Breaking the Predatory Lender Matrix 2 By Jim Krage of www.AmericanLoanAudits.com

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Breaking the Predatory Lender Matrix 2By Jim
Krage of www.AmericanLoanAudits.com

• What we will discuss
• Depression was caused by Lenders Wall Street
  (Lehman)
• Lehman crashed Sept. 08Lenders Trusts are
  crashing NOW
• Lehman conned Investors to pay 30 bought
  Notes, 70 profit?
• Previously (pre-2005), Lenders lent Credit, not
  Money
• 2005-2008 Trusts bought Notes, Lenders got
  Commissions to lie
• No Disclosure that Lender didnt Loan, and Trust
  Bought the Note
• Nominal Lender now bankrupt, so Servicer or
  Trustee foreclose
• MERS not Beneficiary, but often Assigns
  Substitutes illegally
• AIG got bailed out, because it paid insurance
  against defaults
• Did the investors in your Trust get insurance
  why foreclose?
• Loan Audits find Violations ( may get Trust
  Name)
• Homeowner Options (Loan Mod, Short Sale,
  Lawsuit..)
• What www.AmericanLoanAudits.com does for you

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Breaking the Predatory Lender Matrix 2By Jim
Krage of www.AmericanLoanAudits.com

• Foreclosure Sales are Avalanching from Predatory
  Lending
• Since October 2008, Hard Money Loans have gone
  into Foreclosure massively.
• Now, Option ARMs are predicted to start a new
  Cataclysm.
• KFWB Market Wrap with Moe Ansari Sat 12 Noon
  Predicted new Downturn to DEPRESSION Option
  ARM
• Probably DEPRESSION with Hi Inflation Dollar
  Will Lose Value, eveything will be more
  expensive.
• Past Mistakes in FOREX many bought EUROs
  Canadian and some small currencies were Better
• Gold and Precious Metals skyrocketed Real
  Estate is now cheaper, and may get cheaper still.
• Predatory Mortgage Loan elements Variable
  Interest, Negative Amortization, Balloon
  Payments, Prepayment Penalties, Interest Only
  Periods, Lack of DisclosuresYSP (Yield Spread
  Premiums) Lender bribed Broker to get Borrower
  to accept Higher Interest Rate
• If you have a Predatory Mortgage, what can you
  do?
• 1) Sell it (Lose Money or Bank agrees to take
  less)
• 2) Bankruptcy (Adversary Proceeding or
  Reformation)
• 3) Offer a Deed in Lieu of Foreclosure
• 4) Short Sale to a Friend
• 5) Sue the Lender
• 6) Short Refinance
• 7) Loan Modification (often turned down wont
  lower principal)

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Breaking the Predatory Lender Matrix 2By Jim
Krage of www.AmericanLoanAudits.com

• Short Sales and Loan Modifications with TEETH are
  most popular.
• Good Lawyers doing Loan Mods get an Audit of Loan
  Docs and Sue to wake up Negotiations.
• TOOLS 1 File a Rescission, File a Lis Pendens
  (for your Complaint filed)
• TOOLS 2 Forensic Audit of Origination Loan
  Documents for Violations of TILA, RESPA, State
  Laws
• TOOLS 3 Audit Recorded DocumentsAssignments,
  Substitutions, NOD, Notice of Sale, Trustees
  Deed
• Check with a Lawyer to see whats Best for You
• Rescinding the Contract (Note) and all documents
  based on it (like the Trust Deed) can remove
  the Security of the Deed of Trust(The Rescission
  may need to be validated by a Judge for full
  effect)
• If a Loan Audit finds Violations in Origination
  Loan Docs Leverage(Some Lenders will ignore
  Audit Findings, unless they are in a Lawsuit)
• If an Audit of Recorded Docs finds errors, the
  Sale may be reversible(Often Eviction by
  Unlawful Detainer can be stopped)(Results can be
  used for Quiet Title and Wrong Foreclosure
  Procedure Causes of Action in a Lawsuit)

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Breaking the Predatory Lender Matrix 2By Jim
Krage of www.AmericanLoanAudits.com

• Some Reasons to Rescind then Examples
• 1) TILA Violations of Notice of Right to
  Cancel(for Refis TILA offers 3 years to
  Rescind)
• 2) TILA Violations of APR(for Refis TILA offers
  3 years to Rescind)
• 3) TILA Violations of undisclosed Finance
  Charges(for Refis TILA offers 3 years to
  Rescind)
• 4) Violations of Misrepresentation, Fraud,
  Consideration(Calif. Civil Code 1689 1691
  allow Rescission)
• Rescission can Void the Security Interest of the
  Lender(Always check with a Lawyer for Whats
  Best for You)
• NEXT 2 Notices of Right to Cancel with no
  Date, and a CE Audit

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Breaking the Predatory Lender Matrix 2By Jim
Krage of www.AmericanLoanAudits.com

