as required by 15 USC
§1601 et seq., Regulation .....

30. Lender has failed to make the disclosures required by 15 USC §1601
et seq. and Title 12 Code of Federal Regulation, §226.18, clearly and
conspicuously in writing, in a form that Borrowers could keep as
required by 15 USC §1601 et seq. and Title 12 Code of Federal
Regulation, .......(reference Federal Code/Regulation)

31. Have, you the creditor, kept evidence of compliance with Regulation
Z and the regulation disclosure requirements for a period of 2 years
as required by Title 12 (reference Federal Code/Regulation)

32. Have, you the creditor, provided all required disclosures to Borrower

when the note was sold, assigned or servicing transferred as required
by Regulation Z.

33. As a proximate result of the foregoing, the Borrower herein has the
right to rescind the entire transaction and have the title to such
property restored to it’s original condition.

Because of this and other reasons that lead me to believe that I may be a
victim of predatory lending. I am disputing the validity of the current debt
you claim I owe. By debt I am referring to the principal balance claimed
owed, my calculated monthly payment, calculated escrow payment and any
fees claimed to be owed by you or any trust or entity you may represent.
To independently validate my debt, I need to conduct a complete exam,
audit, review and accounting of my mortgage loan from its inception through
the present date. Upon receipt of this letter, please refrain from reporting
any negative credit information [if any] to any credit reporting agency until
you respond to each of my requests.
I also request that you kindly conduct your own investigation and audit of
my account since it inception to validate the debt you currently claim I owe.
I would like you to validate this debt so that it is accurate to the penny!
Please do not rely on previous servicers or originators records, assurances or
indemnity agreements and refuse to conduct a full audit and investigation of
my account.
I understand the potential abuses by you or a previous servicer could have
deceptively, wrongfully, unlawfully and/or illegally:
Increased the amounts of my monthly payments,
Increased the principal I owe,
Increased by escrow payments,
Increased the amounts applied and attributed toward interest on my
account,
Decreased the proper amounts applied and attributed toward principal on my
account and/or assessed, charged and/or collected fees, expenses and
miscellaneous charges I am not legally obligated to pay under my mortgage,
note and/or deed of trust.
I want to insure you that I have not been a victim of such predatory
practices.
To insure this, I have authorized a thorough review, examination, accounting
and audit of my mortgage loan, #xxxxxxxxx, by mortgage auditing and
predatory lending experts. This exam and audit will review my mortgage
loan file from the date of my initial contact, application and origination to the
present date written above.

As such, please treat this letter as a Qualified Written Request (QWR) under
the Real Estate Settlement Procedures Act, codified as Title 12 §2605(e)(1)
(B)(e) and Regulation X §3500.21(f)(2) of the United States Code as well as
a request under Truth In Lending Act [TILA] 15 USC §1601 et seq. RESPA
provides substantial penalties and fines for non-compliance or failure to
answer my questions provided in the attachment to this letter within sixty
(60) days of its receipt.
Please provide me with the documents I am requesting and a detailed
answer to each within the required lawful time frame. Upon receipt of the
documents and answers, an exam and audit will be conducted that may lead
to further document request and answers to questions under an additional
QWR letter.
Copies of this Qualified Written Request, Validation of Debt, TILA and request
for accounting and legal records, Dispute of Debt letter are being sent to
FTC, HUD, all relevant state and federal agencies, other consumer advocates
and my congressman/senator.
It is my hope that you can answer my questions, validate and document my
debt to the penny and correct any abuses or schemes uncovered.
Since this letter and before, you as the Lender, has continued and so
continue, to violate Title 15 United States Code, Section 1601 et seq.,
Regulation Z, Title 12 Code of Federal Regulation, Part 226, 12 USC §2601 et
seq., 12 Code of Federal Regulations, part 3500 and 31 USC §1901 which
was adopted pursuant to the Consumer Protection Act by failing to properly
make disclosures.
As a result of Lender’s aforesaid violations, Lender is liable to Borrower in an
amount not less tha$200.00 and up to $2,000.00 for each and every
violation and clear title to property with fixtures in fee simple as a result of
the aforementioned all with damages. The credit transaction is also
rescindable.
Sincerely yours,
Dated the ______, of __________________, 2004

________________________________________
(Homeowner’s Name)
Attachment: Questions to be answered and documents to be provided per
this Qualified Written Request and Validation of Debt.

Bank Fraud Victim Center

Motion to Lift Automatic Stay
Description
What is a Motion to Lift the Automatic Stay? · A creditor may mail
you a copy of document with a title such as Motion "to Lift" or "to
Remove," or "for Relief from" the Automatic Stay, or a similar title. The
section of the code dealing with the automatic stay (§362) will usually be
included in the title or elsewhere in the document. This motion means
that the creditor is attempting to take the property listed in the
document.
Note: The documents which you receive will usually include a Notice
describing the motion, and, in many cases, the order which the creditor
is asking the court to enter. You have only 15 days from the mailing
of the notice in which to respond.
What can I do about it? Possible responses to the motion depend
upon the Chapter under which you have filed and the kind of property in
which the creditor holds a security interest.
Chapter 7
Chapter 13 - Real Property (Home, Land)
Chapter 13 - Vehicles
CHAPTER 7
The stay under §362 prevents creditors from taking taking property such
as your house, car, and personal possessions. The stay is not intended
to allow you to keep secured property in Chapter 7. You are entitled to
keep secured property only if you make all of the payments on loans
secured by the property when the payments are due, unless the
creditor agrees to other arrangements. The creditor may file the motion
because of payments you missed before or after the case was filed, or if
you have failed to maintain insurance on the property or if you have
done or failed to do anything else in violation of the contract.
If the creditor asks the court to remove the stays, as it is asking in the
motion, the court is almost certain to lift the stays. While it is possible to
respond to the motion in an attempt to delay the creditor's action, this
can be done only at additional expense and it is ordinarily not worth that
expense. As stated in the Agreement for Legal Services, this office does
not respond to these motions unless you meet with your attorney and
make arrangements for these services.
If you want to keep the property described in the motion and are
not able to immediately make all required payments, you should
immediately contact your attorney to discuss the possibility of
converting to Chapter 13.
CHAPTER 13 - Real Property (home/land)
It is the stay under §362 which allows you to keep this property. Once
the stay has been removed, the creditor may proceed with foreclosure.

If a trustee's sale was previously scheduled, the sale may be conducted
immediately upon the removal of the stay without any further notice to
you. If the stay is lifted, you will not be able to keep this property unless
you pay all missed payments (including any which were to be paid by
your Chapter 13 Plan), all of the creditor's attorneys' fees and costs, and
all collection and foreclosure costs. This payment would have to be
made in cash before the foreclosure sale date. If a sale date was
previously scheduled, the sale date may have been continued so that the
sale can be conducted immediately upon the removal of the stay without
any further notice to you.
It may be possible to prevent the stay from being lifted by filing a
response to the creditor's motion. You have only fifteen (15) days from
the service of the notice of the motion in which to file the response. If
you wish to file a response, you must schedule an appointment with your
attorney immediately. If regular appointments are not available, ask for
an emergency office or phone appointment on a motion to lift stays.
If you have not missed any payments to this creditor, you should bring
canceled checks or other evidence showing that you have made each
monthly payment from the time that your case was filed. If you have
missed payments, we may be able to propose a stipulation with the
creditor to allow you to make the regular payments plus an additional
amount to catch up the arrearage.
Unfortunately, the creditor's action will cause you to incur additional
fees. Since this matter was not originally contemplated in your case,
there will be additional attorney's fees. The charge to file a response to
the motion is listed in your fee agreement. Additional charges will apply
if the hourly charge for services exceeds this amount. These fees should
be paid before your response is filed. The creditor will also expect you to
pay its attorneys fees and costs if you keep the property.
To keep the property, you must schedule an appointment with
your attorney immediately. You should schedule this appointment
right now, even if you cannot pay the response fee at this time. If you do
not talk with your attorney, a response will not be filed and you may lose
the property.
CHAPTER 13 - Vehicles
It is the stay under §362 which allows you to keep this property. Once
the stay has been removed, the creditor may proceed to repossess and
sell the property in accordance with applicable non-bankruptcy law.
It may be possible to prevent the stay from being lifted by filing a
response to the creditor's motion. You have only fifteen (15) days from
the service of the notice of the motion in which to file the response. If
you wish to file a response, you must schedule an appointment with your
attorney immediately. If regular appointments are not available, ask for
an emergency office or phone appointment on a motion to lift stays.
The most common reasons for motion to remove the stays to be file on
property being paid for in the plan is a default in plan payments or a
lapse in insurance. If you are behind in plan payments, it will be
necessary for you to catch up in plan payments in order to prevent the
lifting of the stay. In some cases, this may be done by the filing of a
motion to modify your plan. If your insurance has lapsed, you must
obtain comprehensive coverage on the vehicle naming the creditor as a

