Frequently Asked Questions About the Truth In Lending Act Mortgage Debt Resolution Process

 

Table of Contents

What is the TILA Mortgage Debt Resolution Process?

What justifies getting out of my Mortgage Agreement?

Is the TILA  Mortgage Debt Resolution Process legal?

How long does it take?

Will the TILA Mortgage Debt Resolution Process damage my credit rating?

Will I be able to get another loan or will the Bank put me on a blacklist?

What if the Process does not work?

How much does the program cost?

Can I go through the Process if I am behind on my Mortgage payments?

Can I get refinancing at the end of the Process if I have bad credit?

How long do you think this program will last before the Banks change the regulations?

Will the Lender sue me?

If I have Bank accounts with my Lender, should I move that money before starting the Mortgage Debt Resolution Process? 

Will I be able to do business with the same Bank?

What kind of properties can I use this Process on?

What could keep the Process from not working? 

Will this Process work for private loans?

Will the Bank or Mortgage Company be harmed by this Process? 

Will the Lender try to contact me?


What is the TILA Mortgage Debt Resolution Process?

The  Mortgage Debt Resolution Process is a two stage process. Phase one is an administrative process and phase two is a judicial process.

Phase One: (administrative process)

An audit of your Mortgage documents is performed by a professional auditor. The Mortgage Lender is notified that there are TILA violations in the Mortgage and closing documents by the way of a series of letters.

The purpose of the administrative process  is to discover predatory lending practices by the Lender and put the Lender "on notice" that TILA violations have been found in the documents and that you want to negotiate "an out of court" settlement with the Lender.

Phase one includes the violation letter, qualified written request letter (RESPA), detailed actions for complaint (suit), and the recession letter. In some cases a three way call to the Lender (to open settlement negotiations) from our auditor and in house attorney.

Phase Two: (judicial process)

Phase two is a judicial process. If the Lender does not settle with you in phase one then law suit wound need to be filed to secure the interest of the property and to secure the violations fines found. Our attorney will file the complaint (suit) in Federal Court. You will also be required to pay for incidental costs such as filing fees and overnight mail etc.

The Federal Court will be in your local area.

For more detailed information: CLICK HERE

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What justifies getting out of my Mortgage agreement?

We all grew up believing that a loan was money at risk to the Lender and that it should be repaid, so it’s difficult to accept that the banks and Mortgage companies would have crafted a scheme of such monumental proportions to take advantage of that basic trust. It also explains why this scheme has been so successful. We are basically trusting people who believed that a financial institution in this country would deal honestly with us.

The Mortgage Debt resolution professionals have simply learned how to use those remedies to get you out of a very unfair and dishonest agreement. 

When you sat down at closing after the nerve-wracking run-up to this moment, you experienced it as a success, the culmination of a lot of effort to prove you were a credit-worthy client deserving of a loan to purchase a home or property, the biggest investment most of us ever make. Consequently, it was so far out of your thinking that the documents placed in front of you could be deceptive, but they were. Very deceptive. In a court of law, the judge, who understands legal language would say that full disclosure and equal protection under the law were available in the Mortgage documents, but the average citizen is so ignorant of legal terminology that without really astute legal counsel at closing there is no way for him to have known what really was about to transpire. After all, think of all the attorneys who have purchased homes and signed such documents themselves without fully understanding what they meant.  

Here’s how it went:

·       First you signed a promissory note, a promise to pay principle and interest over a period of time. You expected to do this.

·       Second you signed a Deed of Trust or Mortgage agreement wherein you repeated the promise to pay under rather confusing terms that you did not understand and did not question.

·       In this agreement, you irrevocably granted and conveyed title to the property in question to the Trustee (title company) acting on behalf of the Lender. How could you do this unless you owned the property, and if you did, how did you manage to acquire it?

·       You acquired it by signing the promissory note, which is legal tender in our economy. The banker turned the note into cash through the Federal Reserve and used it to pay off the previous property owner. You just funded your own loan on the power of your signature and the banker doesn’t tell you up front that you now own the property free and clear, but it clearly states in the Deed of Trust that you do, only you didn’t catch it.

