COLORADO MAN’s FORECLOSURE BATTLE STORY-UPDATED

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This latest update was snipped from…


From: Kick Them All Out Project eNews <enews@kickthemallout.com>
Date: December 23, 2010 11:55:12 PM EST
Subject: KTAO Project December 2010 Newsletter –  Oh Yeah . . . The Republicans Will Save Us!
Reply-To: info@kickthemallout.com

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Bank Battle Update

Much has happened since the last update. First, the Boulder Weekly did two stories on the foreclosure crisis in Colorado. One of the articles goes into my case in great detail. You can read the articles here and here.

To refresh everyone’s memory, OneWest bank stole my home through an illegal foreclosure, claiming they were the lender, the creditor, the sole owner of the loan and the sole beneficiary of the deed of trust. They were neither and I have proof. Because of the banker-biased laws of Colorado, it didn’t matter that I had proof. The judge said, “I don’t care that they lied to me and to everyone. I’m letting them steal your home.”

A few weeks after OneWest stole my home with a fraudulent credit bid at the trustee sale, which means they paid a whopping $0. Then they flipped my property to Freddie Mac for . . . are you ready . . . a whopping $10! Neither OneWest nor Freddie Mac had any financial investment in my property. NONE. They stole it through deliberate collusive fraud. It is one grand racketeering scheme to steal property and launder land titles.

I have a state lawsuit pending against OneWest and Freddie Mac. Freddie Mac tried to evict me, but I got a stay after posting a $5,000 bond pending the outcome of the lawsuit I filed. The state case is strictly over the issue of title to my property. Neither OneWest nor Freddie Mac responded to the complaint so believe it or not, I got a default judgment and the title is quieted in my name. Yes, you heard it right. As of now, my home is mine free and clear . . . for now.

The local judge couldn’t stand that he had no choice but to grant me a default judgment. I had proof that we did proper service of the complaint to both of them. He could not stand the fact that I prevailed so he went out of his way to make sure that OneWest and Freddie Mac were aware of the default. The judge ordered me to serve the default on them despite the fact that the court rules specifically say if a party defaults after they have received proper service I do not have to serve them anything. The judge once again just made up his own rules and my attorney offered no resistance. In fact, my attorney actually said he thought if we didn’t the judge would serve them himself!

The judge also tried another underhanded maneuver to alert the banks. He ordered a hearing on a previous case I had filed that was closed. The ONLY reason he would have done this is to have an opportunity to tell the bank of the default. TOTALLY inappropriate. So not only did I have to pay to have the papers served again, roughly $200, I had to pay the attorney to deal with another hearing. Fortunately, the judge couldn’t tell them of the default in the hearing because they didn’t show. That was a sweet moment. 

The judge did get his way in the end because OneWest and Freddie Mac have responded now after we served them with a default notice. They have now hired the same Denver law firm that’s handling the federal case. So now the banks will no doubt file to have the default judgment set aside, which the judge will happily do and they will no doubt file a motion to have the state case dismissed, as they have done in the federal case. 

As I understand it, this is standard practice. The first thing the defendants try to do is to avoid answering the complaints, especially if they know they are in the wrong. Answering the complaint requires them to admit or deny everything alleged in the complaint, on the record. In my case, the only way they can answer my complaints is to lie, so instead, they filed a motion to dismiss the case. Their motion is a pile of nonsense designed to muddy the water and cloud the primary issue, which is that THEY LIED and COMMITTED FRAUD. What they filed was astounding. We attached irrefutable proof of their crimes to our complaint and they still insist they did nothing wrong, nothing at all.

We have filed a response to their motion to dismiss that included quite a few more pieces of new evidence. This evidence not only proves their fraud, but also shows RICO and RACKETEERING activity between OneWest, Freddie Mac and their system of racketeering Lender Processing Services (LPS). LPS is a company set up with the sole purpose of automating and reducing the cost of property theft all across our nation.

So now OneWest has to file a reply to our response and the federal judge will decide how things will proceed. It is very unlikely that he will grant their motion to dismiss in the face of all the evidence we have presented. This will mean OneWest can no longer avoid facing the music. Then they MUST answer the complaint and either admit or deny all the allegations. This is the big hurdle. Get past the motion to dismiss phase and the game is on. It will be the same in the state case. They will try to get it dismissed but it won’t happen. There’s just too much evidence against them. So, even though they will probably get the default judgment set aside, they will have to answer the complaint, which means they either tell the truth or LIE. If they lie, it’s an incredibly serious issue at that point.