loss payee, and provide evidence, such as the policy cover page, to the
creditor. Even if you address the issue that caused the creditor to file the
motion, you must still file a response to the motion if you seek to
prevent the lifting of the stays.
Unfortunately, the creditor's action will cause you to incur additional
fees. Since this matter was not originally contemplated in your case,
there will be additional attorney's fees. The charge to file a response to
the motion is listed in your Agreement for Legal Services. Additional
charges will apply if the hourly charge for services exceeds this amount.
These fees should be paid before your response is filed. The creditor will
also expect you to pay its attorneys fees and costs if you keep the
property.
To keep the vehicle or other property, you must schedule an
appointment with your attorney immediately. You should schedule
this appointment right now, even if you cannot pay the response fee at
this time. If you do not talk with your attorney, a response will not be
filed and you may lose the property.

Debtors Rights
False Statements and Fraudulent Debt Collection Practices
A federal statute known as the Fair Debt Collection Practices Act (often called the "FDCPA") gives you specific
legal rights to sue debt collectors who unlawfully threaten, berate, intimidate or harass you; call you during odd
hours, make false representations about the the debt or their intentions, or otherwise act in ways proscribed by
the act (and their are many). False statements may include threats to:
Attach your wages when unlawful or not intended.
This includes threats to take more wages than is permitted by the federal limitation (wage attachment for a
credit card debt, a non-student loan or for an obligation that is not support is generally illegal in many States,
however, now that law has been expanded to rent and lease damages in some cases-you should check the statute
to be sure);
Contact your employer about the debt;
Call you "everyday until the debt is paid;"
Sell the debt to another company for the purposes of continuing collection on a time-barred debt;
Contact neighbors about the debt;
Contact the Immigration and Naturalization Service about your alien status;
Threaten imprisonment or criminal punishment;

Report a financed vehicle as "stolen" because you missed one or more vehicle payments;
File or threaten to file criminal bad check charges on a post dated check that the collector solicited from you;
Immediate eviction (by an agent for a landlord); lockout, or seizure of personal property where such relief is
limited by state law;
A disguised threat of suit e.g. A collector requested "settlement prior to possible legal action" where the
collection agency had no authority to sue or to retain counsel was held by a Federal District Court in
Connecticut to be deceptive and violative of the FDCPA.
Here's one you may not have anticipated: A threat implying that the collection agency has multiple employees
or investigators working to collect the debt, where only one or two people work for the agency.
Threats to collect or sue for "collection costs," "attorney's fees," (see also below) interest not pre-agreed to in
excess of that allowed by statute, "fines," or any other fee in excess of the actual amount due, unless the original
agreement provides for the amount the collector threatens to collect. For instance, the collector cannot threaten
to add attorney's fees or his fees where the agreement you signed does not specifically provide for them. Let's
say you went to the dentist and just signed consent form and a medical history. You agreed to pay for all charges
if your insurance did not. Nothing is mentioned about anything else. The collector cannot add any other fees or
even and especially, his costs, late fees or other charges.
Threats adding "collection costs, attorney's fees" and similar additional charges have also been held to be
deceptive and misleading, because they do not state exactly what debt is being sought.
Sue or bring any kind of legal action where the threat is not followed through (i.e. a scare tactic), or any number
or other threats designed to demoralize, humiliate, degrade; embarrass or intimidate a debtor into payment.
Any threat where the collector says he is legal counsel or an attorney/lawyer when he is not;
The threat or attempt to mislead a debtor that a claim will be transferred to an attorney or separate department of
a collector (e.g. "This will be transferred to our legal department for further action"). Letters misrepresenting
that the account has been transferred to an attorney may include an attorney's letterhead with threats of legal
action. Have you ever received a letter from a lawyer who purportedly collects for a major creditor? Has the
lawyer been out-of-state? Has the lawyer threatened to sue if payment was not made?

Other Little-Known Tactics That Are Illegal:
It is unlawful under the FDCPA to threaten suit if no such action is intended. The attorney cannot sue you in a
state that is not your home state, under the FDCPA. Therefore, the threat is an empty one. Empty threats are
punishable under the FDCPA!
It is unlawful for such a letter to be sent unless the lawyer reviews the letter? Do you believe that when
thousands of letters issued the lawyer reviews each one? Where the correspondence is not reviewed by
counsel, the correspondence violates the FDCPA.
Look at the letters you receive from lawyers. Were they signed by hand? If not, perhaps they were not reviewed
by a lawyer. You may have a case under the FDCPA.
The collector's threat to "make this go legal" or to "turn the matter over to the legal department" may violate the
FDCPA where the collector has no legal department. Do you think that the collector may be a collection

operation only? If so, perhaps they have no legal department, i.e., the legal aspect is handled outside of the
company. In this scenario is another violation of the FDCPA.
It is also a violation to send a letter stating that the collector will "recommend litigation" or "advise the creditor
to sue." Some of such correspondence has been found to violate the FDCPA because it, in essence purports to
give legal advice to the creditor. The collector is not permitted to give legal advice, unless, of course, if the
collector is an attorney himself.

The Least Sophisticated Consumer Standard:
Did you also know that it does not matter if you believed the threats or that a person of your intelligence would
not have believed the threats (i.e. the collector threatens to have you arrested for not paying the creditor. You as
an intelligent consumer believe the threat is ridiculous since the U.S. Constitution prohibits such actions). The
FDCPA's standard is the "least sophisticated consumer standard." That is, would anyone believe the threat.
This would be enough to sustain the standard and your burden of proof if the court believes that the threat
occurred.

Supporting Case Law
The concept of deception protects even the ignorant, unthinking and the credulous, least sophisticated
consumer. See Jeter v. Credit Bureau, Inc., 760 F.2d 1168 (11th Cir. 1985)
It is also unlawful to sue a consumer in a jurisdiction that is not the jurisdiction where the consumer resides or
the one in which the contract was made. Example: PA R&D Enterprises, Inc. and their sister corporation
Judgment Busters, Inc. (pretty despicable sounding name, huh?) seems to be in the business of purchasing
uncollectible judgments. In one case, PA R&D purchased a judgment for rent against a consumer in Delaware
County, PA. PA R&D exported the judgment to Luzerne County, some 115 miles away from the consumer. PA
R&D then added $1,000 to the judgment as "attorney's fees." There was a slight problem: Neither PA R&D nor
its officer was an attorney. In effect, they gave themselves a pay raise, just like Congress! PA R&D decided the
judgment should be higher than it was, so it just put it in the Luzerne County judgment! Wow, neat trick PA
R&D! PA R&D also took the judgment to a remote location which also violated the FDCPA §1692i PA R&D
and executed on the consumer's wages for the greater amount. The employer balked (luckily), but the matter
became moot when the consumer left the employment of the employer. This case was recently filed as an
adversary proceeding (a civil action) before the Bankruptcy Court for the Eastern District of Pennsylvania. The
matter is pending and awaiting an Answer from the defendants, which include PA R&D, Judgment Busters and
certain officers of the corporations. The complaint alleges violations of the FDCPA, Pennsylvania Fair Trade
Practices Act, and common law fraud.
For the Fair Debt Collection Practices Act list of false statements, see: TITLE 15 § 1692e. False or misleading
representations.
The courts have decided thousands of cases on the subject and it is impossible to list all prohibited types of
threats. Suffice it to say that if it seems wrong, it is worth speaking to a consumer protection lawyer in your
area.
We have seen may instances of this type of conduct and can help you recover money. There are literally dozens
of ways in which a debt collector can break the law. Each time a collector breaks the law, you may be entitled to
damages in an amount commensurate with the gravity of the violation (however, most courts limit the liquidated
damages to one instance in each case-see your lawyer about this). Some collectors have gone so far as to
threaten arrest, jail, or harm to loved ones, including informing friends and work associates of the debtor's

financial embarrassment. Any threat to do something that is not allowed by law is grievous and actionable (you
can bring suit).

