Tag Archives: certificate of title

Filing a UCC1 With the Treasury Department and Redeeming Strawman Account

Learn about Strawman accounts and how to file a UCC1 with the Treasure Department

Source: Filing a UCC1 With the Treasury Department and Redeeming Strawman Account – hubpages.com 

United States Strawman UCC/Redemption Process (A Study)

UCC/Redemption Process

There are numerous views and theories held by supporters and deniers of the process known as “UCC/Redemption.” This study will look at some of the main subjects that are discussed about the redemption process. There are various contingents involved, as well as facts that have been disclosed by different sources concerning the information.

  • What is a birth certificate. Is it a negotiable instrument?
  • Is it a promissory note?
  • Does it have commercial value? Is it a transactional instrument? if so what was our value at birth?
  • Is the birth certificate that is kept on record at your local County and/or State a contract?
  • Does your birth certificate give the state, and tragically in the end, the federal government control over all past, present, and future transactions which the individual named on a birth certificate enters?

What Is the UCC Redemption Process?

Will the filing of an uniform commercial code (UCC) financing statement, addendum and/or change statement/amendment include all transactions, civil matters, as well as any criminal activity?

If a person follows the UCC redemption process steps will they gain any actual value through the federal government? Will there have to be some value given in return?

Or is the entire UCC redemption process a deceptive maneuver, or trick, that will only bring about greater retaliation by the government agencies upon individuals associated with the process.

The majority of lawyers view the entire UCC process only in terms of litigation, and adjudication. The truth is that UCC is legislated by administrative law that systematizes the rules for all commercial transactions between nations, states, and even between individuals.

The courts do acknowledge that they do not possess either the authority or jurisdiction to alter or nullify any of the articles of the UCC. The courts will only consider those gray areas as to “Who holds the superior position”?

The party that filed the UCC first, or the one who consummated it first? The courts have addressed, and determined in specific situations, what can be thought of as a fixture as it is relative to real property under the “Uniform Commercial Code.”

The UCC Financing Statement

Once a person files a UCC form, and it is registered by a state’s UCC office, the filing of that document becomes a legal document. It becomes part of the public record. The person that filed the document is the secured party when it comes to the UCC filing.

This is a fact of legal procedures.

The UCC department employees of each state become the curators and are compelled to follow very specific procedures and rules. If the UCC filing complies with all the stipulations of those rules and procedures, then by law the document needs to be recorded.

There are minor diversities in the subsections of the UCC from one state to another, and even between counties. For the most part, the majority of the commercial rules and procedures will be the same globally. They will be uniform. Hence the title of Uniform Commercial Code.

Every state within the United States has UCC filing offices. There are offices in every U.S. territory and protectorates of the U.S. There are even UCC filing offices established in foreign nations. It is an administrative action when an UCC form is filed, accepted, and recorded by the UCC office. It will be stamped with a file number, date, hour, and the exact minute of filing.

The UCC financing statement (UCC-1) commissions a secured party’s status in a commercial transaction allowed by the articles of the UCC, as well as assorted sections of the United States Code that deal primarily with property.

After a secured party files a UCC form, it becomes part of the public record, that a secured and vested interest is holding a superior claim over any and all other parties who have an interest, but all who file after the secured party must acknowledge the preexisting position.

The secured party may make changes to the UCC financing statement (UCC-1), if they file an Amendment (UCC-3) which makes reference to the original UCC that was filed. Do not mistake the facts. The UCC deals only with secured or vested interest.

However, the facts are clear. The UCC deals with secured, vested interest, and/or the possession of the property. It does not deal with the title at all. The title is a different discussion.

Birth Certificates

The first question to discuss is the question of the birth certificate.

  • Is it an instrument of commerce?
  • Is it a promissory note?
  • Does it have any actual commercial value?

The answer to each of these questions is NO, or at least it should be!

When a child is born, a document is prepared which is an authorization to produce a Certificate of Live Birth. The parents and/or the doctor are given an application which is ultimately a commercial contract. They will endorse as to their witnessing the creation of both the child, and a commercial document.

The document created at birth is an application for a Federal Certificate of Live Birth. It is evidence that there has been a commercial contract set up. This contract establishes the freeborn child to a status of “ward of the state.”

In a few weeks, the actual Certificate of Live Birth, which was based on the application, is handed over to and filed in Washington D.C. The Certificate of Live Birth is a bonded instrument. On the reverse of the certificate is a single letter (A-N) followed by eight numbers. In recent times the same serial number of the bond is stamped on the back of a Social Security Card.

