I do not even know where to begin. This is such a convoluted story and it takes so many twists and turns.
Let's just say that about 3 years ago, as I began to really read about banking, money and the Federal Reserve, something began to stink with the mortgage industry. At least it was worth investigating, right? Let's face it, your money is one of the things we are all interested in!
We were falling behind in our payments because, as you know, people get into trouble. We overextend ourselves, and before you know it, you are digging yourself in even deeper. We consolidated some debt and got a second mortgage (a big mistake!) and then we had 2 mortgages. I was sorry I ever did that, but that is another story. This story is about Midland.
I did some digging and I found out the bank is involved in fraud. Big surprise, huh? I believe it is true for you too if you have a mortgage, with Midland or any other "lending institution". It is all a trick.
They trick you into thinking you got a loan. It is all in the bookkeeping entries. Most CPAs do not even know this. And bank auditors, bank presidents, judges, lawyers and sheriffs all stand to gain when the bank forecloses on you. Let me give you my case just as an example.
Let's say that the "servicing" rights to your "loan" are sold.
Midland is a "servicer" according to the Securities and Exchange Commission. One of the offices is in Little Rock. I had emailed a guy there a few nights ago and he called me back on Monday (yesterday). I asked him what "servicers" do. He said they collect mortgage payments. I suspected that they only collect them but send them somewhere else.
Have you ever seen your promissory note since the day you signed it? I bet not. I saw mine because the lawyers showed it to me. It is a very rare sight. It was stamped with two rubber stamps that said "PAY TO THE ORDER OF" and there was another bank's name there. And another stamp with the very same wording to yet another bank. Very curious!
Anyway, as it turns out, this is what I believe has happened. Midland is just the servicer. They collect payments and in turn send them to the actual owner of the promissory note. This particular bank has no equitable interest, meaning they have put no money in your house and have no associated loss if you "default". Now here is where it gets interesting.
Midland Mortgage decided to foreclose on us, and they did so over a year ago. They did not have legal standing to do so, because they are a mere "servicer" of the mortgage. They have no equitable interest (no risk of loss).
What am I doing about it? I am going to challenge them on it. I have a lawyer (yes, I held my nose and hired one), but it turns out he knows less than I know, so I am more or less leading him by the hand on this.
One other thing: if your bank forecloses on you, go to the "sale"! If they do not have the original note, they cannot foreclose and you can sue them over it. No note, no sale.
Check out McCay V. Capital Resources, Arkansas Supreme Court, 1997. If I am lying, I am dying. Stay tuned... This story is not over yet...
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