The "Mini-Miranda Warning"
Each time a debt collector contacts you, he must give you what is known as a "Mini-Miranda Warning" This
warning received that name because it is reminiscent of the warnings that police should give you if you are
arrested, however, "Mini-Miranda Warnings" have nothing to do with criminal law. A "Mini-Miranda Warning
must contain the following words (or words imparting this meaning):
"Hello, I am _________(name of collector). I am (or this office is) a debt collector
representing____________(creditor). Information obtained during the course of this call will be used for the
purpose of collecting the debt."
If the creditor has not been advising you as above, you may have a right to sue.
Letters you receive in the mail from collectors also must contain similar warnings such as:
"This is an attempt to collect a debt. Any information obtained will be used for that purpose. Unless within 30
days of your receipt of this notice, you notify us that you dispute the validity of this debt, it will be assumed to
be correct. If you notify this office within thirty days that you dispute the validity of the debt, we will obtain
verification of the debt or a copy of the judgment. If you request it within 30 days, we will provide you with the
name and address of the original creditor (if different from the current creditor)."
If the letter does not state the above, or words similar or close to the above, you may also have a right of action.
Furthermore, did you know that no bill collector or creditor has the right to contact any third person about your
debt, except to get information solely to locate you? This means that if a bill collector or a creditor tells any
except you that you owe them money, they too can be sued.

Debt Collector's Calls at Work
The FDCPA states:
“Without the prior consent of the consumer given directly to the debt collector or the express permission
of a court of competent jurisdiction, a debt collector may not communicate with a consumer in
connection with the collection of any debt"
Simply put, anyone can stop collectors from harassing them at work by putting the collector on notice that the
employer of the consumer does not permit him or her to receive the calls.
Do you think your employer allows you to be harassed at work?
Is this why you are paid? Probably not! Tell the debt collector this and confirm it in a letter! Then make notes as
to each time the collector violates this warning. Bring your notes to your attorney and have him use it against
the collector in court.

Your Rights to Stop Harassment by the Debt Collectors
Insofar as collectors are concerned, there is no reason why:
You need to discuss anything with a collector if you know you cannot pay;

You have to answer a phone for a collector (this works with caller ID).
You have to speak with the collector if you do answer.
You have to answer any questions at all posed by the collector.
You have to say "good-bye" before you hang up.
You have to be truthful about your personal and financial affairs (you do not have to disclose private
information about assets or income).
Important: There is no reason you need to acknowledge that you owe the money! This is very important if the
debt is old. By acknowledging the debt, you may actually extend the time the creditor can sue on it.
All states have statutes of limitations on debt collecting. A few states are more than six years. Many are less.
You can extend this limitation by acknowledge the debt or even by making a partial payment!
In fact, you do not even need a lawyer to stop collectors from calling you (although one is very helpful)! All you
need to do is to mail the creditor or collector a "cease communication" letter. This request can be made any
time, but it must be made in writing. It is always preferable to send the request by certified mail and keep a
copy. This copy will be proof of your request should you need to sue the creditor. Once the collector receives
your letter, they can only contact you to inform you of any action it intends to take or to tell you that it is
terminating its efforts to collect the debt. This letter is enough you legal stop further contact or dunning letters.

Validation of debts and Sample Validation Request Form
The FDCPA provides that debts that are pursued by a debt collector be validated and [15 USC 1692g].
Validation of the debt is every debtor's right. You don't need a reason. The fact that you request validation is
quite enough to evoke to protection of the FDCPA. The Act provides that (paraphrasing, within five days after
the initial communication with a consumer in connection with the collection of any debt, a debt collector shall
(unless already provided in the initial contact), send the consumer a written notice containing (1) the amount of the debt;
(2) the name of the creditor to whom the debt is owed;
(3) a statement that unless the consumer, within thirty days after receipt of the notice, disputes the validity of the
debt, or any portion thereof, the debt will be assumed to be valid by the debt collector; and
(4) a statement that if the consumer notifies the debt collector in writing within the thirty-day period that the
debt is disputed, the debt collector will obtain verification of the debt.
This means that if you write a debt validation request, a sample of which is available upon request, all
communications and enforcement must stop until the debt is validated. Yes, that means lawsuits also.

What happens if the collector refuses to validate the debt?
You should only be so lucky. If after a validation request under the FDCPA, the creditor refuses to cooperate,
then the creditor may not legally collect the debt. If the collector does, then the law is violated and a suit for
damages may be brought.

Such a suit was brought in federal court in New Jersey against MRS Associates, debt collectors for a company
going by the name of Lake Cook Partners. Lake Cook engages in, what is known in the business as, "bottom
feeding." Bottom feeding is a term used to mean the acquisition of "dead" or written off debts. Lake Cook
purchases the debts from credit card companies (and perhaps other companies) for pennies on the dollar. Lake
Cook then uses MRS Associates to make a debtor's life a living hell.
What if the debt collector ignores the request and collects the debt anyway?
That happened with MRS Associates. MRS was requested to validate a debt alleged owed by a husband of a
client who received a bankruptcy discharge. The husband claimed that his wife had applied for the card, not
him. Not that it would matter anyway; the husband was entitled to validation under the law. If validation was
not forthcoming, too bad for the collector. MRS believed that the burden was on the debtor since the card had
been open for "21 years."
Note: MRS stated that the debtor had the account for 21 years, the fact that it "is highly improbable" that MRS
would have been able to get a copy of a document that the debtor signed 20 years ago did not excuse MRS from
obtaining what validation that they could get. In this case, MRS did not even attempt to get anything. Perhaps
MRS did not want to be bothered to comply with federal law. I guess it's easier that way.
Outcome: The foregoing message was in large part the reason that MRS settled with the debtor for $4,500.
Needless to say, the debt was never validated. The debtor would have been forced to pay over $10, 000. You can
see a copy of the complaint here.
Defense of Mortgage Foreclosures: Foreclosure Defense
Stop third party debt collectors from collecting one penny!: Stop Debt Collection

Lake Cook (continued)
Not even two weeks after the $4,500 payment, the same client was contacted by Creditor's Interchange, Inc.,
("CI") a debt collection outfit in Buffalo, NY. The collector calls this office and this is what transpires: A
collection agent by the name of Richard Kerns who says he works for CI calls.
We answer the phone saying "law offices" as is called for by our business procedure.
Kerns asked for the debtor (name withheld for privacy).
I identified myself as "Mr. (debtor's) attorney.
Kerns says, "I did not know he had an attorney."
Kerns is assured by me that I represent the debtor for all purposes.
Kerns asks if I am an attorney.
I tell him that I am and ask for debt validation.
Kerns then demands payment from the client.
l say, "we are requesting validation of that debt."

Kerns states, "Validation? What validation? He owes a debt!"
Kerns then states, "Listen smart guy. You know what? I'm going to call your client!"
He does.
I learn that Kerns is collecting the same debt that MRS was trying to collect. As a matter of fact, the same
creditor, Lake Cook, is now collecting under a different corporate name, Hilco Receivables.
Outcome: CI & Hilco settle the next case for $5,000 for one phone call. That is $9,500 in settlements paid to the
same client on the same debt.