The second thing to discuss is the original birth certificate itself, which is prepared in the county of your birth, at the time of birth.

Is it a contract, giving the state control over everything associated with the individual named on the certificate?

No.

The document prepared at birth is not a contract. It has no commercial value. This birth record is evidence that a live birth has transpired. This information is then disseminated throughout the various federal, state, and county district levels. It is irrefutable evidence that a living, breathing, person was born, and its existence would be registered.

Even those born on foreign soil are registered with either a certificate of naturalization, citizenship, or some other type of document which gives them authorization to remain in residence in the country. It is public agencies that specify the name on the document to be an actual person, not just a commercial entity.

How Does a Birth Certificate Have Value?

It is not the birth certificate that has value. It is the bond on a commercial entity. At the time of registration, the Corporation of the United States, through its Treasury Department, creates a bond. This bond is also known by the human’s name in capital letters. It is a strawman that is created to be used in all legal and financial matters. More on this later.

The bond number itself can be found on the actual Certificate of Live Birth, on the back of the document. Once the county birth record is received by the federal government, the bond is created. Once both of these actions occur, the federal government releases the Certificate of Live Birth announcing the creation of a new revenue source. The value of the bond is based on the power of the state to tax the future wealth, and property, of the human being named on the document.

There have been some prints of Individual Master Files (IMF) that show the bond placed on the newborn having a value of around $650.000 dollars. There is a catch, however. Any profit which is created by the investment during the life, right up to the death of the individual, of every living, breathing, male or female, remains the property of the state. All property is considered to be owned by the Corporation of the United States. This is easily seen by the seizures without due process which occur daily.

Federal Reserve Act of 1913

One of the most crucial years in the history of the United States, both for the government and American citizens was the year of 1933. It was only a mere twenty years after the passage of the Federal Reserve Act in 1913 by Congress for the Corporation of the United States. The nation was buried in debt and had a serious lack of financial resources.

The foreign bankers served notice of this fact to the government of the United States. The Roosevelt administration reacted between January and July of 1933. Since 1933, every birth or naturalization record for every citizen of The United States is filed in the official records in Washington D.C. This also turns all property and every asset belonging to every living, breathing United States citizen into collateral for the national debt.

There has been information supposedly received from several government agencies which state that the filed Certificate of Live Birth documents have actual instructions on the reverse of the certificate stating who, and in what time frame the document should be created and delivered.

The first to receive the document is the County Health Commissioner. Next in line would be the Secretary of State. The final copy is received by the Department of Commerce even though the documents themselves are not kept in their offices.

The time frame for each Certificate of Live Birth to be filed in D.C. is seventeen days. There is even evidence of a Federal Children Department which was established by the passage of the Shepherd/Townsend Act of 1922 under the Department of Commerce that is somehow affiliated with this process.

There have been IMF’s that track commercial activity in the billions attached to individuals earning around fifty thousand dollars a year. The government is utilizing both their name and assets to trade in drugs, crude oil and various other commodities. This just proves that all property, both real and private property of every living, breathing American, is entrusted by Congress to provide collateral for the national debt.

During the year 1933, the Congress handed over control of all the post offices to the Secretary of the Treasury. Why would they do this? That is why the revenue is delivered to the government on April fifteenth.

If you research the Congressional Records of 1933 you will understand how the office of the Secretary of the Treasury is actually in control of the financial office of the Corporation of the United States. This office is in control of all revenue to the United States to make sure that the creditors (bankers) who actually own the federal reserve will be repaid all monies owed.

The Secured Party Applicant Has to be Filed in the State or Region of Their Birth

The government states that well over twenty-five million UCC financing statements have already been filed with UCC offices throughout the United States. Related commercial documents have been forwarded to the Secretary of the Treasury.

These facts have been gathered through information acquired through the CID of the IRS, FBI, Secret Service, Justice Department, the Department of the Treasury and the Secretary of State. They have all confessed that not one single properly filed UCC Form has been turned down or prosecuted under any criminal laws.

There have been revisions to the UCC Articles, especially IX, that states that the UCC financing statement of the secured party applicant has to be filed in the region or state of their birth. When the file is recorded with the Secretary of the Treasury, it must include a Charge-Back Instruction Notice, a 1040 ES form combined with a birth certificate.

The Secretary of the Treasury is the other party that holds an Interest. The Secured Party also needs to file a UCC financing statement and addendum with the UCC office in the state that the person resides in, in order to protect any property there.

People at the Treasury Department Analysis and Control Division of the IRS where they keep the files claim that the birth certificate does not have commercial value. They do however admit that the Certificates of Live Births are real and are kept on file.

