Gonzalo Lira on Mulligan Mortgages—The Banks' Only Way Out

Tyler Durden's picture

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Ripped Chunk's picture

The Mortgage Backed Securities—America’s Herpes: The gift that just keeps on oozing.


Bill Black on....well pretty much everything that is wrong.



Mako's picture

The author is again wrong.  MBS are not the disease, the system from which you need exponential growth or you go down the shitter is the disease.  The current MBS is just the symptom that will be used as the excuse when the system collapses.

Sorry guys, this system was going down if MBS never even existed. 

There are no mulligans, the system will collapse and liquidate just like the last time and time before that, and time before.....

Humans will use every excuse in the book other than to blame themselves for this failure.

High Plains Drifter's picture

Yep, hundred years life span max.


Tarheel's picture

why doesnt the FED just refi everyone's home for the $1T instead? Thats better use of the money

VK's picture

Precisely! All ponzi schemes collapse.

SloSquez's picture

Maybe, but damn what a creative way to extend and pretend.  Waiting on the next chapter.

FEDbuster's picture

All any politician wants to do is kick the can down the road, and let some future ego maniac deal with it.

Another problem with "Mulligan Mortgages" that I see is that in some non-recourse states you will lose your ability to "walk away" from the home if you refinance it.  The non-recourse provision applies to purchase money mortgages only.  The "Mulligan" will allow the banksters to come after you for the deficiency for the difference between amount owed and sale price (which could be a big number).  Then you are forced to file for BK to discharge the debt.

kathy.chamberlin@gmail.com's picture

i have never taken a mulligan, i just don't keep score. i really am not cheating anyone. who says you have to keep score of your golf game if your not playing in a tournament. honest not keeping score is a beautiful thing. great read gonzo, really really like your added humor oh especially your inclusion of tiger. i bet be stopped counting his scores of hits or tails or pussy, but the public sure didn't. sick society interested in how many woman tiger bagged. jealousy powerful outcry. i spotted keeping score in a lot of my aspects of life, who counting and who cares if you don't. i did receive a mulligan mortgage but i got a BIG penalty for that one.

williambanzai7's picture

Try using one of these balls to improve your score

kathy.chamberlin@gmail.com's picture

yep your damn funny. F O R E

s p r e a d wide open for that ball. guess if you had that size one, you wouldn't need two.

Goldilocks's picture


Most disingenuous comment of the day.

JLee2027's picture

Mako is correct. There will be no bailout, a collapse is coming and quickly.

Spitzer's picture

The author is writing the book chapter by chapter, you are not looking like a genious by skipping to the last page.

Pladizow's picture

Sorry to have awaken you, go back to sleep!

Mako's picture

All you are doing is spreading junk.  There are no boiler plate lawsuits, hogwash silver bullet schemes.

All George Tan has perfected is an impending civil storm that will wreck havoc upon his misguided assertions of free and clear in 90 days.

Pladizow's picture

Other than the few seconds you spent in between my post and yours, how much time have you spent investigating the subject?

Or are your comments most likely backed up by nothing!

Mako's picture

I have read his stupid crap before.

Who knows, George Tran may fall through the cracks, but given he has successfully slandered the title to his free and clear homes under the color of an alleged default judgment, he will not be able to perfect the statute of limitations for debt collections, as he has committed an overt civil fraud.  So, no matter when the alleged holder in due course, and or the loan servicer wakes up to George's Civil Fraud, they will have standing to first pursue the slander of title, and secondly move to burst Georges Tran's bubble, he coyly wraps within this misstatement of fact, Free and Clear in 90 days.

George Tran is treading in deep water, without a way to reach to the sandy shores of lawful legitimacy.  All George Tran has managed to do, is fool himself, and others who fail to properly address the legal sufficiency of his claims.