Damages Under the FDCPA
The FDCPA provides for a private right of action against violators. This means that you can get a lawyer and
sue for damages. A partial list of damages that are awardable are:
Statutory damages up to $1,000 for each case. This means that the violator can be charged even though there are
no other damages (see below).
Attorney's fees. You can make the violator pay for your lawyer. This is big advantage; lawyers are expensive!
Actual damages including:


Stress related injuries:



Heart attack, angina, chest constrictions;



Miscarriage;



Ulcers, diabetic flare-up;



Shock;



Loss of appetite;



Crying;



Nightmares; insomnia, night sweats;



Emotional paralysis;



Inability to think or function at work;



Headaches;



Shortness of breath;



Anxiety, nervousness; fear and worry;



Hypertension (elevation of blood pressure);



Stress to children;



Irritability;



Hysteria;



Embarrassment, humiliation;



Indignation and pain and suffering.

And this is just a partial list!

Monetary damages:
Payment of a debt barred by the statute of limitations;
Taking one's property unlawfully or intimidating a debtor to return property by violating the FDCPA, e.g. "If
you do not return your DVD player to the store, we will bring criminal charges!"
Long distance telephone charges for phone calls to a collector who states that you must call him back.
Attorney's fees to defend a prior suit brought in violation of the FDCPA;
Damages for intentional infliction of emotional distress generally (see above).
Your attorney may use medical (psychiatric/psychological) testimony, but does not need to. Damages for
emotional distress can be claimed even without medical support. This does not mean they will always be
believed, of course. It is up to the judge or jury to decide if the plaintiff is telling the truth. Anyway, the plaintiff
in the FDCPA lawsuit starts with a tremendous advantage.

Free Cease Communication Letter
Still are not sure what to do? You're in luck. Just go here (this form will be generated in a new browser window,
so come back here when you are done) edit with personal and the relevant and print out the form, sign it and
mail it to the debt collector. Be sure to keep a copy and mail your form certified mail.

Sample FDCPA Cases, Complaint Forms and Their Results
The law states that FDCPA cases can be brought in any court of competent jurisdiction. This means that you can
bring actions against harassing collectors, and under some state laws, creditors as well, in small claims court
even without an attorney. You do not need to use a small claims court; Federal District Courts are the natural
"home" for this type of litigation. It is not recommended that you start an FDCPA lawsuit without an attorney
because it takes some fluency in the act to know what to ask of the court.
Many magistrates or small claims court judges are unfamiliar with the act. If you want to go ahead despite this
warning, you can see how a typical action was brought in a District Justice Court in Pennsylvania. "DJ" Courts
are generally small claims in PA, having jurisdiction up to $8,000. This case was brought against a collector in
New York for violations of the FDCPA's verification and cease communication provisions. A copy of the

complaint can be inspected here in PDF (Adobe) format. The case settled for a gross sum of $975.00 which
included counsel fees of an unspecified amount.
If you are in the state of Pennsylvania and need a similar (blank) form (this can be used in any type of civil
action), go here. This page has filing instructions as well. Be careful though. Be aware that if the creditor has a
claim against you on a debt, the creditor may counter sue you on that debt. This means that it may be better to
bring this action as a counterclaim and not as an independent action if you owe more than the claim!
In most cases, it is better to bring the case in U.S. District Court. This office recently sued a national law firm in
the District Court in Philadelphia. The name of the firm is withheld out of courtesy, since the case was settled
within four days after suing; at least the firm had the integrity to admit the error and correct it. This firm is
engaged in debt collection practices on a national scale. They are based in Long Island, NY and has offices in
Philadelphia and elsewhere. Their website claims they have "national ability." In reality, this "national ability"
previously led to a previous class action against this firm (not brought by this office) which settled for more
than $453,000! (E.D. Pa. 2000). This firm, among other things, threatened have an agent of theirs come "come
to [the plaintiff's] house" and inventory all of plaintiff's personal property for sale! Jeez! What power! What
abuse! Of course, this made plaintiff's wife panic. It also did not sit to well with the plaintiff's nerves, either.
Case outcome: The defendant paid plaintiff $1,500, plus $2,000 in attorney's fees (the best part) and also paid
off those nasty guys at Ford Motor Credit. Value of settlement all together? About $7,500 +/-. Not bad for a few
phone calls and a letter.

Auto Repossession Notes:
Note #1 When a debt collector (actually this is a repo outfit) is attempting to repossess a vehicle.
The collector or creditor cannot, "issue a warrant to the sheriff for your arrest."
The collector cannot employ criminal process to collect a civil debt (owing money and refusing to pay it is not a
crime.
The collector cannot threaten to do something he knows he cannot legally do (see above).
The collector cannot leave threats on an answering machine where others can hear it.
The collector may not imply that there is some legal duty that the debtor must call back (..."must hear from
you"). There is no legal duty to return a collectors phone calls.
The collector may not threaten something he does not intend. The collector does not intend to "make this thing
go legal," he only intend to scare the debtor into surrendering his car. The collector has probably not even
consulted counsel; his job is to collect the vehicle only.
Again, the collector cannot threaten to harass the debtor every day ("I'm never going away..."). The collector
intends that the debtor fear that the collector will come to his home every day (the collector says this, in so
many words). "I will be at your door every evening...." You wouldn't put up with this nonsense even from a
relative; why should you stand for it from a goon from a repo outfit? The last time I checked, people do not
keep motor vehicles in their living rooms. There is no reason for this man to threaten that he will come to the
debtor's door "every evening." The creditor / debt collector has no right to harass the debtor "every evening."
Further, a threat to behave like this is itself a form of harassment and is actionable.

"You must call here...." As stated above, the creditor or collector may not infer that the debtor has a duty to call
back.
"This is not a threat..." What is it then? This guy knows he is not supposed to be doing this.
Note #2 A Chase Bank collector threatened "fraud" because the debtor had been in bankruptcy, discharged the
debt therein, and then had the unmitigated audacity to have been born in Portugal! *gasp!* The collector tried to
get at the debtor by saying that she had left her mother "holding the bag." Of course, this was a lie. There was
no intent to prosecute for a fraud because there was not debt.
Lawsuits under FDCPA allow for counsel fees, damages, and costs. Each FDCPA violation can net you up to
$1,000 plus attorney's fees and actual damages. Repeated conduct will usually receive greater damages and is
less likely to a succumb to a defense of "innocent mistake." You should be diligent in protecting your rights.
The statute of limitations for bring most federal actions of this nature is only one year unless used as a defense
to an action brought against you. Therefore, you should protect your rights before they become unenforceable.
Note #3 From Chase Bank. This woman sounds like she has the emotion of a collection terminator. "I'm tired of
playing games with you (so I guess she is starting one of her own here). I'll call every neighbor on your block to
make sure you're in the right place." Wow! How intimidating! How illegal. Collectors are allowed to obtain
locator information. Once the collector knows where you are, which obviously Chase did, after all she was
calling her phone, any further calls to neighbors are no longer locator information. They are just unlawful
communications with third parties intending to humiliate and embarrass the debtor, which it did. Furthermore,
this debtor had just received a discharge in bankruptcy! Not only are these tactics barred by state law, and the
FDCPA, they were also barred by bankruptcy law. The caller then refers to "attorney fees, " which also is
misleading and unlawful unless the actual amount if stated. The only help you will ever get from a debt
collector, is that collector helping itself to your bank accounts or motor vehicle.

More on creditor/debt collector protection:
Certain states, such as Pennsylvania, may have laws protecting consumers from harassment even though the
FDCPA may not be applicable. These laws may even expand (e.g. Pennsylvania) on the FDCPA, broadening its
scope and applicability. To see if your state has such a law, you should consult with a local attorney of see if you
can find the information by researching your State laws.
This information is presented to you by the Bank Fraud Victim Center. Our mission is to educate homeowners
about predatory lending practices, bank fraud and the legal options available to them.
website: bank-fraud.com
For more information about debt collectors and "how to get them out of your life" CLICK HERE
Find out if you are a victim of predatory lending practices:
TO GET A FREE PRELIMINARY CONSULTATION CLICK HERE!
Our mission is to educate homeowners about predatory lending practices and bank fraud and the legal options
available to them. We believe that if you don't know your rights, you don’t know your options.
We are not a mortgage elimination company. We help homeowners who are victims of predatory lending and
bank fraud.