So the way we imagine it will play out is they will want to settle at that point. My Denver attorney, Gary Fielder, has also been talking to high-powered class action attorneys. They have told him that if we get past the motion to dismiss they are most definitely interested in jumping into the game. We checked and OneWest has done over 1,100 foreclosures in Colorado alone. I’d be willing to wager most of them are illegal.

So . . . we’ll know soon what the federal judge thinks about the whole thing. Stay tuned! Be sure to read the Boulder Weekly article about my case. It’s very well done. If you’re interested in reading what I have been filing with the courts you can check out my Scribd.com channel here. There are a lot of important documents posted there related to fraudulent foreclosures and how to fight them.

Bruce McDonald


If you’d like to blog this article, you can find it posted here.

http://www.kickthemallout.com/index.php?topic=BrucesBlog

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What stress that battle must be!  Ugh.  But if you don’t stand up to the devils, they will walk all over you

James 4:7:  “Submit yourselves therefore to God. Resist the devil, and he will flee from you.”

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3 Comments

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3 responses to “COLORADO MAN’s FORECLOSURE BATTLE STORY-UPDATED

  1. TruthInLending

    Bruce – it’s not really “yours” until you own it free and clear and have no further obligations. Unless you paid cash for your house, it’s likely that another investor actually paid for the majority of “your” house, with the anticipation that you would pay them back over time, along with interest (which is their compensation for loaning you the money). I can’t tell from this blog post, but by any chance, are you in default on your pledged obligation? Are you current today on payments to your servicer ( and the investor) based on the contract you willfully agreed to? If you are current, and you are being foreclosed on, then you have a legitimate right to scream “injustice!” from the mountaintop. If you are not current and you owe money to your investor (for which your apparent Servicer OneWest is trying to collect each month and may eventually initiate foreclosure action on you if non-payment continues), then you don’t really have a sound argument, and in fact, your defaulted obligation can prevent someone else from getting a loan to get a home.If your Servicer does not collect your payments, and if you are delinquent for too long, then your investor often levies penalties against your Servicer. Hence, foreclosure, so the investor can at least recoup some of their investment. No pay, no stay, unless you actually own it. Your home is being repossessed, just like your car would be if you owed the bank who loaned you the money to purchase it. Good luck, and I hope you work things out.

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  2. The Paradise Reporter

    Hi Truth In Lending: Thanks for stopping by. However, this isn’t Bruce’s blog site, but merely a shared portion from his latest 12/23/10 newsletter… A prior update from 11/2/10 I also shared here:11/2/10:  http://theparadisereporter.posterous.com/kick-them-all-out-11210-no-more-career-politi(…)Bank Battle UpdateAmazing news. OneWest Bank and Freddie Mac have both failed to answer my state complaint. Freddie Macs’ deadline was October 17th and OneWests’ deadline was October 27th. We are preparing to file a motion for default judgment on Monday. I fully expect that they will file motions for an extension of time but I’m going to appeal to the judge to deny their motions on the grounds that they sure were in a big hurry to toss me on the street and steal my home. Now, suddenly when they can’t hide behind the banker biased statutes they are dragging their feet?The Federal damages law suit wasn’t answered either but OneWest has hired a big law firm in Denver and they’ve asked for an extension of time. They have till the 4th of November. I also found out that the Federal court as pulled a famous judge out of retirement, Judge Matsch, the guy who presided over the Timothy McVeigh trial, to hear my case. Don’t know if that’s good or bad yet. If I manage to get a default judgment in the state case and get my title quieted, then I would expect the Federal case would be a cake walk. What are they going to do, especially with the mainstream media covering more and more of the truth about the massive amounts of fraud perpetrated by the bankers. Check out this latest video interview by the Attorney General of Ohio!The drama continues.Bruce McDonald(…)END QUOTE.

