Boyd has stated, "Quiet title is never a part of a viable defense strategy." I beg to differ with him.
When you see a situation where the "lender" named on the loan
documents, was probably not the "true" lender, but rather a bankruptcy remote "strawman" which was not licensed to make mortgage loans at the time the loan was made, then you have a
strong case for a Quiet Title action.
The objective of the QT is to remove a fraudulent lien from
the Official Records so that the "obligation" becomes unsecured.
At that point the obligation with the "true lender" can be "crammed down" either by negotiating or in Ch 7 or 13 BK.
The idea is that sometimes, the obligation as shown on the
"real Note" was "securitized" ie converted to a "security bond"
and sold on the secondary market. The name on the mortgage was
sometimes the first servicer, which never owned the obligation.
Unless you end up in foreclosure, you will never know the difference unless you are proactive and look into it.
When a person is on the verge of bankruptcy and "upside down"
on the mortgage, one should investigate doing a QT instead.
The benefits are that you won't "destroy" your credit over
night, when you are current on most of your other debts.
Without going into foreclosure, you will force the "pretender
lender" servicer to prove up their claim that you owe them money.
One of my students, faced with bankruptcy and foreclosure,not
to mention an IRS problem decided to go this route. He filed the
QT in May 2011 and its been ongoing ever since. It is scheduled
for trial in Dec. 2013, so that has given him lots of time to get
his financial house in order.
During this time, we "crammed down" his 85K second to 15K and got it paid off. He was able to pay off the IRS and get them off
his back. Now he's paying off most of his credit cards so his
credit is actually improving. He needed the "vacation" from mortgage payments to get all this done. DON'T MANY OF YOU NEED
A MORTGAGE VACATION SO YOU CAN GET YOUR LIFE IN ORDER?
A side benefit was we discovered two entities are claiming to
own the same "fraudulent Note" (which does not reflect the true
obligation to the true original lender). So he is enjoying many
benefits from doing a QT. The main problem is finding an attorney
who knows how to do one.You need to think outside the box!