Foreclosure Defense Handbook

111 Pages·2011·2.18 MB·English

by  Vince Khan

THE FORECLOSURE
DEFENSE HANDBOOK

By
Vince Khan

Consumer Defense Programs

www.consumerdefenseprograms.com Copyright © 2010. All Rights Reserved.
Read Me First

This ebook is a culmination of thousands of hours of research by our team.
We’ve read hundreds of articles and interviewed countless people and industry
experts to compile this book. This is a very complicated web of deceit that the
banking industry would rather not have you know about…because if you do,
you’d be mad.

You have the right to be mad. You’ve been conned. This is one of the largest
frauds perpetrated in the history of mankind.

This is why we decided to write this book and share our discovery with you so
you can understand what is going on. Information is power. We want you to be
informed.

You have no rights unless you know what your rights are. Education gives you
power.

By all rights, we should be charging for this research. But because we want to
share this information with as many people as possible, we decided to take a
different approach.

The American people have the right to know that they have been lied to.

This is why we are making this ebook available free of charge. However, we
have a condition.

This is an honor bound contract.

If you find that the information contained in this book is worth sharing, you are
honor bound to share this book with at least 3 other people.

This is the cost of admission.

DO NOT PROCEED WITH THIS BOOK IF YOU
DO NOT AGREE TO THESE TERMS.

Seriously, stop. Only proceed if you agree.
Your word is your bond. Live in honor.

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Warning: This Book is Out of Date

The law is constantly changing. Information is fluid. We are constantly updating
this book as new processes, new laws, and new research are discovered.
Chances are, the copy you have may be out of date.

To make sure you have the latest copy of our book, please come to our site:

www.consumerdefenseprograms.com

Disclaimer <- IMPORTANT

This is purely for educational and entertainment purposes. Nothing in this book
can be construed as giving legal advice or practicing law. We are not attorneys.
You are advised to consult competent legal counsel. Your reliance on the
information presented within this book is at your own risk.

The authors make no warrantees, assurances or claims to the legitimacy,
accuracy or completeness of the information contained within this work, explicit
or implied. This is information that we want to present to you for your
consideration. It is the result of thousands of hours of research and interviews
with industry experts. We believe the information is accurate to the best of our
knowledge.

Seriously, this is not your standard disclaimer. Don’t believe a word we
say. Do your own research and discover your own truth.

Copyright Notice
This book is copyrighted with all rights reserved. The book may be freely
distributed unaltered but its content cannot be used, reprinted, or republished
without the express permission of the publisher, Consumer Defense Programs
LLC. Email [email protected].

www.consumerdefenseprograms.com Copyright © 2010. All Rights Reserved.
For the Record
This book is about exposing bank fraud and educating you on your rights in
defending your home against foreclosure.
This is NOT about ways to defraud a bank from what is rightfully theirs.
This is NOT about exploiting some weird procedural loopholes so you can
get your house free and clear.
This book is written using Uniform Commercial Code and Financial Account
Standards and other applicable Federal Codes to articulate and expose bank
fraud in a way that everyone can understand. It is the “Bank Fraud for
Dummies,”™1 if you will.
This book cannot promise that you will win your home from the clutches of the
banking cartel. All we can do is show you where the fraud is being perpetrated
and allow you to come to your own conclusions. We provide you with practical
things you can do to start challenging your lender to produce a valid proof of
claim.
The aim of this book is to arm you with information so you can spot the fraud and
argue your points. This book is designed so you can give it to your lawyer or
anyone else so they can stop calling you a deadbeat homeowner trying to get a
free lunch.

1 Copyright and Trademark acknowledged to the “Dummies” series publisher.
The use of the terms Mortgage, Mortgagor, and Mortgagee are, for purposes of
∗
this document, synonymous with Deed of Trust, Trustor, Trustee and Beneficiary
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Table of Contents
Read
 Me
 First
 ............................................................................................................................
 2

For
 the
 Record
 ..........................................................................................................................
 4

Table
 of
 Contents
 .....................................................................................................................
 5

Introduction
 ..............................................................................................................................
 7

How
 to
 Use
 this
 Book
 ......................................................................................................................
 8

Who
 is
 Vince
 Khan?
 .........................................................................................................................
 9

Understanding
 the
 Securitization
 Process
 ..................................................................
 11

Background
 and
 Introduction
 .......................................................................................................
 11

Incentive
 and
 Motivation
 of
 Securitization
 ...................................................................................
 12

The
 Game
 of
 Greed
 .......................................................................................................................
 13

Stage
 1:
 The
 Pooling
 and
 Servicing
 Agreement
 Process
 ...............................................................
 14