·       At this point, you entered into the Deed of Trust or Mortgage agreement as sole owner of the property, bringing tremendous value to the table. After having confirmed that you were in sole possession of the property ("Borrower covenants that he is fully seized (in possession) of said property and that it is free of all encumbrances."), you immediately sign away title to the property ("Irrevocably grant and convey") to the Trustee (title company) who holds the title to secure the "loan" for the Lender, except that no loan has been made because the Lender did not use his money to pay off the property. He used yours.

·       An alternative scheme used in many Deed of Trust states is the tenancy agreement wherein you enter the Deed of Trust agreement as both the Tenant and the Principal (owner of the property) and agree to rent the property from yourself with the Lender acting as the servicer of the loan, mandated to take payment from the Tenant (you) and disburse it to the Principal (you), except that they keep the payments. Know anyone that ever got rent payments from himself back from his Mortgage company?

·       You have just signed an agreement wherein you promised to pay the Lender principle and interest for a property you owned free and clear and then surrendered title to. Did you know that you did that? Of course not, or you never would have agreed to this in the first place.

·       To add insult to injury, the Lender can fractionalize your note through the Federal Reserve, expanding its value up to nine times the note’s face value ($100,000 can become $900,000), tax free money he can invest or spend as he pleases. Did you give him permission to do this with your promise to pay? You thought that piece of paper was just a commitment to pay back a loan, but to the banker, your signature was worth hard, cold cash. For these reasons and others, not the least of which are the sense of personal empowerment and the surge of economic prosperity that would result from all the Debt relief, we feel it is ethical and justified for homeowners to discharge these unjust Mortgage agreements. 

        America and the Federal Reserve

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Is the TILA Mortgage Debt Resolution process legal?

Entirely. The Truth In Lending Act was enacted by congress in September 1995 to protect consumers from predatory lending practices. We are simply finding those violations and putting the Lender "on notice". They are in violation of TILA regulations and that they must pay for their predatory lending practices.

See "The Truth In Lending Act" 

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How long does it take?

In most cases three to six months. If filing a suit is required the process could take

up to two years.

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Will this Mortgage Debt Resolution Process damage my credit rating?

The Judge's order, which you receive at the end of the process, stipulates to the Lender that there are to be no bad marks or reports to the credit bureaus. Consider this: since the payments are current at all times, what is there for the Lender to report? So far the Mortgage Debt resolution professionals have not seen this process adversely affect the homeowner’s credit rating. And it should not for the simple reason that if fairly reported, your credit information should reflect two things – that the Debt is satisfied in full and that it was satisfied early.

Should Lenders attempt to influence the manner in which your credit information is reported, they will be notified that they are open to a lawsuit under anti-racketeering statutes (RICO).

If, on the other hand, the payments are in arrears, then the Lender will often report to the credit bureaus. This can still be remedied by the Judge's order. In this case, there is likely to be a bad report to the bureaus which is later removed.

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Will I be able to get another loan or will the bank put me on a blacklist?

First yes, you should be able to get another loan and no they shouldn’t put you on a black list. By law, there are only a few reasons why a Lender can refuse you a loan, and discharging your Mortgage by this process is not one of them. If a Lender should refuse for the wrong reasons, he can be sued for triple damages under existing statutes such as RICO. (Racketeer Influenced and Corrupt Organizations Act)

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What if the Process does not work?

Based on the experience to date, the Mortgage Debt resolution professionals have every expectation that their process will continue to be 100% successful as it has been.

However, just to reassure you, the method our qualified professionals use provides only two responses the Lender can come up with and in both cases, you win. The Lender has no choice but to comply because the Lender  wrote the contract the contract contains non-judicial remedies available to both the Lender and the borrower. Our Mortgage Debt resolution professionals have simply learned how to use those remedies to get you out of a very unfair and dishonest agreement. 

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How much does the program cost?

There is no cost to get a preliminary review of your mortgage/closing documents. You send your documents to our auditor. He will review them and contact you and  let your know how many violations were found and the money damages available to you. The initial cost essentially takes care of the administrative phase of the process. If litigation is necessary additional attorney fees are required. After the Lender has settled, a fee is charged that is a percentage of the award. 

