Home Loans and Support

Substitution of Trustee

Discussion in 'Bank of America Mortgage Help' started by StuckInSeattle, Nov 29, 2012.

  1. StuckInSeattle

    StuckInSeattle LoanSafe Member

    Hey everybody - I've got quite an interesting dilemma on my hands. First a little background...

    filed chapter 7 in 2009, 1st mortgage and HELOC discharged early 2010.
    Worked with BofA on our 1st and was able to get a modification to stay in the home. Not a good mod but it bought us time so we didn't have to move with the kids in school etc. About 4 months ago BofA sent us the 'meet and confer' letter regarding our HELOC. I called them and in the end our only option was to bring the HELOC up to date or they were going to foreclose. My wife and I decided it was time to stop wasting our money on an underwater house and stopped paying on our 1st as well. Shortly after our decision we got a letter from BofA saying we qualified for the DOJ principal forgiveness and and the the HELOC was forgiven. Normally great news but since there isn't any principal on that HELOC it really meant nothing for us.

    Fast forward to July 2012 and I noticed in the county records there was an assignment of DOT from MERS to BofA on this HELOC. Kind of confusing but I figure BofA is trying to get some kind of kick back from the govt for the forgiven debt.

    Well, I just checked the county records again and on 11.29.2012 (today) there was a Substitution of Trustee regarding the HELOC. This one was requested by ReconTrust and states "ReconTrust is the current trustee (which it's BofA) and MERS is the current beneficiary"... "NOW, THEREFORE, the undersigned hereby substitutes: ReconTrust Company, N.A. as Trustee under the DOT". Signed by robo signer Jennifer Baker, one of the 1000's of assistant vice presidents at MERS.

    I realize that Reconstrust is owned by BofA but I live in Washington State and ReconTrust has been 'banned' here (BOA?s Recontrust Thrown Out of Washington State as Substitute Trustee) so this makes this SOT a little confusing. Also, isn't Recontrust usually brought in to handle the foreclosure? If so, how are they going to foreclose on a discharged, principal forgiven debt?

    Thanks for reading.

  2. Jeffrey L. Shurtliff

    Jeffrey L. Shurtliff LoanSafe Member

    You defaulted on the loan by not paying. This is the bottom line. You filed bankruptcy on the debt and in your bankruptcy the judge ordered a lifting of the stay to let the bank exercise it's rights on the property. As far as Recon Trust is concerned in legally foreclosing in Washington, that would be an attorney general problem and not yours as you have no rights to action, against the bank or Recon Trust. If they are doing something illegal it is misconduct according to the courts and it does not harm you as you defaulted under the Deed of Trust. The bank owns the property and the bankruptcy court says so in it's lifting of the stay. It does not matter as you do not own the property.................Jeffrey
  3. StuckInSeattle

    StuckInSeattle LoanSafe Member

    Thanks for the reply Jeffrey. I understand that I defaulted, and the bank owns the lien so eventually I'm going to lose the house... I get it. The question more stems on them getting ready to foreclose on the 2nd. This HELOC was forgiven so I just find it odd that BofA would foreclose with no equity in the house, before BofA transferred servicing rights on the 1st they completely removed this HELOC from their website.

    Is there anywhere I can find a list of BofA debts that were forgiven?
  4. stephanies

    stephanies LoanSafe Member

    SIS... I too am in WA state and am encountering the same weirdness on my 2nd by B of A... to answer your questions, the assignment back a few months ago from MERS to B of A was due to MERS cannot be a beneficiary, under the new decision by the Washington Supreme court, so in their retarded thought process, B of A's minions are doing assignments out of MERS names into their own ( would not hold up if legally challenged, but they are counting on most not knowing that, and this not going through a court or judge review )

    But it is a violation of the national mortgage settlement, and there is an independent monitor that you should notify in your case.

