Welcome Back!

This is season 2.  This is where we start examining the "ownership" documents that our social community take for granted via the "facial validity" of a Chain of Title standard. 

At the end of season 1, episode 10 we made these 2 statement's.

  • Anyone claiming an interest in your real property MUST HAVE admissible evidence of their claim (via assignment or negotiation) giving them a lawful right to collect and right to enforce and affording them an opportunity to explain how they obtained said benefits.  

  • Remember, there are 3 parts to a Mortgage Event.

    • Part 1: The creation of the Deed of Trust (Security Instrument). 

    • Part 2: The creation of a Promissory Note (Debt Instrument). 

    • Part 3: The creation of the "Debt Obligation" by operation of law pursuant to an EXCHANGE of VALUE. 

Here is where we connect the dots. 

"Copies of documents aren't enough to establish rights, just as copies of dollar bills won"t be honored by a bank".  Geoff Walsh, Esquire: National Consumer Law Center (Boston)

 

The third point of information is that the DD's (definitive documents) move (transfer interests) by assignment and negotiation.  The acts of "assignment" and "negotiation" DO NOT negate a necessity for "Value in Exchange".  That means that someone who claims receipt of the rights and authorities listed in the "DD's" MUST HAVE PAID VALUE for them. 

 

Now, back to the Assignment of Deed of Trust (the ADOT).

In today's Real Property Transactions we find a very "uncommon" and "common" player (MERS) moving the interest of the alleged "originally named lender/creditor" to another parties.  The example goes something like this. 

 

  • A document will be recorded within the records of the County Recorder.  That document is call an "ADOT" and can have other words in front of "ADOT" but it is still the same thing.  

  • MERS as the nominee beneficiary of an alleged lender/creditor for the purposes of ...transfers a "beneficial" interest (lien or lien & debt) in the subject property to a "Generic Financial Institution or Securitized Trust".  ​​

    • Arguably, if an "entity" pays VALUE IN EXCHANGE for the subject property why does MERS need to do anything with respect to transferring lien interests

      • We live in a country were the majority believe the lien follows the note.

    • Arguably, MERS can ONLY TRANSFER the lien interest in the ​Security Instrument, as MERS is NEVER NAMED in the language of the Debt Instrument.

    • How is it that MERS can transfer any beneficial interests in any real property when it PUBLICLY DISCLAIMS not holding any beneficial interests in the real property it tracks?  (See MERS recommended Foreclosure Procedure Manual 2002 p.4).

  • Next, the "Agent" of the  Assignee of the "beneficial" interests starts an adversarial posture to acquire revenue and ownership from the alleged right to enforce and right to collect created by the Mortgage Event. ​​

    • Let's take a look at an example.​  

We have a shelter to save.

[Season 2, Episode 1]