Others have declared that the Application for the Birth Certificate actually does have commercial value, which is determined by the ability of the government to tax any future earnings of the individual named on the documents. The applications are not kept on file in D.C. itself. Some claim they are filed in Puerto Rico, and others claim it is Switzerland.

National UCC Administration

There is a National UCC Administration which the states, the Protectorates and the District of Columbia have formed. The United States has been partitioned into six UCC regions. If one of the UCC offices in a particular region does not accept a properly prepared UCC, another office within that region will. A person can have a regional filing recorded within a region or state and have it maintain the same thing as filing within their state of birth.

A person born outside of the United States, but who is still allowed to reside here and receive a social security card, can still file a UCC form in whatever state or region in which they were living when they received permission to live and remain here. It appears that the UCC as well as other paperwork that is required to be filed with the birth state or region are all logged in the mail room at 1500 Pennsylvania NW, Washington, D.C.

This is the address of the Analysis and Control Division of the IRS. The documents are examined by the Secret Service, the FBI and Justice Department. The documents are known at the analysis and control division as “UCC contract trusts.”

UCC Contract Trusts and Direct Treasury Accounts

There is a significant difference between the UCC contract trusts and direct treasury accounts which are used primarily for the trading of treasury bonds, which are managed by the bureau of public debt. There are many UCC and bill of exchange documents that arrive at 1500 Pennsylvania Ave NW that are mistakenly sent to the BPD.

The mistake that many people who file UCC forms make is a reference to the Treasury Direct or Direct Treasury account within their paperwork. Within the Analysis and Control Division inside the IRS Building in DC, UCC Contract Trusts are processed and then the documents are forwarded to one of the two IRS centers.

If you file east of the Mississippi, the documents are sent to Cincinnati, Ohio. If you file west of the Mississippi, they forward them to Fresno, California. Your UCC files and documents are going to be scrutinized by the Secret Service, the Justice Department, FBI, then sent to the CID. It is also sent to the IRS Technical Support Division (TSD) within the state in which the Secured Party started the discharge.

IRS Technical Support Division (TSD)

Here are some important points to know concerning the administration and purpose of the TSD!

  1. Almost every single Financial Institution which is connected to the Federal Reserve System has registered or contracted access to an account with the IRS called a Treasury Tax and Loan account (TTL).
  2. This TTL account in every Financial Institution is managed through the TSD office which can be found within most of the IRS State Offices. Because of this, IRS reconstruction the Technical Support Manager (TSM) in every State Divisional Office of the IRS has been given the same authority once held by the District Director.
  3. When a Notice of Levy/Lien is delivered to a Financial Institution by the IRS, the Financial Institution simply responds by making an entry in their computer. This simple action transfers the asset from the person who made the Deposit into an IRS TTL account. This means that the Asset never actually physically leaves their office. There are some Financial Institutions that do not maintain a TTL account. They simply hold the funds for twenty one days before transferring the amount directly to the Internal Revenue Service.
  4. When a Financial Institution receives a “Release of Levy/Lien” from the IRS the Financial Institution makes a simple computer entry and the funds are transferred from the TTL account into the account of the depositor if it is applicable. If a UCC form is prepared properly and filed with the Bank can be an Administrative Obstruction Action in which a Secured Party can use to show a prior and superior claim to those assets on deposit.
  5. There are certain Banks that will not will accept UCC Documents. Do not use one of these banks but find one that will accept the form and deposit your funds there.

Correct Way to Have Claims Discharged

The way to correctly have claims discharged with the IRS as well as in the public sector using the UCC contract trust is to present by the secured party a bonded registered Bill of Exchange, and this needs to be sent straight to the Secretary of the Treasury.

When a claim is made either by the IRS, a federal or state taxing agency, the claim can then have a stamp imprinted upon it stating “Accepted For Value”. This needs to be done by the secured party and it must be sent through Certified (or Registered) mail directly to the Secretary of the Treasury to be discharged.

This is documented and authorized through public policy:

HJR-192, Title IV, Sec. 401 of the Federal Reserve Act, the Supreme Court’s confirmation in Guaranty Trust of New York vs. Henwood, et al (1939) and Public Law 73-10. Such action is further confirmed in USC Title XII, Title XXVIII, Sec. 1641, 3002 and the Foreign Sovereign Immunity Act.

Getting back to the supposed value of the birth certificate this is the facts as I ascertained them.

The number of birth certificates that are referenced in UCC financing statements that have been stamped and filed in the state UCC filing offices is in the hundreds of thousands. Under the revised version of Article (Chapter) IX of the UCC (July 1, 2001) such filers had until June 30, 2002 to refile the UCC-1 within their state of birth.