    Reconstruct was sued before by the WA state attorney general, but the national settlement 'settled' that dispute- Rob Mckenna was looking for his 'election fodder' by making it seem like he was tough on the banks, but when he 'settled' with them, the Reconstruct lawsuit was dismissed as part of the settlement.. BUT Reconstruct must have an office here in WA state, as part of the new foreclosure laws here, so check out if they do?

    Like myself, you have most likely fraudulent assignments with the county both a few months ago and this past week...but finding some one who give a crap is the problem...MERS cannot be a beneficiary, so my guess is that 3rd party company that did that assignment did not ' get the memo' here from WA state of the new laws....definitely make copies, and take them to the 'meet and confer' that they must provide you with, as long as your home is your primary residence.... let me know if you have any more questions and keep us updated.
  5. stephanies

    stephanies LoanSafe Member

    SIS.. also to answer your question regarding list of debts that B of A has to cancel, there is no list.. its totally up to them on who they offer the national mortgage settlement to... because your debts were discharged in bankruptcy, if the bank decides not to work with you and foreclose, your best bet is to hire an attorney (at your cost ) or a housing counselor who will deal with these bozo's on your behalf to try and work out a deal so that you can get the 2nd foregiven
  6. StuckInSeattle

    StuckInSeattle LoanSafe Member

    Thanks stephanies, I really appreciate your reply. I was just reading about MERS not being able to be a beneficiary even though they are listed as the 'beneficiary' in the substitute of trustee that was just posted on the county website. I have the paperwork from BofA stating that my 2nd was forgiven, including the lien so how can they look to foreclose on that? I haven't received anything yet but the SOT leads me to believe they are getting ready to make a move.

    Thanks for the info on Recontrust, I'll look more into them and see if there is an office here in the state. I'll keep updating this thread as I get paperwork.
  7. StuckInSeattle

    StuckInSeattle LoanSafe Member

    also, you mentioned 'independent monitor', I'm not exactly sure what that is. Can you elaborate a little more on that?
  8. StuckInSeattle

    StuckInSeattle LoanSafe Member

    I re-read my DOJ Principal forgiveness and there isn't any mention of the lien, I think the lien part of it was over the phone. Does anybody know if the DOJ Principal Forgiveness includes the lien or is strictly just the principal?
  9. stephanies

    stephanies LoanSafe Member

    There are two different settlements here... we sometimes get confused and call the national mortgage settlement the "DOJ" settlement, which its not, so that might be confusing if you are looking up things under a 'doj' search.

    The national mortgage settlement is what most all state's attorney's general's settled with the five largest banks earlier this year.. that's the 25 billion settlement deal... as a part of that, each bank has its own settlement conditions that they need to meet, and there is an independent monitor that has been assigned to make sure that each bank complies... I think its a firm out east, but the WA attorney general's website would have it listed too, under the settlement.

    Also, something wierd is going on with Recontrust ... their website says that they DO NOT have an office in Washington state, but according to the King County Recorder's office, there were more than 100 documents listing them as a party to a document on the day you reference, nov 29th, alone!

    I think that the 'robo signers' are still at work, and that they did not get the memo that Recontrust cannot be a trustee under the new settlement. Which, if you also look on the Attorney General's website, the Asst AG in our state, Sugarman, worked out a settlement with Recontrust seperately and posted it as a new release August 15 2012, so you might want to review that release as well.

    Contact the AG's office on Monday, and ask for their advice, and the name of the independent monitor. Also, contact Pro publica about your story, as they would be very interested to hear what is still going on here, after this 'ground breaking ' settlement and how the banks are still up to their old tricks, and have created some new ones as well. This organization seems to be the only one reporting exactly what is going on, vs simply reporting on the banks own PR releases of how they are complying with the settlement.

    Let me know how else I can help
  10. Cat Damiano

    Cat Damiano Mortgage Wars

    The NMS and DOJ settlement are one and the same program.

