Mortgage Servicing Fraud
occurs post loan origination when mortgage servicers use false statements and book-keeping entries, fabricated assignments, forged signatures and utter counterfeit intangible Notes to take a homeowner's property and equity.
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Douglas County Colorado district court Judge Vincent White dismissed a foreclosure case brought by Bank of New York due to the plaintiff's failure to demonstrate requiste standing.  The outcome was reported in the Douglas County News-Press on June 20, 2008:

Douglas County News-Press

The foreclosure fight is on

June 20, 2008

By: Rhonda Moore, Staff Writer

The day Margaret Sadler agreed to sign the promissory note for her daughter's house, the last person who wanted to hear about it was her husband.

Louis Sadler was dead-set against the idea, with a foresight that proved uncanny four years later when a phone call alerted them the house was in foreclosure.

Whether father knows best, however, remains to be seen.

The Larkspur couple, who hired Castle Rock attorney Michael Robinson to handle the routine foreclosure, saw a Douglas County district court judge on June 19 put a stop to the foreclosure sale when the lender could not prove it was a party of interest in the case.

The lender's failure to prove its interest is part of an industry practice Robinson says could impact victims of foreclosure across the state.

"This is a case of first impression in Colorado," Robinson said. "This is going to wake people up and make them realize 'I don't have to take this, I can fight back.'"

The fight began when Robinson embarked on his research in the time he had to respond to the original foreclosure action. His search of the publicly-filed documents disclosed something was amiss.

The question of whether the 2004 loan was in default was not at issue - the loan went into default as a result of divorce proceedings between the Sadlers' daughter and her husband, according to Louis Sadler. The question became obvious when Robinson found the lender that began the foreclosure action had no apparent legal interest in the property.

The promissory note and deed of trust on the house were in the name of Countrywide Home Loans, one of the nation's largest mortgage lenders, Robinson said. The foreclosure action was filed by the Bank of New York, which Robinson's research disclosed had no legal interest in the house.

The Bank of New York argued they acquired an interest in the property from Countrywide. The reported transaction between the institutions involved no public filing and no notice to the borrower, Robinson said. Such transfers of assets are standard practice in the mortgage business, he said.

... [MORE]


See also

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The SADLERs were represented in this case by attorney Michael A. Robinson, Esq.:

Michael A. Robinson, Esq.
Michael A. Robinson, P.C.
900 W. Castleton Road, Suite 135
Castle Rock, CO  80109

I have not yet located copies of any of the pleadings or the actual decision and order.
This case was also previously reported in the Home Equity Theft Reporter at:

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Douglas County Judge Dismisses a Second Case Based Upon Plaintiff's Failure To Show Standing

Douglas County District Court Judge Nancy Hopf has dismissed a second foreclosure case defended by Castle Rock attorney Michael Robinson.  The story is reported again by Rhonda Moore, of Colorado Community Newspapers:

Foreclosure no more

By Rhonda Moore
Staff Writer


Dewey Gibbs was sitting at the kitchen table of his Highlands Ranch home when he read a News-Press article that eventually saved his home.

Gibbs and his wife of 31 years were on the verge of losing their home to foreclosure when he read about a couple who successfully fought a foreclosure in Douglas County District Court.

He decided to pick up the phone, figuring, “What have we got to lose?”
“When I saw the article, I said, ‘What the hell? Let’s make the phone call,’” Gibbs said.

The phone call was to Castle Rock attorney Michael Robinson, who successfully argued a case for a Larkspur woman in a similar situation.

Margaret Sadler on June 19 saw her foreclosure thrown out of court when the bank could not prove its interest in the house.

In Robinson’s eyes, Dewey and Diane Gibbs faced a similar situation.
The Gibbs bought their home in April 2006 with an adjustable rate mortgage financed by Option One Mortgage.

By March 2008, Dewey Gibbs, 68, was out of work because of health issues and was on Social Security. Any possibility of unemployment was whittled down to $30 a week after deducting Social Security benefits, he said.

The couple already was seeing a slow downhill slide, exacerbated by living on the single income of Diane, 56.

By late 2007, they had begun to fall behind on their bills.

Their mortgage had indeed “adjusted” at least $900 a month beyond their budget. They eventually began to lose hope.

“It’s laws like this that make it so senior citizens have to eat dog food,” he said.

Unable to refinance their home because of negative hits on their credit report, the Gibbs made do until late June.

On June 24, they reached an agreement with Option One to send the lender $3,035 in an effort to save their home.

The next day, they received a notice of foreclosure — from a different lender.

According to the correspondence, Deutsche Bank had on June 16 begun foreclosure proceedings against their home.

The Gibbs made a series of frantic phone calls to find out why their money was going to one bank and a foreclosure was coming from another, to no avail.

Option One kept their money and Deutsche Bank was poised to seize their house.

“You can’t fight these big corporations. We were ready to give up until we read the article,” Diane Gibbs said. “We didn’t know where else to go.”
The article was published June 26, and by June 30, Gibbs was on the phone with Robinson.

The foreclosure laws are designed to move cases quickly through court, Robinson said, and he had a small window of opportunity to file a response. The response was filed by the July 3 deadline, paving the way for a different kind of independence day for the Gibbs.

On July 9, Douglas County District Court Judge Nancy Hopf found in the Gibbs’ favor in a Rule 120 hearing, a standard hearing designed to give the borrower his or her day in court.

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This is great!

Now, if only more judges would begin imposing sanctions against the foreclosure mill attorneys for filing these frivolous suits and wasting the court's time. My gosh, these nitwits cannot even prove the most basic plaintiff's onus of standing!

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