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Question to Readers On Mods

Submitted by Bruce Krasting on 10/16/2010 09:03 -0400

Florida

I’ve been hearing a story this past week that intrigues me. I can’t
prove it, but I would love to know if it were true. I will throw this
out to the blog world and see what comes back. Who knows, we may get
some clarity on a key issue.

I have heard this story directly from a few folks in Nevada. I know
someone in NY who has a similar story. But when I heard from yet another
person in Florida this morning I said, “There must be something to this”.
My sample of information is too small. I want to know if this is a
coincidence or is there something bigger and nefarious afoot.

There has been (from my narrow perspective) a flood of approved loan
mods in just the last few weeks. People who were on the edge and not
paying a mortgage get a letter in the mail that says their application
has been approved. After weeks and months of hanging on a phone and
waiting for an axe to drop some relief arrives.

Nothing particularly unusual about that. Mods are granted all the time.
But I was struck by the timing. The foreclosure story is exploding
around the banks. It is not possible to see where this will end but it
is a certainty that it will cost the banks big time.

What might a banker do if he was sitting on a pile of defaulted
mortgages and now the traditional route of foreclosure was blocked?
Adding to the problems of the bankers is that there is no assurance that
they even have a valid claim to foreclose given that so much of the
paperwork is tainted.

One possible response would be to get all troubled borrowers to reaffirm
their debt, the second is to get the trouble borrowers back to paying
something on the mortgage, even if it were a fraction of what was
formerly owed on a monthly basis. A loan modification would achieve both
results. When a borrower signs up for a loan mod they sign new papers. A
portion of this process will re-establish any loan balance that is due.
The language in the mod could have new foreclosure terms that eliminate
the banker’s problem with past tainted documentation. Once a borrower
makes a few months of new lowered payments they are, in effect,
confirming their acceptance of the new terms.

Most Mods go bust in six months. So little is accomplished from the
lenders perspective. But what if the lenders motivation for doing a Mod
was not to get a borrower to a loan balance and monthly nut that they
could pay, but rather the motivation was to circumvent the foreclosure
trap the lenders are in? A Mod could legally resolve the problems.

The story I have been hearing is that tens of thousands of Mod letters
have been sent by servicers in the past few weeks. Anyone who had an
application pending is all of sudden getting the happy news in the mail.

Question to the audience: Has anyone else heard or seen evidence of this?

If this were to be true is would be a very big slap in the face of the
banks. For years they have been fighting off Mods. But when the tables
turn on them due the unforeseen explosion and chaos in foreclosure the
banks turn on a dime and go into mass Mod mode. Should that be the case
it would prove (once again) that the banks will do anything to screw
their customers. The mod is just a vehicle to perfect the mortgage lien.

Bruce Krasting
bkrasting@gmail.com

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Wed, 11/10/2010 - 05:02 | 715414 cheap uggs for sale

Sun, 10/17/2010 - 15:46 | 656953 Ruth

Bruce, as far as the Tampa Bay area, where once all the major and minor Lenders flourished, I have noticed a major increase in employment in Closing and Processing of mortgage jobs, see the prospects from Zip Code 33785 obvious things are heating up...the race is onto the closing table: http://www.indeed.com/jobs?q=mortgage&l=33785

I see the same happening on my CareerBuilder Alerts.

In the not far off future you'd probably only see collections and asset managers, not now.....CLOSE! CLOSE! CLOSE!

I've notified all my previous clients of this fraud and am getting few responses trickling in....but I never sold those shit loans as a rule!

Sun, 10/17/2010 - 09:45 | 656376 maley

I manage a portfolio for a fund specializing in luxury short sale properties. Under HAMP legislation, if it falls within the range of modification (I.E. by loan amount or other qualifying factor), a short sale offer received by the lender has to first be disqualified from the program in order to proceed.

This process takes about 24 hours. As of late, HAMP properties ruling out modification are taking a week. Several properties originally disqualified from modification are now being tested again.

