FDP MODULE 2 – UNDERSTANDING YOUR RIGHTS AS A CONSUMER
ALL CONSUMERS IN DEBT HAVE RIGHTS
- Medical Debt
- Credit Card Debt
- Student Loan Debt
- I.R.S. Debt
- Cell Phone Bill Debt
- Car Loan Debt
- Personal Loan Debt
- And YES EVEN MORTGAGE DEBT!!!!
The next step in defending your home from foreclosure is to understand that all consumers especially with those concerning debt or alleged debt have rights. The Fair Debt Collection Practices Act (FDCPA), Pub. L. 95-109; 91 Stat. 874, codified as 15 U.S.C. § 1692 –1692p, approved on September 20, 1977 (and as subsequently amended) is a consumer protection amendment, establishing legal protection from abusive debt collection practices, to the Consumer Credit Protection Act, as Title VIII of that Act. The statute’s stated purposes are: to eliminate abusive practices in the collection of consumer debts, to promote fair debt collection, and to provide consumers with an avenue for disputing and obtaining validation of debt information in order to ensure the information’s accuracy. The Act creates guidelines under which debt collectors may conduct business, defines rights of consumers involved with debt collectors, and prescribes penalties and remedies for violations of the Act. It is sometimes used in conjunction with the Fair Credit Reporting Act.
That’s right you have the right to challenge not only credit card debt, medical debt, and student loan debt, you also have the right to challenge mortgage debt. In most cases the documents that you signed were full of holes when you signed them, and the title company made an extreme effort to get you to sign those documents as quickly as possible. Many times you were asked to sign your name to over 50 documents. At the time of signing did you really know what you were signing?
Were you given time to read in full every page that they had you sign? I can tell you with great confidence that the answer to that question is a big fat NO!!!
I went over in detail above the use these banksters have when it comes to words.
If you want to see how the documents were signed in the favor of the alleged lender, take out a copy of the note that you signed at the closing table. Remember earlier how I had you review a paragraph of the note. Now let me refer to the 1st paragraph that states “In return for a loan that I have received, I promise to pay U.S. $ XXX,XXX.XX (this amount is called “principal”), plus interest, to the order of the Lender. The lender is xyz mortgage. I will make all payments in the form of cash, check or money order.
I went over this earlier in this step and I am going to talk about it throughout these steps until it is ingrained in your memory. Please read it again slowly. In return for a loan that I have RECEIVED, Wait a minute I never received any kind of funding prior to me signing this thing!!!!! Now did you EVER receive any funds from the alleged lender, in the form of gold, silver, cash, check or money order made payable to you?, VERY DOUBTFUL.
In Fact you most likely got a call from your alleged lender about 5 or 6 days after you signed the documents stating that the alleged loan had funded, RIGHT?
Here is another secret that you may not know. Mortgage Servicers are actually 3rd party debt collectors as defined in the Fair Debt Collection Practices Act. And as debt collectors they cannot use an automated caller or call a cell phone to collect a debt. These actions are a violation of the Telephone Consumer Protection Act. Many servicers have NEVER EVER been assigned servicing rights legally, and they are merely acting as nothing more than debt collectors. This is why a good foreclosure fraud investigation can be valuable in order to trace the chain of title and gather evidence that most if not all the parties to your foreclosure are involved in your foreclosure illegally.
A recent couple just won a $ 1,000,000.00 lawsuit against bank of America for just such violations. They were awarded $ 1500.00 for every call Bank of America made to them to collect a mortgage debt. But has your servicer told you about this law?
This is Very Doubtful. If you want a copy of the news story about this lawsuit, I will be happy to send it to you at email@example.com just put in the title “million dollar lawsuit”.
The thing is if you do not know or understand your rights when facing foreclosure or anything else, you really do not have any rights. In the next chapter I will go over one of the most important steps in foreclosure defense, and that is the importance of knowing what is in the documents and keeping track of all of them.
You have options that the foreclosing party will never disclose to you
Believe it or not, there are several options to use to defend against foreclosure that your pretender lender will never disclose to you because these options are in your best interest – not theirs.
For instance, you may have spoken to your lender to discuss options against having your home foreclosed on due to a job loss, sickness or whatever other reasons that result in you getting behind on your payments.
The following are the most often discussed options the lender or servicer will discuss with you when you’ve fallen behind in payments:
The ones they tell you about are not the ones that are in your best interest
Loan Modification: Less than 10 % of those applying for a loan modification are ever approved for one.
Come Current with Your Payments: Heck if you could do that you would not be in this predicament.