    U.S. Trustee Program/Dept. of Justice
  11. StuckInSeattle

    StuckInSeattle LoanSafe Member

    Yes, the robo signers are still at work. Our ADOT (Assignment Deed of Trust) was signed by Jeff Stenman, who works for a local firm, NW Trustee, and will probably be part of the foreclosure, as a VP of MERS. The SOT (Substitution of Trustee) to ReconTrust was signed by Jennifer Baker, who works for BofA, as an ASST. VP to MERS. Just amazing that these companies can just sign paperwork that benefits them with no recourse.

    Thanks for the clarification on the settlements.

    On to more research.....
  12. StuckInSeattle

    StuckInSeattle LoanSafe Member

    I know there was money, something like $1.1 million, that was settled with the AG and ReconTrust but there is also a "long list of conditions" that needed to be met for them to continue foreclosures in Washington State as the Trustee. Anybody know what those conditions are?
  13. StuckInSeattle

    StuckInSeattle LoanSafe Member

    Here is the consent decree, if anybody is interested.

    Of interest, on p. 5 it states that Recontrust must maintain a physical presence in the state, must not “misidentify the owner of the promissory note or other obligation, identifies in the notice of default the name and contact information of both the owner and the servicer; provides, upon borrower request, “copies of documentation sufficient to show the note owner has an enforceable interest in the mortgage or deed of trust and/or copies of documentation sufficient to show that the entity claiming to be the beneficiary is the owner of the promissory note . . .”

    WA-Recontrust Consent Decree (3)

  14. Jeffrey L. Shurtliff

    Jeffrey L. Shurtliff LoanSafe Member

    I believe there is a loophole they are using on this. Maybe contracting the foreclosure through a local attorney. Most of the courts do not care about this as it is misconduct on their part and it does not harm you. I have sued three times for a non notarized SOT, conducting a wrongful sale. I was not harmed by that because I Defaulted. These corporations are part of the system and there is not much you as an individual can do about it. They make the laws and execute them. I believe the system will police itself however with the widespread fraud putting people on mods and then foreclosing. As far as using this consent language in the settlement, it is worthless using it substantively in argument before the court.
  15. StuckInSeattle

    StuckInSeattle LoanSafe Member

    Jeffrey, your fight with the banks and the toll it has taken on you certainly comes out in your posts.

    I see that there are 36 other SOT's posted in my county on Nov 29th, all with the same exact signature and notary. I'm not exactly sure about the "VP Secretary of MERS" but I know for a fact the a Notary, by law, has to have a "WET" signature... all of these SOT's, put into the public records on the 29th are stamped. I might be a little naive and won't win the fight but sonofa***** I'm gonna try and last all 12 rounds.
  16. Jeffrey L. Shurtliff

    Jeffrey L. Shurtliff LoanSafe Member

    Stuck, I commend you for wanting to fight. I do not discourage people to fight for their homes as it is in our Country's history. Just want you to know what you are up against..........Jeffrey
  17. StuckInSeattle

    StuckInSeattle LoanSafe Member

    and I appreciate your comments.
  18. moretrouble

    moretrouble LoanSafe Member

    The Washington Supreme Court said MERS can not foreclose:

    Washington Supreme Court Issues MERS Smackdown « naked capitalism

    See a lawyer if you want to fight. Don't let them steal your house.
  19. StuckInSeattle

    StuckInSeattle LoanSafe Member

    I'm still debating whether or not to get a lawyer. I think even with a lawyer I'll still lose the house, so not sure I even want to spend the money for a lawyer. I feel pretty confident that I can ride 'the wheel' for 6-7 months and save my money for a new, more affordable mortgage. I 'm now thinking the SOT that was recorded was for BofA to get our 2nd off their books.
  20. StuckInSeattle

    StuckInSeattle LoanSafe Member

    I just checked the county auditor for any more paperwork and the SOT is not longer there. I'm assuming somebody from BofA saw that MERS and Recontrust can't foreclose in Washington State and removed the SOT. By the way, can a bank just remove a document from the public records if it doesn't benefit them?

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