If they reference their original filing, they could maintain the original date of filing which would then be filed with the Secretary of the Treasury. If this is not done by July 1, 2002, it would result in the loss of their original filing date and also their status as the secured party by the Secretary of the Treasury.

Department of Treasury Admits That Millions of UCC Financing Statements Have Been Filed

The Department of the Treasury admits that there are millions of UCC filings by secured parties which have been diverted to the Analysis and Control Division of the IRS in Washington D.C.

Nobody that I am aware of has ever had criminal charges brought against them that resulted in a prosecution. There are many that do not get processed because they were not complete or filed properly.

This shows that those people who have followed the correct procedures in filing their UCC documents using the redemption process have not committed any crime. This goes for prosecution by the Department of the Treasury, the Secret Service, the Department of Justice or the IRS.

Will Filing UCC Financing Statements and Change/Amendments Cover All Commercial Activity, Civil Cases, and Also Criminal Actions?

Government sources claim that all commercial activity in the United States and other countries fall under the legislated (Administrative) Law which is also called the Uniform Commercial Code. Once processed through the Federal Reserve System and/or the Department of the Treasury, these transactions are bonded.

Although the Court System claims to have Jurisdiction over Commercial Transactions that seem to break criminal laws, in reality the UCC Articles on their own are Administrative Law and do not fall under any jurisdiction of the courts or to litigation.

The Bond Number On Your Certificate Of Live Birth Is Also Stamped On Federal Reserve Notes

When an application and Certificate of Live Birth is delivered to the Department of the Treasury in Washington, D.C., that certificate becomes bonded. There is an account produced which we know as the Social Security Number. This means there are funds borrowed against these accounts.

The credit approved on paper is then invested in stocks and bonds. The Bureau of Engraving states that even the Federal Reserve uses the bond number which is stamped on the Certificate of Live Birth as it is also stamped on the Federal Reserve notes themselves. The bond number has one letter from (A-N) which is followed by eight numbers. You will notice recently printed social security cards are now also printed with the bond number on the back in red ink.

It is a fact that every single living, breathing human being in the United States is bonded and used in commercial activities by the Corporation of the United States which has received them.

People who have properly and correctly filed within their birth state or UCC region will create a completely separate entity or a Secured Party completely separate from their government created debtor. This is the strawman.

When the filing and the instruction order (the Chargeback) the IRS 1040 ES form, the AFV stamped birth certificate lets the Secretary of the Treasury know that the secured party has been created with a prior and superior claim to all the assets and liabilities of the debtor.

These liabilities should be forwarded to the Secretary to be processed and discharged through the UCC Contract Trust.

There Are More and More States That Are Now Accepting the UCC Financing Statement and Addendum

There are more and more states that are now accepting the UCC financing statement and addendum. I have not heard of one state that has sought prosecution for any filing as being illegal, civil or criminal.

There are a few states that are still trying to figure out what to do with the revised UCC Code (July 1, 2001). There are several counties that have no provisions for the perfecting of the UCC filing under Article 9-333(a) as a Possessory Lien. When 9-333(a) was included it was the first time an UCC had a form of lien by name included in the filing.

Is the Redemption Process an Attempt to Gain Something for Nothing from the Treasury Department?

After June of 1933 the international financiers who are the actual owners of the Federal Reserve system took ownership and control over all private and real property. This was done with the permission of Congress, and an executive order signed by the President.

By instituting your person to the status of the secured party for the government created entity listed on the Certificate of Live Birth is not the same thing as getting “something for nothing.”

These procedures set up by the government were put in place so that the secured party could reclaim a part of what is rightfully theirs under the U.S. Constitution. Congress made provision beginning in the early 1900s for every minor to reinstate their status as an American under the U.S. Constitution when they became of age. You were a minor when the original contract (Application) was entered into by your parents. These provisions were scattered throughout various legislative acts, joint resolutions and executive orders, many in 1933, as well as in the Congressional Record based on Public Policy HJR-192, codified in Public Law 73-10 and confirmed by the U.S. Supreme Court in 1939. See Guarantee Trust of New York v. Henwood, et al.

By these placement actions the government has kept the details so vague and hard to reference that no person could remedy himself without persistent research. There was not until recently very many people who even knew that these procedures existed.

The most important part of the redemption of your strawman is filing your UCC with the birth state or UCC regional office, the Secretary of the Treasury. Filing in the state of residence is required to the redemption process.

