[00:00.000 --> 00:04.340]  This news brief brought to you by the International News Net.
[00:04.340 --> 00:10.140]  Nigeria's military Wednesday rescued 19 oil workers kidnapped by the Movement for the Emancipation
[00:10.140 --> 00:12.540]  of the Niger Delta, MEND.
[00:12.540 --> 00:18.100]  MEND field commanders agreed to lay down their weapons last year under a government amnesty,
[00:18.100 --> 00:23.100]  but observers say the pardons failed to address the underlying cause of the unrest, the unequal
[00:23.100 --> 00:29.380]  distribution of oil revenue in an area of poverty and high unemployment.
[00:29.380 --> 00:34.080]  The U.S. Agency for International Development says on its website U.S. taxpayers funded
[00:34.080 --> 00:39.540]  the paving of 30 miles of asphalt road in the West Bank, enabling drivers to bypass
[00:39.540 --> 00:41.340]  Palestinian villages.
[00:41.340 --> 00:45.060]  Signs on the highway state U.S. aid from the American people.
[00:45.060 --> 00:50.940]  Doro Etkes, an expert on the settlements, wondered how it is possible the Obama administration,
[00:50.940 --> 00:55.580]  which is opposed to settlements in the West Bank, continues to subsidize the road for
[00:55.580 --> 00:56.580]  Israel.
[00:56.580 --> 01:02.340]  A new study has found a third of Americans say they have gone without medical care or
[01:02.340 --> 01:07.860]  skipped filing a prescription because of cost, compared to five percent in the Netherlands.
[01:07.860 --> 01:13.420]  A study published in the journal Health Affairs also showed 20 percent of U.S. adults had
[01:13.420 --> 01:18.620]  major problems paying medical bills, compared with two percent in Britain and nine percent
[01:18.620 --> 01:23.140]  in France, the next costliest country.
[01:23.140 --> 01:27.620]  The UN Food and Agriculture Organization warned Thursday a food crisis could overtake the
[01:27.620 --> 01:29.460]  world in 2011.
[01:29.460 --> 01:35.180]  The FAO said climate change, speculation, the use of grain as biofuel, and soaring demand
[01:35.180 --> 01:40.620]  from emerging markets in East Asia were factors pushing global food prices sharply higher
[01:40.620 --> 01:42.060]  next year.
[01:42.060 --> 01:48.860]  The FAO predicted price hikes at 41 percent in wheat, 47 percent in maize, and 33 percent
[01:48.860 --> 01:49.860]  in sugar.
[01:49.860 --> 01:55.940]  The FAO's broad global index of food prices rose five percent last month alone, higher
[01:55.940 --> 02:01.100]  than the levels seen in the initial stages of the price hike that led to the 2008 food
[02:01.100 --> 02:04.100]  riots in more than two dozen countries.
[02:04.100 --> 02:10.220]  A U.S. research group that tracks money in politics reported Wednesday the collective
[02:10.220 --> 02:17.180]  personal wealth of congressional members increased 16 percent between 2008 and 2009 in spite
[02:17.180 --> 02:18.980]  of the recession.
[02:18.980 --> 02:21.620]  Nearly half of the lawmakers are millionaires.
[02:21.620 --> 02:28.780]  In 2009, the median net worth of a U.S. House member stood at $765,000, and that of a U.S.
[02:28.780 --> 02:31.460]  Senator, $2.3 million.
[02:31.460 --> 02:36.460]  Sheila Krumholz of the Center for Responsive Politics said, few federal lawmakers must
[02:36.460 --> 02:40.660]  grapple with the financial ills that have befallen millions of Americans.
[02:40.660 --> 02:45.900]  The study also found congressional members invested in companies such as BP and Goldman
[02:45.900 --> 02:49.180]  Sachs, which were the subject of congressional inquiries.
[02:49.180 --> 02:54.180]  For more details on these stories, visit www.inmworldrecord.net.
[02:54.180 --> 03:09.180]  You are listening to the Rule of Law Radio Network at ruleoflawradio.com, live free speech
[03:09.180 --> 03:28.180]  and talk radio at its best.
[03:28.180 --> 03:29.980]  The rule of law
[03:58.180 --> 04:13.540]  All right, if you get hot, then you must get cool, and we are here to cool you off.
[04:13.540 --> 04:15.580]  This is the Rule of Law.
[04:15.580 --> 04:22.180]  I'm Debra Stevens with Randy Kelton and Eddie Craig.
[04:22.180 --> 04:26.260]  Tonight is Thursday, December 2, 2010.
[04:26.260 --> 04:29.340]  We're coming at you live from ruleoflawradio.com.
[04:29.340 --> 04:35.300]  Tonight, we have a very special guest that Randy is going to introduce in a moment, but
[04:35.300 --> 04:40.140]  first, I wanted to make an announcement concerning our brand new podcast.
[04:40.140 --> 04:47.700]  All right, we've had it set up for a while now where folks could subscribe to podcasts
[04:47.700 --> 04:52.380]  and or RSS feed of all the archives on the network of all the shows.
[04:52.380 --> 04:57.380]  All right, but I haven't been able to set up the individual podcasts for the individual
[04:57.380 --> 04:58.380]  shows.
[04:58.380 --> 04:59.380]  I apologize.
[04:59.380 --> 05:00.380]  I just haven't had time.
[05:00.380 --> 05:07.060]  It's a bit complex to set up separate podcasts out of categories from one particular blog
[05:07.060 --> 05:09.260]  and the archive page is a blog.
[05:09.260 --> 05:17.180]  So I've done it, and now folks out there, you can subscribe to podcasts of each individual
[05:17.180 --> 05:18.180]  show.
[05:18.180 --> 05:22.060]  So if you just want to subscribe to our show, you can, or if you want to subscribe to all
[05:22.060 --> 05:27.620]  of the shows, you can subscribe by the network feed or the shows individually, Truth Exposed
[05:27.620 --> 05:32.460]  Radio, brand new show on Wednesday nights at 6 p.m., Matthew Medina and Cody Hess from
[05:32.460 --> 05:34.100]  We Are Change San Antonio.
[05:34.100 --> 05:35.700]  Those guys are doing such a great job.
[05:35.700 --> 05:37.860]  They just started a few weeks ago.
[05:37.860 --> 05:40.940]  Definitely check out their archives, check out their live show if you haven't had a chance
[05:40.940 --> 05:41.940]  yet.
[05:41.940 --> 05:46.180]  Agenda 21 Talk on Tuesday nights at 8 p.m., 8 to 10.
[05:46.180 --> 05:49.580]  They've been around for a couple of years, so you can subscribe to their podcasts, Free
[05:49.580 --> 05:57.540]  Mind Reports, James Lane, Holland Vanden Neulenhoff and Bobby Kessler, formerly Radio Free Oklahoma.
[05:57.540 --> 05:59.060]  Now they've upgraded their show.
[05:59.060 --> 06:00.500]  It's called Free Mind Report Now.
[06:00.500 --> 06:02.940]  You can get the Free Mind Report podcast.
[06:02.940 --> 06:05.900]  Of course, Tom Keiley's INN World Report Radio.
[06:05.900 --> 06:07.420]  We're so glad to have Tom on board.
[06:07.420 --> 06:09.180]  He's been with us since the beginning.
[06:09.180 --> 06:12.140]  He's been with us since back in the WTPRN days.
[06:12.140 --> 06:18.260]  He also does the radio, I mean the television side of INN World Report, and he is on Tuesdays
[06:18.260 --> 06:21.620]  and Thursdays at 6 p.m.
[06:21.620 --> 06:26.820]  And he had an excellent show tonight, so we've got his podcast set up, Axiom for Liberty,
[06:26.820 --> 06:32.900]  Kay Beach and Howard Houchin at 6 p.m. Central Time on Fridays.
[06:32.900 --> 06:34.500]  They do such a great job.
[06:34.500 --> 06:41.300]  Kay started out being a regular guest on Radio Free Oklahoma, and now she's got her own show.
[06:41.300 --> 06:47.900]  Very excellent topics that she covers, mostly dealing with biometrics and the police state
[06:47.900 --> 06:52.620]  biometric data situation and how it's just escalating on a continual basis.
[06:52.620 --> 06:57.420]  Of course, Frederick Graves' Jurisdictionary Show, and folks, everyone out there needs
[06:57.420 --> 06:58.980]  to get Jurisdictionary anyway.
[06:58.980 --> 07:05.620]  It teaches you the basics of how to function in the court system as a pro se litigant.
[07:05.620 --> 07:08.940]  And if you have an attorney, it teaches you how to keep your attorney under control so
[07:08.940 --> 07:12.900]  you don't get railroaded by your own attorney.
[07:12.900 --> 07:14.740]  So his show is on Monday nights at 6 p.m.
[07:14.740 --> 07:19.060]  He's got the Jurisdictionary podcast now, and of course, for all you libertarians out
[07:19.060 --> 07:24.460]  there and collectivists as well, you may learn a thing or two and abandon your collectivist
[07:24.460 --> 07:31.740]  ideology after listening to Gary Johnson's Live and Let Live, Sundays at 8 p.m.
[07:31.740 --> 07:35.220]  And hopefully he'll be having Michael Badnerich on again soon, because I'll tell you, all
[07:35.220 --> 07:40.900]  you collectivists out there, if you listen to Michael Badnerich, if you take his class,
[07:40.900 --> 07:51.980]  after eight hours, he will turn the most gun-grabbing, left-winged, tree-hugging hippie into a gun-toting
[07:51.980 --> 07:58.100]  gold-and-silver stash-in property rights activist libertarian, all right?
[07:58.100 --> 08:03.140]  So anyway, guys, check out, and gals, check out Live and Let Live, Gary Johnson at 8 p.m.
[08:03.140 --> 08:04.140]  He's got his podcast now.
[08:04.140 --> 08:07.780]  You can subscribe to the podcast on ruleoflawradio.com.
[08:07.780 --> 08:13.540]  When you go to the website, you'll see there's an icon and links underneath each of the host
[08:13.540 --> 08:17.620]  shows right there at the top of the page and also on their bios.
[08:17.620 --> 08:18.940]  So folks, check out the podcast.
[08:18.940 --> 08:21.540]  You can get it on iTunes.
[08:21.540 --> 08:27.660]  We have the podcast for our show, Rule of Law, has just been accepted in the iTunes
[08:27.660 --> 08:29.460]  store today.
[08:29.460 --> 08:35.140]  It should be searchable in the iTunes store within a couple of days, and I will be submitting
[08:35.140 --> 08:40.420]  all the rest of the podcast for the rest of the shows on this network to the iTunes store
[08:40.420 --> 08:41.420]  as well.