If George Tran had been statutorily honest, he would have filed his action in the local county where the alleged holders in due course and or Loan Servicer resides, which would be the location of the corporate headquarters, or he would have filed a federal question in the Federal District Court.  IN either jurisdiction, he would first be required to properly serve notice of his actions to the opposing party.  All George Tran has perfected is an impending civil storm that will wreck havoc upon his misguided assertions of free and clear in 90 days.

You are the worse type of idiot, at least most idiots know they don't know, you somehow think you know, but you have no understanding of the Law.  Stop promoting SCAMS.

Pladizow's picture

May be, May be not - but the system should continuously be tested and chalanged.

Mako's picture

Why would you test something that is bound to fail?

I certainly wouldn't jump off a cliff in the hopes I will somehow be lucky and survive. 

He is not only wrong, he is completely wrong. 

All George Tran has filed in the Davis County Office is nothing more than a fictitious claim of Reconveyance, which when challenged will enable the challenger to circumnavigate the statutory limitation for the collection of debt due directly to what appears to be civil fraud.

He will be lucky this only stays a civil action once the holder in due course or sevicer finds out what he has done.

Pladizow's picture

Well if a am an idiot, as you accuse, only a greater idiot would argue with me.

The end??????????????

Mako's picture

If it were just a matter of you slamming your own head against the wall, I would just let you continue on... however, you are promoting nonsense that will get OTHERS in trouble. 

Mako's picture

I am not your mommy, feel free to follow that idiot and come back here in a few years and let me know what kind of shitstorm is knocking on your door.

Pladizow's picture

Top of my list!

Oh and by the way, thanks for making this such a long thread to help promote http://www.freeandclearin90.com/ , like we agreed on!

Fed Supporter's picture

Agree with everthing MAKO said.  Some guy in my parts just went to prison for fraud on all that UCC sovereign man bullshit, fake lawsuits, etc.  

Attempt at your own risk.

spinone's picture

I junked you because you are passing on bad legal advice.  This UCC stuff wont work for the rabble.

Goldilocks's picture


So that's how pluggin' a website is done. Interesting approach. Will check it out ... thanks.

merehuman's picture

hi Mako, we "others" thank you.

MayIMommaDogFace2theBananaPatch's picture

Third rule...if someone yells "stop!", goes limp, or taps out, the fight is over.

DocLogo's picture

when I saw the title "free and clear" I assumed it was the blood parasite group from Fight Club. I was actually kind of excited. We could all use a good cry.

greyghost's picture

this is the exact same ponzi scheme that the fed has been running with the chinese and their toxic mbs paper. fed buys worthless paper from chinese with the agreement that the chinese purchase treasury paper. this keeps interest rates low for now. however as has been pointed out here on zerohedge, the chinese are buying only short term treasuries...nothing over 7 years. QUESTION: what happens when the chinese no longer have worthless paper to sell and no longer want to buy u.s. treasuries? now we will have the fed buying worthless toxic paper from our own banks and they in turn buy u.s.treasuries! when the ponzi scheme goes full circle[jerk], what then?

Goldilocks's picture

@Ripped Chunk,

Thanks for the Bill Black link. Good stuff.

macholatte's picture

RE: Great American Bank Robbery


Very good.   Thanks for the link, Chunk.

I did not watch all of it. However, Mr. Black clearly states that the routine of routine mortgage fraud is nothing new and could very well make the case that the banksters knew exactly what they were doing, building a bubble, and so did the regulators and that all the double talk by Greenspan, Sommers, Dodd, Frank & Co. that "nobody could have seen this coming" is complete, unadulterated bullshit. Very aggravating.