In the past year, not one buyer was offered a modification. Last week, a property originally declined modification two weeks ago, was tested again and ultimately accepted the mod offer.

Yes, I see this on a daily basis here in Florida and I honestly feel that with the foreclosure sale freeze and uncertainty of title encumbrances - now or sometime in the future - what better way to secure an asset for the banks, since they actually may not own them, they can't sell, and at least with a modification at a lower rate and loan balance, it would not be a total loss and a client is in essence, signing a new mortgage with that lender, where one may never have existed.

Sun, 10/17/2010 - 04:58 | 656199 williambanzai7

I just want to caution people who are getting mods. If there is any kind of title/documentary correction involved (e.g., here please sign the new note); make damn sure you are getting an unconditional/irrevocable loan modification. None of this trial period bullshit.

Sun, 10/17/2010 - 03:37 | 656128 The Navigator

I have a bigger picture question

In Wikipedia, Anarchy is described as "No rulership or enforced authority"

At the other end of the spectrum is Socialism/Communism or total government control over everything.

Anarchy has been painted as evil where the world runs amok but the real definition is quite different.

If the Federal Reserve and the Federal Government disappeared tomorrow, would my life or your life change? Not mine, except I'd get to keep 90% of my income instead of 50% of it.

One other question, what 2 organizations exist that once you join, exiting membership is death? The mob and the USA. If a State tries to secede....well last time that was tried it ended in Civil War.

But populations become so big that No One is represented - only in smaller groups do we get closer to truer representation (ie HOAs, Cities, Counties) and have better control over government corruption & spending.

Sat, 10/16/2010 - 22:45 | 655854 drchris

The Tuesday after the fiasco started, my friend got a call from Wells Fargo. The offered him a refi without any fees. He was current.

Sat, 10/16/2010 - 22:51 | 655858 drchris

BTW, I mentioned this 10 days ago:

"Yesterday, a friend of mine was offered a refi by Wells Fargo to .5% above the current rate. There were no fees and they gave him an option of 30yr or 20yr. He took the offer. When he told me about it I laughed. The timing is so strange that I'm 90% sure there was a potential problem with his paperwork. I wonder if the lenders are trying head off these problems by offering a refi and getting brand new paperwork. "

http://www.zerohedge.com/article/foreclosure-mess-mbs-hate-triangle-emer...

Sat, 10/16/2010 - 22:37 | 655850 Bruce Krasting

Another:

I know a family working on a mod with BofA and have been telling them yes , no, yes, no for six months. They tried making a reduced payment 80% of the total and they said they would not accept a partial payment and they needed to stop making their payment to be considered for a mod. Finally foreclosure papers were posted last week. I told them to find out the total amount owed and ask for a copy of the note. The Father/husband was working in the oil and gas industry and was laid off due the drilling policies out of Washington.

BofA called on 10-15 and offered $6000 towards the $12,000 past due with $5000 fees, total of $17,000. The payment will be 50% of the original payment. They are sending the paper work/doc's to be reviewed and signed. I thought it didn't sound right. It will be interesting to see how the remaining balance will be handled. I honestly believe they don't have the correct paper work and/or note. I agree, this sounds just a little fishy. I need to warn them it could be a way for BofA to re-establish the note. I know it's not right for people to not make their payments. Although this whole miss was due to the banker and politicians. We need to stop bailing out the banks.

Sat, 10/16/2010 - 22:31 | 655787 Bruce Krasting

Another off the grid response that I found interesting. Chase keeps popping up:

I saw your post on ZH about the rush of mods. I work in a call center at a large-ish servicer. In late August they asked me to join a team working a new special servicing project. Basically we started calling everyone and anyone who had ever applied for a mod, offer them a fast track to completion if they sent in (again) a fresh set of paperwork, and reworked the whole process to get a set number of mods into docs, signed and closed by month end (Sept.). We did it, closed a huge number (I really didn't pay attention to the numbers, don't care; all I know is I'm up to my eyeballs in them). It was enough of a record for the brass to make happynoise in its typical pandering fashion. Huzzahs, Attaboys, and Bullshit. Some pizza and doughnuts.