[08:41.420 --> 08:45.340]  So hopefully within a week or so, you will be able to get all the podcasts actually in
[08:45.340 --> 08:49.780]  the store of iTunes, but it doesn't need to be there in order to listen to it on iTunes.
[08:49.780 --> 08:53.940]  You can just click on the subscription button and put it straight into iTunes.
[08:53.940 --> 08:57.820]  All right, so that's the announcements about the brand-new podcast.
[08:57.820 --> 09:03.940]  We're always trying to upgrade here at Rule of Law Radio for your listening pleasure and
[09:03.940 --> 09:05.500]  your information.
[09:05.500 --> 09:06.780]  This is about you, the listeners.
[09:06.780 --> 09:10.540]  All right, Randy, please introduce our guest, and let's get down to business.
[09:10.540 --> 09:17.500]  All right, I was in Albany, New York a while back, and I was introduced to Erin Vestal.
[09:17.500 --> 09:23.900]  She's an attorney that primarily helps people with real estate issues, and she's come on
[09:23.900 --> 09:30.580]  the show tonight to talk about a case that she's working on, and as she is not primarily
[09:30.580 --> 09:39.860]  a litigation attorney, she wanted to discuss with Eddie and I and Debra possible ways of
[09:39.860 --> 09:44.300]  dealing with what a lender has done to one of her clients.
[09:44.300 --> 09:45.300]  Erin?
[09:45.300 --> 09:46.300]  Yes?
[09:46.300 --> 09:57.420]  Will you kind of give us just a brief introduction to who you are and what you do, and then give
[09:57.420 --> 09:59.300]  us a rundown on the situation?
[09:59.300 --> 10:04.860]  All right, well, as you mentioned, I am an attorney in New York.
[10:04.860 --> 10:11.380]  I am a sole practitioner and owner of my law firm called Vestal Law.
[10:11.380 --> 10:18.220]  I have been doing real estate law now for five years, primarily residential real estate.
[10:18.220 --> 10:25.140]  I do private representation as well as lender representation and title insurance.
[10:25.140 --> 10:32.900]  Now, in New York State, an attorney can represent both a borrower and the lender at the same
[10:32.900 --> 10:33.900]  time.
[10:33.900 --> 10:37.100]  They're considered to have joint interests.
[10:37.100 --> 10:40.820]  There's no conflict of interest in this case, and so that's primarily what I do.
[10:40.820 --> 10:42.380]  I do closings.
[10:42.380 --> 10:44.540]  I'm considered a closing attorney.
[10:44.540 --> 10:51.580]  I represent borrowers, banks, and I also do private seller representation or buyer representation,
[10:51.580 --> 10:58.620]  and then I also provide the title insurance, and ultimately, how I came into this situation
[10:58.620 --> 11:04.900]  I'm going to be discussing tonight was over the summer, I started to look into ways in
[11:04.900 --> 11:10.620]  which I could help my clients save money on their closing costs.
[11:10.620 --> 11:18.060]  One way was to reach out to some mortgage lenders to see about negotiating the terms
[11:18.060 --> 11:22.020]  of mortgages on behalf of my clients.
[11:22.020 --> 11:29.180]  With my ability to do that, I would be able to cut attorney fees and keep title insurance
[11:29.180 --> 11:34.460]  at premium costs instead of adding on a lot of costs, which a lot of title companies will
[11:34.460 --> 11:36.260]  do, especially in New York State.
[11:36.260 --> 11:43.540]  I should also mention in New York, only attorneys can close loans on behalf of banks.
[11:43.540 --> 11:44.820]  Title companies can't close them.
[11:44.820 --> 11:48.660]  You have to be an attorney, otherwise the bank's going to have to close themselves,
[11:48.660 --> 11:53.940]  which is how I end up doing a majority of lender representation.
[11:53.940 --> 12:04.980]  This past summer, I was introduced to my client, who I'm going to be speaking about tonight.
[12:04.980 --> 12:09.460]  He came to me looking to refinance.
[12:09.460 --> 12:12.380]  I want to say this isn't about the end of July.
[12:12.380 --> 12:18.260]  He was a borrower that had very good credit.
[12:18.260 --> 12:24.060]  He had a pristine mortgage payment history on his current mortgage.
[12:24.060 --> 12:28.100]  He had verifiable W-2 income for several years.
[12:28.100 --> 12:36.340]  He was really a slam dunk refinance candidate and had no reason to be denied under any circumstances.
[12:36.340 --> 12:45.420]  I referred my client to this mortgage bank that I had begun discussing future business
[12:45.420 --> 12:49.700]  with.
[12:49.700 --> 12:58.620]  I submitted all the loan application, all the documents, and was immediately given a
[12:58.620 --> 13:07.100]  loan officer and a processor that was assigned to handle this file.
[13:07.100 --> 13:12.740]  In the very beginning, as I'm sure you know, after the loan application is submitted, there
[13:12.740 --> 13:22.500]  are disclosures that are given to borrowers, one in particular being the good faith estimate.
[13:22.500 --> 13:30.980]  On this good faith estimate, our loan officer failed to disclose the mortgage tax that borrowers
[13:30.980 --> 13:34.180]  pay in New York State.
[13:34.180 --> 13:35.540]  It's also called transfer tax.
[13:35.540 --> 13:40.340]  If you look on the standard good faith estimates, it's called transfer tax.
[13:40.340 --> 13:42.220]  In New York State, they call it mortgage tax.
[13:42.220 --> 13:46.700]  It's usually 1% of the mortgage amount.
[13:46.700 --> 13:53.740]  On the good faith estimate, my loan officer quoted $0 for the mortgage tax, and this is
[13:53.740 --> 14:00.420]  something that has to be paid or the mortgage will not be recorded.
[14:00.420 --> 14:07.700]  I immediately pointed this out, to which the bank acknowledged that it was their mistake,
[14:07.700 --> 14:15.620]  and per RESPA, mortgage tax or transfer tax is part of the 0% tolerance, meaning whatever
[14:15.620 --> 14:20.380]  is disclosed on the good faith estimate is what has to appear on the HUD-1 and what is
[14:20.380 --> 14:21.700]  going to be charged to the borrower.
[14:21.700 --> 14:23.580]  There is a 0% tolerance.
[14:23.580 --> 14:29.260]  It cannot go up even a penny, meaning someone is going to have to pay this mortgage tax.
[14:29.260 --> 14:32.500]  Since the bank failed to disclose it, this is on them.
[14:32.500 --> 14:37.420]  They are now obligated to pay this mortgage tax, which would be 1% of the borrower's loan
[14:37.420 --> 14:43.420]  amount.
[14:43.420 --> 14:53.340]  After that, we had a processor that was assigned to handle all of the documents and whatnot.
[14:53.340 --> 14:57.700]  After pointing out the errors on the good faith estimate, I didn't hear from the lender
[14:57.700 --> 15:00.040]  for a while.
[15:00.040 --> 15:05.380]  All of a sudden, I hear that the file has been transferred to a new processor, that
[15:05.380 --> 15:11.440]  our first processor had been overworked, couldn't handle her workload, and now a new processor
[15:11.440 --> 15:13.540]  was being assigned.
[15:13.540 --> 15:16.740]  So okay, no problem.
[15:16.740 --> 15:23.620]  Contact the new processor, processor number two, and she informs me that I have to resubmit
[15:23.620 --> 15:27.980]  all of the documents I had already submitted on behalf of my borrower.
[15:27.980 --> 15:33.420]  I mean particularly financial information, bank statements, all of the documentation
[15:33.420 --> 15:35.940]  that's needed for mortgage approval.
[15:35.940 --> 15:40.220]  All of that had already been submitted with the first processor, and now after several
[15:40.220 --> 15:45.300]  weeks I'm resubmitting the same things to processor number two.
[15:45.300 --> 15:51.900]  With processor number two, we have I don't know whether she also was overworked or whether
[15:51.900 --> 16:01.600]  she was just disorganized, but processor number two makes me resubmit the same documents over
[16:01.600 --> 16:08.060]  and over, claiming to not have received emails from me, claiming to have lost a particular
[16:08.060 --> 16:13.060]  document that I had already sent on more than one occasion.
[16:13.060 --> 16:19.460]  And now from July, we're now into the end of September, and one thing I really need
[16:19.460 --> 16:25.900]  to mention, which is crucial to this point, is my client, the sole purpose for this refinance
[16:25.900 --> 16:35.820]  was his current mortgage was set to balloon at the end of September, and that was why
[16:35.820 --> 16:40.740]  he came to me, and that is why he was starting to do this refinance, and that's why I sent
[16:40.740 --> 16:41.740]  to this bank.
[16:41.740 --> 16:47.420]  Okay, when we get to music, we have about 30 seconds before we go to break.
[16:47.420 --> 16:53.860]  This is Randy Kelton, Debra Stevens, Eddie Craig, with our special guest Aaron Vestal.
[16:53.860 --> 17:02.180]  We'll be back shortly on the other side.
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[20:18.220 --> 20:24.220]  Okay, well, when I left off, I was just explaining that my borrower's original mortgage was set
[20:24.220 --> 20:29.220]  to balloon, meaning the whole balance was going to be due and payable at the end of
[20:29.220 --> 20:30.220]  September.
[20:30.220 --> 20:33.580]  And keep in mind, I submitted all of these documents in this application at the end of
[20:33.580 --> 20:36.940]  July, early August.
[20:36.940 --> 20:44.220]  And just from the one processor and my loan officer's mistake, it took two months.
[20:44.220 --> 20:50.780]  Now we're at processor number two, who has, again, failed to have the organizational skills
[20:50.780 --> 20:57.580]  necessary to be a loan processor and to assist myself and my client at reaching the goal
[20:57.580 --> 21:04.060]  of closing on this refinance.
[21:04.060 --> 21:08.900]  Next step for me was to complain to the director of operations after this processor number
[21:08.900 --> 21:20.480]  two had had this file for several weeks with the same request and the same disorganization.
[21:20.480 --> 21:26.780]  The director of operations was aware that she had been somewhat slow and had agreed
[21:26.780 --> 21:29.660]  to step in and assist.
[21:29.660 --> 21:35.660]  She claimed she was going to take a look at the file and make sure that everything got
[21:35.660 --> 21:43.220]  done and that she would do everything she could to get us to a clear to close.
[21:43.220 --> 21:49.180]  Then after that, I get an email stating that a third processor has been assigned to my
[21:49.180 --> 21:53.500]  file, processor number three.
[21:53.500 --> 21:58.820]  And again, I now have to resubmit the entire file.
[21:58.820 --> 22:04.500]  Now we're getting into the end of October, early November, and my client's mortgage has
[22:04.500 --> 22:07.580]  already ballooned.
[22:07.580 --> 22:10.340]  When he started this process, it hadn't ballooned yet.