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  3. THE PARADISEREPORTER

    Also Bruce’s prior, much more detailed report from Spring 2010, which I shared at TPR yahoogroups here:http://groups.yahoo.com/group/THE_PARADISE_REPORTER/message/6040 ; Or see it at Bruce’s own blog here:http://www.kickthemallout.com/article.php/Fighting_Illegal_ForeclosuresThe main point is that the original bank no longer exists, so then bank #2 comes along & wants to take over. Also note the section re morality in banking.QUOTE:(…)Fighting Illegal ForeclosuresYou’ve probably noticed that I’ve gotten quite behind on producing these newsletters. All I can say is fighting a bank that is trying to illegally steal my home is a full time job that has just about sucked the life out of me. This fight has been the hardest thing I’ve ever done in my life! For those of you who are new to this drama, I’ve been fighting OneWest Bank. OneWest Bank has been trying to steal my home through outright fraud for the last seven months. They have presented themselves as the new owner of the original loan I took out with IndyMac Bank. IndyMac Bank was closed down by the FDIC in July 2008. The FDIC ran it for a while then turned over its operations in March of 2009 to OneWest Bank. OneWest is a new, privately held bank formed by the likes of George Soros, Michael Dell, a former VP of Goldman Sachs Steven Mnuchin and other Wall Street insiders. OneWest Bank is arguably one of the worst, most predatory banks to hit the scene if you can even imagine banks being more predatory than they already are. Check out the sweetheart deal these guys made with the FDIC here and check out the profits these predators have racked in already . . . $1.6 billion! If these profits are the result of what OneWest Bank is trying to do to me, they are making all this money through pure unadulterated FRAUD. They are stealing homes they do not have any financial interest in whatsoever. Check out this screen shot from the FDIC’s own website stating that OneWest Bank only owns 7% of the loans they service! If my case is the norm, OneWest is stealing people’s homes all over the country right now. To recap for everyone, in Colorado they have nonjudicial foreclosures. In Colorado all a bank has to do is file a “Certification By Qualified Holder,” which is basically nothing more than a form letter with check boxes signed by the bank’s attorney certifying the bank has every right in the world to sell your home out from under you . . . just like that! In addition they send a copy of the original note and deed of trust to the Country Public Trustee. The bank doesn’t have to prove anything beyond that. In my case, the copies of the note and deed clearly showed the payee to be IndyMac Bank, not OneWest Bank. No problem. That was good enough for the Public Trustee to schedule a date to sell my home. Suddenly I received a notice in the mail that my home was being sold and my only recourse was to pay up . . . period. It didn’t matter that I contested OneWest Bank’s right to do so. The bank’s word was good as gold. After all, we all know how trustworthy banks are. What they didn’t tell me is before the bank can sell my home they must go to court to get an order to sell it from a judge. It’s called a 120 hearing. Usually the only subject matter discussed in a 120 hearing is whether a default has occurred or not. What I discovered is that you can also raise the issue of whether the bank is a “real party in interest” or not. A “real party in interest” is one that actually has a financial investment in your property. If a bank has no financial investment in your property, they have no “standing” to foreclose. They cannot collect on the debt if they have no vested interest in it. Only the owner or investor in a loan has the right to collect on it. The fact of the matter is most banks do not have any financial interest in the properties they are foreclosing on. Most are only “servicing agents” of the loans that have been sold long ago to investors of mortgage-backed securities. Most banks that are foreclosing on homes they have already been paid for in full. Most banks are committing outright fraud by posing as liar-lenders. Returning to my personal drama, OneWest Bank initiated a 120 hearing to get an order to sell my home. I challenged their right to do so and managed to get the judge to order the bank to produce the original note and deed of trust, something I was told by many people that they could not do. The deadline came and went and the bank did not produce the original documents so the judge denied them an order to sell my home.Unfortunately, the documents did show up two days late. Everyone that told me the bank couldn’t produce them was wrong. The bank then filed a motion for the judge to reconsider reversing his denial of the order to sell my house because the bank had apparently produced the original documents. In Colorado this is called prima facie evidence (which means on the face of it) that the bank owned my loan. To remind you, OneWest Bank was not the beneficiary named on these documents. All documents were in the name of IndyMac Bank and there were no endorsements or assignments to OneWest Bank. In Colorado, simply having the documents is usually proof for the lazy judge that I had. At this point I decided to hire an attorney because I could not effectively handle the judge in the courtroom because of the complicated procedures involved and because the case became exponentially more difficult. In addition the anxiety I felt having to do it myself was off the scale. By having a legal professional handle the courtroom procedures and the judge, I could put all my attention on research and strategy to fight this battle. It was the best decision because my anxiety level immediately dropped to a much more manageable levels.It