Stage
 2:
 The
 Changing
 of
 the
 State
 of
 the
 Negotiable
 Instrument
 ...............................................
 15

Stage
 3:
 Real
 Parties
 of
 Interest
 ....................................................................................................
 16

REMIC,
 Investors
 and
 Shareholders
 Explained
 ..............................................................................
 18

Conclusion
 .....................................................................................................................................
 19

The
 Bubble
 Burst
 of
 2008-­‐2009
 ......................................................................................
 21

Bank
 Fraud
 Exposed
 ............................................................................................................
 24

Give
 Me
 a
 Free
 iPod
 ......................................................................................................................
 25

The
 Great
 Pretender
 Lender
 Switch
 ..............................................................................................
 27

You
 Can
 Not
 Make
 Carrots
 from
 Carrot
 Juice
 ...............................................................................
 28

Loan
 Mods
 are
 a
 Scam
 ..................................................................................................................
 31

Legal
 Arguments
 ...................................................................................................................
 34

Beyond
 "Show
 Me
 the
 Note"
 ........................................................................................................
 35

The
 Deed
 of
 Trust
 and
 Mortgage
 ..................................................................................................
 37

Perfection
 of
 Chain
 of
 Title
 ...........................................................................................................
 37

Who
 or
 What
 is
 MERS?
 .................................................................................................................
 38

The
 Issue
 of
 a
 Defective
 Instrument
 .............................................................................................
 39

The
 Fair
 Debt
 Collections
 Practices
 Act
 .........................................................................................
 40

The
 Debt
 Validation
 Letter
 ............................................................................................................
 42

What
 About
 My
 Debt
 Obligations?
 ..................................................................................
 45

Heads
 I
 Win,
 Tails
 I
 Win
 .................................................................................................................
 45

Being
 Paid
 Not
 Once,
 But
 At
 Least
 3
 Times
 ...................................................................................
 46

The
 Bloody
 Road
 Ahead
 .....................................................................................................
 48

The
 Collapse
 of
 the
 Banking
 Industry?
 ..........................................................................................
 49

Free
 Lunch
 for
 Homeowners?
 .......................................................................................................
 49

Opportunity
 for
 Peace
 ...................................................................................................................
 51

I
 hope
 that
 by
 awakening
 more
 and
 more
 homeowners
 and
 people
 in
 the
 legal
 profession
 of
 the

extent
 of
 loan
 fraud
 that
 our
 banking
 friends
 might
 decide
 to
 come
 clean.
 ................................
 51

What
 Are
 My
 Options?
 .........................................................................................................
 52

Do
 Your
 Own
 Research
 ..................................................................................................................
 53

Suing
 Your
 Lender
 .........................................................................................................................
 53

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Communicating
 With
 Your
 Lender
 ................................................................................................
 55

Getting
 a
 Securitization
 Audit
 .......................................................................................................
 57

Learning
 the
 Rules
 of
 Court
 ...........................................................................................................
 58

How
 to
 Deal
 with
 Liars
 Lawyers
 ....................................................................................................
 58

Do
 It
 Yourself
 .................................................................................................................................
 62

Help,
 My
 House
 is
 Up
 for
 Sale
 Next
 Week!
 ...................................................................................
 64

The
 Bankruptcy
 Automatic
 Stay
 Method
 ......................................................................................
 65

I’m
 Not
 In
 Default
 Yet
 ....................................................................................................................
 74

Start
 Local
 Groups
 .........................................................................................................................
 75

Where's
 The
 Proof?
 .......................................................................................................................
 76

Taking
 On
 The
 Fight
 .......................................................................................................................
 78

Please
 Spread
 the
 News
 ................................................................................................................
 79

Appendix
 .................................................................................................................................
 80

Appendix
 B:
 Dissecting
 a
 Fraud
 in
 Action
 ......................................................................................
 83

Appendix
 C:
 Homeowner
 Wins:
 Case
 Law
 Successes
 ....................................................................
 85

Appendix
 D:
 Fair
 Debt
 Collections
 Practices
 Act
 -­‐
 Debt
 Validation
 Letter
 .....................................
 92

Appendix
 E:
 Explanation
 of
 Securitization
 ....................................................................................
 94

Recommended
 Products
 ..................................................................................................
 109

Jurisdictionary
 .............................................................................................................................
 109

Affordable
 Securitization
 Audits
 .................................................................................................
 110

Bankruptcy
 Preparation
 Service
 ..................................................................................................
 111

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Introduction

By now, you should know that we are in the middle of a global economic
depression that was caused by the collapse of the housing market. What you
probably don't know is the all the events that led to the housing bubble collapse
and the massive fraud committed by banks.

This book hopes to help you connect the dots; specifically, how it relates to
foreclosure and how banks are committing fraud every single day by stealing
homes from everyday people like you and me.