We are the leaders in document auditing and predatory lending litigation and defense. And an authority on the
subject of predatory lending practices, foreclosure defense, consumer protection and debtor’s rights.
We are affiliated with attorneys all over the United States.

Right of Rescission
Regulation Z: The Right-of-Rescission
The right-of-rescission rules are technical, and the consequences of noncompliance can be very costly to the
Banks. Take the time to review the right of rescission rules for closed-end credit.

What is the right of rescission?
The right of rescission is a consumer protection law found within the Truth in Lending Act

Truth In Lending Act -- Regulation Z
The Truth in Lending Act (TILA), Title I of the Consumer Credit Protection Act, is aimed at promoting the
informed use of consumer credit by requiring disclosures about its terms and costs. In general, this regulation
applies to each individual or business that offers or extends credit when the credit is offered or extended to
consumers; the credit is subject to a finance charge or is payable by a written agreement in more than four
installments; the credit is primarily for personal, family or household purposes; and the loan balance equals or
exceeds $25,000.00 or is secured by an interest in real property or a dwelling.
TILA is intended to enable the customer to compare the cost of cash versus credit transaction and the difference
in the cost of credit among different lenders. The regulation also requires a maximum interest rate to be stated in
variable rate contracts secured by the borrower's dwelling, imposes limitations on home equity plans that are
subject to the requirements of certain sections of the Act and requires a maximum interest that may apply during
the term of a mortgage loan. TILA also establishes disclosure standards for advertisements that refer to certain
credit terms.
In addition to financial disclosure, TILA provides consumers with substantive rights in connection with certain
types of credit transactions to which it relates, including a right of rescission in certain real estate lending
transactions, regulation of certain credit card practices and a means for fair and timely resolution of credit
billing disputes. This discussion will be limited to those provisions of TILA that relate specifically to the
mortgage lending process, including:
1. Early and Final Regulation Z Disclosure Requirements
2. Disclosure Requirements for ARM Loans
3. Right of Rescission
4. Advertising Disclosure Requirements

Early and Final Regulation Z Disclosure Requirements:
TILA requires lenders to make certain disclosures on loans subject to the Real Estate Settlement Procedures Act
(RESPA) within three business days after their receipt of a written application. This early disclosure statement is
partially based on the initial information provided by the consumer. A final disclosure statement is provided at
the time of loan closing. The disclosure is required to be in a specific format and include the following
information:


Name and address of creditor



Amount financed



Itemization of amount financed (optional, if Good Faith Estimate is provided)



Finance charge



Annual percentage rate (APR)



Variable rate information



Payment schedule



Total of payments



Demand feature



Total sales price



Prepayment policy



Late payment policy



Security interest



Insurance requirements



Certain security interest charges



Contract reference



Assumption policy



Required deposit information

Disclosure Requirements for ARM Loans:
If the annual percentage rate on a loan secured by the consumer's principal dwelling may increase after
consummation and the term of the loan exceeds one year, TILA requires additional adjustable rate mortgage
disclosures to be provided, including:



The booklet titled Consumer Handbook on Adjustable Rate Mortgages, published by the Board and the
Federal Home Loan Bank Board or a suitable substitute.



A loan program disclosure for each variable-rate program in which the consumer expresses an interest.
The loan program disclosure shall contain the necessary information as prescribed by Regulation Z.



TILA requires servicers to provide subsequent disclosure to consumers on variable rate transactions in
each month an interest rate adjustment takes place.

Right of Rescission:
In a credit transaction in which a security interest is or will be retained or acquired in a consumer's principal
dwelling, each consumer whose ownership is or will be subject to the security interest has the right to rescind
the transaction. Lenders are required to deliver two copies of the notice of the right to rescind and one copy of
the disclosure statement to each consumer entitled to rescind. The notice must be on a separate document that
identifies the rescission period on the transaction and must clearly and conspicuously disclose the retention or
acquisition of a security interest in the consumer's principal dwelling; the consumer's right to rescind the
transaction; and how the consumer may exercise the right to rescind with a form for that purpose, designating
the address of the lender's place of business.
In order to exercise the right to rescind, the consumer must notify the creditor of the rescission by mail,
telegram or other means of communication. Notice is considered given when mailed, filed for telegraphic
transmission or sent by other means, when delivered to the lender's designated place of business. The consumer
may exercise the right to rescind until midnight of the third business day following consummation of the
transaction; delivery of the notice of right to rescind; or delivery of all material disclosures, whichever occurs
last. When more than one consumer in a transaction has the right to rescind, the exercise of the right by one
consumer shall be effective for all consumers.
When a consumer rescinds a transaction, the security interest giving rise to the right of rescission becomes void
and the consumer will no longer be liable for any amount, including any finance charge. Within 20 calendar
days after receipt of a notice of rescission, the lender is required to return any money or property that was given
to anyone in connection with the transaction and must take any action necessary to reflect the termination of the
security interest. If the lender has not delivered any money or property, the consumer may retain possession
until the lender has complied with the above.
The consumer may modify or waive the right to rescind if the consumer determines that the extension of credit
is needed to meet a bona fide personal financial emergency. To modify or waive the right, the consumer must
give the lender a dated written statement that describes the emergency, specifically modifies or waives the right
to rescind and bears the signature of all of the consumers entitled to rescind. Printed forms for this purpose are
prohibited.

Advertising Disclosure Requirements:
If a lender advertises directly to a consumer, TILA requires the advertisement to disclose the credit terms and
rate in a certain manner. If an advertisement for credit states specific credit terms, it may state only those terms
that actually are or will be arranged or offered by the lender. If an advertisement states a rate of finance charge,
it may state the rate as an "annual percentage rate" (APR) using that term. If the annual percentage rate may be
increased after consummation the advertisement must state that fact. The advertisement may not state any other
rate, except that a simple annual rate or periodic rate that is applied to an unpaid balance may be stated in
conjunction with, but not more conspicuously than, the annual percentage rate.

The closed-end rescission rules discussed in this article are found in Title 12 CFR Regulation Z 226.23
The open-end rescission rules rules discussed in this article are found in Title 12 CFR Regulation Z 226.15

Who is able to rescind a loan?
The right of rescission doesn't apply just to borrowers. All consumers who have an ownership interest in the
property have the right to rescind.
While other parts of Regulation Z typically focus on the borrowers, this is one area where you need to look
beyond the applicants, and identify any and all owners of the home being pledged on the transaction. Often
times this will require looking at title work and making note of all fee owners of the property.

What does the right of rescission require of lenders?
The right of rescission requires lenders to provide certain "material disclosures" and multiple copies of the right
of rescission notice to EACH owner of the property. Following proper disclosures, lenders must wait at least
three business days (until you are reasonably satisfied that the owners have not rescinded) before disbursing
loan proceeds.

When does the three-day rescission time clock begin to tick?
The three-day right of rescission period begins once the material disclosures and notice have been given, and
lasts three full business days. Business days are defined by Regulation Z to include all calendar days except
Sundays and federal holidays. Saturday IS considered a business day for rescission purposes, regardless of
whether your offices are open.
In order to properly complete the Notice of Right to Rescind form, you need to know how to calculate the
rescission period. Consider the following example.
Assume a closing is set for Thursday, November 15th, 2001, and that all material disclosures and notices are
provided to the parties at that time. The rescission period would run:
Friday, November 16, 2001;
Saturday, November. 17, 2001, and
Monday, November 19, 2001.
Sunday is not counted since it is not considered a business day. The rescission period would end at midnight on
November 19, 2001.

When may a borrower waive the right of rescission?
Regulation Z allows borrowers to waive their rescission rights, but this exception only applies in very limited
circumstances. The law is protective of the right of rescission, and you should be too.
Borrowers may waive their rescission rights and receive their loan proceeds immediately only if they have what
is called a "bona fide personal financial emergency." This means a financial emergency of the magnitude that
waiting an additional three days will be personally or financially devastating to the borrower. It might include
situations involving natural disasters such as flooding, or a medical emergency that requires immediate funds.