was the best decision I’d made so far. Next, we managed to get a phone hearing to set a date for the next formal hearing pushed out about a month. Then at that phone hearing my attorney got the date pushed out several weeks more. Buying time is the most critical thing to do at this stage where the burden to prove that the bank did not own my loan was now on me. One day while doing a web search I miraculously found a reference to a 2008 bankruptcy case in California in which IndyMac Bank was trying to get a relief of stay so they could proceed with a foreclosure. The judge ordered them to produce the original documents, which they did, but they ended up having to admit they didn’t own them! HA! I now had proof that my bank, IndyMac Bank could produce original documents and not own them! You should checkout what the judge wrote in his ruling on that case. It’s very detailed and enlightening. You can view it or download it here. During the hearing to set a date for the next 120 hearing to reconsider the order for sale, we presented the judge with this new information. Because of it, the judge ordered OneWest to produce a sales contract proving they purchased my loan. When the next hearing rolled around, the bank had only produced a “Master Sales Agreement” between OneWest Bank and the FDIC. It did not disclose any detailed information about the “specific” assets that were purchased. The Master Agreement only referred to other documents that listed the specific assets. Despite all the evidence we produced casting serious doubt that my loan was an asset OneWest Bank purchased, the judge decided he didn’t care. He gave them an order to sell my house anyway. Unfriggin’ believable! This judge ignored absolutely everything that was in front of him. All he needed to do was order them to produce the specific documents referenced in the Master Sales Agreement that proved my loan was purchased. By not ordering them to do so he as much as said, “I don’t give a crap. I’m giving them an order to sell your house without proof.” The judge screwed me again! The sale was set for March 4th. Then I found a reference to the press release from the FDIC I mentioned earlier that OneWest Only owned 7% of the loans they serviced. We filed a motion to reconsider the sale and reemphasized all the facts that we had uncovered. One was the bankruptcy case proving IndyMac retained originals after selling their interest. Another was the original letter sent by OneWest stating they purchased servicing rights and lastly statements by OneWest’s lawyers that there were no endorsements or assignments either. The judge denied our motion to reconsider. He ignored it all!The next logical thing to do was to go directly to the FDIC. I discovered the FDIC has a freedom of information act department and a simple online form you can fill out. So, I requested all records indicating who owned my first and second mortgages and who owned their servicing rights. I made a few phone calls as well. The people at the FDIC were amazingly eager to help. Long story short, in six days I had confirmation from the FDIC that OneWest bank DID NOT OWN MY LOANS. I finally had proof that OneWest bank had been lying the whole time. From day one, they had insisted they were the owner and sole beneficiary of my loans and had every right to sell my home. The judge and OneWest were told about the proof four days before the sale date but the judge didn’t intervene, supposedly because he was in a three-day trial.A short time later I got the letter from the FDIC stating that OneWest was only a servicing agent and about a week later I got another letter, this time from IndyMac Mortgage Services, a division of OneWest Bank confirming that Freddie Mac owned my loan and that OneWest was only the servicing agent! Now I had proof that the bank has been lying from day one. The best part was the FDIC also sent me a screen shot directly off OneWest’s own computer monitor showing they had the information all along. It would have taken them only two minutes to look it up. OneWest bank conspired to commit fraud, lied for about 8 months, committed the crime of stealing my home and then unknowingly confessed to it by having to comply with a freedom of information request through the FDIC. We then filed a motion to have the sale vacated. Despite the proof we now have, OneWest went ahead and sold my home anyway, to themselves for less than what was supposedly owed. This is very curious because we discovered the Federal Home Loan Mortgage Corporation (Freddie Mac) supposedly owned my loan. Either there is some kind of collusion between Freddie Mac and OneWest Bank or OneWest has defrauded Freddie Mac as well. They cut them out of the picture entirely and claimed my home for themselves for pennies on the dollar.Currently we have a motion to have the sale vacated because OneWest Bank has totally misrepresented themselves as the owner and committed fraud against me, against the public trustee, against the court and against the alleged real owners. Amazingly the bank’s attorneys have chosen to keep the lie going in their response. They still insist they are the true party in interest. We will be filing our final reply tomorrow. Then it’s up to the judge. He’s had the final documents since the 25th of March. As of today, he still hasn’t moved to correct this injustice. I don’t know why but he’s just sitting on the case so far. If he doesn’t act soon I’m going to ask my attorney to call the court clerk and schedule a hearing so he has to act on it. Second VictoryOn March 1st, I attended a 120 hearing that Wells Fargo Bank initiated to get an order to sell the home of one of my neighbors. She is using my attorney as well so he knew to demand the bank produce the original note and deed of trust, which they did, or so it seemed. It turns out that the first