[22:10.340 --> 22:16.220]  He had two months before it was going to balloon, and we even had cooperation from his current
[22:16.220 --> 22:17.220]  mortgage lender.
[22:17.220 --> 22:21.700]  They had cooperation that they understood he was trying to refinance, so they were going
[22:21.700 --> 22:27.500]  to give him some time, but inevitably it ballooned.
[22:27.500 --> 22:35.180]  Now with processor number three, I'm explaining every day the importance that this has to
[22:35.180 --> 22:36.620]  close.
[22:36.620 --> 22:42.660]  In the meantime, because the current mortgage ballooned, his credit is now showing mortgage
[22:42.660 --> 22:44.580]  late.
[22:44.580 --> 22:49.420]  Even though he's continued to make monthly payments, because it ballooned and he didn't
[22:49.420 --> 22:52.540]  pay the full balance, it still counts against him.
[22:52.540 --> 22:54.700]  It counts as a mortgage late.
[22:54.700 --> 22:59.420]  So even though he's paying exactly what he should be paying on a monthly basis just to
[22:59.420 --> 23:08.020]  show good faith, it is still not enough, and now his credit is suffering.
[23:08.020 --> 23:13.940]  I spoke to the director of operations personally about this, explained to her, look, you know,
[23:13.940 --> 23:15.800]  you have to do something about this.
[23:15.800 --> 23:16.900]  We need to close.
[23:16.900 --> 23:19.580]  You've had everything you need for months.
[23:19.580 --> 23:26.940]  This was a garden variety simple refinance that has turned into a complete cluster.
[23:26.940 --> 23:30.900]  And again, she assured me that she would get me a clear to close.
[23:30.900 --> 23:37.420]  And I heard the same thing over and over, by the end of today, by the end of today.
[23:37.420 --> 23:40.780]  And I would never hear from her, and I would not hear from her for days.
[23:40.780 --> 23:47.260]  And then I would get a request for yet another document.
[23:47.260 --> 23:50.780]  And that would be the explanation as to why it wasn't clear to close.
[23:50.780 --> 23:55.260]  A document that could have been requested at the very beginning, back in August, something
[23:55.260 --> 24:00.900]  that I could have easily grabbed and put together, instead, at the last minute, I'm driving an
[24:00.900 --> 24:08.900]  hour to a county clerk's office to pick up this document that they said will completely
[24:08.900 --> 24:11.260]  clear the file to close.
[24:11.260 --> 24:18.260]  So I jumped through that hoop for them, and submitted to processor number three.
[24:18.260 --> 24:21.500]  And now we're into mid to end November.
[24:21.500 --> 24:28.580]  And I get the final word that this lender will not issue a clear to close, because they
[24:28.580 --> 24:34.980]  took a look at my client's credit, and his mortgage ballooned, and he now has three mortgage
[24:34.980 --> 24:43.180]  lathes, therefore, he no longer qualifies for this refinance, and they refuse to close.
[24:43.180 --> 24:47.900]  Now my client's credit has been severely impacted.
[24:47.900 --> 24:55.980]  His mortgage has ballooned, he's now 90 days late, and faces possible foreclosure.
[24:55.980 --> 25:01.100]  And here I am with some tools at my disposal.
[25:01.100 --> 25:08.140]  Now I did, my client and I are filing complaints with New York State Banking Department.
[25:08.140 --> 25:14.540]  But other than that, I'm not quite sure what other legal remedies are available.
[25:14.540 --> 25:31.580]  I think that's your cue, Randy.
[25:31.580 --> 25:32.580]  I guess we're here alone.
[25:32.580 --> 25:33.580]  Nope, I'm here, so.
[25:33.580 --> 25:39.460]  That's what I'm saying, I guess we're here alone.
[25:39.460 --> 25:44.660]  Turn on your mute button, Randy.
[25:44.660 --> 25:46.900]  Okay, I'm not sure what's going on, I just got a beep.
[25:46.900 --> 25:47.900]  Did we beep out?
[25:47.900 --> 25:48.900]  No, go ahead.
[25:48.900 --> 25:49.900]  Oh, okay.
[25:49.900 --> 25:50.900]  Okay.
[25:50.900 --> 25:53.300]  Start out with fraud by non-disclosure.
[25:53.300 --> 26:00.620]  It appears as though the bank deliberately drug its feet in order to keep from having
[26:00.620 --> 26:06.620]  to pay that transfer fee that they failed to disclose.
[26:06.620 --> 26:08.620]  And that's exactly, you know, I pointed that out.
[26:08.620 --> 26:13.180]  You know, I wrote a very long email to the director of operations as well as other representatives
[26:13.180 --> 26:18.220]  of this company, and I pointed out to them, and it is my belief that they are looking
[26:18.220 --> 26:23.380]  for any excuse possible not to close this loan because they don't want to pay the mortgage
[26:23.380 --> 26:24.380]  tax.
[26:24.380 --> 26:26.940]  And if they don't pay the mortgage tax, they risk violating respite.
[26:26.940 --> 26:27.940]  Okay.
[26:27.940 --> 26:33.540]  They know that, you know, if they don't pay it, it can't possibly close.
[26:33.540 --> 26:44.340]  Okay, when a litigant makes a proactive statement of fact to the plaintiff, they have a duty
[26:44.340 --> 26:46.020]  to give full disclosure.
[26:46.020 --> 26:51.060]  If they stand their mute and say nothing, they have no, they've invoked no duty.
[26:51.060 --> 27:00.020]  But when they open their mouth and say, oh yeah, we can give you a loan, and these are
[27:00.020 --> 27:06.940]  the conditions precedent for the loan, they've given partial disclosure, and they're required
[27:06.940 --> 27:11.220]  to give full disclosure, even if it's harmful to them.
[27:11.220 --> 27:20.940]  And they cannot practice self-dealing, but let me go through cause of action for fraud
[27:20.940 --> 27:21.940]  by nondisclosure.
[27:21.940 --> 27:27.700]  The defendant concealed from or failed to disclose certain facts to the plaintiff.
[27:27.700 --> 27:36.500]  The fact that the bank would not grant the loan because they had made a mistake and didn't
[27:36.500 --> 27:38.940]  want to have to pay that fee.
[27:38.940 --> 27:44.900]  They didn't disclose that to the lender or the lender could have went to someone else.
[27:44.900 --> 27:49.140]  The defendant had a duty to disclose the facts to the plaintiff.
[27:49.140 --> 27:52.280]  These were facts that were material.
[27:52.280 --> 27:58.100]  The fact that the lender had no intention of granting the loan was very material.
[27:58.100 --> 28:02.540]  And that's the third one, the facts were material.
[28:02.540 --> 28:08.460]  The defendant knew the plaintiff was ignorant of the facts and the plaintiff did not have
[28:08.460 --> 28:12.140]  an equal opportunity to discover the facts.
[28:12.140 --> 28:18.060]  The plaintiff absolutely had no way to discover that everything the bank was saying to them
[28:18.060 --> 28:20.100]  was a lie.
[28:20.100 --> 28:26.220]  The defendant was deliberately silent when it had a duty to speak.
[28:26.220 --> 28:31.900]  The bank clearly intended not to make the loan and was deliberately silent about the
[28:31.900 --> 28:34.500]  fact that they did not intend to make the loan.
[28:34.500 --> 28:39.500]  By failing to disclose the facts, the defendant intended to induce the plaintiff to take some
[28:39.500 --> 28:43.800]  action or refrain from taking action.
[28:43.800 --> 28:51.620]  And one of the things they induced the plaintiff to refrain from doing was seeking financing
[28:51.620 --> 28:52.620]  elsewhere.
[28:52.620 --> 28:53.620]  Absolutely.
[28:53.620 --> 28:59.580]  I feel like all of this could have been avoided had they just been up front in the very beginning.
[28:59.580 --> 29:00.580]  It wouldn't have been too late.
[29:00.580 --> 29:06.260]  We could have gone to a different mortgage lender and tried to save this before his credit
[29:06.260 --> 29:07.260]  was destroyed.
[29:07.260 --> 29:17.700]  I think we had a low-level technocrat that didn't want this mark on his history that
[29:17.700 --> 29:23.060]  one of his people made this mistake and he didn't properly supervise and he was trying
[29:23.060 --> 29:27.860]  to avoid that and he was willing to screw your client to do it.
[29:27.860 --> 29:28.860]  Absolutely.
[29:28.860 --> 29:35.260]  I mean that is my belief on this because I mean seriously how many, is it really necessary
[29:35.260 --> 29:39.180]  for three different processors to go through this?
[29:39.180 --> 29:42.460]  I just, so many unnecessary delays for no reason at all.
[29:42.460 --> 29:51.580]  Okay, when we come back from break, I'm going to talk about loss of credit and benefit of
[29:51.580 --> 29:52.580]  the bargain.
[29:52.580 --> 30:00.540]  Okay, it's Randy Kelton, Deborah Stevens, Eddie Craig, WeLawRadio, we'll be right back.
[30:00.540 --> 30:29.100]  We'll be right back.
[31:31.540 --> 31:54.980]  I'm Dr. Catherine Albrecht.
[31:54.980 --> 32:01.980]  More news and information at CatherineAlbrecht.com.
[32:24.980 --> 32:52.980]  Okay, we are back.
[32:52.980 --> 33:00.580]  Randy Kelton, Deborah Stevens, Eddie Craig, WeLawRadio with our very special guest Erin
[33:00.580 --> 33:06.140]  Vestal and I just want to tell you people she's not just another pretty face.
[33:06.140 --> 33:10.700]  I'll tell you for a fact, she's a very pretty face.
[33:10.700 --> 33:11.700]  Thanks, Randy.
[33:11.700 --> 33:12.700]  You're welcome.
[33:12.700 --> 33:21.980]  Okay, fraud by non-disclosure, this is right out of the book, fraud by non-disclosure.
[33:21.980 --> 33:28.860]  And primarily when I do the suits, nobody wants to go to court.
[33:28.860 --> 33:31.700]  Nobody wants to get in front of a jury.
[33:31.700 --> 33:33.580]  Courts are corrupt.
[33:33.580 --> 33:35.560]  It's always a crap shoot.
[33:35.560 --> 33:39.580]  So we build the best case we can against the lender.
[33:39.580 --> 33:44.980]  And I specialize in telling stories.
[33:44.980 --> 33:50.340]  So we make up the story that sounds the best for our side.
[33:50.340 --> 34:00.700]  This bank made a blunder and they didn't want to pursue the note and have to pay this one
[34:00.700 --> 34:09.020]  percent transfer tax that they forgot to put on the good faith estimate.
[34:09.020 --> 34:14.060]  So instead of just coming to you and saying, look, we made a major mistake.
[34:14.060 --> 34:17.620]  If we do this loan, it's going to cost us all this money.
