Your Loan Has Been Sold or Hey! Whered my rights go?

Too often many homeowners have received a letter in the mail from their servicer. This
letter contains the verbiage your loan has been sold. The question becomes what was sold?
And to whom was it sold? The names Fannie Mae and Freddie Mac come up quite often. There
is a misconception of what was presumed to have happened, and what actually happened. The
word loan has many meanings depending on the presumption of the other person that you are
talking to. As defined in Wikipedia a loan is a debt evidenced by a note. However this is not to
be confused with the entire mortgage loan instrument which is comprised of the Tangible
Promissory Note, the Mortgage or Deed of Trust and the Intangible Payment Obligation.

Before we go too far we need to have an understanding of a few terms. A Tangible Promissory
Note is a piece of paper that can be touched that contains the promise to pay. The real
significance is not the physical paper, but the legal rights which the paper confers, and hence the
promissory note is defined by the legal debt. The Note is a tangible negotiable instrument that
evidences the Intangible Obligation or the Promise to Pay. The Security Instrument being either
the Mortgage or the Deed of Trust is seen as a Real Property Lien; if filed of record, and if it is a
separate contract listing, an alternative means of collecting payment is due under the Intangible
Obligation. The Entire Instrument is comprised of: the Tangible Promissory note, and the
Tangible Security instrument; which would be either a Mortgage, or a Deed of Trust, along with
the Intangible Obligation.
This is not about ownership; it is about is the rights acquired. We are talking about Title:

The union of all elements constituting the legal right to control and dispose of property.
The legal link between a person who owns property and the property itself
legal evidence of a persons ownership rights (interest) in property
Title is the Manner in which the right to real property is acquired: the conditions necessary to
acquire a valid claim to land.
Title is the RIGHT itself; the legal consequences of such conditions

In order to obtain the knowledge on how one would acquire rights for a Negotiable Instrument,
one would go and research the statutory requirements of the Uniform Commercial Code Article 3
or your states equivalence. When researching, one would find that there is only one statute
within this entire chapter that pertains to Transfer of Instrument: Rights acquired By Transfer.
Thats correct, only one statute within the entire chapter on Negotiable Instruments. However the
banks would have you believe otherwise.

With all of the fancy word crafting and hearsay claims that that are put forth to propagate the
banks claim to property that is not theirs, the homeowners head is spinning on what to believe
and what not to believe. The courts are just as confused as many multifarious arguments are
brought forth at the same time by both parties. Fraudulent transactions and documentation to
back up the transactions are done by the thousands every day in an effort to put Humpty Dumpty
back together again. This is a legal impossibility as once the entire mortgage loan instrument has
been broken; you Can Not put it back together again. The banks do not have a time machine in
which to go back and right the wrongs that have been done.

We must continue to do our due diligence and ferret out the improper behavior and actions of the
banks.

Respectfully,

Joseph Esquivel

Mortgage Compliance Investigators

Copyrighted 2013