I know that my supervisor was in daily two hour meetings, and I mean daily, with top level management and a team from the GSE for which we service loans,monitoring progress . All of a sudden VPs I'd never seen knew my name, and the names of my teammates. Very high profile project, still going, and due to the success we've had we're expanding.

There was some very shitty stuff going on at BAC and Chase Home Finance. They were putting people in trial mods, shipping the loans out to us, and failing them right before the transfer date. Something about padding their incentive w/ the GSE without doing any work. I have seen some sketchy stuff, but for the most part we are playing it by the rules and denying those who don't qualify. The point is, we're clearing the backlog and getting proactive about closing deals. I also see loans in the foreclosure timeline are undergoing an entirely new due diligence protocol, not so many requests for allonge as there are "where's the note?"

Sat, 10/16/2010 - 17:39 | 655552 Bruce Krasting

This was posted on my blogspot address:

It's all true. I, of all people, received an application from JP Morgan Chase for a modification. This came out of the blue from a lawyer for Chase.

I have been in the foreclosure process for months. So, much to my surprise the mod app arrived in the mail yesterday. Chase never really worked with me in the past.

Chase and Wells have been sending mods to surprised recipients.

Curious....

Sat, 10/16/2010 - 20:07 | 655700 kayl

No one should do any mods. Go straight to the heart of the matter.

Discharge of debt under Article 3 of the Uniform Commercial Code. Here's the meme: There is no money, there is no debt. There's only fiat money, and discharge of debt.

Under the UCC Article 3, we are defined as transmitting utilities. We create debt-based money with our signatures. You do have to file the UCC 1 Financing Statement and claim yourself as the CREDITOR with a security interest in all of the real property, assets, debts, liens, marriage, children, and body of you yourself the DEBTOR. This filling makes you the CREDITOR with a status to manage your commercial affairs.

Discharge all debt as soon as possible. Read my other posts for details.

Sat, 10/16/2010 - 17:10 | 655523 Cheyenne

Does anyone know why Karl is so alarmed by May 2010 rant?

http://market-ticker.org/akcs-www?get_gallerynr=410

Sat, 10/16/2010 - 17:38 | 655551 Jake3463

Goldman apparently is making up loans.

Sat, 10/16/2010 - 18:26 | 655598 Cheyenne

Let me ask a better question. Why is evidence that GS may be be making up loans five months' stale?

Sat, 10/16/2010 - 16:23 | 655487 digalert

Ripleys Believe it or not

Makes perfect sense. have the borrower sign agreeing that an amount is owed... then BAMO!

Sat, 10/16/2010 - 16:10 | 655481 tom

Thanks for airing this. The timing is suspicious, especially if this turns out to be widespread and nationwide.

Loan mods make a lot of sense in these market conditions, even without the doc issues. Especially in states like Florida, Nevada, Arizona, Michigan, where most foreclosure sales are at third-world prices. It's not unusual in those states and in California for borrowers to be >100% underwater. When a loan is that far underwater, it's definitely worth trying a mod, however low the success rate.

The problem however is that banks usually don't have any incentive to avoid foreclosure, because the loan is not on their book, and they don't have many loans on their book in that neighborhood. Usually the loan is owned in shares by numerous MBS holders, and the bank is just a peculiar kind of asset manager, with its own interests that often conflict with the owners.

The main conflict is between banks servicing loans on behalf of private MBS holders. These deals were structured in such a way that, when loans go into default, the servicing bank receives opportunities to earn extra income by screwing over the MBS holders.

The servicing bank incurs out of pocket expenses during delinquency, as it has to make up for missed payments, until foreclosure. But at foreclosure, the bank gets to fully repay itself first, before MBS holders receive anything. This includes its servicing fees, which go up during delinquency, and which it can inflate in various ways eg by using the services of affiliated companies. The servicing bank also keeps any late fees paid, if the delinquent borrower tries to catch up.