As a white-collar criminologist and former financial regulator much of my research studies what causes financial markets to become profoundly dysfunctional. The FBI has been warning of an "epidemic" of mortgage fraud since September 2004. It also reports that lenders initiated 80% of these frauds.1 When the person that controls a seemingly legitimate business or government agency uses it as a "weapon" to defraud we categorize it as a "control fraud" ("The Organization as 'Weapon' in White Collar Crime." Wheeler & Rothman 1982; The Best Way to Rob a Bank is to Own One. Black 2005). Financial control frauds' "weapon of choice" is accounting. Control frauds cause greater financial losses than all other forms of property crime -- combined. Control fraud epidemics can arise when financial deregulation and desupervision and perverse compensation systems create a "criminogenic environment" (Big Money Crime. Calavita, Pontell & Tillman 1997.)




Gloomy's picture

Just asked my real estate attorney whether I should make the bank show me the mortgage papers before I paid anymore. He said don't bother. Although they might never be able to foreclose on me, they could sue me in civil court and that, because I had made paymenys in the past, success would be highly unlikely.

molecool's picture

That's bullshit advice - you made payments on the basis of false information. You could counter sue.

My advice: Find a real lawyer who's able to find his ass in the dark.

Almost Solvent's picture

Hey, I don't remember signing no stinkin' note.


Even if I did, I owe him the money, not you.



Gloomy's picture

 How many of you critics have even bothered to check with an attorney?

kathy.chamberlin@gmail.com's picture

from what i can tell even the most astute real estate attorney's aren't the least bit interested in this paper trail. i don't think can even fathom this type of behavior from other "professionals". honest, engaged many attorney with this topic, they want to sue me for slander against such statements. they can not wrap their heads around,possible corruption exists at the base of title or loan lending. they think everyone is doing their job like they are. which only means everybody is drinking the cruelAid.

JLee2027's picture

Most attorneys would be guessing. They don't know. It's new ground for everyone.

But I can't see banks suing tens of millions of people based on past payments. Too many people, and the banks are going down for the count soon enough.

Confused's picture

Wouldn't the original transaction be considered fraud in the inducement? 


Obviously not a lawyer here. Sorry if that is dumb. 

The Alarmist's picture

That's bullshit ... at the end of the day, we're going to look through to the economic substance of these transactions, and most of the mortgages will be foreclosed because the debtors did not meet their obligations.  Most of this crap will be settled out of court. While it is true that gross fraud runs the risk of vitiating some element of the transaction, documentary technicalities merely serve to delay the inevitable.



Fed Supporter's picture

As Chris Whalen said the loans would become unsecured for the homeowner and unsecured collateral for investors.

Give this scenario some thought.  In Texas home owner exemptions are for the full amount of a homes value, you can not lien them nor can you garnish wages in Texas.  If a Texan successfully got the mortgage lien stripped off of his home, a civil suit by the lender for a money judgment, of the now new and unsecured loan would be very hard pressed to collect.  

Just some food for thought.






Gloomy's picture

How many people have the wherewithall to fight lawsuits with lawsuits in court? Not me. Very few, I'd wager.

kathy.chamberlin@gmail.com's picture

i am in a HUGE lawsuit. the defendants don't have squat, except reference to me being crazy. but if i were crazy i should not been able to sign on the dotted line, right? i think i read somewhere if the person is crazy you can't engage in contract signing with them. they sure were eager to have a crazy person buy the half million dollar property from them. senior moments lately.

Confused's picture

"The term incompetency has several meanings in the law. When it is used to describe the mental condition of a person subject to legal proceedings, it means the person is neither able to comprehend the nature and consequences of the proceedings nor able adequately to help an attorney with his defense. When it is used to describe the legal qualification of a person, it means the person does not have the legal capacity to enter a contract. When it is employed to describe a professional duty or obligation, it means that the person has demonstrated a lack of ability to perform professional functions."

Now are you just crazy? Or incompetent? They need to clarify. :P

Good luck.

Gloomy's picture

 How many of you critics have even bothered to check with an attorney?

JLee2027's picture

As I said above, the attorneys would be 100% clueless in this area. It's still "evolving".

-Michelle-'s picture

Shouldn't your real estate attorney have verified those mortgage papers in the first place?