[34:17.620 --> 34:21.780]  We'd rather you went to someone else.
[34:21.780 --> 34:27.540]  And the only reason I figure they did that is some manager failed to do his job and he's
[34:27.540 --> 34:32.140]  going to have to explain to the bank why he lost this big loan.
[34:32.140 --> 34:38.020]  Because right now it's got to be hard to get loans through the banks because so many people
[34:38.020 --> 34:39.060]  are in trouble.
[34:39.060 --> 34:45.540]  He gets a good productive loan and he's going to have to explain why they weren't able to
[34:45.540 --> 34:48.380]  process it.
[34:48.380 --> 34:51.220]  So instead he drags his feet.
[34:51.220 --> 34:54.900]  Now when he goes before the board and explains why they didn't do the loan, oh well, he had
[34:54.900 --> 34:57.260]  a credit problem.
[34:57.260 --> 35:01.100]  I'm sure he's not going to tell his board that he had the credit problem because we
[35:01.100 --> 35:05.380]  drug our feet and forced him into credit problem.
[35:05.380 --> 35:10.060]  Because we didn't tell him that we had no intention of doing that loan.
[35:10.060 --> 35:19.260]  And once they did that, they induced your client to trust in the statements that they
[35:19.260 --> 35:24.420]  were making to you that they were fully intended to close the loan.
[35:24.420 --> 35:25.420]  Absolutely.
[35:25.420 --> 35:29.820]  Everything they said indicated that they were going to close this loan.
[35:29.820 --> 35:35.000]  So this prevented your client from going to another source and securing the loan which
[35:35.000 --> 35:37.260]  would have been a simple matter.
[35:37.260 --> 35:38.260]  Yes.
[35:38.260 --> 35:45.060]  Voluntary disclosure under, I'm looking at O'Connor's Texas litigation guides.
[35:45.060 --> 35:50.900]  This is Texas Causes of Action and I like O'Connor's.
[35:50.900 --> 35:55.180]  They go through everything and I'll kind of give you an idea.
[35:55.180 --> 36:01.700]  Voluntary disclosure, the defendant has a duty to disclose the whole truth when it voluntarily
[36:01.700 --> 36:04.460]  discloses some information.
[36:04.460 --> 36:11.620]  Billy Boy V enters, oh he reads the citations, a whole stack of them.
[36:11.620 --> 36:15.500]  Material information, to prove an action for fraud by nondisclosure, the plaintiff must
[36:15.500 --> 36:19.900]  establish the facts the defendant concealed were material.
[36:19.900 --> 36:23.340]  And I don't think that is going to be a problem.
[36:23.340 --> 36:27.380]  Defendant's knowledge, to prove an action for fraud by nondisclosure, the plaintiff
[36:27.380 --> 36:33.700]  must establish the defendant knew the plaintiff was ignorant of the facts and did not have
[36:33.700 --> 36:37.260]  equal opportunity to discover the truth.
[36:37.260 --> 36:41.820]  And I think that's going to be a foregone conclusion.
[36:41.820 --> 36:46.420]  Deliberant silence, to prove an action for fraud by nondisclosure, the plaintiff must
[36:46.420 --> 36:52.020]  establish the defendant was deliberately silent when it had a duty to speak.
[36:52.020 --> 36:57.700]  I think this is the one that says, I won't read the whole thing, but it says when they
[36:57.700 --> 37:04.260]  give partial disclosure that invokes the duty on them to give full disclosure.
[37:04.260 --> 37:07.980]  Defendant's intent, to prove an action for fraud by nondisclosure, the plaintiff must
[37:07.980 --> 37:15.780]  establish the defendant intended the plaintiff to rely on the omissions or concealment.
[37:15.780 --> 37:20.500]  And I think this one will be very easy, to prove an action for fraud by nondisclosure,
[37:20.500 --> 37:26.420]  the plaintiff must establish it relied on the omission or concealment.
[37:26.420 --> 37:31.660]  You easily meet all of the requirements of fraud by nondisclosure.
[37:31.660 --> 37:43.300]  And now the claim we can make, primarily in this one, is loss of credit.
[37:43.300 --> 37:44.300]  And possibly loss of home.
[37:44.300 --> 37:48.060]  I mean, this is his primary residence that we're talking about.
[37:48.060 --> 37:56.900]  He can claim the full amount of the loan that you attempted to get because he was a very
[37:56.900 --> 37:58.980]  good credit candidate.
[37:58.980 --> 38:01.620]  He could have easily gotten this loan somewhere else.
[38:01.620 --> 38:05.420]  So this goes to benefit of the bargain damages.
[38:05.420 --> 38:09.420]  The plaintiff can recover benefit of the bargain damages.
[38:09.420 --> 38:15.700]  Benefit of the bargain damages are designed to place the injured party in the same economic
[38:15.700 --> 38:20.900]  position that it would have occupied if the breaching party had performed.
[38:20.900 --> 38:25.580]  The party may recover benefit of the bargain damages for breach of contract, breach of
[38:25.580 --> 38:32.500]  warranty, common law fraud, and violations of DTP Africa, what that one is.
[38:32.500 --> 38:36.380]  But here we can claim common law fraud as well.
[38:36.380 --> 38:43.700]  Because they fully intended to defraud the client and deny him opportunity to take his
[38:43.700 --> 38:48.980]  loan to his business somewhere else.
[38:48.980 --> 38:55.420]  And then we can sue, we can't sue for breach of contract, we didn't get there, or perhaps.
[38:55.420 --> 39:07.340]  What duty does the lender have to the borrower once the borrower submits a loan application?
[39:07.340 --> 39:09.100]  They have full duty of disclosure.
[39:09.100 --> 39:15.260]  I mean, at this point, they have every piece of financial information on this guy, all
[39:15.260 --> 39:17.060]  of his credit information.
[39:17.060 --> 39:22.060]  And now they also have the authority to do exactly what they did.
[39:22.060 --> 39:34.700]  Is there a implied, either a specific or implied contractual arrangement that is created when
[39:34.700 --> 39:40.900]  a lender files an application with the, I mean, a borrower files with the lender?
[39:40.900 --> 39:48.580]  I think only in the case where the borrower meets all of the criteria for mortgage approval.
[39:48.580 --> 39:54.140]  You know, banks give out guidelines, lending guidelines, and a list of everything that,
[39:54.140 --> 39:57.900]  you know, all the criteria that has to be met in order for them to get mortgage commitment.
[39:57.900 --> 40:02.500]  And even when they issue mortgage commitment, a lot of times it's conditional commitment.
[40:02.500 --> 40:09.020]  It's conditional upon, you know, various stipulations and documents that need to be submitted.
[40:09.020 --> 40:11.860]  And all of those were met in this case.
[40:11.860 --> 40:14.180]  I have a question too.
[40:14.180 --> 40:22.660]  Is there any kind of implied or specific time limit that is constrained upon the lender
[40:22.660 --> 40:25.100]  where they have to give an answer within a certain period of time?
[40:25.100 --> 40:26.980]  Is there any case law on that?
[40:26.980 --> 40:31.900]  I don't, that I don't know, but I do know just from my experience because this is where
[40:31.900 --> 40:37.500]  I close loans all the time and I see things from beginning to end and a refinance should
[40:37.500 --> 40:38.500]  take a month.
[40:38.500 --> 40:39.500]  Right.
[40:39.500 --> 40:40.900]  That's usually the time frame for a refinance.
[40:40.900 --> 40:48.660]  Maybe if the lender is backed up, it could take at most two months, but, you know, for
[40:48.660 --> 40:56.380]  purchases, those, you know, purchases, the timeline is guided by the contract.
[40:56.380 --> 41:00.660]  So the lenders, you know, but even then, you know, even when you have a purchase contract
[41:00.660 --> 41:06.580]  and it says that the closing date needs to be on or before December 15th, lenders pay
[41:06.580 --> 41:07.660]  no attention to that.
[41:07.660 --> 41:09.260]  They are on their own timeline.
[41:09.260 --> 41:15.060]  So I want to say no, but there are no, you know, there is no case law or anything on
[41:15.060 --> 41:19.260]  timelines for the lenders because I see it time and time again, the lenders close on
[41:19.260 --> 41:20.260]  their own schedule.
[41:20.260 --> 41:21.260]  Okay.
[41:21.260 --> 41:26.420]  Also, I was just going to let you know the equivalent to O'Connor's in New York is Siegel's
[41:26.420 --> 41:27.420]  litigation guide.
[41:27.420 --> 41:28.420]  Yep.
[41:28.420 --> 41:30.420]  And I took Mr. Siegel's class.
[41:30.420 --> 41:31.420]  Okay.
[41:31.420 --> 41:32.420]  In law school.
[41:32.420 --> 41:33.420]  Okay.
[41:33.420 --> 41:40.020]  The next thing is loss of credit and this is in the business section.
[41:40.020 --> 41:41.020]  Okay.
[41:41.020 --> 41:42.020]  Okay.
[41:42.020 --> 41:46.260]  Loss of credit is sometimes referred to as damage to credit reputation.
[41:46.260 --> 41:47.260]  Measuring loss of credit.
[41:47.260 --> 41:52.820]  The loss of credit is measured by the diminished ability of a person or business to borrow
[41:52.820 --> 41:56.940]  money or to obtain goods on time.
[41:56.940 --> 42:01.260]  Proving loss of credit, damage or loss of credit are special consequential damages and
[42:01.260 --> 42:04.540]  must be specifically pleaded.
[42:04.540 --> 42:05.540]  Proving loss of credit.
[42:05.540 --> 42:10.100]  A plaintiff can recover damages for loss of credit if the plaintiff proves the loss was
[42:10.100 --> 42:15.860]  a natural probable and foreseeable consequence of the defendant's conduct.
[42:15.860 --> 42:23.460]  And in your claim, you can maintain that it was the conscious deliberate intent of the
[42:23.460 --> 42:30.940]  lender to create a loss of credit so that they could justify to their corporate a reason
[42:30.940 --> 42:34.580]  for not making a viable loan.
[42:34.580 --> 42:36.620]  Yeah.
[42:36.620 --> 42:41.700]  I think they specifically dragged this out knowing the loan was going to balloon so that
[42:41.700 --> 42:45.260]  they could turn around and say, hey look, you've got mortgage rates on your credit,
[42:45.260 --> 42:48.540]  your loan ballooned, you don't qualify for this loan.
[42:48.540 --> 42:49.540]  Sorry.
[42:49.540 --> 42:50.540]  Good luck.
[42:50.540 --> 42:52.060]  I have a question about that too.
[42:52.060 --> 42:56.740]  That obviously looks like what happened, but why would the bank want to do that?
[42:56.740 --> 42:59.500]  I mean, wouldn't they want to close the loan?