Short Sale: With this Option the Bank gets its money and you lose your home.
Deed in Lieu of Foreclosure: Again you give up your house to the bank
File Bankruptcy: With this option you may be able to stall foreclosure but will eventually lose it anyway.
Now let me tell you about two undisclosed options the bank hopes you never find out.
Invalidating or disputing the debt
Now let’s discuss other options that your bank will most likely never disclose to you. Why?, because they are in the homeowners best interest, not the banks. The biggest option that the bank will never ever talk about is the fact that you have the right to have them prove that the debt is not in default. When you signed your documents had you seen any evidence of funding what so ever prior to the signing of your note?
I can pretty much tell you I know the answer to that question because it is the same answer in every mortgage case.
Certain consumer laws give you the right to challenge debts of all types and force the party attempting to collect to prove that there is a VALID debt and it is owed by you. Was there a loan? You think so? Well I am here to tell you that there in most cases never was a loan. Once you signed the note, that signature gave that document value, not the other way around.
They took the signed copy of the note and sold it to investors and in some cases multiple investors. While doing a foreclosure fraud investigation recently we found that one alleged lender sold the note 3 times for the face value of that note.
Sometimes what it seems really is not. Let me ask you a question, If everything you know to be true about your mortgage transaction was later found to be untrue, when would you want to know? If you found out that there really was no law requiring you to pay tax on your income, when would you want to know? The fact is we take for granted many things in this country and never question them.
Have you ever seen the so called law that forces you to pay tax on your earnings? I doubt it because there isn’t one. Don’t believe me? Well I can show you a website that has had a standing $ 300,000.00 offer to anyone who can produce that law.
Is income taxable? Yes it is. However the law only applies to about 5 to 10 % of the people in this country and those individuals are public servants or corporations. Most people in this country are not taxpayers under the definition used by the I.R.S., and I can guide you to the actual laws so you can decide for yourself. The best option available to you and works best against pretender lenders that they fear the most, is those where the homeowner demands proof of the debt.
Litigation – Suing the Foreclosing Party
Challenge standing and sue them in order to force them to show they have a right to foreclose.
Another secret the bank will never tell you is that the debt collector or foreclosing party in most cases has no standing to collect or foreclose. The process of foreclosing is all smoke and mirrors committed by the foreclosing party, that is why you demand proof that they have standing and make them prove that you owe a debt to them.
In order to dispute you need to send well worded letters and file well worded challenges to dispute the debt documents and challenging the lender or servicers standing through documents. There are letters and documents you can send as part of an administrative process that can be affective in getting them to produce evidence that supports their claims of debt, since you’ll need a lot of the evidence to win administratively or to win in a court of law against foreclosure or against a wrongful foreclosure case. You’ll also need third party evidence from experts, but you also need to obtain your own evidence if you know specifically what to do.
What you need to understand is that the foreclosing party concerning your home is violating and has violated many Federal Laws in the Process, and you have the rights to challenge every step of the process and force the party wanting your property to prove first of all that the debt is lawful and 2nd that the alleged debt is owed by you, and 3rd that the foreclosing party has authority to collect that alleged debt.
Did you know that an attorney or lawyer can not be a witness for their client, yet in almost every court case they act as witness. Let me give you an example. Lets say you are in Court defending an alleged Credit Card Debt and a debt collector (3rd Party) hires an attorney (another 3rd party) to come into court to try and win the suit. Is a rep of the credit card company there? Probably not. The Debt Collector? Probably not. So the attorney starts off by saying “Your Honor we are here concerning a defaulted credit card. Mr. Smith signed a credit card agreement with XYZ credit on or around December of 2007.” Now wait a minute. Does that attorney have verifiable proof that Mr. Smith Signed anything around December of 2007? Was the attorney there at the signing? NO. So how can the attorney make a truthful statement like that? HE CAN’T, it is hearsay.
What you as the defender of that alleged debt should be doing as soon as that attorney opens his mouth to speak is state; “Your Honor I Object. What counsel is saying is hearsay. Counsel was not there when the alleged credit card agreement was signed and can also not appear as both a witness and attorney for the plaintiff.” This applies to a Mortgage Loan too when you have some attorney fresh out of law school state that you signed a note on or around such and such date.
Most Foreclosure cases are lost because the party being foreclosed on just does not understand their rights and has never been trained to protect those rights.
Your homework for this module is to read; THE FAIR DEBT COLLECTION PRACTICES ACT. This document can be found in the documents section
If you are going to file suit and win you need to be organized and we will go over that in our next module. See you there