Program outline

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Can I go through the process if I am behind on my Mortgage payments?

Yes, but It is better if you are not.  It is better to start this process with "clean hands"

meaning that the Lenders and the courts will favor the consumer if you are current in your payments.

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Can I get refinancing at the end of the Process if I have bad credit?

If you have bad credit you may have difficulty refinancing the property, so it is highly recommended that you start a credit repair process when you make application for the Debt Resolution Process.  The professionals who provide this service expect to be paid for their services, and they ask you to take note of the fact that there is no profit in the business for them unless they successfully resolve, reduce or void your Mortgage.

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How long do you think this program will last before the banks change the regulations?

Honestly, this is unknown, but we think that there is a three year window. The banks and the government have several options. First, they could change the nature of the loan agreement to fully reveal what they are doing, but then they would have to come up with the money to pay for the home (the honest way) because the borrower would no longer agree to provide the value for the loan (his signature on the promissory note), so do you see them doing this? Please see America and the Federal Reserve

They can also attempt to intimidate people by their misinformation and carefully worded warnings that only mislead. As we point toward their fraudulent actions and activities, they may try to retaliate by threatening and libelous statements.

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Will the Mortgage company sue me?

In this sue-happy society, who knows? First, after the bank settles, the lien release is passed through a judicial review to clear the title.  We also recommend that  you set up an asset protection program with a Non-Profit Corporation  or Pure Contractual Trust to protect you from predatory attorneys.

Second, as long as you remain current on your payments, you have not breached your contract in any way and the use of the judicial review process can make litigation by the lender unlikely.

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If I have bank accounts with my Lender, should I move that money before starting the Mortgage Debt Resolution Process?

YES!  And don’t delay. The Mortgage Debt resolution professionals already know that banks may freeze accounts of applicants. However, if the banks do this complaints can be filed that will compel the bank to release your funds, but why go through the trouble? Then again, you have not been dishonor of your agreement and have not defaulted.

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Will I be able to do business with the same bank?

Yes, but why bother? There are plenty of other Mortgage Lenders to apply to.

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What kind of properties can I use this Process on?

The property must be your primary residence.

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What could keep the Process from not working?

If the client does not reveal all pertinent information about liens or positions on the property, especially a position that has foreclosed on the property, that could stop the process. The Mortgage Debt resolution team must know all the pertinent information. The client must also remain current on his payments throughout the process and file documents in a timely fashion as instructed by the processing team.

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Will this Process work for private loans?

No, it will not. The professional service providers will not attempt to discharge a private party note.

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Will the bank or Mortgage company be harmed by this Process?

They might like for you to believe they are, but they are not. In an honest  loan agreement, the Lender’s supply of money is decreased by the amount he lends you and he is taking a real risk. The interest you pay on the loan is his profit, his reward for taking that risk. In a bank loan, when you sign the promissory note, not only is the banker not out of pocket the amount you are "borrowing" because your promissory note funds the loan, but the banker’s supply of money is increased up to nine times when he fractionalizes your note through the Federal Reserve system. This extra money, created out of thin air is not only tax-free to the bank, but is available to be spent in any way the bank wishes. It is hard to see someone as privileged as this being harmed if you void or reduce  your obligation.

 Please see America and the Federal Reserve

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Will the Lender try to contact me?

It is possible, and it has happened where some people have received letters and phone calls. If you receive such a communication, it will probably attempt to invalidate this process and insist that you continue to comply with the terms.

Do NOT, under any circumstances, carry on a conversation with the caller or respond in writing to the Lender. Simply forward the letter or the name and number to us, and it will be dealt with.  The Lenders are trying to scare you off, but it won’t work. You are covered by the fact that you are CURRENT on your payments and the legality of the process that is employed.

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Kenneth M. DeLashmutt

"Predatory Lending Defense Specialist"

 

Contact Information:

Phone: 401-349-4717

website: http://mortgage-home-loan-bank-fraud.com

email:

 

Edited and arranged by Kenneth M. DeLashmutt

Copyright 2005 © Contact the Domain Owner: [email protected]

Revised: 12/22/11.

 

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