[42:59.500 --> 43:01.340]  Wouldn't they want the business and make money?
[43:01.340 --> 43:02.340]  Why?
[43:02.340 --> 43:05.900]  They didn't want to pay out of pocket the mortgage tax.
[43:05.900 --> 43:07.220]  You got a guy down here on the bottom.
[43:07.220 --> 43:08.220]  What do you mean the mortgage tax?
[43:08.220 --> 43:09.220]  What is that?
[43:09.220 --> 43:10.220]  It's transfer.
[43:10.220 --> 43:11.220]  It's also called transfer tax.
[43:11.220 --> 43:19.260]  If you look at a good faith estimate, in New York state, all borrowers pay a mortgage tax
[43:19.260 --> 43:24.260]  and it's usually, it depends on the county that the property is in, but it's usually
[43:24.260 --> 43:25.820]  1%.
[43:25.820 --> 43:31.580]  Some counties will only charge three quarters of a percent, but by and large it's 1% of
[43:31.580 --> 43:36.380]  the loan amount and that is mortgage tax the borrower has to pay and it's also a fee that's
[43:36.380 --> 43:37.380]  on the good faith estimate.
[43:37.380 --> 43:39.780]  It's on every good faith estimate in New York state.
[43:39.780 --> 43:44.740]  So do these borrowers just turn down every application that comes to them because of
[43:44.740 --> 43:45.740]  this?
[43:45.740 --> 43:46.740]  No.
[43:46.740 --> 43:48.220]  It's because banks are always disclosed it.
[43:48.220 --> 43:53.180]  I mean, if you're a New York mortgage lender, you know that in New York state, the borrower
[43:53.180 --> 43:56.260]  has to pay mortgage tax and that it's part of that 0% policy.
[43:56.260 --> 43:57.260]  All right.
[43:57.260 --> 43:58.260]  We'll be right back.
[43:58.260 --> 43:59.260]  We'll be right back.
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[46:17.460 --> 46:19.580]  Okay folks, we're back.
[46:19.580 --> 46:26.900]  We're going to continue this analysis here about why did this happen after all because
[46:26.900 --> 46:32.120]  I mean the guy had great credit, all the papers were in order, this should have been a slam
[46:32.120 --> 46:39.140]  dunk easy refinance and it's turned into a total nightmare and so now it looks like what's
[46:39.140 --> 46:47.300]  coming out, the reason is that on the original disclosure by the lender, they messed up.
[46:47.300 --> 46:54.260]  They forgot to include the information that the borrower would have to pay this mortgage
[46:54.260 --> 47:01.900]  tax and what Erin was telling me on the break is that once they issue a disclosure, they
[47:01.900 --> 47:02.900]  can't re-disclose.
[47:02.900 --> 47:07.940]  They can't go back and tell the prospective borrower, oh wait, never mind, we're going
[47:07.940 --> 47:14.100]  to give you an amended disclosure so to speak, like you can amend the petition for a lawsuit.
[47:14.100 --> 47:15.100]  It doesn't work like that.
[47:15.100 --> 47:21.620]  Once they've made a disclosure, that's it and so they forgot to put the disclosure on
[47:21.620 --> 47:27.500]  there about the borrower having to pay this mortgage tax and so because of that, the lender
[47:27.500 --> 47:32.060]  would have had to pay the mortgage tax which is what, like 1% of the loan?
[47:32.060 --> 47:33.300]  Yes, 1% of the loan.
[47:33.300 --> 47:35.860]  Okay, which is a substantial amount of money.
[47:35.860 --> 47:44.020]  Now in the face of the amount of interest that they would be profiting on by this refinance,
[47:44.020 --> 47:51.780]  somehow I doubt that the mortgage tax would cut into the overall profit scheme very much
[47:51.780 --> 47:55.260]  but these people are just, that's why I call them the banksters.
[47:55.260 --> 47:57.380]  They are total banksters.
[47:57.380 --> 48:02.140]  They should have just eaten it and made and they still would have made a ton of profit
[48:02.140 --> 48:05.220]  off of this refinance but no, they had to get greedy.
[48:05.220 --> 48:09.500]  Wait a minute, the president of the bank probably would have or the mortgage company, he probably
[48:09.500 --> 48:10.500]  would have.
[48:10.500 --> 48:18.620]  But then he would have went to the manager and said, this is your fault.
[48:18.620 --> 48:21.780]  You were supposed to make sure this didn't happen.
[48:21.780 --> 48:22.780]  Right.
[48:22.780 --> 48:28.420]  So he got some chump low-level manager afraid he's going to get in trouble with his boss
[48:28.420 --> 48:34.700]  and rather than get in trouble with his boss, he will screw one of the boss's clients and
[48:34.700 --> 48:39.700]  it sounds like just a reactionary thing.
[48:39.700 --> 48:44.580]  We stall him off and then all of a sudden he's got bad marks on a credit.
[48:44.580 --> 48:49.980]  Now I don't have to go to explain to my bosses why I couldn't write this very profitable
[48:49.980 --> 48:50.980]  note.
[48:50.980 --> 48:55.660]  No, but he is going to have to go back and explain to his bosses why the lender is getting
[48:55.660 --> 49:02.820]  sued and he may end up losing his job over this anyway, okay, which he certainly deserves
[49:02.820 --> 49:08.900]  and that just shows how stupid these idiots are because this low-level manager couldn't
[49:08.900 --> 49:13.580]  see it coming that Aaron's client is going to go ahead and sue over this.
[49:13.580 --> 49:14.580]  I mean, what?
[49:14.580 --> 49:18.020]  You think somebody is just going to lose their house and take it lying down?
[49:18.020 --> 49:19.020]  I mean, come on.
[49:19.020 --> 49:20.660]  We're not talking chump change here.
[49:20.660 --> 49:26.140]  This guy is a retard because he's going to lose his job anyway for pulling this crap
[49:26.140 --> 49:29.820]  and he should have seen that coming and he should have just nipped it in the bud while
[49:29.820 --> 49:35.220]  he could and told his boss he made a mistake instead of risking a lawsuit against the company,
[49:35.220 --> 49:36.940]  which would certainly cause him to get fired.
[49:36.940 --> 49:37.940]  This is ridiculous.
[49:37.940 --> 49:41.420]  And it wasn't just the loan officer who failed to disclose.
[49:41.420 --> 49:47.020]  I mean, the director of operations was well aware of what was going on.
[49:47.020 --> 49:55.060]  He's the one that was probably playing CYA, covering his own behind because he didn't
[49:55.060 --> 50:00.860]  want to go to the board and explain to them why he couldn't write this profitable note
[50:00.860 --> 50:05.860]  in a time when it's extremely difficult to get viable credit candidates.
[50:05.860 --> 50:12.420]  So, yeah, exactly, and in a time when the banksters are getting more and more extreme
[50:12.420 --> 50:16.660]  about their requirements for loans, they used to be giving them away like water, but now
[50:16.660 --> 50:19.100]  you can't hardly get a loan anymore.
[50:19.100 --> 50:24.340]  And so, Randy, I was asking you on the break and maybe you could explain on the air just
[50:24.340 --> 50:28.900]  what exactly is the prayer and what exactly is the remedy that we are going to be asking
[50:28.900 --> 50:29.900]  for?
[50:29.900 --> 50:37.380]  Are you guys wanting to get a court order to order this lender to refinance after all?
[50:37.380 --> 50:41.540]  Are you going to ask for at least the amount of the balloon payment so this guy doesn't
[50:41.540 --> 50:42.540]  lose his house?
[50:42.540 --> 50:43.900]  What are you going to be asking for?
[50:43.900 --> 50:54.820]  I would suggest initially to make up a really ugly tort letter and get it to the highest
[50:54.820 --> 51:01.300]  level people in the mortgage company that you can find, or the bank if it's a bank.
[51:01.300 --> 51:05.340]  They're going to know nothing about this, and when they see it, they're going to say,
[51:05.340 --> 51:07.980]  holy crap, Ola.
[51:07.980 --> 51:15.820]  And if we go in for not only can you claim damage to credit, exemplary damages, you can
[51:15.820 --> 51:20.940]  also claim extreme emotional distress.
[51:20.940 --> 51:25.380]  So, what are you going to be asking for?
[51:25.380 --> 51:33.620]  We'll have to look at the numbers, triple the amount of the intended note, and since
[51:33.620 --> 51:37.580]  it's exemplary damage, you'll have to do a little research in New York to see what
[51:37.580 --> 51:45.220]  the standard for exemplary damages are, I mean extreme emotional distress, and see what
[51:45.220 --> 51:53.740]  those are, and then give them a nice large number to mull over, and I like to write especially
[51:53.740 --> 52:02.900]  tort letters in terms of criminal accusations because this looks like a criminal act on
[52:02.900 --> 52:09.540]  the part of this individual to defraud the lender, the borrower, in order to cover his
[52:09.540 --> 52:10.540]  own behind.
[52:10.540 --> 52:11.540]  Right.
[52:11.540 --> 52:15.500]  So, what do you think the chances are that he's going to get anything out of this suit,
[52:15.500 --> 52:19.540]  or at least, like I said, get enough to cover the balloon payment before this guy loses
[52:19.540 --> 52:20.540]  his house?
[52:20.540 --> 52:27.420]  I'm going to bet you, you file a really nasty tort letter with the bank and say, you have
[52:27.420 --> 52:31.460]  ten days, make me whole or be sued.
[52:31.460 --> 52:36.020]  I'm going to bet you, you're going to get a very hasty call from an attorney and say,
[52:36.020 --> 52:38.660]  let's make a deal.
[52:38.660 --> 52:47.460]  And odds are you're going to get this note covered, they'll make the loan, and fix your
[52:47.460 --> 52:50.060]  credit.
[52:50.060 --> 52:54.820]  You think they'll give him at least enough to make the balloon payment to save his current
[52:54.820 --> 52:58.340]  mortgage, and then he'll also get a loan for the refinance?
[52:58.340 --> 53:02.820]  It'll cost him more than the 1% just to pay their attorneys to fight this stuff.
[53:02.820 --> 53:05.100]  Exactly, this is ridiculous.
[53:05.100 --> 53:11.700]  So, I think before you sue, give them opportunity to make it right, and the courts want you
[53:11.700 --> 53:12.700]  to do that anyway.
[53:12.700 --> 53:13.700]  Well, don't you have to do that anyway?
[53:13.700 --> 53:16.460]  Isn't there a requirement in some states you have to give a tort letter and then there's
[53:16.460 --> 53:17.460]  a time limit?
[53:17.460 --> 53:19.940]  Yeah, not if you don't have time.
[53:19.940 --> 53:26.260]  Here, the client is looking at, looking disaster in the face, he doesn't have time to screw
[53:26.260 --> 53:27.260]  around.
