Atlanta Resident Uses Mortgage Audit to Obtain Foreclosure Dismissal

Atlanta, GA  — An Atlanta resident was recently faced with the decision to submit to the system and become a victim of the foreclosure crisis or take a stand against what she believed was an illegal foreclosure.  The resident, whose name has asked to be kept confidential for privacy purposes, noticed that prior to entering the foreclosure process, her loan had been sold and she was making payments to a different mortgage company.  This was a red flag to the resident and she sought out the services of Paladin Securitization Auditors in May 2013 to perform a securitization audit on her mortgage loan.

Paladin Securitization Auditors found the following astonishing information:

A copy of the Note provided by Morgan Stanley Credit Corporation on May 23, 2013 under a document request  and QWR has been initialed by the borrowers on each page and was executed by both borrowers on  the last page (page 4 of 4). The Note does not have any endorsements affixed to it and no Allonge was  provided indicating the Note has ever been endorsed to any other party by GreenPoint Mortgage  Funding, Inc. As of May 23, 2013 Morgan Stanley Credit Corporation has made no indication that this  is not a True and Correct Copy of The Original Note, or that the original has been lost.

In laymans terms, this simply means that the original servicer of the loan, Green Point Mortgage, was still the official owner of the mortgage note.  Moreover, this also proved that Morgan Stanley  had no standing to foreclose on the residents property.   The foreclosure case was dismissed in court using the securitization audit as evidence.

One month later, in June, the foreclosure attorney again attempted to initiate foreclosure proceedings. The resident quickly contacted Paladin Securitization Auditors whose staff performed yet another review of the mortgage documents.  The auditors were able to successfully find additional information that again proved Morgan Stanley had no standing to foreclose:

Nothing in the record shows that this loan was ever assigned to HSBC Bank USA, N.A, as Trustee for the Sequoia Mortgage Trust 2003-2 until March 19, 2013 – ten years after the Sequoia Mortgage Trust 2003-2 closed.

In other words, HSBC Bank USA claimed that a defunct company, namely Sequoia Mortgage, assigned the loan to them 10 years after they closed their doors.  Again, the case was dismissed and currently the resident is in no danger of foreclosure.  HSBC Bank USA must show they are the true and current owners of the mortgage note in order to have standing to foreclose.  At this time, based on the evidence in the securitization audit, they simply can’t.

Paladin Securitization Auditors is offering a free consultation to homeowners who are facing foreclosure or think they may be victims of securitization fraud, mortgage fraud, or foreclosure fraud.  For more information and for the free consultation, call (877) 848-8088 or visit www.securitizationauditservices.com.