Litton Loan Servicing Loan Modification

If getting a loan modification from Litton Loan Servicing has been a fight for you – I have good news

Litton Loan Servicing may be hiding the fact they THEY NO LONGER OWN YOUR LOAN – they are acting as a “Pretender Lender.”

Therefore, Litton Loan Servicing CANNOT legally negotiate a loan modification with you — CANNOT legally collect mortgage payments from you — and CANNOT legally foreclose on your home.

Why not?

Because they DO NOT HAVE LEGAL STANDING as the real party of interest. They are not the true and beneficial holder in due course.

What Litton Loan Servicing doesn’t want you to know…

Your mortgage loan is likely among the +85% of loans that were securitized and turned into a Wall Street investment instrument during the real estate boom period, known as mortgage-backed securities (MBS). This new investment vehicle let banksters make more money off you.

Instead of being happy with getting 2.5 times the face value of the mortgage loan over 30 years, these securities let them make up to 1.5 times the face value of the loan IMMEDIATELY by packaging them up and selling the loans on Wall Street.

Then the banksters cranked up the money machine with one more twist.

Besides getting 1.5 times the face value of the loan in CASH NOW, ie, $150,000 cash from a $100,000 loan – banks are able loan up to 9 times the face value of their depositor’s money or cash reserves. So your $100,000 mortgage loan allowed the banksters to loan out $1.35 million (9 times $150,000). And they could do it over and over and over again. Wow – What a system!

All that money off your back from just even a small loan amount.

The Big Secret:
When your mortgage was sold as a Wall Street investment it morphed

Stay with me here. It gets a bit technical. But it’s important for you to get an overview of what became of your loan – BECAUSE YOU ARE GOING TO USE IT AGAINST YOUR “PRETENDER LENDER.”

When your loan was closed, it was put into a Pooling and Serving Agreement. It was registered on the SEC as a REMIC Trust, ie, a Real Estate Mortgage Investment Conduit. It is known as a Special Purpose Vehicle for tax exemption purposes. A master servicer of the REMIC Trust was appointed and a Trustee managed the Trust.

Once this REMIC was formed, then your loan got converted into a security that traded on Wall Street. Now your loan permanently morphed into a stock – owned by thousands of shareholders all over the world who can change on a daily basis.

This morphing or conversion CANNOT be undone. Once a loan has been securitized, it forever loses its security, namely, the Deed of Trust, or the ABILITY FOR THE BANK TO FORECLOSE ON YOUR HOUSE!!

This is why over 85% of foreclosures are done FRAUDULENTLY

A loan is a negotiable instrument. There are specific laws governing negotiable instruments called the Uniform Commercial Code. Specifically, the right for a bank to enforce and foreclose on a property is subject to the claimant being a REAL PARTY OF INTEREST.

If the loan has been sold, then the bank can no longer claim that they are a real party of interest. Not only that, once a loan has been converted into a stock, it is NO LONGER A LOAN.

If both the loan and the stock exist at the same time, that is known as double dipping. Double dipping is a form of SECURITIES FRAUD.

One more important point — On your Deed of Trust or Mortgage, it has language that says something like, “This Deed of Trust secures a Promissory Note.” When a promissory note gets converted into a stock, that promissory note NO LONGER EXISTS.

If a Trust was created to secure a promissory note, and that promissory note is destroyed, then that Trust is INVALID. The Trust secures NOTHING.

If your loan was sold to a REMIC, then your lender FOREVER lost their ability to enforce, control or otherwise foreclose on your property.

Remember, the Deed of Trust is what your lender uses to give them the right to foreclose on your house. If the Deed of Trust is invalid, then the lender loses their right to foreclose on your home.

I hope this is starting to sink in and make sense.

Who are the real and beneficial parties of interest now?

You’ll love the answer to this one. Well, it’s not the Trustee of the REMIC Trust – and it’s not the REMIC because they do not own the notes. Who’s left? The shareholders.

Legally, the shareholders of the REMIC are the real and beneficial party of interest. If the thousands of shareholders each own a tiny party of your promissory loan, then who has the right to enforce, control or otherwise foreclose on your property?

NO ONE

Why? Because a promissory note is only enforceable in its whole entirety.

This is the nature of the fraud being committed by the banksters against hardworking, financially-strapped, Americans!

Outrageous!

More ugly secrets…

RECAP:

• Banks are not the real parties of interest in any foreclosure transactions where the loan has been securitized (85% of loans funded during the hey days)
• Investors of the REMIC are not parties of interest
• No one can foreclose

So what happens when a loan goes into default?