[53:27.260 --> 53:28.260]  Right, exactly.
[53:28.260 --> 53:33.300]  So, give him ten days, make me whole or be sued, and have the suit ready.
[53:33.300 --> 53:38.380]  And what I like to do with a tort letter is make it look exactly like the lawsuit.
[53:38.380 --> 53:39.380]  Right.
[53:39.380 --> 53:42.820]  So, they have no doubt that you're coming after them because you've already got suit
[53:42.820 --> 53:48.460]  written, it just has a different heading and footing on it.
[53:48.460 --> 53:53.220]  And put that in front of them, and then if they don't come to the table, and you might
[53:53.220 --> 54:00.380]  put a notation in the tort letter that you're going to pursue pre-litigation discovery and
[54:00.380 --> 54:08.260]  you're going to want to depose these lone officers who drug their feet.
[54:08.260 --> 54:12.980]  All of the processors plus the director of operations.
[54:12.980 --> 54:13.980]  Yep.
[54:13.980 --> 54:18.060]  Here's the problem, you know, they can do all the dance around, dance around they want
[54:18.060 --> 54:24.020]  to when they're in their office, but when they're sitting in front of a court reporter
[54:24.020 --> 54:28.060]  taking down every word under oath, everything changes.
[54:28.060 --> 54:30.740]  I'm sure, Erin, you're aware of that.
[54:30.740 --> 54:31.740]  Sure.
[54:31.740 --> 54:35.820]  When you pull one of these low-level lone officers out of their office and put them
[54:35.820 --> 54:41.300]  in front of a deposition, they're liable to feed you anybody you want just to keep you
[54:41.300 --> 54:44.780]  from swallowing them.
[54:44.780 --> 54:53.300]  Like crabs in a bucket, that's an expression in the islands and on Gulf Coast regions.
[54:53.300 --> 54:56.900]  What happens when you throw a bunch of crabs in the bucket is that when one of them starts
[54:56.900 --> 55:01.460]  to climb out, then the others grab onto them and pull them back in, they're like, no, buddy,
[55:01.460 --> 55:04.020]  you're not, we're all in this together.
[55:04.020 --> 55:09.940]  Actually, I think they're probably grabbing onto the other ones to try to use as a ladder
[55:09.940 --> 55:12.540]  so that they can climb out themselves.
[55:12.540 --> 55:13.820]  That's exactly what we want.
[55:13.820 --> 55:16.860]  But what ends up happening is that they all just keep pulling each other back into the
[55:16.860 --> 55:17.860]  buckets.
[55:17.860 --> 55:27.580]  Just from looking at this, just from a corporate perspective, I have no doubt that corporate
[55:27.580 --> 55:34.500]  has no idea what these guys are pulling, and they're just hoping this guy will go away.
[55:34.500 --> 55:40.820]  When you go to the higher-ups with a lawsuit against them, and I would suggest finding
[55:40.820 --> 55:44.020]  whoever the CEO is and sue him personally.
[55:44.020 --> 55:45.020]  Okay.
[55:45.020 --> 55:50.020]  It's nothing like going after an innocent party.
[55:50.020 --> 55:51.900]  They're going to scream bloody murder.
[55:51.900 --> 55:55.220]  So they're going to sue the bank, and they're going to sue the CEO personally?
[55:55.220 --> 55:56.220]  Yes.
[55:56.220 --> 55:58.700]  We maintain this was personal.
[55:58.700 --> 56:01.740]  Would that be two separate lawsuits, or would they be co-defendants?
[56:01.740 --> 56:02.740]  Co-defendants.
[56:02.740 --> 56:03.740]  Okay.
[56:03.740 --> 56:07.340]  That'll get their attention.
[56:07.340 --> 56:10.500]  Could they sue the director of operations as well?
[56:10.500 --> 56:12.620]  Absolutely, but he's a chump.
[56:12.620 --> 56:17.360]  You want to sue the guys way up above him.
[56:17.360 --> 56:18.580]  You name them personally.
[56:18.580 --> 56:21.100]  Well, you could name them all as co-defendants, right?
[56:21.100 --> 56:22.100]  Yeah.
[56:22.100 --> 56:27.900]  When you name them, they'll probably get thrown out as individual litigants, but you don't
[56:27.900 --> 56:28.900]  care.
[56:28.900 --> 56:31.060]  Yeah, but it'll still scare the crapola out of them.
[56:31.060 --> 56:32.060]  Yes, it will.
[56:32.060 --> 56:38.220]  And they'll have to hire their own attorneys, too.
[56:38.220 --> 56:39.700]  They can't use the bank attorney.
[56:39.700 --> 56:40.700]  No.
[56:40.700 --> 56:42.700]  I'm sure they have a legal department.
[56:42.700 --> 56:48.220]  Yeah, but if you sue them personally, why would the legal department of the bank...
[56:48.220 --> 56:51.220]  Oh, yeah.
[56:51.220 --> 56:52.820]  He's a bank officer, so...
[56:52.820 --> 56:58.980]  Yeah, and they're employees of the bank, so they're being sued pretty much based on their
[56:58.980 --> 56:59.980]  official capacity.
[56:59.980 --> 57:00.980]  Right.
[57:00.980 --> 57:01.980]  Well, when it comes...
[57:01.980 --> 57:06.180]  You want the individual sued personally, so he gets served personally.
[57:06.180 --> 57:12.980]  Well, when it comes to filing lawsuits against the government and then suing public servants
[57:12.980 --> 57:17.980]  personally, they can't use the U.S. attorney as their defendant.
[57:17.980 --> 57:24.620]  The U.S. attorney can defend the government, but if you sue the public servants personally,
[57:24.620 --> 57:25.900]  they got to hire their own attorney.
[57:25.900 --> 57:30.780]  We did this in Austin on a credit card suit.
[57:30.780 --> 57:36.620]  The credit card company didn't verify the suit, and on a suit on account, they're required
[57:36.620 --> 57:37.620]  to.
[57:37.620 --> 57:44.180]  So, instead of filing a challenge to jurisdiction, we sued the judge for impersonating a public
[57:44.180 --> 57:50.540]  official, and he got the county attorney to write his suit, so we sued the county attorney
[57:50.540 --> 57:53.580]  for misappropriation of public funds.
[57:53.580 --> 57:55.580]  That was a hoot.
[57:55.580 --> 58:05.900]  Okay, we're going to open up the phone lines if anybody has any questions, but this is
[58:05.900 --> 58:10.740]  going to our... In the top of the hour breaks, it'll be a little longer than the others,
[58:10.740 --> 58:17.900]  and when we come back, we'll take some phone calls and questions, and we'll finish discussing
[58:17.900 --> 58:20.700]  some of the issues they can go after them with.
[58:20.700 --> 58:23.700]  You want to stay with us into the next hour, Erin?
[58:23.700 --> 58:24.700]  Sure.
[58:24.700 --> 58:25.700]  Fantastic.
[58:25.700 --> 58:26.700]  This is awesome.
[58:26.700 --> 58:27.700]  I love kicking the banksters' butts.
[58:27.700 --> 58:28.700]  And hey, out there, banksters out there, we want some lenders to call in.
[58:28.700 --> 58:29.700]  Tell us your side of the story.
[58:29.700 --> 58:30.700]  You know, this is an open forum for discussion.
[58:30.700 --> 58:31.700]  We don't want to be one-sided here.
[58:31.700 --> 58:32.700]  Call on in.
[58:32.700 --> 58:33.700]  Tell us your side of the story.
[58:33.700 --> 58:34.700]  Are we saying this wrong or what?
[58:34.700 --> 58:35.700]  512-646-1984.
[58:35.700 --> 58:36.700]  I want some banksters to call in.
[58:36.700 --> 58:43.700]  All right, folks, we will be right back after the top of the hour.
[58:43.700 --> 59:00.260]  INN News, coming right up.
[59:00.260 --> 59:05.700]  The Bible remains the most popular book in the world, yet countless readers are frustrated
[59:05.700 --> 59:08.500]  because they struggle to understand it.
[59:08.500 --> 59:13.900]  Some new translations try to help by simplifying the text, but in the process can compromise
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[59:53.860 --> 59:57.940]  or by ordering online at freestudybible.com.
[59:57.940 --> 59:58.940]  That's freestudybible.com.
[59:58.940 --> 01:00:04.260]  This news brief brought to you by the International Newsnet.
[01:00:04.260 --> 01:00:08.620]  The Wall Street Journal reported Wednesday the federal government has opened criminal
[01:00:08.620 --> 01:00:13.260]  investigations into 50 executives of U.S. banks that collapsed during the financial
[01:00:13.260 --> 01:00:14.260]  crisis.
[01:00:14.260 --> 01:00:23.300]  The FDIC has shut down or seized 311 banks since January 2008 at a cost of $77 billion.
[01:00:23.300 --> 01:00:28.060]  Nobel Prize-winning economist Joe Stiglitz says in order for confidence to be restored
[01:00:28.060 --> 01:00:35.180]  in the banking system, the people responsible for the financial collapse should go to prison.
[01:00:35.180 --> 01:00:40.540]  Mass protesters called for George Bush to be arrested for his role in the Iraq and Afghanistan
[01:00:40.540 --> 01:00:46.100]  wars during the groundbreaking ceremony of his presidential library in Dallas Tuesday.
[01:00:46.100 --> 01:00:50.940]  Demonstrators staked hundreds of white crosses into the ground representing troops killed
[01:00:50.940 --> 01:00:56.500]  in both wars and carried banners saying torture is illegal and arrest Bush.
[01:00:56.500 --> 01:01:03.060]  An MI5 spy will not be prosecuted in England over claims he was complicit in the torture
[01:01:03.060 --> 01:01:08.180]  of former Guantanamo detainee Binyam Mohamed, a British citizen.
[01:01:08.180 --> 01:01:14.020]  Scotland Yard had launched an inquiry after Mohamed said an employee of the MI5 spy service
[01:01:14.020 --> 01:01:20.900]  was aware of his ill treatment while he was being held in Pakistan in 2002.
[01:01:20.900 --> 01:01:27.020]  Health insurers last year gave the U.S. Chamber of Commerce $86 million to oppose health care
[01:01:27.020 --> 01:01:28.020]  reform.
[01:01:28.020 --> 01:01:32.940]  According to tax records and people familiar with the donation, the insurance lobby, which
[01:01:32.940 --> 01:01:39.380]  included Minnetonka, United Health Group and Cigna, gave the money to the chamber in 2009
[01:01:39.380 --> 01:01:44.580]  to urge Congress to drop a plan to create a competing government-run insurance plan.
[01:01:44.580 --> 01:01:49.980]  Sheila Krumholz, executive director of the Center for Responsive Politics said, quote,
[01:01:49.980 --> 01:01:56.260]  clearly secrecy was important to industry, adding $86 million is an astonishing sum.
