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Freddie Mac Admits Those Filing Foreclosures Don't Own The Note

posted May 9, 2010, 6:26 PM by Bill Trudelle   [ updated May 10, 2010, 8:38 PM ]

Foreclosure lawsuits require a party to have standing in order to file a lawsuit, here the nations second largest mortgage entity admits, "the plaintiff in a foreclosure action does not own the underlying note". See the quote below taken from the letter Freddie Mac filed in to the Supreme Court Florida Task Force record decided December 2009.
 
“The Task Force has recommended a requirement for a plaintiff in a foreclosure action to verify that it owns and holds the note. Typically, the plaintiff in a foreclosure action does not own the underlying note or loan that is secured by the property subject to the foreclosure proceeding. Freddie Mac’s servicers initiate foreclosure actions in their names, even though they are not the owners of the notes or loans in question, because they are the mortgagees as shown on the land records (by fraudulent, fabricated assignments) and they are the holders (not in due course) or otherwise in possession of the (fabricated) notes. During foreclosure proceedings, our servicers and foreclosure counsel have authority to negotiate and execute loan restructurings (against what the pooling and servicing agreements state) and other foreclosure alternatives (trial modifications that are ultimately denied) with borrowers as well as attend (pointless) mediation. To require investors who do not service the loan to be a party in the foreclosure action and attend mediation would be costly and unduly burdensome, which may result in additional costs being passed on to the borrower. The intended purpose of the mediation program could be achieved effectively without this verification requirement.”

Robert E. Bostrom
Freddie Mac
Executive Vice President
General Counsel & Corporate Secretary
Down Load the letter here

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