When this type of situation does arise, the borrower must provide a written explanation of his or her
circumstances to the financial institution. This is not a document that you should draft for the borrower.
Waiving the right of rescission is not a common practice, mostly because doing it wrong can backfire and create
a rescindable loan, causing all kinds of problems down the road.

What happens once the rescission period is over?
After the right-of-rescission period has expired, make sure you feel reasonably certain that the consumer has not
rescinded before you disburse the loan proceeds. There are some risks in disbursing after the third day. For
example, the law allows consumers to exercise their rescission rights by mail, and a rescission is effective when
mailed. Thus, a rescission mailed on the third day after closing is effective even though the lender may not
receive it until the fourth or fifth day after the closing. Because of this potential timing problem, Regulation Z
suggests that lenders take extra precautions to ensure that the loan has not been rescinded.
To avoid further delay of the loan proceeds, you may want to obtain a confirmation statement from all the
owners stating that they have not exercised their rescission rights. Such a written confirmation provides written
documentation that the transaction has not been rescinded. Notice of rescission form contains this confirmation
language, which can be an effective way to resolve the rescission issue quickly.
(Note, however, that owners should not sign this confirmation until after the three day period is over.
Otherwise, it may look like they have improperly waived their rescission rights.)

What are the consequences of noncompliance?
There are serious consequences for failing to follow the right-of-rescission rules. First, until a lender provides
the material disclosures and the proper Notice of Right to Rescind, the three-business day rescission period does
not start to run, and the transaction remains rescindable for up to three years. And once a consumer rescinds a
transaction, the security interest in the property becomes void and you must reimburse the consumer for all of
the finance charges collected over the life of the loan.
Keep in mind that most rescission errors are alleged in response to collection actions or other litigation initiated
by the lender. Because of this, it is important to regularly review your institution's right of rescission
compliance program generally, as well as to verify compliance on the individual level before initiating action
against any one borrower.
The information here is presented by:

The Bank Fraud Victim Center
http://mortgage-home-loan-bank-fraud.com

Mortgage Servicer Must Prove Up the Original Note
On Mon, Feb 25, 2008 at 12:33 PM, O. Max Gardner III [email protected]
wrote:
Bob Ivry of Bloomberg News is reporting that 5 states have held that the Mortgage Servicer must
prove up the original note in order to proceed with a foreclosure. The allegation of, we own the

note will not work anymore. The Bank must produce the actual piece of paper and it must be the
original. A lost note affidavit will not work.
The industry is saying we have not really lost the notes we just cannot find them right now. The
mortgage industry contends it is caught up in the tension between the electronic age and the
papers age but Ivry says it is much more complicated than this.
All consumers should challenge the foreclosure servicer and require proof of the original note.
The notes should be held by a named custodian but in many cases the custodians cannot find
them. If they have really lost them, then the servicers should be required to establish how and
under what circumstances they were lost and what they have done to find them.
O. Max Gardner III
Max Gardner's Bankruptcy Boot Camps
Next BOOT CAMP: April 4, 2008
www.maxbankruptcybootcamp.com
P.O. Box 1000
Shelby NC 28151-1000
704.487.0616 (v)
704.418.2628 (c)
888.870.1647 (f)
Check out Boot Camp Photos at:
http://picasaweb.google.com/O.Max.Gardner
Google - O. Max Gardner III
Read Max's Blog: http://blog.ncblc.com/
Governor O. Max Gardner Homepage:
http://www.governoromaxgardner.com/

Bank Fraud and Predatory Lending Articles
Quick Reconveyance Method [Go here]
Too Big to Fail: The Inside Story of How Wall Street and Washington Fought to Save
the Financial System---and Themselves
Banks to Seize One Million Homes in 2012
RealtyTrac Inc. released data that indicates a possible 25% increase in property repossessions in
the next year. Banks to Seize
Bundled Mortgages Pose Problems
For two years, the Harris's have been trying to get Wells Fargo to modify their mortgage to
something they can afford. But they face one big catch: Though Wells Fargo services their
mortgage and is participating in the federal modification program, it doesn’t actually own their
loan. And the investors that do own the loan, Wells Fargo told the Harrises, won’t allow the
modification. Bundled

Why Mortgage Lenders Should Be Nervous
Bank of America Settles Lending Case
Bank of America is getting hit with $335M settlement over Countrywide's discriminatory and
predatory lending. This further establishes that banks are liable for loan portfolios they acquired
from subprime lenders who got closed down. Settles Lending Case
Woman in Loan Fraud Scheme Granted Bail
LAS VEGAS -- One of two accused home loan robo-signers faced a judge for the first time
Wednesday. Former loan title officer Gerri Shepperd pleaded not guilty to more than 600 counts
of fraud. Robo-signer.
Landmark Decision Promises Massive Relief for Homeowners and Trouble for Banks
A landmark ruling in a recent Kansas Supreme Court case may have given millions of distressed
homeowners the legal wedge they need to avoid foreclosure. Landmark National Bank v. Kesler
More opinions about this decision here
Banks' Foreclosure Rights Questioned
A growing number of home-mortgage holders in foreclosure are taking their lenders to court,
where they are posing fundamental questions about the banks' legal right to repossess their
homes, said an attorney addressing a packed crowd of lawyers Thursday at the State Bar of
Arizona 2009 Convention in Phoenix. convention
Assignment of a Mortgage Note Without the Mortgage in Florida and Vice Versa
In today's financial world, the law regarding the transfer of mortgage notes and mortgages in the
secondary mortgage market is quite a relevant topic. Issues may arise of the effect of the
assignment of a mortgage note without the assignment of the related mortgage. One may also
question the effect of the assignment of a mortgage without the assignment of the related
mortgage note. assignment
"Must Have Promissory Note" Case Law Summaries"
Foreclosure Order by Judges in Summit County, Ohio
The judges of the common pleas court - general division have determined that when a
foreclosure case is filed the use of a certificate of readiness is required to be filed by parties
other than the original mortgagee and note holder. The foreclosing agent must be the original
investor and produce the ORIGINAL NOTE. See: New Foreclosure Order
Misbehavior and Mistake in Bankruptcy Mortgage Claims
The data reinforces concerns about whether consumers can trust
financial institutions to adhere to applicable laws. The findings are a chilling reminder of the
limits of formal law to protect consumers. Imposing unambiguous legal rules does not ensure
that a system will actually function to safeguard the rights of parties. Observing the reality that
laws can underperform or even misfire has crucial implications for designing legal systems that
produce acceptable and just behavior. Misbehavior
Nearly 1600 hundred Washington homeowners get back hidden fees and higher rates
Nearly 1600 hundred Washington homeowners will get back the hidden fees and higher rates
they paid to subprime lender Novastar. The federal class action lawsuit was settled earlier this
month. The settlement details were announced Thursday. KUOW's Liz Jones reports.