[01:01:56.260 --> 01:02:00.340]  The spending reflected the insurers' attempts to influence the bill.
[01:02:00.340 --> 01:02:05.940]  The $86 million paid for ads, polling and grassroots events to drum up opposition to
[01:02:05.940 --> 01:02:06.940]  the bill.
[01:02:06.940 --> 01:02:15.060]  A New York jury convicted and alleged Al Qaeda bomber Wednesday on only one of 285 counts
[01:02:15.060 --> 01:02:21.220]  in the 1998 attacks on U.S. embassies in Africa that killed 224 people.
[01:02:21.220 --> 01:02:27.500]  Ahmed Kalfan Galani, a Tanzanian citizen and the first detainee to face civilian trial,
[01:02:27.500 --> 01:02:33.020]  was found guilty in Manhattan federal court of conspiracy and cleared of all other charges,
[01:02:33.020 --> 01:02:38.940]  including 284 counts of murder, stemming from the bombing of the embassies in Dar es Salaam,
[01:02:38.940 --> 01:02:41.580]  Tanzania and Nairobi, Kenya.
[01:02:41.580 --> 01:02:47.060]  Former federal prosecutor Rebecca Longerun said prosecutors faced an uphill battle in
[01:02:47.060 --> 01:02:52.260]  obtaining guilty verdicts against defendants apprehended in military operations and held
[01:02:52.260 --> 01:02:54.460]  without constitutional protections.
[01:02:54.460 --> 01:02:59.980]  For more details on this story, visit INNWorldRecord.net.
[01:02:59.980 --> 01:03:08.180]  You are listening to the Rule of Law Radio Network at RuleOfLawRadio.com, live free
[01:03:08.180 --> 01:03:15.180]  speech talk radio at its best.
[01:03:38.180 --> 01:04:05.180]  We're listening to the Rule of Law Radio Network at Rule of Law Radio.
[01:04:05.180 --> 01:04:15.260]  Okay, this is Randy Kalfan, W. Stephen Gayter Craig, Rule of Law Radio, on with Aaron Vestal.
[01:04:15.260 --> 01:04:20.220]  And when we went out, we were talking about remedies.
[01:04:20.220 --> 01:04:25.180]  That's why we, that's what we do here at Rule of Law is we, we don't just go around
[01:04:25.180 --> 01:04:28.900]  and talk about how bad things are and how corrupt the courts are.
[01:04:28.900 --> 01:04:31.220]  We talk about remedy.
[01:04:31.220 --> 01:04:34.740]  And one of the remedies is a claim for loss of credit.
[01:04:34.740 --> 01:04:45.100]  But another is, as this was done intentionally, we can go for exemplary damages.
[01:04:45.100 --> 01:04:49.300]  And exemplary damages are triple.
[01:04:49.300 --> 01:04:56.740]  So in this case, we can, if we make up a tort letter, and for those who don't know what
[01:04:56.740 --> 01:05:02.860]  a tort letter is, the courts say they don't want you using the court as the remedy of
[01:05:02.860 --> 01:05:08.900]  first resort, but rather as the remedy of last resort.
[01:05:08.900 --> 01:05:19.040]  So they ask you to take administrative steps to negotiate the condition with the defendant
[01:05:19.040 --> 01:05:23.460]  to solve the issue before bringing it to court.
[01:05:23.460 --> 01:05:27.940]  And the remedy of choice is a tort letter.
[01:05:27.940 --> 01:05:32.840]  You send them notification that you have reason to believe you've been harmed.
[01:05:32.840 --> 01:05:42.780]  You state how you were harmed and demand that they make you whole and give them a reasonable
[01:05:42.780 --> 01:05:44.180]  amount of time to respond.
[01:05:44.180 --> 01:05:50.540]  In this case, since the client is facing for imminent foreclosure, he doesn't have much
[01:05:50.540 --> 01:05:51.540]  time.
[01:05:51.540 --> 01:06:01.580]  So I suggest we put together as ugly sounding a lawsuit as we can, claim as actual damages
[01:06:01.580 --> 01:06:06.740]  the full amount of the loan that he applied for.
[01:06:06.740 --> 01:06:16.940]  Claim as exemplary damages, triple that amount, then claim loss of credit because he had perfect
[01:06:16.940 --> 01:06:17.940]  credit going in.
[01:06:17.940 --> 01:06:24.900]  And we'll have to do some research to see what, how loss of credit is normally calculated
[01:06:24.900 --> 01:06:26.980]  in New York.
[01:06:26.980 --> 01:06:33.140]  And then because this is, Erin, this is a primary residence, isn't it?
[01:06:33.140 --> 01:06:34.940]  Yep, this is his primary residence.
[01:06:34.940 --> 01:06:38.020]  This is his house, his home.
[01:06:38.020 --> 01:06:47.340]  He's got, now he's getting heart papillations and ulcer and extreme mental distress.
[01:06:47.340 --> 01:06:51.780]  And this is a prime candidate for extreme mental distress.
[01:06:51.780 --> 01:07:02.020]  I think you can put together a rather large lawsuit and considering the social position
[01:07:02.020 --> 01:07:06.980]  of lenders at this point, I don't think there's a lender in the country that wants to get
[01:07:06.980 --> 01:07:16.700]  in front of a jury right now or anything because the public are not happy campers.
[01:07:16.700 --> 01:07:24.300]  So I have little doubt that you send these guys a tort letter and somebody low on the
[01:07:24.300 --> 01:07:30.180]  totem pole is going to have themselves a big problem and when the higher ups find out what
[01:07:30.180 --> 01:07:33.740]  he's done, they're going to come in and fix this thing.
[01:07:33.740 --> 01:07:40.900]  I ran my own business for 40 years and I hire people and they do really stupid stuff.
[01:07:40.900 --> 01:07:48.420]  And somehow they never come to me and say, you know, I really did something major stupid.
[01:07:48.420 --> 01:07:52.700]  They do everything they can to hide it from me.
[01:07:52.700 --> 01:07:59.700]  When I deal with the companies, I always want to deal with the CEO or actually the most
[01:07:59.700 --> 01:08:05.300]  powerful person in a company is usually not the CEO or the president.
[01:08:05.300 --> 01:08:09.180]  They tend to have to be somewhat diplomatic.
[01:08:09.180 --> 01:08:15.380]  Probably the most powerful person in a company is the president's secretary.
[01:08:15.380 --> 01:08:20.940]  If you can get a hold of her and climb down her throat, she is going to really be unhappy
[01:08:20.940 --> 01:08:25.580]  and she doesn't have to be diplomatic with anyone.
[01:08:25.580 --> 01:08:30.300]  The phone companies, I get the phone companies just jumping up and down, getting me whatever
[01:08:30.300 --> 01:08:31.300]  I want.
[01:08:31.300 --> 01:08:37.260]  I don't have to call and ask who is the president and they tell me I hang up, I call back and
[01:08:37.260 --> 01:08:42.060]  ask for the president by name, I always get his secretary and I start in calling right
[01:08:42.060 --> 01:08:50.700]  down her throat, accusing her of sending that person personally to persecute me.
[01:08:50.700 --> 01:08:54.420]  And there's nothing like going after an innocent party.
[01:08:54.420 --> 01:08:57.060]  The innocent party is going to be really, really unhappy.
[01:08:57.060 --> 01:09:04.540]  They're going to be righteously indignant and somebody down the line is going to pay.
[01:09:04.540 --> 01:09:10.660]  So in this instance, I have no doubt that higher up has no idea what went on and even
[01:09:10.660 --> 01:09:14.460]  if they had to pay that one percent, they would still want to make this loan because
[01:09:14.460 --> 01:09:20.380]  they would profit greatly from it and I have no doubt, good tort letter, they will come
[01:09:20.380 --> 01:09:22.540]  to you and say, let's make a deal.
[01:09:22.540 --> 01:09:29.260]  Yeah, you know, one other thing I want to mention on this because I'm going over the
[01:09:29.260 --> 01:09:37.100]  good faith estimate that I have, they also had failed to disclose any origination charge
[01:09:37.100 --> 01:09:44.300]  as well as any other closing related fees other than the appraisal, the credit report
[01:09:44.300 --> 01:09:50.460]  fee and the flood determination fee, meaning the bank was not going to be making much on
[01:09:50.460 --> 01:09:55.900]  this because of their own failure to disclose and it was going to be costing them money.
[01:09:55.900 --> 01:10:02.460]  So while yes, they'd be making money in interest over the term of the loan, you know, we had
[01:10:02.460 --> 01:10:06.780]  him fixed at four percent for 15 years.
[01:10:06.780 --> 01:10:11.420]  That was what we had him in at, four percent fixed.
[01:10:11.420 --> 01:10:16.700]  So you might want to go in and let's make a deal.
[01:10:16.700 --> 01:10:23.100]  Give me two percent fixed or maybe a bit less.
[01:10:23.100 --> 01:10:25.100]  They owe him for this.
[01:10:25.100 --> 01:10:26.300]  Absolutely.
[01:10:26.300 --> 01:10:32.220]  I have no doubt there's no way they're going to want this to get in front of a jury.
[01:10:32.220 --> 01:10:34.900]  It's obvious what went on.
[01:10:34.900 --> 01:10:36.860]  He had perfect credit going in.
[01:10:36.860 --> 01:10:41.220]  It's obvious somebody just screwed up and tried to cover their screw up and were willing
[01:10:41.220 --> 01:10:47.660]  to sacrifice him and your client in order to cover their own screw up.
[01:10:47.660 --> 01:10:53.860]  This will not go down well and with these companies, I have no doubt that they'll make
[01:10:53.860 --> 01:10:55.180]  this right quickly.
[01:10:55.180 --> 01:11:04.380]  Yeah, I should mention the date of this good faith estimate is August 11th, 2010.
[01:11:04.380 --> 01:11:09.540]  That means once these disclosures are generated, you're more than halfway there.
[01:11:09.540 --> 01:11:13.020]  You've already submitted everything, these disclosures are generated, the borrower signs
[01:11:13.020 --> 01:11:15.340]  off on them and you're pretty much there.
[01:11:15.340 --> 01:11:23.700]  I mean, an early September closing was completely realistic and the fact that now here we are
[01:11:23.700 --> 01:11:27.100]  it's December and this is what we're facing.
[01:11:27.100 --> 01:11:33.820]  I can't think of any reason for them to do this and come this far other than the fact
[01:11:33.820 --> 01:11:38.660]  that they just didn't want to own up to the fact that they weren't making any money upfront
[01:11:38.660 --> 01:11:41.340]  because they didn't disclose any origination.
[01:11:41.340 --> 01:11:46.220]  Origination just like mortgage tax is in that zero percent tolerance, meaning you cannot
[01:11:46.220 --> 01:11:49.180]  charge a penny over what you disclose.