The International Monetary Fund using the Secretary of the Treasury as its representative, and using the Federal Reserve and the ability of the IRS to collect revenue has virtual control over every single citizens assets.

Once the secured party uses the UCC/Redemption they will create the right to reverse this control over the government created Debtor (Strawman). What the secured party accomplishes with this is to put themselves on the same level as the Secretary of the Treasury and this will lead to taking back the control over their own assets.

Is This Just a “Get Rich Quick Scheme?”

A properly prepared and correctly filed UCC filing will ensure in the future to protect the property and assets of the secured party. These filings will make it clear that there is a legal and vested interest control of the secured party. You will not have to deal in Court jurisdictions and stay out of the area of controversy.

But does the redemption process entail a simple “Get Rich Quick Scheme” that will only end up with the filer coming under closer scrutiny by the government against those who participate in a UCC filing?

Under the UCC/Redemption Process, the secured party does not obtain the actual application for a Certificate of Live Birth. This means that the process is only to be used for an “Accepted For Value” answer to any commercial claim.

If a written and contracted claim is received by the debtor (Strawman), it can be accepted for value by the secured party. The claim can then be discharged when the proper documents are forwarded through the Secretary of the Treasury to the UCC contract trust which remains filed with the Analysis and Control Division of the IRS.

There are many people who have tried to sidestep or manipulate this fact just to find that law enforcement as well as the courts will be more than happy to enforce and adjudicate. IRS-CID and FBI are very quickly able to use threats and intimidation to unlawfully dissuade what only the courts of law should decide upon.

The Internal Revenue Service Has Increased Its Use of Illegal Threats and Intimidation

The Department of the Treasury employees make it quite clear that they will not accept or perform any actions to faxed orders, telephoned or wired instructions. It must be hard-copies that are original in both signature and any forms or documents. These documents must be delivered by certified (or registered) mail and must be filed with both the state of residence as well as the Secretary of the Treasury.

The Internal Revenue Service has increased its use of illegal threats and intimidation. They use the FBI to aid them in their attempts to admonish and stop the presentments of any Bill of Exchange documents delivered by the secured party to the secretary.

This does not mean that properly presented and prepared negotiable instruments from a legitimate Secured Party should and can be legally processed under law through local financial institutions by the person making the claim. This is done through the Secretary of the Treasury and recorded by the financial institution through the Treasury tax and loan (TTL) account.

There are some employees at the Department of the Treasury who continue to misdirect many of the documents that is presented by a secured party to the Secretary of the Treasury by mislabeling them as Treasury Securities (they are not Treasury Securities). Then they are forwarded to the Bureau of Public Debt rather then sending them to the Analysis and Control Division of the IRS and the UCC Contract Trust.

“We the People” Are Continuing to Gain Knowledge and Information

From what I have been able to learn, the discharge of claims in the public sector whether federal or state claims, issued by the Internal Revenue Service are easily discharged with a simple computer entry and transfer of credit and debt through the computer using the IRS Technical Support Division.

There is verification that this process has come from the Special Procedure Handling Offices of the IRS. When a secured party utilizes the Uniform Commercial Code correctly, the field is leveled as it pertains to the degree of commercial transactions.

Despite the blockage of information as well as being told false information “We The People” are continuing to gain knowledge and information regardless of being the target of threats and blackmail.

“You shall know the truth and the truth will set you free.”

All that is required to allow evil to flourish is that too many good men do nothing.

— Edmund Burke

It seems that over twenty five million Americans have successfully redeemed their strawman and achieved access to their strawman trust account before 26 May 2003. It is rumored that many of these twenty five million were political insiders like politicians, judges, lawyers, corporate executives, senior military, secret service and security services personnel and their families and others who are implicated in the establishment and the maintaining in this fictional and fraudulent system, a system that has been used to abuse the mass population of the United States for over seventy years prior to 2003.

That averages out to over three hundred and fifty seven thousand people who found a way around this ruse every year. Surely the number of people filing UCC financing statements have risen dramatically since 2003. Since the true knowledge of this process is making its way out to the United States population, the number of people filing has incrementally increased.

It seems that if twenty five million Americans knew that this was a scam for well over seventy years, yet not one broke their silence to make the rest of us aware of the charade. Then it is safe to assume that these people were part of the conspiracy about the fraud perpetrated against the American people.

The amount of people who took part in this process while remaining silent explains why this web of lies has been held in in place for so many years. Enormous numbers of people on the inside who had knowledge of the truth and received benefits from it explains the slight possibility that they might divulge some of the details about the scam by releasing anonymous details without putting themselves in great danger if they were careful about remaining anonymous while they did so.