The Savings and Loan Debacle
The so called saving and loan debacle was the result of the Federal Congress under the
whimsical hand of the National Democratic Party changing the rules for chartered savings and
loans. These rule changes dramatically altered the carry loss forwards for amortizing purchased
assets that contained amortized losses. Debacle
Ohio Court Dismissed 14 Foreclosures
Judge Christopher A. Boyko of the Eastern Ohio United States District Court, on October 31, 2007
dismissed 14 Deutsche Bank-filed foreclosures in a ruling based on lack of standing for not
owning/holding the mortgage loan at the time the lawsuits were filed. Dismissed
Subprime Lenders Keep Churning Out Bad Loans
As home foreclosures continue to rise and homeowners struggle to pay abusive subprime
mortgages, subprime lenders and some policymakers keep assuring us that the market will
correct itself—in other words, that skyrocketing foreclosures and poor loan performance will be
enough to make subprime lenders stop marketing and approving risky loans. Subprime Lenders
Ameriquest Payments May Be Near
Early last year, California-based Ameriquest Mortgage Co. and related firms agreed to pay
customers $295 million and change their lending practices. That came after attorneys general in
the District of Columbia and 49 states — all but Virginia, where the company does no business —
investigated the company's lending practices. Ameriquest Payments
Ameriquest Downsizes
Tuesday's announcement comes on the heels of a $325 million nationwide settlement in January,
in which ACC Capital Holding Corp. and its subsidiaries agreed to pay $295 million to consumers
and make sweeping reforms of practices that states alleged amounted to predatory lending.
Ameriquest also agreed to pay $30 million to 49 states and the District of Columbia for costs of
the investigation or consumer education and enforcement. Ameriquest Downsizes
STEALING HOMES: Some people unknowingly sign away ownership
Metro Detroit residents in danger of losing their homes to foreclosure, or those looking to tap
equity from their houses to catch up on overdue bills, are falling prey to mortgage fraud scams
that promise to rescue them from financial peril.
Instead of being helped, however, unsuspecting homeowners are tricked into believing their
homes can be saved -- only to later learn that they've lost their houses for good. Stealing Homes
Real Estate Fraud Booms!
Mortgage scams thrive amid soaring home prices, little regulation and, in some cases, complicit
borrowers. Higher rates result because of Yield Spread Premiums. Fraud Booms
Schedule Of Loans Purchased From WaMu Does Not Exist, No Assignments of
Mortgage, No Allonges…
Out of the mouth of Lawrence Nardi JP Morgan Chase Operations Manager: "schedule of loans
purchased from WaMu does not exist; no assignments of mortgage, no allonges or any evidence
of transferring ownership of loans from WaMu to Chase."
See Report here: http://mortgage-home-loan-bank-fraud.com/articles/no-assignments-ofmortgage.htm
Ocwen Facing Litigation Wave

Plaintiff lawyers are currently seeking class action status for 57 federal cases being consolidated
in Chicago and the West Palm Beach company says it is facing 331 lawsuits altogether. Ocwen
(NYSE: OCN) previously wound down its savings and loan subsidiary after an enforcement action
by the Office of Thrift Supervision. Litigation
Texas Jury Rules Against Ocwen
A jury in Galveston, Texas, has awarded $11.5 million to a customer of Ocwen Financial Corp. and
its former Ocwen Federal Bank subsidiary, after determining they committed fraud in servicing
her home equity loan. http://mortgage-home-loan-bank-fraud.com/articles/Davis-v-Ocwen.html
NAR Backpedals On Predatory Lending Stance; Will Support Bill That Lets Predators
Off The Hook.
It's all in the name of the bill, stupid! Inside sources tell us that the National Assn. of REALTORS®
will announce support for a bill that is fiercely opposed by civil rights leaders and consumer
activists.Off the hook.
Belini vs. Washington Mutual Bank
The plaintiffs, Richard and Theresa Belini, alleged that the defendant, Washington Mutual Bank,
sold them a high-cost mortgage without making disclosures required by TILA and equivalent
Massachusetts law. They sued in federal court, asserting claims for damages for failure to make
these disclosures, for rescission, and for damages for Washington Mutual's alleged failure to
respond properly to their notice of rescission, under both TILA and similar Massachusetts law. The
district court held that all of the Belinis' damages claims were time barred, without discussing
separately their claim for Washington Mutual's alleged failure to-3- respond to their notice of
rescission. This left the rescission claim itself and the question of whether there was either
federal question jurisdiction or diversity jurisdiction. The court found that the amount-incontroversy requirement was not met, so there was no diversity jurisdiction, and that there was
no federal question jurisdiction over a claim for rescission (as opposed to a claim for damages)
because of the Massachusetts exemption from certain TILA requirements. Belini vs Washington
Mutual.
Court of Appeals Reinstates $6 Million Punitive Damage Award Against Servicer
Court of Appeals Reinstates $6MM Punitive Damage Award Against Servicer In Stark v.
Sandberg, Phoenix & von Gontard, PC , the Court of Appeals reinstated a six million dollar
punitive damage arbitration award against a mortgage loan servicer. EMC Mortgage Corporation
bought Stark's loan after he was in default. The fact that the loan was in default at the time of
the purchase made EMC subject to the Fair Debt Collection Practices Act, even though it was
collecting its own loan. The arbitrator was outraged at the lender's disregard for the borrower's
right (1) to be free from physical intrusion into the home and (2) to be represented by legal
counsel. He decided that the prohibition in the arbitration agreement against punitive damages
". . . as to which borrower and lender expressly waive any right to claim to the fullest extent
permitted by law" might not prohibit punitive damages because the law did not expressly permit
the borrower to waive such damages. Furthermore, the arbitration agreement incorporated
Missouri law and public policy, which prohibited waivers of this nature. Stark vs EMC.
$3,000,000 Jury Award Against Ocwen
Plaintiff Attorney: Hilliard & Munoz, L.L.P.
Jury finds Ocwen Federal Bank guilty of malfeasance and criminal conduct and awards plaintiff
$3,000,000.00. Guzman vs. Ocwen
Think Twice Before Telling a Little Lie to your Lender

If you needed to stretch your actual income to qualify for a mortgage to buy the house you love,
would you consider telling a little white lie, fibbing to your lender? Little Lie.
Predatory Lending Bill Introduced
New Bill Expands Homeowners' Protection Against Predatory Lending. On Wednesday March 9
Rep. Brad Miller, Rep. Mel Watt and Rep. Barney Frank introduced a bill that would protect
homeowners from predatory lenders significantly better than current federal law. Modeled after
North Carolina's successful anti-predatory lending law, the bill would eliminate existing loopholes
in federal law. Lending Bill.
Widespread Mortgage Fraud Threatens America´s Homeowners, New Report Finds
Home Insecurity: How Widespread Appraisal Fraud Puts Homeowners At Risk, reveals troubling
evidence that many American homeowners and buyers are at financial risk from mortgage
appraisal fraud. As a consequence, countless homeowners have borrowed more money than
their homes are really worth. Mortgage Fraud.
$60 Million Settlement with First Alliance Mortgage Company
The settlement, awaiting approval by a federal court, is expected to return $2,500 to $3,300
each to 18,000 First Alliance borrowers in 18 states and the District of Columbia. Settlement.
What Isn't Disclosed Under the Truth in Lending Act?
Five pieces of important information that are not disclosed are identified by writer, Professor of
Finance Emeritus Jack Guttentag at the Wharton School of the University of Pennsylvania. What
isn't Disclosed.
Major Mortgage Lender Sues for Millions in Real Estate Fraud
A major wholesale mortgage lender is suing an Indiana mortgage broker, a title company and an
appraiser for allegedly using inflated appraisals to bilk the lender out of millions of dollars, the
Fort Wayne News-Sentinel reported. Real Estate Fraud.
FTC Settles Deceptive Loan Case
Capital City Mortgage, a mortgage lender and servicer has settled Federal Trade Commission
charges that it deceptively induced consumers into taking loans secured by their homes,
overcharged borrowers, and, in some instances, caused consumers to lose their homes. The
settlement permanently bans the defendants from future lending fraud and requires them to pay
consumer redress and other monetary relief totaling at least $750,000. Settles Case.
Fannie Mae Dismisses CEO, CFO
Franklin Raines, the powerful and politically savvy CEO of Fannie Mae, was forced out Tuesday
night by the mortgage finance company's board of directors, bringing an end to a contentious,
three-month public brawl over the quality of Fannie's financial statements. Dismiss Raines.
Poll: Half of Americans Worry About Debts
WASHINGTON - During a season with shoppers racing about to wrap up holiday spending, half of
Americans say they worry about their overall level of debt, an Associated Press poll found. Poll.
More U.S. Home Buyers Fall Prey to Predatory Lenders and Subprime Loan Market
Grows Despite Troubles.
Two great articles about how Subprime lenders provide mortgages or home equity loans to
people, including high-income borrowers, who don't qualify for conventional financing. Such
lenders accept credit scores below the 620-660 threshold generally needed for prime financing

