Just recently, we’ve been alerted by several homeowners about Fraud Stoppers videos and literature that contain lies and disinformation. For example they claim that the Supreme Court of the State of Kansas stated in LANDMARK NATIONAL BANK v. KESLER that “the splitting of the note and mortgage creates an immediate and fatal flaw in title”. The alleged quote posted by Fraud Stoppers doesn’t exist, most scammers make up quotes in an attempt to back up their ridiculous arguments. Moreover, courts around the country have held that a deed of trust ” ‘split’ from the note through securitization, DOES NOT render the note unenforceable. JOHNSON V. HOMECOMINGS FINANCIAL, 2011 WL 4373975, at *7 (S.D.Cal. Sep.20, 2011); CERVANTES V. COUNTRYWIDE HOME LOANS, 656 F.3d 1034 (9th Cir. 2011) (The “split the note” theory has no sound basis in law or logic.).
To make matters worse for unsuspecting homeowners, a federal court found a homeowners arguments supplied by Fraud Stoppers to be “meritless:”
“Plaintiffs apparently learned their securitization theory from http://www.FraudStoppers.org, as nearly half of the Complaint is verbatim from this website.” https://scholar.google.com/scholar_case?case=5570767654066104797&q=%22fraud+Stoppers%22&hl=en&as_sdt=20006
They’re also disseminating other nonsense: https://www.youtube.com/watch?v=gyppH6r2YYo Real facts regarding the Daly case can be found here: http://mandelman.ml-implode.com/2013/01/are-mortgages-fraudulent-the-case-from-credit-river/
Sadly, homeowners have already succumbed, or will succumb to Fraud Stoppers slick marketing campaigns, but Mortgage Fraud Examiners will continue to expose these scammers, and others like them, to warn the public, and unsuspecting homeowners that may be facing foreclosure.