For immediate release
Federal Courts Provide Foreclosure Victim A Stay from Eviction!
L.A. Homeowner refuses to yield claiming Unlawful Foreclosure!
By M Soliman
Submitted by Keith Bloom
A Los Angeles Federal Court heard early arguments by plaintiff’s counsel for a temporary restraining order (TRO) in a suit filed against the lender and defendant Duetshe Bank in an unlawful detainer.
February 10, 2009 / www.borrowerhotline.com; Los Angeles, California – A Los Angeles Federal Court has agreed to hear the matter of a wrongful foreclosure in the case of Russell v. Deutsche Bank et al. The news is according to Maher Soliman a Juris Pro™ expert witness and case development analyst to counsel. In reviewing the matter the presiding judge agreed to the request by counsel to issue a TRO after taking the complaint and request for an injunction under consideration.
It’s noteworthy to cite how the defendant in the state UD case attacked the banks standing at the superior court level, and having lost, has now found new life in the federal courts. The federal court heard arguments for overturning the lenders recovery efforts in a foreclosure under the state’s power of sale provision. According to Soliman, “the borrowers file made no sense where audits showed errors, omissions and instances of negligent acceptance. The analysis considered the transfer of interest in the collateral questionable throughout the foreclosure. It is still unclear as to the parties standing and who the holder in due course in the foreclosure is”.
The next step is a hearing and early arguments for issuing an indefinite injunction pending the trial. Counsel for the plaintiff is J Barfield-McCarren. According to information received at press time the temporary restraining order will remain unopposed by the defendant’s in this matter.
Some Boring Industry Insight
This is the week we are starting to see the fruits of a long year of hard labor, relentless research and blind faith. That while pursuing what you and I have shared as a common interest. To keep the American dream alive and ensure borrowers are at least given a fighting chance to defend their home. (See press release below).
I am not an attorney but offer a coincidental and strange work history encompassing every level of mortgage banking including bulk whole loan trading and securities registrations.
Now it comes to me by way of a credible source as to which ocean the missing notes rest. You like I were probably lost as to the staggering cost of origination and mandatory requirements for originating good paper. There are logical reasons why these securitizers and mortgage players were writing bad paper. To think a company would lay out the kind of capital these guys did and loose $$$$ for paper that produced a low grade stock or phantom “net interest margin” NIM security is initially beyond belief. That is until you considered the fact the players had an absurd low cost of funds against a huge WAC for over 5 years and an OAB in the billions. Consider that while they were in ownership with a Federal Savings Bank! (Hint – now you got it).
Also, it now comes to me by way of a credible source as to which ocean the missing notes rest. (Something about a bankrupt insulate “Special Purpose Entity”). And as for the MERS puzzle (here you go, last freebie folks). . .”Look in the dictionary under Lender and see what you don’t see.”
After 20 years in the business of hard money, thrift lending, B&C paper and Alt A and subprime lending, I checked out in 2003 and said enough. Made a hobby of foreclosing (rarely though) and loved collect during a borrowers quiet time, Seinfeld or ruin the weekend late on a Friday evening. I made a habit of serving an NOD right before Thanksgiving and Christmas. . . I guess I just wanted out thereafter and said I had enough!
I served briefly as an analyst after working as a bank officer and in warehouse lending, servicing, flow and bulk loan acquisitions and underwriting.
My entry in the biz was after college and while working under John Anderson (John Anderson Graduate School of Management – UCLA). From west coast to east coast and I got to know or did stints with Carl Icahn and Mario Gabelli, Angelo Mozilo, Bill Dallas, boys from Credit Suisse, Merrill and others – I saw the industry grow.
I was there to witness first hand a number of high profile cases such as AARP v First Alliance brought to court by the FTC and The United States v PinnFund USA brought by the Department of Justice. I remember the CitiFinancial acquisition of Associates occurred when immediately afterwards a lawsuit and settlement cost the boys at Citi over $300 million – it made no sense (Hmmm . . . BofA buys Countrywide weeks before settling the AGs case for over $8 billion!)
The things I would hear from 2001 forward made no sense based on background and experience. I was once offered the junior piece of various sub prime securities, the NIM, at 10 cents on the dollar and that was UPON MATURITY – 18 months out! Was it due to liquidity or lack of confidence Hmmmm again!
I was a partner to a REIT in 1997 and participated in one of the first securitizations ever. Prior to that, the paper was sold to credit company divisions of public and private companies who had a low cost of funds (hint hint – today’s structure under the Pass Through and FSB link) such as Continental Grain, Ford Motor Credit, Sears and Westinghouse.
We sold bulk pools of whole loan assets totaling in excess of a billion to players like CBASS and Credit Suisse. Our delinquency was always the lowest in the industry. Anyway the credit companies lost their A $ $ and the securitization models made no sense then as they don’t know.
My take on it is “Planes Trains and Automobile” contracts make good asset backed collateral. Something highly regulated like consumer home loans are not an appropriate collateral based asset for Securites issuance.
More later as we are pushing a final leg of a class action suit.