All this means that the bank has no incentive to maximize recovery. The bank's main incentive is to make sure the recovery is big enough to repay itself. It also has some incentive to drag out the delinquency period in order to rack up fees, if it is confident it can recover them from the foreclosure sale.

So what would be new and different would be servicing banks suddenly offering mods on loans owned by private MBS. That would probably only happen for the reasons you're suggesting, as a surreptitious means of repairing loan docs.

Sat, 10/16/2010 - 15:48 | 655441 anonnn

Beware considerations of " interstate". Where some localities have incorporated MERS in their records management, such lends the umbrella of "interstate commerce" to MERS, thus opening a door to Federal control and authority.

Have States forfeited StatesRights provisions? A deliberate and pretty clever-stroke by the banksters or just coinkydink?

[A suitcase of cash to low-level bureaucrats can do wonders...or paid tuition for their children...or myriad favors.]

Sat, 10/16/2010 - 15:18 | 655389 oygevalt

I have a mod story squared... I have a 4.75% fixed 30-yr conforming mortgage that I've always been months *ahead* on, and 800 credit scores, and Wells offered me a no-cost, 4.25% fixed 30-yr to be treated as a loan mod. I declined, as I can't figure out what's in it for them, and you know the old saw about if you can't figure out who the sucker at the table is... offered via HAMP. Maybe they have to offer x number of loan mods for some reason, and they're picking people who don't need them, and therefore are great credit risks?

Sat, 10/16/2010 - 17:32 | 655543 Bruce Krasting

This is part of a story sent to me by email just now. It sounds a bit like you.

Well, the other week, I received an offer from Wells to refi into a
4.25%, 30 yr fixed, at no cost. I contacted my loan officer to ask
about title search and insurance costs; she stated there were none, as
this was a loan mod.

She did not want her name mentioned. So Wells seems to be doing mods for little reason. Why?

Sat, 10/16/2010 - 21:30 | 655779 Hephasteus

http://www.youtube.com/watch?v=pjANRw0xxcY

http://www.youtube.com/watch?v=2C4eX2wh8sc&feature=related

Criminals live in gated communities now. Ok not now. They always have.

http://www.youtube.com/watch?v=YOFk1x5JOyw&feature=related

Sat, 10/16/2010 - 15:49 | 655443 snowball777

Yup cherry-picking so they can pat themselves on the back. Well played and perhaps they're having problems with your assignment. ;)

Sat, 10/16/2010 - 15:20 | 655394 Bruce Krasting

when did this happen?

Sat, 10/16/2010 - 15:24 | 655404 oygevalt

replying to you with more detail on your email

Sat, 10/16/2010 - 14:45 | 655334 beastie

The bottom line is by xmas the banks will be given a get of jail free card. It's coming. The boys in Washington will get appointed to a few boards as payback and the little guy will get reamed.

As regards mods. I haven't seen or heard of any flurry of mods although I would expect some especially where the title is messed up or suspect.

Sat, 10/16/2010 - 14:09 | 655284 subscriptionblocker

Look, the banks should be punished for breaking the rules. Many deserve to lose everything.

That said, I'm becoming frightened by this "something for nothing" stampede which appears to be developing. Makes me wonder how safe one could be if the price of hamburger gets too high.

Rationalizations piled upon rationalizations are corroding societal fabric. Do we really wish to live in a mad max world? Where people can promise but renege at will?

Sat, 10/16/2010 - 14:20 | 655302 Goldfinger

"at will" ? it's a response to fraud. Why should there be a fraudster class that can get away with everything.

Sat, 10/16/2010 - 14:17 | 655289 Fed Supporter

You hit the nail on the head, if we as a country live by the rule of law a lot of mortgages are going to become unsecured loans, that does not equate to "something for nothing" but it does make a level playing field between the mortgagee and the bank.

Some states have recourse laws, some do not, it is a state by state issue vs. federal, akin to a states rights issue that led to a civil war during the 1860s.

Sat, 10/16/2010 - 13:47 | 655255 doolittlegeorge

Ahh, the dreaded "RRM"--which reminds me...whatever happened to that ARM? Maybe that's a government program?

