Inquiring minds are reading an intriguing and frightening article by Greg Hunter entitled, “Foreclosure Bombsell“. Mr. Hunter gives the best explanation (yours truly included) of the explosive problem surrounding foreclosures.
The issue centers around the ‘note’…namely its location and why that is so important:
This is an earth shaking setback, not only for B of A, but for all banks involved in mortgage-backed securities. The Promissory Note is the actual proof the bank owns the home. No “note” means no proof of ownership. You must possess the original Promissory Note for ownership to be valid. I wrote about this enormous mortgage mess in an October post called “The 6 Trillion Dollar Problem.” I said, “The lack of the Promissory Note is the biggest of all the problems in this chain of chicanery. Here’s why. A Promissory Note is a financial instrument. It is in the same family as a Federal Reserve Note. For example, if you copied a $100 bill and then tried to spend that copy in a store, because you lost the original, is it still money?–Of course not. You need the original financial instrument (in this case a $100 Federal Reserve Note) to make a legal transaction in a store. The same is true for a Promissory Note. You need the original note to legally complete a foreclosure. A counterfeit or copy of a Promissory Note is not a financial instrument, just like a counterfeit or copy of a $100 bill is not a financial instrument!”
No Promissory Note means banks like B of A sold un-backed securities instead of mortgage-backed securities. This is not a simple case of sloppy paperwork as the mainstream media would like you to believe. The evidence suggests it is layer upon layer of widespread criminal activity. Here’s the way I explained it in a post called “The Perfect No-Prosecution Crime.” In October, I wrote, “There was “rampant” mortgage fraud in the loan application process according to the FBI as far back as 2004. (Click here to see one of many stories of the FBI warning of mortgage fraud.) There was real estate document malfeasance when the original Promissory Notes and loan documents were “lost.” The Promissory Notes were required to create tens of thousands of mortgage-backed securities (MBS). No “note,” no security. No security means the special IRS tax status for the MBS were improperly obtained. Because there were no documents, the rating agencies fraudulently made up triple “A” ratings for the securities. When the whole mess blew up, big banks hired foreclosure mill law firms to create forged documents. That phony paperwork was and is being used to wrongfully remove homeowners from their property. That is foreclosure fraud.”
This is not some twisting legalese to come out with a farfetched crazy idea. This has been law for, quite literally, centuries. These ‘professionals’ knew this law…and disregarded it.
The entire article is one of the best investments of your time that you can make.
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