Until now, this information was reserved only for the top echelon bankers.
Bankers don’t want you to have this information. If more people knew about this
fraud, then our banker friends would be in jail.

We are currently faced with ghost towns all over the country where entire
subdivisions have been foreclosed. Many communities have collapsed as a
result of this Depression. At the same time, we have thousands and thousands of
families living in tent cities because they have nowhere else to go.

The worst part is this is only the beginning. It is projected that 2011 and 2012 will
be even more devastating in terms of the number of foreclosures that are
projected to take place as many of the adjustable mortgages are nearing the end
of their romance period.

Tragically, over 85% of foreclosures have been and are being done fraudulently
due to ignorance. We want to educate you so you can arm yourself with
knowledge to defend your home.

This ebook was written because we got tired of banks getting away with murder.
We decided to research this topic and expose bank fraud in a manner that the
average person can understand. Too often, this sort of information is buried
under too much technical jargon, double speak and mountains of noise.

Even if you are in good standing, this book is something you should know about.
Who knows, you could be one of the people who might lose their jobs in the
coming months as the global economic Depression worsens.

If you are one of those people trying to negotiate with your banks to do a loan
modification, you must read this book. This is especially important if you are one
of those people who have an upside down loan where you owe more than your
house is worth.

This book applies to all home loans, whether it is a first, second or a home equity
line of credit (HELOC). It applies whether you are in a judicial or non-judicial
State.
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We are going to show you where the fraud begins.

We just ask that you keep an open mind.

How to Use this Book

The problem with the foreclosure crisis is everyone is in crisis mode.

The homeowners lost their job due to the economy…they are facing credit card
companies chasing them, having to fight for a roof over their heads, and trying to
keep it together at the same time.

The banks are in a rush to foreclose the homes at all costs, regardless of ethics,
procedures, ownership or standings.

The courts are so buried by foreclosure cases they want to rubber stamp these
cases and ignore their Oaths of Office…which is to afford justice to all...equally.

Amongst all this rush, no one ever stopped to talk about the gigantic white
elephant in the room.

Remember Abbott and Costello's famous skit, "Who's on First?"

The same premise can be applied to many of these bank foreclosures. In other
words, who has proper standing to enforce the promissory note? Everyone just
assumes that the banks are in this position.

Judges are too busy to research this stuff.

Lawyers are too arrogant to acknowledge that there is something deeper at play
here than a bunch of deadbeat homeowners trying to get out of their debt
obligations.

Most frustrating of all, this sort of information is not readily available in layman's
terms and concepts so that everyone can understand.

This is why we wrote this book. We have read thousands and thousands of
pages full of information about this subject. It is only after one has immersed
oneself enough in the subject and understands it intimately can one explain it in
its most simplistic and elegant terms. We believe this book can be a good
starting point for many people to help them understand the nature of bank fraud.

We hope that you can take this book and give it to your lawyer and have him/her
read it and "get it."
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We hope that you can send this to your local journalists so they can run a story
about loan fraud so that more people will wake up.

We hope that you can pass this to as many of your friends as possible so they,
too, can "get it."

We intend this book to be a simple tool to help open people’s eyes to one of the
biggest frauds perpetrated by bankers in the history of mankind.

We hope you will join us.

Who is Vince Khan?

I am not a banker, lawyer, expert or anything. I am a real estate investor who got
caught in the housing bubble like everyone else. I am just an average
homeowner who discovered the fraud and wanted to share my discovery with
you and allow you to come to your own conclusions.

I fell into default and started to challenge my bank to compel them to prove their
standing.

After sending me a Notice of Default, and filling for a Trustee Sale, they issued a
rescission of the Notice of Default and stopped their foreclosure proceeding
indefinitely. You can see the notice on the next page.

I write this book at great risk to myself. Honestly, I fear for my life.

The fraud you are about to witness is something bankers have been trying to
keep quiet for years. Court cases have been sealed because they do not want
this information released and circulated into the general public. Homeowners
have been given massive settlements on the condition of a gag order so that
bankers can continue to do their dirty business. One expert witness we have
interviewed even had his life threatened because of what he knows.

I do not exaggerate when we say bankers will go to (and have gone to) any
lengths to keep this information away from the general public. If this
information gets widely circulated, many bankers will go to jail. The information
contained in this book will potentially cause trillions of dollars of damages to the
banking industry.

I feel that once this information has reached a critical mass, then it will be too late
for the bankers to do anything to harm me.

I got so tired of seeing people suffer from this fraud that I felt compelled to share
my discovery to the public.
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I hope I can make a difference.

I hope that you will join our movement and awaken others to bank fraud.

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