• Courts and Causes of Action
• TILA and RESPA are Federal Laws.
• Misrepresentation and Fraud are most sued as
  State Laws
• You can only sue in Fed Court if you have a Fed
  issue.
• Rumors are that Borrowers are unlucky in L.A. Fed
  Court.
• I have seen better results in State Court for Fed
  State issues
• Even State Court Judges are often unfriendly to
  In Pro Pers see www.1215.org
• L.A. Fed Judge Manual Real is an old judge trying
  to throw out Fed complaints that ask for the
  Original of the Note.
• From www.mortgageservicingnews.com/newsletter/stor
  ies/?story_id56
• Judge Manuel L. Real of the Central District of
  California. In December 2008, Real began holding
  hearings into the conduct of the law firm that
  filed at least nine produce-the-note cases
  pending before him. By the end of January 2009,
  Real declared the suits to be frivolous, ordered
  the attorney to repay plaintiffs all monies paid
  for his services, ordered the attorney and his
  law firm to pay in excess of 60,000 to five law
  firms forced to defend the cases he filed,
  declared the attorney to be a vexatious litigant
  and barred him from making any future filings in
  the Central District without the prior written
  permission of the chief judge.
• In 2006,the House Judiciary Committee started an
  investigation of Real, but did nothing.

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Breaking the Predatory Lender Matrix 2By Jim
Krage of www.AmericanLoanAudits.com

• Historically, the Borrower got a Loan from a
  Lender in exchange for signing a Note and a Deed
  of Trust to secure the debt.
• Actually, the Lender loaned Credit.
• --------------------------------------------------
  ---------
• From about 2005-2008, Lehman Brothers milked
  investors to fund trusts that bought Notes
  directly, the nominal Lender didnt Loan
  anything, got paid a Commission to lie.

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Breaking the Predatory Lender Matrix 2By Jim
Krage of www.AmericanLoanAudits.com

• In these Securitization Trusts, Lehman got people
  to invest, used 30 to buy notes, used 70 for
  commissions reserve funds (to pay investor back
  partially to keep em quiet), and bought the
  notes outright without disclosing it to the
  homeowner.
• The Lender got a Commission to be a Front by
  putting its name on Note and Trust Deed.
• Lehman and the nominal Lender fraudulently
  misrepresented the actual nature of the
  transaction to defraud both the investor and the
  homeowner.

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Breaking the Predatory Lender Matrix 2By Jim
Krage of www.AmericanLoanAudits.com

• Now, Foreclosures are rampant Problems?
• They will lie and do anything to get your home
• The Servicer cant foreclose, but they do try.
• Foreclosure Evictions by Unlawful Detainer must
  be done by the Proper Party the Servicer is
  not the Proper Party
• MERS can only act as Nominee for the Lender -
  not Beneficiary if you dont know

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Breaking the Predatory Lender Matrix 2By Jim
Krage of www.AmericanLoanAudits.com

• If the Securitization Trust was created before
  the Loan and bought the Note outright, the
  nominal Lender on the Note and Deed of Trust
  never loaned you anything fraudulent
  misrepresentation??
• If the nominal Lender never paid anything, it
  wasnt Beneficiary, and cant Assign or
  Substitute? Who is the real Beneficiary?
• Is it the Trust or the Investor???

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Breaking the Predatory Lender Matrix 2By Jim
Krage of www.AmericanLoanAudits.com

• More and more Foreclosures are happening, where
  the Servicer is foreclosing without even an
  Assignment to them.
• Often MERS signs Assignments and Substitutions of
  Trustee as Beneficiary.
• All of the above should be VOIDABLE.
• If youre lucky enough to get a good judge, you
  may win in court in the above circumstances.
• Sometimes, you may stop the Foreclosure Sale or
  the Unlawful Detainer Eviction, if you present it
  properly. Audits help you know. Get a Lawyer to
  present it.

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Breaking the Predatory Lender Matrix 2By Jim
Krage of www.AmericanLoanAudits.com

• Are YOU or a FRIEND in Foreclosure?
• Who is Foreclosing?
• The Lender on the Note?
• The Servicer? (Aurora, Litton, etc)
• The Trustee? (Deutsche Bank, Wells Fargo,
  OneWest, Chase, etc)
• Was an Assignment recorded to them?
• Was the Substitution of Trustee proper?
• Who signed the Assignment Substitution?
• Was FRAUD at inception and in foreclosure?

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Breaking the Predatory Lender Matrix 2By Jim
Krage of www.AmericanLoanAudits.com

• At www.AmericanLoanAudits.com, we can help
• We Audit Origination Loan Docs in 2 Steps
• A Compliance Ease Audit to recalculate APR, etc
• A Manual Audit that scours the documents
• We also check Recorded Docs for errors.
• We provide a Qualified Written Request to try to
  get the Trust Name and other Docs
• We work with your lawyer, to help them understand
  the potential issues, including the Trust, which
  some dont want to hear.

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Breaking the Predatory Lender Matrix 2By Jim
Krage of www.AmericanLoanAudits.com

• If you want help, call Jim at [phone] or
  visit www.AmericanLoanAudits.com
• Read more about Securitization Trusts and the
  current situation at
• http//www.americanloanaudits.com/fraud/
• Watch our Sept. 2, 2009 Video at
• http//www.americanloanaudits.com/video/
• A video of this 1/23/10 Presentation will be
  posted soon.