In the last episode we were talking about the "definitive documents" of a Real Property Transaction that result in the creation of a "MORTGAGE EVENT" and the resolve of a "MORTGAGE EVENT".  This reality is more commonly recognized as the "buying and selling" of real estate.  

 

Let's review:

  • DD1 (the incident): the DEED OF TRUST (aka the SECURITY INSTRUMENT);

  • DD2 (the thing): the PROMISSORY NOTE (aka the language of the intended DEBT OBLIGATION);

  • DD3 (the merger rule): the DEBT OBLIGATION (aka the legal concept) requires an "exchange of value".

This posture leaves "NO DOUBTS" that all powers to and for the named parities of the "MORTGAGE EVENT" come from the "4-corners" of the aforementioned "definitive documents" (aka the "DD's"). 

 

  • A "Trustee" of a "Securitized Trust" is not necessarily the same party (with rights and authorities) as a "Trustee" of a "Deed of Trust".

  • A "Power of Attorney" is not necessarily an authority to the "Deed of Trust" and "Promissory Note" with the "rights and authorities" of a LENDER.

  • A "Nominee/Agent" does not necessarily maintain any "legal title" to a subject property once its' original Principal Financial Institution has gone out of business.​​​

    • SIDENOTE: a provision in an agreement is not the same as "language of conveyance".​

Nemo Dat Quod Non Habit – no one gives what he does not have; no one transfers (a right) that he does not possess.  Therefore, The life of loan path must deliver to each subsequent party "a lawful possession of a tangible interest". 

 

  • Now the question should be how does the beneficial interest in a subject property move from entity to entity.  How do we identify the bona fide "Beneficial Interest Claimant"?

The simple answer comes from the "PROGENY OF THE DD'S". 

 

  • SIDENOTE: Understand that

    • "DD1" moves by assignment,

    • "DD2" moves by negotiation and

    • "DD3" is merged with "DD2" meaning it goes where DD2 goes.   

In most states, the rule of thumb is the "DD1" follows "DD2".  The entity with the right to enforce and right to collect for "DD2" has the corresponding rights on "DD1".

Please take your time and absorb the aforementioned FACTS OF LAW.  The answer to ALL ADVERSARIAL ACTS to REAL PROPERTY are found in the "definitive documents" and their corresponding chain of title.

Here is the short list of Definitive Documents progeny.

  • Assignment of Deed of Trust

    • Substitution of Trustee

    • Notice of Default

    • Notice of Trustee Sale

    • Trustee Deed Upon Sale

This is where the "parents of the ghost claimants" make their moves.  It is in these documents that the "facial validity" standards are abused.  We have a property to save.

[Season 1, Episode 9]