Frequently Asked Questions

FREQUENTLY ASKED QUESTIONS

Why would the bank walk away from the mortgage? During the mortgage frenzy of the last decade, the banks started bending the rules and taking shortcuts and they know that what they are doing either violates the terms of the contract, or they have knowingly engaged in fraud. They left themselves an escape, expunging (canceling) the debt and returning the deed. Otherwise, they would have to face fraud charges in court and risk treble damages, and perhaps criminal charges.

How will I know if my mortgage will qualify? Most institutional (big bank and mortgage company) loans written after 1996 qualify. Another indicator is if your documents or county recorder list MERS (see “What is MERS” below) as the nominee, or if your loan has been sold and you now make payments to someone other than the original lender. It is estimated that there are over 60 million loans nationwide that are eligible to be cancelled.

What will disqualify me from this program? If you currently have a short sale offer, are negotiating a loan modification, or are in bankruptcy. Also, private mortgages usually don’t qualify.

How long does it take to cancel my mortgage? As little as 60 days; up to 6 months.

Why does it take so long? We are building a case against the lender by using the submission of documents and their non-response or inadequate response. There are legally mandated response times for these documents. The more we do. The stronger our case until they fall on their own sword. In can be accomplished quicker, but our case isn’t as strong.

How much will this cost me? It will cost you everything if you do nothing! We don’t charge any up-front fees, we just ask that you split any equity with us that we create. You will have some mailing and overnight expenses.

What is your success rate? It is hard to say at this time. Although many people have been successful in the courts and there are mounting precedents, and case law in favor of the homeowner, it is based on law that is hundreds of years old. Utilizing our administrative process is only a few months old as of this writing; however it is modeled on, and incorporates the best of the most successful systems today. We have experienced several successful cases, and more every week, but most are still in the process (remember, it take 3 to 6 months). To date, there are no cases on our books that have been taken to completion that have failed to be successful.

What if the bank denies the claim / charges? What do you mean “What if?” Of course they will deny it. And the lawyers will lie and tell you that they don’t have to prove anything, that you are breaking the law, and threaten anything they can dream up. I would just smile, keep my mouth shut, make a record of everything, and make sure I don’t sign anything! Let the process work. They will shoot themselves in the foot soon enough.

Will I have to go to court? Only if you are lucky! We almost never go to court. Most banks back down and surrender long before court because if you prove fraud in court, they may be liable for treble (triple) damages of the loan balance and any fees they are seeking, and possible criminal charges.

If I do have to go to court, do I have to pay for a lawyer? This is decided on a case by case basis, but generally no. The lawyers are paid on a contingency fee and are drooling like rabid dogs to walk into court with a case as strong as the ones we create through our investigation and discovery process.

* * * * * * * *

Can I stop/delay a foreclosure sale? We like to have as much time before the sale as possible to begin and collect your paperwork. Starting the week before the auction is risky. We put the foreclosure agent on notice that they may be personally sued for fraud if they continue – that usually stops them dead in their tracks.

What if they held the auction but I haven’t been evicted yet? Congresswoman Kaptur (D-Ohio) would tell you to be a squatter in your home and fight the eviction! Eviction is a legal process and can be challenged in court. You can force them to prove standing in court, to provide proof that they had the right to foreclose.

Should I consider a loan modification? This is a decision you will have to make. However, you should know that you are entering into a new contract and it may void your option to cancel your mortgage. Banks were just stringing customers along until they foreclosed, but now we are seeing a surge of loan mods; we believe this is because the banks know they are running scared of having their mortgages cancelled and are now willing to work with the homeowner to avoid this.

Can I use this if I am not in foreclosure? You bet! The process is the same. You have the right to get answers about your loan and ask them to prove that they have the right to collect on your loan. This is especially good if you are upside-down and owe more than the market value of the house.

What if my house is over-encumbered (I owe more than it is worth?) Perfect! That is one of the best uses of this program. Don’t short sale the property and walk away with nothing; eliminate the mortgage and walk away with equity!

Will this work for 2nd mortgages too? If they are institutional loans, it the odds are good. If you have a private 2nd mortgage, the proceeds of the sale after you have cancelled the 1st mortgage can be used to pay off the 2nd mortgage.

Does this work for rental property? You bet, as long as you are on title as the owner of the property or have authority to act if the property is in a trust.

What if my house is vacant? The bank will consider the property abandoned and move to foreclose more quickly. However, this does not prevent you from taking steps to enforce your rights.