There is an old saying by Edmund Burke (1729 – 1797):

‘All that is required to allow evil to flourish is that too many good men do nothing.’

I believe that most people will do nothing to redeem themselves simply because they believe they are better off being property of the state and that being held responsible for a government-created strawman is just fine with them.

That is the reason that this deception has endured for so long. Millions of Americans have consciously done nothing to disrupt the status quo even though they knew about the scheme and even benefited from the fraudulent system. Even though they knew the system was enslaving the American people as well as probably enslaving the rest of the world as well.

If This Is Done This Whole Charade of Control and Ownership Will End!

It would probably be safe to assume that the same fraud is being committed against people in the UK, Canada, Australia and other nations in which this system of enslavement was established. This is to say that there were millions of people in other countries outside the United States who have also become part of the conspiracy.

There has been a long time plan by global bankers to create a New World Order. This order would allow those in the order to own the world and everyone and every single thing in it. This conspiracy has been perpetrated by enormous numbers of lemmings and sycophants who thought that in the end they would benefit from the process. If they understood the entire plot or just there small part in it is hard to determine.

It does not seem that many average people who were not part of the conspiracy of this devious system will discover and take advantage of the redemption process The number of average people learning the processes of the redemption process will grow rapidly now that the information is making its way to them via the Internet and other sources.

Once you become aware of this situation, you should do everything in your power to fully understand the process, and pass on your knowledge to others.

If this is done this whole charade of control and ownership will end!

This will end the global financiers plot to create a New World Order that will turn the world’s people into nothing more then slaves serving their global masters.

Beware!

There are many Strawman/redemption scams out there. Do not be fooled by these. Do not pay someone to teach you the process or to file for you.

Do your own research and make sure all the documentation has followed the correct procedures. Also make sure the documents are filled out and filed correctly.

You are responsible for this. This is not a simple process and you will have to educate yourself as to the correct procedures.

If you feel someone is trying to scam you or place liens on your property, my best advice would be to contact your local FBI Office.

Disclaimer

The materials available on this article are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem. All are copyrighted properties of the author and may not be used without permission of the author.

Source: Filing a UCC1 With the Treasury Department and Redeeming Strawman Account – hubpages.com

Deeds of Trust do NOT convey a right to Foreclose

Published on May 27, 2014

By Tex Mason
www.thctrust.org

The Mortgage Deed in itself does not attach to, nor does it create an enforceable right for the BANK (and their Attorney) to enforce an action (foreclosure) against your property. This is according to the Uniform Commercial Code (UCC) article 9-203(b).

Why is this an important find?
Before an Attorney can initiate an action to foreclose, the LAW requires that he produce a statute or a contract from which he derives his authority to take such action. Without such authority written in a Law or a Contract, the Bank (or Attorney) has no legal authority to take such action.

Typically, during the initiating of a foreclosure proceeding, the attorney will file a copy of the Mortgage Deed into the court docket. You may not understand what he is doing. He is essentially trying to create the presumption in the court, that the Security Deed conveys or grants the Bank the right to attach to and foreclose against your property.

It is important that you research UCC article 9-210 so you can understand how to apply it in court, in such a way to disprove and diffuse the presumption made by the Attorney.

You may be wondering how is all of this allowed to happen if the Mortgage Deed doesn’t authorize such a right. Well ignorance of the law is no excuse. The Attorney is banking on the fact that you are ignorant to the law, and that you will not challenge his authority in the matter.

Now that you know the law, you actually may have a valid counter-claim for “Fraud on the Court”

The attorney knows that the Mortgage Deed doesn’t convey a right to foreclose, but he introduced the document to intentional mislead the court and/or to make a false representation.

This is not legal advice and I do not practice law. For more lectures like this and other information visit www.thctrust.org

More shocking real-estate scams

MarketWatch Article

Plus, reports on particular schemes flagged by the authorities

By Lew Sichelman

Realty Q&A is a weekly column in which Lew Sichelman, a nationally syndicated columnist who has been covering the housing market for more than 40 years, responds to readers’ questions on real estate.

WASHINGTON (MarketWatch) — Question: You recently wrote about a popular new mortgage scam you called “flopping,” which occurs when a house purchased as a short sale is immediately sold for a substantial profit. This is interesting stuff, so I was wondering what other schemes you have run across recently? —W. D.

Answer: It is amazing to what extremes some people will go in their efforts to separate folks from their money — and often their homes. And it is equally amazing what a few owners will do to save their homes.

According to the latest report from the Financial Crimes Enforcement Network, various forms of debt elimination scams were mentioned in four out of five reports filed by lending institutions which suspect that some type of fraud occurred within the previous 90 days.