When a loan goes into default, the REMIC writes it off as bad debt. Once an asset is written off, the shareholders receive tax credits from the IRS. This means that the note is settled. The NOTE IS GONE.

The only way a bank can foreclose on you is if they buy the promissory note back from REMIC as a written off debt, just like a debt collector would.

The sneaky, deceitful, tactics banks are using against you

So your bank likely picked up the promissory note for pennies on the dollar and through deceit, try to re-attach the converted loan to the dead Trust or Mortgage. Then they take these documents and represent them to the courts as if they are the real parties of interest.

It’s all fraud

The banksters are deceiving you, the courts and even their own attorneys. They are not going to voluntarily disclose the truth.

They never tell you who the holder in due course is. They may tell you who the investor is – but remember, the investor is not the holder in due course and does not have the authority to enforce the note.

They do not disclose whether they own the note or are acting as a servicer to enforce the note. Remember, if the note is held by the REMIC, it is unenforceable.

If they bought the note back for the purpose of foreclosure in truth, and not as an administrative procedure, then they never disclose whether the debt was written off by the REMIC or whether the property chain of title can be demonstrated.

This is how banks like Litton Loan Servicing steal your house!

Your loan was paid off to the bank at least THREE TIMES – and they still want you to pay them again – or keep your house

When the real estate bubble started to burst as more foreclosures started happening, it was a disaster to the banking industry. So the big banks went to Congress and pleaded for a bailout in order to avoid a ‘collapse of the financial system’. Thus the $3.5-trillion dollar bailout known as TARP (Troubled Asset Relief Program) was engineered by President Bush and his Treasury Secretary, Hank Paulson.

What does this have to do with your mortgage?

It means that the bank was PAID IN FULL for all the mortgages outstanding with taxpayer’s money.

That’s the second time the banks got paid in full. The first time the bank was paid was when they sold the note to the investors.

The banksters also got paid by the FDIC. When the loan goes into default, banks are covered for 70% to 80% of the value of the loan.

The banksters also got paid for stock value appreciation. The lender can own up to 10% of the REMICS Trusts. So when the market went up, they profited from the appreciation of these assets.

Now they are trying to GET PAID AGAIN – THIS TIME BY YOU – OR TAKE YOUR HOUSE TO RESELL! This revelation should make you very angry. Grrrrr!!!!

For example: Aurora Loan Services is the servicing arm of Lehman Brothers, who securitized ALL of its mortgages. They cannot prove which of these loans have been paid, written down, bailed out or who even owns them.

Note: If you have a loan serviced by Aurora Loan Services, your loan is LIKELY securitized.

What does this information mean to those of you with a loan serviced by Aurora? You may be a victim of paying them a third time. You should take steps to discover if:

(1) Payments from TARP (Troubled Asset Relief Program, a.k.a. “bailout”) or from investors have been applied to your collateral in the stream of securitization and investment and/or

(2) The loan was table funded (your lender was paid a commission to “act” as the lender at the table, ostensibly to pretend to underwrite the loan, perform due diligence, confirm the appraisal, confirm the viability of the transaction, and confirm the affordability and benefits) and/or

(3) The debt was released in bankruptcy. You may have a legal claim of satisfaction on some or all of your debt.

So, your note was likely sold, perhaps several times, after your mortgage loan funded. Your lender got paid twice – once by Wall Street and the second time by you, the taxpayer, through the bailout.

Why loan modifications are a scam game

So if your lender is not a real party of interest how can they give you a loan modification?

THEY CAN’T

Oh yes, there is a percentage of homeowners who have received trial loan mods and a percentage of this group that have received a permanent loan modification. However, the numbers have been dismal. The HAMP program is labeled by many as a failure. This should not be surprising because it is a voluntary program on the part of the banksters.

Have you already been fed this line by Litton Loan Servicing’s loss mitigation department when requesting a loan mod?

“I’m sorry, we can only consider you for a loan modification if you are 60 days or more delinquent.”

Here’s why they tell you this…

Once an asset (your loan) has been sold, the Lender/Servicer forever loses the right to enforce or control the asset – EXCEPT WHEN A LOAN IS CONSIDERED DELINQUENT.

After 60 days, your servicer becomes a debt collector and is governed under the Fair Debt Collection Practices Act.

This is another scam they don’t want you to know about

If you have ever received a Notice of Default or anything else from the bank, you will see a language like, “This is an attempt to collect a debt.” This is required by law under the FDCPA.

As I explained earlier, usually, the REMIC Trust writes off the debt to receive tax credits against future earnings. The servicer then buys this asset back as a non-performing and non-secured debt, just like collection agencies do with non-performing credit card debts or unpaid medical bills.