and require less-stringent income documentation. And how Subprime lending (higher-interest
loans to consumers with impaired or non-existent credit histories) has been the fastest-growing
part of the mortgage industry. Homeowners Fall Prey.
Ameriquest Accused Of 'Boiler Room' Tactics
Monday, February 07, 2005 - UPI LOS ANGELES, (UPI) -- Ameriquest, the largest sub-prime U.S.
lender, has been accused of allegedly fabricating data, forging documents and hiding fees.
Copyright 2005 by United Press International Used With Permission. Boiler Room.
Was Your Yield Spread Premium Disclosed?
Even if mortgage brokers yield to pressure to make clear and timely disclosures of controversial
yield spread premiums (YSP's), consumers will still have to contend with a substantial segment of
the mortgage industry that doesn't have to disclose YSP's. Was YSP Disclosed?
Mortgage Borrowers File R.I.C.O. Lawsuit
Two former Tennessee customers of nationwide mortgage lender Household International are
charging in a Nashville federal court that the corporation was functioning as a racketeering
operation when it offered misleading loan terms to its potential clients. R.I.C.O. Lawsuit
A Nation in Debt
All Things Considered Series Explores America's Borrowing Culture. Nation in Debt.
Financial Education: No Substitute for Predatory Lending Reform
As consumers today enjoy more access to credit from a wider variety of sources, opportunities
also have expanded for predatory lending in subprime markets. Education is one way to help
people achieve financial literacy and avoid abusive loans, but it does not represent a panacea. In
this paper, we provide a brief overview of literacy programs and discuss why education alone will
not adequately address predatory lending issues. Education.
Freddie Mac Scandal Could Hurt Housing Market
Who is Freddie Mac, and why should a corporate governance scandal and an SEC investigation,
as well as a criminal investigation into Freddie Mac, impact housing prices? Scandal.
Federal Trade Commission Letter Dated February 7, 2002
This letter responds to your request for information regarding the enforcement activities of the
Federal Trade Commission ("Commission" or "FTC") under the Truth in Lending, Consumer
Leasing, Equal Credit Opportunity, and Electronic Fund Transfer Acts ("Acts") during the year
2001 for use in preparing the Federal Reserve Board’s ("Board") Annual Report to Congress. You
have asked for information regarding the Commission’s enforcement activities pursuant to those
Acts, including methods of enforcement, and the extent to which compliance is achieved by
entities subject to the Commission’s enforcement authority. Also, you have asked whether the
Commission recommends any changes to these laws or their implementing regulations or wishes
to provide other comments or observations. FTC Letter.
Audit Review of First County National Bank
The examination report stated that the bank's level of compliance with consumer laws and
regulations was less than satisfactory. The examination report noted many violations of the
RESPA, TILA, and BSA. Since the examination, management has taken steps to ensure corrective
action. This review revealed that such actions have been effective in correcting noted violations.
Audit Review.

Brokerage Fined for Predatory Loans to Black Home-Buyers
HARRISBURG, Pa. - A state agency has hit a black-owned mortgage brokerage with nearly
$910,000 in damages and fines for so-called "reverse redlining" - selling loans with predatory
terms to black families. Predatory Loans.
Overvalued Appraisals in a Softening Market
The New York Daily News ran a story today on the problem of inflated appraisals. The article
addresses run of the mill overvaluation. Overvalued Appraisals.
Recent Massachusetts Federal Court Case May Spur Truth In Lending Class Actions
Seeking Rescission of Mortgage Loans
A recent court decision may trigger a new wave of Truth in Lending litigation in Massachusetts.
McIntosh v. Irwin Union Bank & Trust Co., 215 F.R.D. 26 (D. Mass. 2003), holds that a suit seeking
rescission of a mortgage loan due to Truth in Lending Act (TILA) violations can properly be
maintained as a class action. Class Actions.
abn amro/island mortgage

Search for CUSIP Number
How do I find the CUSIP number for a Mortgage Backed Security?
Unfortunately, this can be a little difficult as CUSIP numbers are owned and created by the
American Bankers Association and operated by Standard & Poor's. To get access to the
whole database of CUSIP numbers, which mainly cover U.S. and Canadian equities along with
U.S. government and corporate debt, you will need to pay a fee to Standard & Poor's or a similar
service that has access to the database.
However, while gaining access to a CUSIP number has been difficult in the past, there are now a
few resources that can be used to access CUSIP numbers. The first is that individual companies
will often display their CUSIP numbers to investors on their websites.
But the easiest way to gain access to this is through the active quote search on the Fidelity
Investments website. You do not need to be a member or have an account. Simply enter the
company you are looking for and the CUSIP will be displayed for you. For example, if you are
looking for the CUSIP for Ford Motor Company just enter the name of the company and the
CUSIP number will be shown (345370860).
What is a CUSIP number?
I had no idea what a CUSIP number was, so this answer took me a bit of researching, something I
enjoy immensely. According to the SEC, a CUSIP (Committee on Uniform Securities Identification
Procedures) number "identifies most securities, including: stocks of all registered U.S. and
Canadian companies, and U.S. government and municipal bonds. The CUSIP system—owned by

the American Bankers Association and operated by Standard & Poor’s—facilitates the clearing
and settlement process of securities."
If you're trying to find a CUSIP number, you're looking for a number that identifies a type of
security (for more on securities and CUSIP numbers I invite you to read About US Economy
and Business).
From my research, I found that one way to access the entire CUSIP database actually takes a
subscription to Standard & Poor's or a similar service that has access to the CUSIP database.
However, I did find that there are a few ways around this.
CUSIP stands for Committee on Uniform Securities Identification Procedures. Formed in 1962, this
committee developed a system (implemented in 1967) that identifies securities, specifically
U.S. and Canadian registered stocks, and U.S. government and municipal bonds.
The CUSIP number consists of a combination of nine characters, both letters and numbers,
which act as a sort of DNA for the security - uniquely identifying the company or issuer and the
type of security. The first six characters identify the issuer and are assigned in an alphabetical
fashion; the seventh and eighth characters (which can be alphabetical or numerical) identify the
type of issue; and the last digit is used as a check digit.
The CUSIP Service Bureau is operated by Standard & Poor's on behalf of the American Bankers
Association (ABA). When setting out to develop the CUSIP system of identification, the ABA
basically had two main criteria it was trying to meet. First, it wanted the identification to contain
the fewest number of characters possible and to be linked to an alphabetical sequence of issuer
names. Secondly, it recognized that the system should be adequate given the current operating
requirements while having the flexibility to adapt to any future needs or changes in the
operating systems. For more information on the CUSIP system, visit Standard & Poor's CUSIP
Service Bureau.
How to Search by CUSIP
You can use Fidelity Investment's quick look-up tool to find a CUSIP number, as well as a fund
number or trading symbol.
The Bloomberg Center at Harvard Business School has a good basic CUSIP lookup.
Standard and Poor's KennyWebis a stellar resource not only for looking up CUSIP numbers, but
financial information of all kinds. Sallie Mae offers a simple CUSIP search.
How do I get a CUSIP number assigned to a security?
Information about requesting a CUSIP for a new issue can be obtained from the CUSIP Service
Bureau. You may also refer to Part Four, Section 1(f) of the Purposes and Procedures Manual of
the NAIC Securities Valuation Office for instructions on how to obtain a CUSIP number.
How to Find a Bond CUSIP
CUSIP stands for Committee on Uniform Securities Identification Procedures. Every stock or bond
has its own CUSIP number, which helps identify the specific security. According to the American
Bankers Association, there are over 8.4 million CUSIPs in use. There are two ways to get the
CUSIP: one requires a fee and the other doesn't. Both methods are reliable.
Other Options
1. Pay a fee to the American Bankers Association to access their database of CUSIP numbers. The
website is referred to as CUSIP Global Services (CGS). The fee varies according to the number of
users, the type of investment product (bond, stocks, mortgage-backed security), the amount

of detail you need, and the time you need access to the database. See Resources for contact
information to request a quote on a subscription.
2. Go to the Fidelity Investments website. You do not need to be a client of Fidelity in order to
look up the CUSIP.
3. Enter the name of the company and the CUSIP will show up. The best way to search is by
ticker symbol. For instance, the CUSIP for Cheescake Factory (NYSE : CAKE) is: 163072101.
4. If you cannot find your Mortgage Loan CUSIP number contact me. I will help you get the CUSIP
number for your securitized mortgage note for a small fee.