page of the promissory note didn’t match the other pages. It looked forged. One telling sign was the other pages had a fax stamp on them and the first page didn’t. Apparently the note had been faxed somewhere at some point. My neighbor said the signature on the first page didn’t look like her signature either. It was at this hearing that my attorney told the judge the news that I had confirmation from the FDIC that my bank does not own my loan. On this one day, the judge saw the potentially forged document from Wells Fargo Bank and the news that OneWest Bank has been lying to him for eight months. When the judge heard my news, his whole attitude changed right before our eyes. He started giving the Wells Fargo attorney a hard time and started to voice the truth I’ve been telling him all along. He actually said these are complicated issues and that banks have been sloppy. He also said things like “who knows how many times this note has been sold before!” I couldn’t believe it! The judge denied Wells Fargo Bank an order to sell my neighbor’s home! He said they would have to do a judicial foreclosure and prove their case. To date Wells Fargo has not filed a judicial foreclosure case. It could be that they can’t because they don’t have a complete promissory note! So it seems I have been successful in awakening a judge in little Saguache County, Colorado and certainly one attorney to the truth of what banks have done to make a total mess of the mortgage industry and how banks are committing fraud every single day stealing homes they have no financial interest in whatsoever! The Moral IssueOne of the most difficult things for people to grapple with is the moral issue that most of us feel in relationship to the debts that we owe. What’s amazing to me is even when I explain the fraud of the entire banking system, the fractional reserve system that allows banks to literally create money out of thin air, money they do nothing to earn (see my three part series on banking here), they are still hung up on the moral issue.When you understand the truth of how banking and loans work, you understand you cannot apply morality to a totally immoral system. There is nothing moral about our current banking system. The bankers want you to think that you are borrowing “other people’s money” when you borrow. You’re not in most cases. The bank is literally allowed to issue credit into checking accounts through their fractional reserve banking scam. How it works is simple. If I’m a bank and you deposit a million dollars in my bank, I get to say I have 1.9 million dollars. Yep. I get to say I have $900,000 more than I have. I don’t have to do a thing to earn it. I just get to say I have it. Then I can lend that new money to anyone I can get to borrow it at whatever interest rate or terms I can get them to agree to. The key is getting people to sign on the dotted line. They cannot create this unearned money unless you agree to borrow it.This is fraud. They do not disclose that this is where the so-called money is coming from. There is also much more they do not disclose after they take possession of your promise to pay which is a negotiable instrument which they make far more money on without your knowledge or benefit.This is where the bulk of loaned money comes from. Check out”Modern Money Mechanics,” published by the Chicago Federal Reserve Bank Branch. To view or download the publication go here. This publication describes the process of money creation starting at page 7.The whole system is a fraud from top to bottom. Moral arguments only apply in a system that is moral. In our current system, bankers create money from nothing and loan it at interest. This is not remotely equitable. If you personally created money from nothing you would be charged with counterfeiting. When you borrow money from bankers, they charge you ridiculous amounts of front-loaded interest and then lay claim to your asset as security in case you don’t pay back the money you borrowed from them. This is neither fair, nor equitable and should be illegal.Power Hour Radio InterviewMonday March 8th I appeared on the 2nd two hours of the Power Hour radio show to discuss this case and offer a glimmer of hope to all those listeners who are facing foreclosure or know someone who is. I removed all the commercials and posted the show on the KTAO web site. You can listen HERE.Congress Has The Power To Stop The BankersYes, the Congress has the power to stop everything that’s happening . . . but not with the members currently seated there. The current Congress, both parties, are complicit up to their stinking necks. We have to remove the current members of Congress if we hope to begin turning things around. We have to get dead serious about it. We have to look at the election process as a purely utilitarian act necessary to remove these traitors. Political ideology has NOTHING to do with the way our government is run. It’s a total lawless free-for-all and we all know it. We have to convince every voter to vote for the incumbent’s strongest challenger, even if we can’t stand them. The goal is to hold those in Congress accountable in the only way that we can. Remove them from office. It’s not about getting good people in at this stage. It’s about getting the scum of the earth OUT.If we do this just once the whole ball game changes. It will no longer be a guarantee that once you’re in you stay in. WE will make sure that doesn’t happen ever again. Remember, even if the strongest challenger is just as bad as the incumbent, they will know we will fire them just as fast. The jig will be up! The gravy train is drying up!Bruce McDonald If you’d like to blog this article, you can find it posted here: http://www.kickthemallout.com/article.php/Fighting_Illegal_Foreclosures(…)END QUOTE.

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