Mish expressed the same kind of concerns that I had.

Clear title to a house does not "erase" debt. It means there is no one who can foreclose on the property to settle the debt. Obviously, it is a lot easier to collect on a debt when you can take someones house if they do not pay it.

One upshot is that all those secularized mortgages are not worth squat. Without the right to foreclose, how are the debt-holders going to collect on all those bits and pieces?

I am no attorney and this should in no way considered to be legal advice. I am simply sharing what I am doing in response to all of the information freely available in current court proceeding. That being said, here is my story. Sorry for the length.

Back on October 14th, 2010, I sent a RESPA request (see attached Note Request Redacted) to the bank that originated my loan. Prior to sending this request, I called the County Recorders Office and requested all files on record relating to my property in order to see if any assignments or transfers of my mortgage were recorded and filed with the county. By Ohio Revised Code (Ohio’s state codes), any bank that sells a mortgage is required to file and record the transaction within 90 days of said transaction. (You can search for Florida’s laws through here - http://realestate.uslegal.com/mortgage-satisfaction/ohio-ass.... Turns out even the local and regional banks are not properly recording transfers on the sale of mortgages to investors on the secondary market. They are not recording these transactions in order to avoid the fees that must be paid based on the transaction price of the sale of that mortgage. This fee must be paid with every transaction and based on how many times the mortgages were sold, it would equate to a huge sum the banks are scamming the counties out of, not to mention the fraudulently accepted payments from the borrower.

In any event, I pulled up the records from the county office and noticed no secondary transfers of my mortgage were recorded. My bank wrote me back supplying me with their copies of the mortgage and the deed, which also reflected the same thing – no transfers to anyone beside my original bank and me. In their letter they indicated that they indeed sold my loan on the secondary market and they even explain that it was not recorded “for the ease of the transaction and to help the investors with the investment in the sale of the security.” So they outright admit that they didn’t record the transaction. This is the cornerstone of the Mortgage Backed Securities Fraud. Consequently, no other bank was put down as a lien on my property and the original bank’s lien is the only lien that exists when we signed the mortgage back in February 2007.

I have now sent a letter to the original bank I signed the mortgage with requesting that they remove their lien from the property (see attached Satisfaction of Mortgage Request REDACTED). By law, any time a bank sells a property, they have to remove their lien position from the home and it must be replaced with a lien of the investor who bought the mortgage if that investor wants any ability to lay claim on the property. The original bank we signed the mortgage with was paid in full when they sold the note and the party the note was sold to needs to file a new lien on the house, again within 90 days of the transaction taking place. Since the new owner of the note never placed lien on the property in accordance to the statutory limits, they cannot go back and do so now. They missed the fucking boat. The goal now is to remove from my mortgage the lien that was placed under the original bank that I signed the mortgage with, obviously because they don’t own it anymore.

The bank now has 60 days to remove their lien from my property. They also must provide me an accounting of the payments I made to them that were transfered to the bank that bought my mortgage. Based upon the date of the transfer, which was only a couple of months after I signed the mortgage back in February 2007, I can then go after the original bank (the one I continue to make my payments to) and demand all past payments be refunded to me as they were fraudulently applied to the wrong bank. We are talking close to $100,000 here, so I will push this piece hard if I get a satisfaction of mortgage from the originating bank. The bank, in theory, that purchased my mortgage is also shit out of luck and can’t claim a penny from me since they are not and cannot be recognized as the holder of the note. Again, that boat has left the dock.

Step 1 – Search and request from County Recorders Office for all documents pertaining to property.
Step 2 – Request from original bank all transfers/assignees on your mortgage.
Step 3 – See if banks records match that of county records.
Step 4 – See if assignees from bank were documented or not.
Step 5 – Ask for Satisfaction of mortgage from bank who sold mortgage to another bank.
Step 6 – Request refund of payments made to wrong owner of mortgage.
Step 7 – Confirm clear title with County Recorders Office
Step 8 – Lift middle finger to the bankers and enjoy a greater degree of freedom than most others living in the world of bread and circuses.

I am at step 6 and hope to enjoy Step 8. I have pieced this together from three and a half years worth of research, court docket review, and reading every law as it relates to mortgages. I could be indeed wrong, but so far everything is going according to plan and the banks are stuck. We will see.

One thing I can say for sure is that I offered to retain a real estate lawyer that I know and have know for years. I had not consulted him regarding steps 1 through 4. I assumed I would need him for steps 5 through 8, but he told me to not waste the money on him as I was so close to being home free, pun intended. He simply told me to request satisfaction of the mortgage from them and to ask for accounting of transfer payments. He said they will, in all likely hood, shit their pants when they get this. He confirmed that the transfer of assignees is where all of the fraudclosure lies. Instead of waiting to challenge this while in default, I am in a better position while I am current on payments. Time will tell and I will keep you posted.