Sat, 10/16/2010 - 13:32 | 655242 williambanzai7

Its a routine revocable modification.

Revocable at anytime at the full discretion of the lender with retroactive interest taking immediate effect.

Sat, 10/16/2010 - 13:26 | 655230 Ned Zeppelin

http://www.ritholtz.com/blog/2010/10/bank-of-america-announces-that-it-has-discovered-some-trivial-technical-problems-with-a-small-number-of-its-mortgages/

some funny shit dat

Sat, 10/16/2010 - 15:51 | 655447 Cheyenne

"Despite their superficial differences, both parties fervently agree on the crucial importance of making life easier for apex predators."

Correct.

Sat, 10/16/2010 - 13:25 | 655228 Milton Waddams

Neal has already signed up for help at the "Fix Your Mortgage" event Saturday. Counselors from Neighborhood Housing Services will be among the counselors offering free assistance to homeowners.

The executive director of NHS suggests concerned homeowners get help now.

"Make sure you intervene early in the process the longer you wait...it's difficult sometimes the longer you wait. They get that phone call, letter, you want to set it aside things will be better next month. You really need to start early in the process," said Ed Jacob, Neighborhood Housing Services of Chicago.

Jacob says suspension of some foreclosures offers those trying to prevent foreclosure and those in foreclosure a window of opportunity.

"During this delay in the foreclosure proceedings, for somebody to come in and get that loan modification, and get some help with it," Jacob said.

Neal hopes the window is open long enough to keep his home.

"I want to pay the loan back. I want to do the right thing," said Neal. "They're not making it easy, that's for sure."

"Fix Your Mortgage" Events in Chicago
Saturday, October 16 - 9:30 a.m. to 2 p.m. at Westinghouse College Prep, 3223 W. Franklin Blvd., Chicago 60624

*Doors will close at 12:30 or when they reach 1,000 homeowners

Call to express your interest in attending:

(773) 329-4185 (English)
(773) 329-4181 (Español)

Documents to bring: http://www.nhschicago.org/images/uploads/news/Fix%20Your%20Mortgage%20Oc...

More info at: http://www.nhschicago.org/site/3C/category/fix_your_mortgage

http://abclocal.go.com/wls/story?section=news/local&id=7727485

Sat, 10/16/2010 - 13:47 | 655254 ebworthen

COMRADES!

That is outright Orwellian.

NHS is: "Neighborhood Lending Services, Inc. (NLS), an NHS-affiliated corporation, is Illinois’ largest nonprofit lender for homeowners and new home buyers."

A "non-profit" lender whose board of directors is comprised mainly of bankers. Probably banks that were bailed out too.

I'm sure that NHS would be happy to "help", and then be stuck with mortgages, so they can get more bailout money AND more property.

I'm sorry, I don't believe that NHS is trying help anyone but themselves and growing the hegemony of the Banking/Government oligarchy.

Wow, scary stuff.

Sat, 10/16/2010 - 13:24 | 655224 ebworthen

Yes, makes sense, call it "strategic foreclosure".

Any new loan terms are done properly and given to the best employees.

They wait for one problem, one missed payment, and foreclose "legally".

I'm thinking the only way to bring the Banks and Washington to their knees is a nationwide Mortgage Payment Strike.

I would think two months with enough people not paying would do it.

Sat, 10/16/2010 - 14:58 | 655363 kayl

Please turn your campaign into a Discharge of Debt orgy. That sounds sexier that creating a Discharge of Debt mill.

See my other posts on the Uniform Commercial Code Article 3 and the discharge of debt. It's the law. Everyone, be good citizens and discharge your debt now.

Sat, 10/16/2010 - 13:45 | 655253 doolittlegeorge

now you're talking about blowing up Suntrust et al. I wouldn't recommend that because "next to your priest you the voters' only friend right now might be that goofy Baily type banker dude." There is no solution--both Wall Street and Washington are only now discovering this to be true--needless to say as Bob Dylan said in "Tangled Up in Blue"--"they just come at from a different point of view." Needless to say "dis be about taxes" when g-man is concerned.