The banks described numerous bogus documents and payment methods that customers and third parties submitted to financial institutions in attempts to have their mortgage obligations eliminated. The bogus documents described by these lenders included a “Notice of Tender for Setoff,” “money order receipt,” and “bonded promissory note.” All these put together and a dime won’t get you a cup of coffee.

In its first quarter report, FinCEN, a Treasury Department agency which keeps tabs on financial crime, mentioned these schemes in particular:

  • A scammer enticed a Spanish-only speaking homeowner into signing many loan modification documents that were written in English. One of the documents turned over the home’s title to the grifter, who subsequently locked the borrower out of the home and listed it for sale.

  • A law firm and a third party fabricated grant deeds with additional “homeowner” names and sent them to loan servicers to delay foreclosure proceedings.

  • In other cases, letters were sent to owners claiming the senders were endorsed by a major bank.

A number of suspicious activity reports described the kind of flopping schemes I wrote about in a previous column. ( Read that Realty Q&A, June 10, 2011 ).

According to one report, a former employee of the bank helped facilitate numerous short sales, which the buyer flipped within days of the short sale for profits ranging from 15% to 300%. Another described a “short-sale flop” that would have yielded a nearly 100% gain had the bank not stopped the sale when it discovered the property was already listed for sale — at nearly double the short-sale price.

Nice, huh? But it gets worse. Some people are claiming their identities were stolen in order to get out of what they owe. But probably not the elderly woman who had forgotten about applying for a second mortgage. In this case, the bank decided her false claim of identity theft was simply a consequence of advanced age. But it filed a suspicious activity report just to protect itself in case she was not on the up-and-up after all.

Income misrepresentation, which has been common for years, also continues as a popular ruse, as are claims that the borrower will live in the property when he or she actually does not.

According to about a dozen suspicious activity reports, unemployed or underemployed subjects and small business owners falsified income records such as tax returns, W-2 forms, and pay stubs to qualify for new mortgage loans or loan modifications, including government-sponsored modifications. In several of these cases, the financial institutions also referred the cases to the IRS for suspected tax evasion.

Occupancy fraud typically is discovered because subjects’ mailing addresses did not match property addresses on loan documents. In one such case, the subject, who applied for government-sponsored mortgage relief on his “primary” residence, actually owned dozens of properties worth tens of millions of dollars, and lived in another state.

But wait, we’re not done yet. Here are a few more charades noted in FinCEN’s first-quarter report:

  • In a case of elder abuse, a granddaughter with power of attorney signed an agreement to sell her grandmother’s home to a financial partner for far less than the home was worth.

  • A real-estate agent referred a potential buyer to two “loan officers” who purportedly worked for a bank but at a non-branch location. The buyer was told these loan officers could work around his credit problems, but not if he asked for them by name at the bank branch.

  • A case of identity theft facilitated by forwarding a customer’s home phone calls to an overseas cell phone number. The fraudster attempted to transfer money out of the customer’s home equity line of credit, but signatures and voice recordings did not match those of the actual customer.

Feedback: You need to tell homeowners who do not qualify for a loan modification that they don’t qualify because they cannot afford their loan, even with new and better terms. A great many people simply won’t take no for an answer. —K.G.

Response: You are correct. People need to be realistic. I know it is extremely traumatizing to lose your home. But sometimes it is best to accept your fate and move on. At some point, it doesn’t matter who’s to blame, only how best to extricate yourself from a bad situation.

Nationally syndicated columnist Lew Sichelman has been covering the housing market for more than 40 years. MarketWatch readers are encouraged to send their real estate questions to him at lsichelman@aol.com . Answers will be presented in this column every Friday. However, because of the volume of e-mail he receives, he cannot answer every reader’s query.

Not all the fraud comes from Wall Street

Not all the fraud comes from Wall Street
Mike Chesser

I believe some on Wall Street knew very early that they were about to get filthy rich at the expense of the entire planet. They also figured out how to get bailed out for their efforts, and how to keep their bonuses. But that’s only the beginning. Now the rest of the world seems to believe that because they could do that so blissfully, the rest of us should too. Real estate purchasers who borrowed money are being told that it would be unethical if they had to repay it. The same mortgage brokers who hawked 80-20 loans now work down the street, where they can guarantee mortgage modifications if only the public will prepay thousands of dollars for their efforts. Workout specialists advertise that credit card balances don’t matter because if you get far enough behind, they can force banks to take only a fraction of the amount owed to consider the debt paid. This service, again, for some prepaid fee.

