WELCOME TO HOME DEFENSE
The Home Defense Foundation is a non-profit group dedicated to helping home owners keep their homes. We are continuously asked "why won't the bank just lower my house down to the current value instead of foreclosing on me, and selling it someone else for the current value?" The answer will shock you. It's because the Lender/Bank DOES NOT OWN THE NOTE TO YOUR HOME! I'll explain; when you bought your home you went through as escrow where the Lender supplied the money up front for your new loan (or re-fi). Once the paperwork and the Note (title to your house) was in their hands, they secured "investors" who put up the money for your loan (no less than 30, but as many as needed). Because the Lender can't divide the Note into several pieces out to these investors, the Lender holds on to it with the pretension of keeping it with the Deed and "in vault" as the law prescribes. What actually happened ( as told by ex-bank employees and as divulged in the documentary "Inside Job" available on line) is that the Lender (all Lenders) packaged your Note up with as many other Notes (100's at a time) and sold them off as securities to Wall Street. But, before they sent them off, they copied the Note and stamped them "certified copy" so they could sell those off to foreign investors who didn't know better.
Understand that the Lender/Bank is a business, just like any other business, like a convenience store who makes its money from goodies and gas, the Bank makes its money selling money. The Bank can turn $1 into $10. So if they sold your $300,000 loan off to Wall Street and then again from the copies, to foreign investors, lets say 5 of them. They have collected some where around $1.8 million for your Note, a Note THEY DON'T EVEN OWN!! Remember, those first investors put up the money to buy your Note, the Lender was only supposed to be holding on to it for you, collecting your house payment, paying the investors and keeping a little for themselves for being the middle man. This is Fraud you say!!! Yes it is!!! But no one is stopping them, so they just keep doing it!!! And if the bank can turn $1 to $10, it turned your Note into $18,000,000.00 thats' $18 million dollars they made off of a Note they don't own. And if you sold your house or paid it off and they had to go back and pay the investors, well that only amounts to $1.8 million, and they made $18 million!! Quite a profit from a copy machine.
So what happens when you stop making payments? Funny you should ask, lots of things:
1) First of all the Lender has an insurance policy (nothing to do with mortgage insurance) on the loan, one for themselves and one for the first group of investors. On the 60th day of non-payment of the mortgage, the Lender and the investors get paid for the loan. "Then why do they come after the house," you ask, BECAUSE NO ONE IS STOPPING THEM.
2) The bank doesn't own the Note, the investors do. But, as the servicing company they have the right to try to get you to pay. But they don't have the right to make a deal with you to lower the house down to the current value, cause it's not their house. And the paper and man hours it would take to get your 30 to 100 investors to agree to that would be astronomical (ever try to get 50 people to agree to ALL take less money?). Besides, they don't want anyone to know they sold your Note several times!
3) Better to get you to take a Loan Modification. You still owe the same amount, they just give you a new payment amount that is lower than what you have and tack on all the rest of what you owe to the back end. So you become a professional renter of your own home. You can never sell the home (it's always going to be worth more than you owe, so who would buy it for more than it's worth?) and you can never buy another home because your credit will always show you have a home worth less than you owe.
4) Or better yet, they get you to sell your house on a Short Sale. Selling your house to someone else for current appraised value. And then having the right to come back on you for up to 6 (six) years to slap a judgement on you for the diffiency judgement (difference of what you owe and what it was sold for). They could even eventually garnish your wages with that judgement. They will even tell you its better on your credit than a foreclosure! Lies Lies Lies!!
The best part is that when you do a Loan Mod or Short Sale or a Refi- or even a Foreclosure, a new Note gets created and the Lender NEVER HAS TO ACCOUNT FOR THE OLD ONE!!! And that new one that gets created, they go off and do the same selling of the Note all over again...
That's where we come in. Even the original escrow procedure is fraught with fraud. We do a Forensic Audit on the escrow and loan procedure (96% of all loans have major violations) and an in depth Securitization Audit on the loan once it was in the hands of the Lender. RESPA and Federal Law do not allow for ANY inaccuracies in either one. The Securitization Audit is a blue print of the Fraud the Lender exercised once in their possession. We file a Multi-Plaintiff Lawsuit with many homeowners together who all have similar issues. When presented with the proof of the fraud from the beginning of the loan to the end, the Lender is left with no option but to negotiate to a "Fair and Equitable" result, giving the homeowner a new "below the current appraised value and the lowest current available interest rate" not based on qualifying or credit. The Lender in no way wants the results of these Audits made public in Court for the world to see and set presidences with. Some of our files have such horrendous violations that the Lender passes on the negotiation and the homeowner receives the home free and clear of any amount due (paid off). While in the suit the Lender cannot report the homeowner to the credit bureau not foreclose on the home by way of a TRO (temporary restraining order). Attorneys within our group have done several of these Multi-Plaintiff suits over the past two years with amazing success. Your Lender has acted heinously and defrauded you and investors in the worst possible way. They are foreclosing on homes every single day THAT THEY DO NOT OWN!!!! Stop the torture now, let us help you fight back!!