Sat, 10/16/2010 - 13:08 | 655201 diesel1104

I am behind on Mortgage in FL, sent in Mod paperwork, no response yet, Not one of the TBTF banks, but Suntrust. Mortgagee is MERS. thinking about a civil suit for breach of contract, since MERS gave no consideration at loan, legally invalid, right? Any thoughts please post

Sat, 10/16/2010 - 14:56 | 655358 kayl

Send a complaint letter for the fraud committed against you to the Office of the Comptroller of the Currency and the bank. Break the presumption that you must continue to pay tax on this account.

Then discharge your debt under Article 3 of the Uniform Commerical Code. I've described the process in detail in my other posts.

Sat, 10/16/2010 - 13:40 | 655248 doolittlegeorge

hunker down, bro. g-man don't care if you eat...but you should. you file a "lawsuit"--well, Elliot Spitzer types "gotta plan for you" and "it don't make your problem turning out alright" but it "does involve hookers and testimony about problem solved." In other words "the biggest fraudster is the federal government crankin' out the so called illegal paperwork." Problem is "you can't sue the government." Complaint Department? hahahahahaha

Sat, 10/16/2010 - 12:54 | 655181 Mr. Anonymous

From the Wall Street Journal, via DrudgeReport:

"In essence, fast-paced modern finance is colliding with the much slower machinery of the U.S. legal system. While finance aims for efficiency and maximized profits, the courts demand due process. And that's becoming a growing issue as lenders come under attack for taking short cuts to oust homeowners who haven't mailed in a mortgage check for months."

'Shortcuts' vs. Deadbeats. Brilliant positioning by the pigmen.

"You see," they say, "we are so modernized and efficient, we are having a hard time synchronizing with the old-timey American legal system. So, do you want to slow us down to a government crawl or get the courts up to market speed?"

I bring up that it is posted at Drudge because this is a vital PR effort by the Bankstas to make this a Left/Right issue. Over on the Lefty Drudge, aka Huff Post, it's all Banksters are Bad, so that it is vital the banksters position the Right base to oppose. As soon as any issue confronting America is rendered into its proper spot on the Left/Right continuum, the PTB can consider the problem solved.

To wit: 1-1=0 who can oppose.

Sat, 10/16/2010 - 20:37 | 655730 kayl

The PTB want you to think that the problem is technology vs deadbeats.

However, UCC Article 9 was updated in the late 90s. It includes provisions for all the electronic filing, ownership qualification, and has definitions like electronic chattel paper and new debtor. They were thinking years ahead.

What they haven't counted on is a massive disclosure of the Uniform Commercial Code, the real comprehension of how the debt-based monetary system works, and the procedure of Discharge of debt.

If everyone discharged their mortgage debt and restored the allodial title to property in the US as it existed in the 1800s, then the PTB would have egg on their faces.

Sat, 10/16/2010 - 13:35 | 655245 doolittlegeorge

it was the banks that put the halt to foreclosures and the GOVERNMENT that complained. What does that tell you???!!!

Sat, 10/16/2010 - 13:32 | 655240 ebworthen

The reality is that this is what the Tea Party is about, NOT a left/right group at all.

The media outlets have striven mightily to paint them as right wing.

Both liberals and conservatives are outraged by the breaking of the rule of law.

I agree with you, the Banksters and Wall Street are trying to polarize people left/right, and are also trying very hard to paint the "deadbeat" versus "good citizen" sides.

Way too many sheeple quick to jump on the "kick the bums out of their houses - I pay my bills" bandwagon without considering it is THEIR rights and property at risk even if they are paying.

Unfortunately, the shallow cognitive ablilities of the information age generations make them highly one-dimensional thinkers and extremely malleable.

Sat, 10/16/2010 - 16:26 | 655494 BobWatNorCal

Yeah, what's with the media?
They have become total toadies and tools.

