Federal Court Clears Way for Homeowners to Fight Back Against the Banksters

Another day, another court ruling against the banksters who have fraudulently foreclosed on millions of homes! I have been writing about how the courts have been wising up to the games the banks have been playing to foreclose on properties that they have no claim to, and the latest ruling is one of the biggest. The Federal 6^th Circuit Court in Ohio has cleared away a major hurdle that has stopped a lot of homeowners in their tracks.

In many homeowners’ cases, a major claim is that their note never made it into the trust that the foreclosing bank is acting as the servicer for. As soon as the homeowner makes their initial charge that the loan never made it into the trust, the bank would respond saying that, since the homeowner is not an owner or investor in the trust, they have no standing to challenge the validity of the transactions that purport to transfer the note into the trust. Since they have no standing to demand to see the chain of title on the note, their main claim is tossed out by the court, and their case is dismissed.

The 6^th Circuit Court’s has ruled that the homeowner DOES in fact have the standing to challenge title and therefore the validity of the transactions that claim to show the note belonging to the trust. Not only that, but the court found that whether or not the homeowner had previously defaulted on his mortgage. The court was incredibly forceful in their ruling, almost recommending a RICO action against the banks.

This isn’t the only good news for homeowners and investors! Another example of things going our way is that the Consumer Financial Protection Bureau has started to ban servicers from accepting new loans and modifications until they can prove that they have cleaned up their act. A California court went so far as to write that they are on the verge of calling the modification process a sham! More and more courts around the country are catching on to the games the banks have been playing. The courts are pushing back and discovering the lack of continuity between the claims of the foreclosing party and the actual authority required to be a Plaintiff in court.

So how is this news supposed to help real estate investors make money? These rulings are forcing the banks to negotiate on our terms. Until recently we’ve been stuck begging the banks to accept our short sale and REO offers only to have them demand ridiculous prices. Not anymore. We can now get them to the table and demand deep discounts on defaulted or underwater notes.

By buying defaulted notes at a discount, real estate investors are able to help underwater homeowners move on from a horrible situation without them having to spend tens or hundreds of thousands of dollars on expensive lawsuits. The homeowner can walk away from a boat-anchor property, and you pick up a home at a deep discount with virtually every exit strategy available to you.

The fact that the courts are finally wising up to the games the banks played is creating a massive opportunity for real estate investors. If you know of anyone with a defaulted or underwater note, you need to get in contact with my office immediately at (706)-485-0162. I have spent the last two years building up a team of experienced attorneys and fraud examiners/forensic auditors who specialize in exposing fraud committed in the mortgage process and using that fraud as leverage to negotiate the sale of notes.

We have had all of our last 28 deals successfully negotiated and approved on our terms.

We have a huge opportunity to help homeowners and do some great deals with multiple exit strategies. We finally have the leverage we need to get the banks negotiating on our terms. It doesn’t even matter if the homeowner has already been foreclosed on, we might be able to help.