Should I quit making my payments? We can’t give you advise about what you should do or how that may harm your credit. That is a decision you will have to weigh and make for yourself.

What will this do to my credit? If we are successful, it should improve your credit. First, you no longer have the large mortgage debt. Second, any late payments or foreclosure action reported that was due to fraud on the part of the lender or collection agent was therefore fraudulently reported and must be removed from your credit report.

What if I get an offer on my house during the process? We use a non-exclusive option that doesn’t lock you in to any course of action. You will remain free to do whatever you decide is best for your situation. If at any time during the investigation process you decide to accept a sale offer, a short sale, loan modification or declare bankruptcy, just let us know and we will stop our efforts.

* * * * * * * *

What is MERS and why should I care? MERS stands for Mortgage Electronic Registration Service. Under the terms of their charter, and now by court ruling, MERS is not, and cannot be the holder of your note. As such, they have no standing to bring foreclosure action. What MERS does is acts as a holder of the deed in name only so the note and deed don’t have to be recorded in the county recorder’s office each time it is sold or transferred (which could be dozens or hundreds of times.) This violates the law in many states. They also hide from you the identity of whoever holds your note, or worse, camouflage the fact that they illegally sliced and sold your note of in a thousand pieces as they created an illegal security instrument. Also, by Federal Law, every transfer or assignment of a mortgage must be done in writing. This legal transfer is the perfecting of the Note, proving that the holder of the Note is the Holder in Due Course, a legal requirement in order to enforce the Note. The MERS system attempts to circumvent this requirement. Worse, sometimes the original note was electronically copied and the original was shredded. Only the original wet ink copy is the actual note that can be collected upon. If it was shredded or lost, there is no note; they can’t collect!

Don’t I have a moral obligation to pay off my loan? That is a personal choice you will have to make, but don’t get me started because I’ll be happy to offer my opinion. Too late! A moral obligation to pay those with no morals? Hell no! Are you aware that your signature actually created the money that they turned around and “loaned” back to you? That your loan was probably sold even before you even signed it. Not only were they paid in full the moment you signed, but because of the Fractionalized Banking System, they were paid nine times the value of your loan?

Also, aren’t the banks the ones who will charge you a $36 overdraft fee even if you only overdraft by one penny . . . because it’s in the contract. But they don’t want to have to abide by the terms of the mortgage contracts. If they don’t uphold their end of the terms of the contract, shouldn’t they have to pay the consequences? They sure expect you to! Did you give them permission to slice up your mortgage note and turn it into a securitized financial instrument? Did they disclose that to you? Then they created all sorts of Collateralized Mortgage Obligations and Securities Insurance products out of thin air and your signature to increase their profits and satisfy their greed. In doing so, they separated your note from the deed and lost all legal right to foreclose or collect on the note.

These banks think they are so powerful that they don’t have to abide by the law and they can make up the rules anyway they want, which is exactly what the Mortgage Bankers Association did when they created MERS. They knew that this was not in compliance with federal law and many state’s laws, but it was convenient for them and they figured they were to powerful and we were all too dumb to do anything about it.

We believe the bankers created the mortgage meltdown knowing in advance that they would be bailed out and that the taxpayer would be enslaved in debt for decades, all to feed their greed. And with the bailout, they made record profits and paid themselves obscene bonuses; all at your expense. And that is why, in my opinion, I say hell no. They have been paid over and over and it is time to send them a message. They are not above the law and we are not their slaves to be used and abused.

* * * * * * * *

Where can I learn more? On our home page, we have several links to articles, court cases, news reports and other education links. Our Case Law page will give you primer in some of the applicable law.

How do I get started? Email or call us. We will discuss your specific needs and situation. If it looks like we can work together, we will send you a non-exclusive offer and request the necessary information and documents to start the process of investigating your mortgage.

Can’t I just do this myself? Yes. There are educational programs, some with the necessary documentation included. Some are better than others. In addition to the up-front cost of the program, you will have to spend significant time educating yourself, you must prepare and submit the documents and follow through with every step of the program, and you will need the courage to stand up to the banks and foreclosure lawyers when they try to bully you. The best program in our opinion is the Living Free and Clear Program and can be found through our affiliate link below. (Link will open a new window.) When you arrive at their site, we suggest you click on the “Fast Mortgage Settlement” tab. About a third of the way down the page you will find two free e-course downloads. We think you will find them enlightening.