Once a debt has been written off for tax credits, it is discharged. The company can sell the asset to a collector, who will do anything and everything in its power to lie, cheat and steal to collect the debt. This is why they have the notice, “This is an attempt to collect a debt.” This is your clue that they are not the original creditor.

Once a debt is set off, the FDIC covers 80% of the face value of the loan. What a sweet deal for the banksters.

Your bank buys the bad debt for pennies on the dollar from the REMIC so that they can negotiate a loan modification.

Once they get you to sign the loan mod agreement, they have successfully re-negotiated, re-constructed and re-acquired the loan.

When they reacquire the loan, they can no longer dump their toxic asset on Wall Street investors. Now, there are strict underwriting standards because they have to keep the loan. Plus, there are strict accounting rules about buying back toxic assets.

This is why it is so hard to get a loan modification.

This ugly secret will make you sick…

In order for the banks to “con”-vince you, the courts, and the Trustee that they are a real and beneficial party of interest on the debt that has been discharged – settled and gone – they will do whatever it takes to lie, cheat and deceive.

Remember the “robo-signing” scandal that hit the news?

To convince the court that banksters have the right to foreclose, they have:

• Forged documents
• Created arbitrary loan assignments to suit their needs
• Brought fraudulent documents to court
• Recorded fraudulent documents at the county recorder’s office

Another way banks hide their fraud

Another way banks hide their fraud is to do what’s called “blank assignments” so that the loan can be assigned many times among themselves (using MERS to track these assignments) while keeping a blank assignment of the note handy in the event they need to foreclose.

This is a blatant abuse of the law. The promissory note, as well as the Deed of Trust, MUST BE TOGETHER AT ALL TIMES and there must ALWAYS BE A CLEAR AND UNAMBIGUOUS CHAIN OF TITLE that is traceable in public records for all parties of interest in real estate.

To expose the banksters’ fraud with their practice of keeping a blank assignment, you can challenge them in court to “show me that you are a real party of interest.” One of the ways they can do this is to present the ORIGINAL PROMISSORY NOTE. By you now understanding the securitization process, you may be able to refute the note.

Both the Deed of Trust or Mortgage (depending on your state) MUST ALWAYS point to the same party at all times to have Perfection of Chain of Title.

Very Important Supreme Court Case Decision for Homeowners

In January 2011, the Massachusetts Supreme Court issued a decision in U.S. BANK NATIONAL ASSOCIATION vs. Antonio IBANEZ in which all the Justices unanimously agreed. In order for the bank to be able to foreclose, they must show a perfection of chain of title, both in the Deed of Trust/Mortgage and the promissory note. It was also ruled that a blank assignment was not acceptable proof of perfection of title for the promissory note.

THIS IS A HUGE VICTORY FOR HOMEOWNERS

No matter what state you are in, you should be referring to this case and motion the court to take “mandatory judicial notice” for the ruling decision in your case if you plan to sue your lender.

Are you going to let Litton Loan Servicing get away with their fraud against you?

I certainly hope not.

How To Fight Back Against Litton Loan Servicing and Win Using a Securitization Audit and Legal Smarts

Seeing the banksters for what they are – greedy, deceitful, heartless, and willing to do anything to make more money – in just these few examples – should have your blood boiling.

I’ve tried to provide timely, reliable information to help struggling homeowners fight back, turn the tables on their lenders and win – which could ultimately result in owning your home free and clear and getting monetary damages.

Using the “Weapon of Lender Destruction”, namely a securitization audit will give you the evidence you need to show in court to prove your “pretender lender” does not have legal standing to enforce the note, continue collecting payments, negotiate any agreements or foreclose on your home.

A securitization audit should be done by hand (not by some computer software), by an experienced auditor. This is a specialized skill. What they do is search through EDGAR (the SEC’s database for all public placements) looking for your loan.

This is tedious and grueling work, as they have to literally find a needle in a haystack of a few thousand loans.

What an auditor would prove to you at the end of the audit is a document and an affidavit that is admissible in court as evidence. The document will show which REMIC your loan has been securitized to and will prove that the bank is committing fraud.

I have prepared a special report, Blueprint To Avoid Loan Modification Hell

In this report I provide more details on using the Weapons of Lender Destruction and provide reliable, affordable resources for you to obtain a securitization audit, more legal education and low-cost legal services.

Please request your personal copy of this free report to be emailed to you immediately.

P.S. I have a video you can watch to get more details about the report, too.

Here is the contact information for Litton Loan Servicing:

Tel: (800) 781-7399
Websites: https://www.littonloan.com/index.asp or modification request instructions can be found at: https://www.littonloan.com/fin_info1.asp

• HAMP government program explanation, eligibility links, calculators and more