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Servicer Foreclosure Analysis Part I: Who Really Hired Stern, Watson, Fishman or Florida Default To Foreclose On Your Home?

November 22, 2010

DISCLAIMER: THE CONTENT IN THIS BLOG IS FOR INFORMATION PURPOSES ONLY AND IS NOT TO BE MISCONSTRUED AS LEGAL ADVICE! Anthony Martinez is a Discovery Expert.  Neither Anthony Martinez nor his firm AMA engage in the practice of law and only work in conjunction with licensed practicing attorneys.  AMA will provide public information only and will not provide any kind of advice, explanation, opinion, or recommendation to a consumer about possible legal rights, remedies, defenses, options, selection of forms or strategies.

If you watch a magic trick long enough you start to figure out how the trick works.  A magicians primary technique is to keep you focussed on one thing while he is doing another so that in the end you are amazed.  You leave the magic show with one of two thoughts one being WOW or the other asking…”How did he do that?”  If you go back and watch the trick again and not focus on that thing the magician is trying to train your eyes on, you just might see what the magician never wanted you to see.

I begin my analysis for attorneys of every foreclosure case not looking at what the magical foreclosure Plaintiff wants them to look at.  I immediately ask some very basic fundamental questions first.  The basic gramma school learning technique of who, what, when, where and how.  The thing is, I don’t apply it to the magical foreclosure plaintiff, I apply it to the party that got them in the door…their attorneys!  See, as a discovery expert for the past 15 years or so, I’ve worked with over 45 of the top AMLAW 100 law firms throughout the world.  Firms like Skadden Arps, Baker & McKenzie, Latham & Watkins, White & Case etc. and I’ve learned that the reason why they gross over 2 billion a year is because their clients can afford to pay their $750.00 an hour and better for legal fees.  They are the big boys of the legal world no doubt and their clients are the money-making conglomerates of the corporate world.  So when I see Chase, Citibank, Deutsche and Wells Fargo as the Plaintiff and a guy named Miguel from a firm called Law Offices of David J. Stern signing paperwork on their behalf, it immediately raises a red flag to me.  Banks don’t hire law offices for a flat fee of $1,200.  They hire entire FIRMS at $750.00 an hour to make sure they don’t lose!  With that red flag in mind I begin my research.

Over and over again I begin to find these so-called “servicers” of all different names and pretty colors popping up.  I begin to look at SEC filings and other documents to see all the players to a “pool” of loans applying my skillful and advanced grammar school training of who, what, when, where, why and how.  I see the same red flag issue in the SEC documents.  I see major big boys from wall street like Goldman Sachs and a slew of self-created special purpose corporate created vehicles to limit liability to the core entities and I see who’s representing them in these big “pools” of money…an AMLAW 100 law firm.  Now I know the “who” factor so I move on to the “what” factor and that’s pretty simple enough.  It’s a “pool” of loans.  Not “a” loan but a “pool” of them so it’s billions of dollars at play and that makes perfect sense because big boys play with big money.  I recognize all of the big names but then I see names I don’t know like Home Loan Services which wouldn’t be so bad until research uncovers how this servicer uses DBA’s in the name of the big boy banks to give the “appearance” you are dealing with one of the big boys.  I’ve just found one of the illusions used in the magic trick!

Now all of this is pretty academic until you factor back in Miguel from Sterns Law Firm who just graduated law school in 2008.  Why did Deutsche Bank hire Stern and why did Stern let Miguel run with the case?  There is a long analysis here but I will get to the crux of it.  Deutsche Bank never hired Stern.  Home Loan Services did.  Why?  Because everyone had their share of the big money pie EXCEPT the servicer who’s cut was in the monthly homeowner payments and when everyone stopped paying their mortgage, the servicer stopped getting its cut.  The big boys were already paid off the deal long ago.  When people stopped making their payments the big boys didn’t suffer because their money was already made but the monthly payment is how the servicer made his share.  Agreements give servicers the right to foreclose in the name of the big boys.  So who hired Stern, Watson, Fishman or Florida Default to foreclose on your home?  The servicer!

Stay tuned for Part II of this series coming shortly.  Circumventing the Rules of Civil Procedure To Bring Suit In Another Parties Name.

AMA NOTE: The foreclosure crisis is not just about people losing their homes to foreclosure.  It’s about homeowners who invested in their futures but were lied to from the very beginning about the contract they were entering into.  It doesn’t matter if you are foreclosed on or not.  If you’re a homeowner, you’re affected by the lie.  Anyone currently in foreclosure or not in foreclosure still making a monthly mortgage payment should contact an attoreny immediately about your options.  If you are in foreclosure you should fight to keep your home.  If you’re not in foreclosure you should know that there is over a 95% chance that you’ve been paying a servicer every month an amount of money that was never and is not being applied to the loan you obligated yourself to.  With that in mind you should know your options.

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