Sat, 10/16/2010 - 12:46 | 655180 kayl

UCC Article 9 was revised in the late 90s. It now has a term called the "New Debtor." A "person" corporate fiction that assumes the debt of an existing contract. See section 9-102 item (56).

The mod or refi rhetoric is a ruse to get people out of non-recourse loans and take in more commissions.

Since we have to break the entire paradigm regarding loans, it's time to study the Uniform Commercial Code and exploit its powers. See the Cornell Law University website. It may come down soon, now that the cat is out of the bag.

Under the UCC, we are defined as Transmitting Utilities. We create the debt-based money in our economy. This is the system designed in 1933 when the US and all western nations went bankrupt and became debtor nations to the Federal Reserve. Get it: When you get a fake loan, you discharge it with fake money that you can write out yourself on paper just like any good Transmitting Utility. It is really easy to discharge debt under the UCC, but you never hear about it in the financial world.

We need a Discharge of Debt mill to counter these fake loans. Anyone interested in starting a new venture?

Sat, 10/16/2010 - 15:45 | 655436 Cheyenne

You a lawyer, kayl? I am. Just curious. Don't reveal if you don't want; I wouldn't have a year ago. Now I simply do not give one flying fuck.

I don't know jack shit about the UCC, but I found your post intriguing.

Sat, 10/16/2010 - 16:14 | 655484 kayl

Not a lawyer, but studied Poly sci in France for a year. Constitutional Law, Political Economics, and Political and Social Institutions of the Medieval Period. These professors hit me hard and made me learn in the 70s.

My professor of Political Economics would fly off periodically to banana republics during the year to help these poor countries fend off the assaults of the "foreign banks" aka American and British Economic hitmen. He would lecture on the subject after he returned. Always important to learn different perspectives.

I decided after graduation that I was too honest to become a lawyer. I became a technical writer in the Silicon Valley for the semiconductor industry. The same skills in structural analysis and semiology paid off in my endeavors to get down to the bottom of this collapse.

I jumped into the UCC after the bank foreclosed on a rental property. No way would I continue to pay after the house dropped to 1/3 of its value in comparison to the mortgage note.

I discharged the debt after a little detective work by rummaging around in the GSA forms library. When you put the Transmitting Utility concept together with the forms, you realize living beings create all the debt-based money with their signatures. It's amazing that the government bid, payment, and performance bonds for contractors actually create the debt-based money with which the government gets work paid. Pretty slick....

It's the same pattern for a discharge of debt. The bid or bill, the payment bond is the transfer instrument, and surety is the promise to pay. Look under Article 3 for valid debt instruments. All debts can be paid with debt-notes or a transfer instrument. The debt-notes aren't backed by anything, so why would the transfer instruments be?

All of the forms on the GSA website are Affidavits.

Sun, 10/17/2010 - 03:00 | 656100 Goldfinger

Are you saying banksters don't have a monopoly on creating new money given to them by law? They prosecute counterfeiters of cash. Just because you can print your own dollar bill doesn't mean it's legal.

Sun, 10/17/2010 - 20:45 | 657399 kayl

Trying to counterfeit bills is illegal. Writing a draft to access your exemption (credit) account at the Treasury when you are presented with a claim is legal and lawful when you have the standing to manage your own commercial affairs.

Legal is used to refer to persons "corporate fictions" acting under the law.

Lawful means living beings have the right to do something under the law. You have a lawful right to discharge your debt, since only living beings can sign as Transmitting Utilities.

You as a living signer can use agency in your signature to discharge the debt of your corporate fiction.

Sat, 10/16/2010 - 22:01 | 655806 beastie

Playing devils advocate here Kayl. For the sake of argument you have created your own instrument in your name to discharge the debt. The bank receives the instrument and process it as they would any other piece of paper and take your name off the list of people to harass. At some point they realize they have been reamed and send the lawyers all over your ass.

However, if what you are saying is possible and it doesn't trip any wires in the bank and it is legal I have the contacts and know how to get the back office up and running.

snoopy456 at gmail dot com

Question to Readers On Mods

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