I’ve read of third-world countries where the accepted culture is to cheat, steal, and lie. Kidnapping seems more productive than work, the economy operates only by barter, and the whole system seems pretty much dysfunctional. It’s sort of like watching the Casey Anthony child-rearing philosophy applied to real estate. You wonder how something could get so screwed up.

All this to say, this economy is full of offers. They come in the mail, by email, television, and the radio may be worst of all. Everyone wants to sell you a quick fix for prior mistakes, or a way to take advantage of someone else’s. Prepaid instructions about the riches to be had from buying land with no money down is an old one. Anyone who falls for that, with a promise that you can quit your job, stay home on your yacht, and be free of worry without effort and even without knowing what you’re doing, is probably too silly for others to try to protect. Now there is a new promise: Anyone can get rich by buying foreclosed properties. It’s easy, and with a little money and some courage anyone can do it. Here’s the rub: You might get lucky. You might not. There is a reason title underwriters won’t let their agents write title insurance on a foreclosed property. The company knows something.

I have had several people bring their “titles” to my office. They received a Certificate of Title from the clerk’s office that said on its face that title was being conveyed by that document. Because the Clerk had issued the Certificate of Title, and because the Clerk is an officer of the court, they believed surely the title was good. They were right. The title was good. But only as to the people who were a party to the foreclosure.

Title companies deal in the official records of the Clerk’s office, not in the litigation files that accomplish a foreclosure. A search of the Official Records will not include a search of a specific foreclosure file. Here’s an example of what the Official Records will not show:

A condominium unit has an 80-20 loan. That means some mortgage company made a loan (probably for more than the property was worth) for 80 percent of the “appraised” value of the property. Then its sister company made a loan for 20 percent of the “value” of the property. After closing, the condominium association assumed control and was given the chore of running and paying expenses for the entire condominium property. The association hasn’t been paid its assessments for two years, and no mortgage payment has been paid since shortly after closing of the unit to the borrower.

In today’s market, the mortgage company doesn’t want long-term ownership of this unit, because then the company will have to pay assessments as they come due. That would be fair, and would return the property to the market. But the mortgage company is not interested in fair, or in the health of the market. They postpone foreclosing the unit. The association doesn’t have the luxury of waiting until the time seems right to foreclose. It has a fiduciary duty to do whatever is legally necessary to collect its assessments, because it must pay expenses for the entire property, even those expenses attributable to units not paying assessments. The association files a foreclosure of the unit. It can only bring into the lawsuit interests inferior to its own lien. It cannot legally foreclose a superior or prior interest in property. So the 20 percent loan gets foreclosed, since by statute it’s inferior to an association lien, and the owner is foreclosed. The 80 percent loan is not, at least as to the part of the loan in excess of one year’s assessments.

Now when the judge enters a foreclosure order for the condominium lien, he can only foreclose an interest inferior to that of the association. When my client gets a Certificate of Title from the clerk, he gets title “subject to” the outstanding first mortgage. That fact will never be apparent from the face of the Certificate of Title. Not only will the purchaser get a “tainted” title, but he will also take title subject to the obligation to pay all assessments attributable to that unit, past, present, and future until he no longer owns the unit. While he will have no legal duty to actually pay the mortgage, he can’t keep the unit without paying the outstanding balance, unless the mortgage company never forecloses its mortgage.

The point of the above example is that the first mortgage could never have been foreclosed by one claiming an interest inferior to the first mortgage, such as an HOA lien. But the language of the Certificate of Title looks very much like a document that warrants title. It warrants nothing. It is worth no more than the quality of the foreclosure action out of which it arose.

The example is also simplistic. I have removed from it the possibility that husband and wife were divorced and husband is now deployed, or both had filed bankruptcy during the foreclosure, or a judgment was entered against someone with a similar name and the creditor was not included among the defendants in the foreclosure. Many foreclosures actually have more than one, or even all of these intervening events. And this list of possible problems is itself simplistic. The real life list is endless.

Anyone purchasing a Certificate of Title is buying all the carry-over junk that is not cleared up by the foreclosure action.

There is money to be made in buying foreclosed real estate. But not by those who don’t understand the legal relationships going into and coming out of a foreclosure, not without risk, and certainly not without studying the foreclosure file. All title insurance underwriters will require that a lawyer understand the foreclosure file before a title policy can be written on a certificate of title.

Your real estate broker can be a valuable resource. That person, you, and your lawyer should work as a team when the subject is as treacherous as foreclosure sales.

Mike Chesser is a Board Certified Real Estate Attorney with Chesser & Barr, P.A.