[01:11:49.180 --> 01:11:56.540]  Those origination fees, that's in our lawsuits, that's one of the things we really go after.
[01:11:56.540 --> 01:12:01.500]  It seems real obvious what happened, I mean the fact that they didn't disclose the mortgage
[01:12:01.500 --> 01:12:08.060]  tax and so I think that's what's going to make this case the most strong because there's
[01:12:08.060 --> 01:12:12.020]  an obvious reason for what happened that anyone can see.
[01:12:12.020 --> 01:12:20.100]  If it was just a matter of bureaucracy and shuffling and they were just busy, then it
[01:12:20.100 --> 01:12:26.380]  might be difficult to show some kind of conspiracy or negligence or some kind of malicious intent.
[01:12:26.380 --> 01:12:29.940]  They were just busy and they just didn't get to it in time so they wouldn't really necessarily
[01:12:29.940 --> 01:12:30.940]  be at fault.
[01:12:30.940 --> 01:12:36.780]  But now that this has come out about the mortgage tax that they didn't disclose, now I mean
[01:12:36.780 --> 01:12:38.940]  that's just a slam dunk, dead bag reason.
[01:12:38.940 --> 01:12:42.660]  I agree with you if it had been just one or two processors.
[01:12:42.660 --> 01:12:48.180]  I can buy the excuse that we're really busy and our processor is new and doesn't know
[01:12:48.180 --> 01:12:49.180]  what she's doing.
[01:12:49.180 --> 01:12:53.700]  I can buy that for the first processor but by the time the third one came around, I have
[01:12:53.700 --> 01:12:54.980]  a hard time accepting that.
[01:12:54.980 --> 01:13:00.820]  I have a hard time accepting that our processors are just disorganized and inexperienced.
[01:13:00.820 --> 01:13:06.980]  Then you know what, don't hire them, don't use them for loans that are obviously sensitive
[01:13:06.980 --> 01:13:11.580]  of nature and have a time crunch on them.
[01:13:11.580 --> 01:13:18.300]  Yes, I'm looking through exemplary damages, managerial capacity.
[01:13:18.300 --> 01:13:24.780]  The agent was employed in a managerial capacity and was acting in the scope of his employment.
[01:13:24.780 --> 01:13:32.060]  That means you can sue the lender and ask for exemplary damages as respondeat superior
[01:13:32.060 --> 01:13:35.180]  for his underlings.
[01:13:35.180 --> 01:13:39.860]  This gives you a claim right at the CEO.
[01:13:39.860 --> 01:13:50.140]  That would be such fun to sue the CEO, make a claim in a tort letter against the CEO personally
[01:13:50.140 --> 01:14:03.020]  for either gross negligence or sheer incompetence for being unable to manage his personnel.
[01:14:03.020 --> 01:14:06.420]  It's not going to be happy.
[01:14:06.420 --> 01:14:11.660]  I could have too much fun with this frankly.
[01:14:11.660 --> 01:14:19.380]  And this is a national mortgage bank by the way, they loan in all 50 states I believe.
[01:14:19.380 --> 01:14:24.420]  Oh good, that makes it even more fun.
[01:14:24.420 --> 01:14:29.740]  They don't have unlimited funds to fight this with.
[01:14:29.740 --> 01:14:33.140]  No, they're not one of the big ones so to speak.
[01:14:33.140 --> 01:14:41.500]  But even so, they're about making money and they're going to look at this from a profit
[01:14:41.500 --> 01:14:43.740]  loss perspective.
[01:14:43.740 --> 01:14:48.660]  So what if we beat these guys in court?
[01:14:48.660 --> 01:14:53.060]  Is there any chance we're going to get attorney fees?
[01:14:53.060 --> 01:15:00.940]  And I'm going to suggest because your claim is more than valid, chances of a judge awarding
[01:15:00.940 --> 01:15:05.380]  attorney fees is somewhere between little and none.
[01:15:05.380 --> 01:15:12.180]  So this is going to cost us a lot of money and all we can do is lose here.
[01:15:12.180 --> 01:15:17.260]  If we make the loan like we should have in the first place, we will recoup what we would
[01:15:17.260 --> 01:15:24.420]  have lost, the loss of the 1% over the life of the loan will be relatively minimum.
[01:15:24.420 --> 01:15:32.860]  The 4% note, you're going to accrue about four times so they'll lose a third of their
[01:15:32.860 --> 01:15:36.700]  profit if that much.
[01:15:36.700 --> 01:15:40.700]  So they won't make as much profit as they would have made.
[01:15:40.700 --> 01:15:43.820]  Now I don't think that they have any right to make any profit at this point.
[01:15:43.820 --> 01:15:44.820]  I agree.
[01:15:44.820 --> 01:15:48.500]  They should pay the balloon so that my client owns his property free and clear and then
[01:15:48.500 --> 01:15:52.140]  have to pay even more.
[01:15:52.140 --> 01:15:59.340]  What would your client consider a equitable outcome?
[01:15:59.340 --> 01:16:07.220]  He's pretty reasonable individual and at this point he wants his credit restored, he wants
[01:16:07.220 --> 01:16:11.580]  the mortgage to close and he wants to forget all about this right now but that's not going
[01:16:11.580 --> 01:16:12.580]  to happen.
[01:16:12.580 --> 01:16:16.580]  It's not going to close and his credit is not going to magically fix itself.
[01:16:16.580 --> 01:16:22.060]  Let me ask you something Aaron, as far as his credit, the lender that he was trying
[01:16:22.060 --> 01:16:26.780]  to get this refinance with, is that the same lender that currently owns the mortgage?
[01:16:26.780 --> 01:16:27.780]  No.
[01:16:27.780 --> 01:16:28.780]  Okay.
[01:16:28.780 --> 01:16:35.940]  He went to, I'm the one who referred him to this bank because they had good rates, they
[01:16:35.940 --> 01:16:39.260]  were willing to have a working relationship and that's that.
[01:16:39.260 --> 01:16:44.780]  He may have a hard time forcing this original lender to restore his credit because they
[01:16:44.780 --> 01:16:47.980]  haven't done anything wrong, but he may.
[01:16:47.980 --> 01:16:48.980]  He may.
[01:16:48.980 --> 01:16:50.140]  We'll talk about that some more on the other side.
[01:16:50.140 --> 01:16:51.140]  All right.
[01:16:51.140 --> 01:16:52.140]  We're going to break.
[01:16:52.140 --> 01:16:55.700]  This is the rule of law, ruleoflawradio.com, we'll be right back.
[01:16:55.700 --> 01:17:01.980]  Call in 512-646-1984.
[01:17:01.980 --> 01:17:05.740]  Capital Coin and Bullion is your local source for rare coins, precious metals and coin supplies
[01:17:05.740 --> 01:17:07.380]  in the Austin metro area.
[01:17:07.380 --> 01:17:09.380]  We also ship worldwide.
[01:17:09.380 --> 01:17:12.820]  We are a family owned and operated business that offers competitive prices on your coin
[01:17:12.820 --> 01:17:13.820]  and metal purchases.
[01:17:13.820 --> 01:17:18.900]  We buy, sell, trade and consign rare coins, gold and silver coin collections, precious
[01:17:18.900 --> 01:17:20.340]  metals and scrap gold.
[01:17:20.340 --> 01:17:22.540]  We purchase and sell gold and jewelry items.
[01:17:22.540 --> 01:17:25.100]  We offer daily specials on coins and bullion.
[01:17:25.100 --> 01:17:30.220]  We are located at 5448 Burnett Road, Suite 3, at the corner of Burnett and Shulmark and
[01:17:30.220 --> 01:17:34.300]  we're open Mondays and Fridays 10 to 6, Saturdays 10 to 5.
[01:17:34.300 --> 01:17:39.300]  You are welcome to stop in our shop during regular business hours or call 512-646-6440
[01:17:39.300 --> 01:17:40.300]  with any questions.
[01:17:40.300 --> 01:17:46.500]  Ask for Chad and say you've heard about us on rule of law radio or Texas Liberty Radio.
[01:17:46.500 --> 01:17:50.180]  That's Capital Coin and Bullion at the corner of Burnett and Shulmark and we're open Mondays
[01:17:50.180 --> 01:17:53.620]  and Fridays 10 to 6, Saturdays 10 to 5.
[01:17:53.620 --> 01:18:00.500]  That's Capital Coin and Bullion 512-646-6440.
[01:18:00.500 --> 01:18:05.380]  It is so enlightening to listen to 90.1 FM but finding things on the internet isn't
[01:18:05.380 --> 01:18:09.140]  so easy and neither is finding like-minded people to share it with.
[01:18:09.140 --> 01:18:12.100]  Oh well I guess you haven't heard of Brave New Books then.
[01:18:12.100 --> 01:18:13.100]  Brave New Books?
[01:18:13.100 --> 01:18:17.900]  Yes, Brave New Books has all the books and DVDs you're looking for by authors like Alex
[01:18:17.900 --> 01:18:20.460]  Jones, Ron Paul and G. Edward Griffin.
[01:18:20.460 --> 01:18:23.740]  They even stock inner food, Berkey products and Calvin Soaps.
[01:18:23.740 --> 01:18:26.780]  There's no way a place like that exists.
[01:18:26.780 --> 01:18:28.260]  Go check it out for yourself.
[01:18:28.260 --> 01:18:32.260]  It's downtown at 1904 Guadalupe Street just south of UT.
[01:18:32.260 --> 01:18:35.940]  By UT, there's never anywhere to park down there.
[01:18:35.940 --> 01:18:41.260]  Actually, they now offer a free hour of parking for paying customers at the 500 MLK parking
[01:18:41.260 --> 01:18:44.260]  facility just behind the bookstore.
[01:18:44.260 --> 01:18:47.260]  It does exist but when are they open?
[01:18:47.260 --> 01:18:52.020]  Monday through Saturday, 11 AM to 9 PM and 1 to 6 PM on Sundays.
[01:18:52.020 --> 01:18:58.220]  So give them a call at 512-480-2503 or check out their events page at bravenewbookstore.com.
[01:18:58.220 --> 01:19:25.580]  Ain't gonna blind me, don't bore me, ain't gonna fool me with that same old trick again.
[01:19:25.580 --> 01:19:34.260]  I was blindsided but now I can see your plans, you put the fear in my pocket, took the money
[01:19:34.260 --> 01:19:35.260]  from my hands.
[01:19:35.260 --> 01:19:36.260]  Ain't gonna fool me with that same old trick again.
[01:19:36.260 --> 01:19:37.260]  Ain't gonna fool me.
[01:19:37.260 --> 01:20:05.660]  Ain't gonna drop me with that same old sucker punch.
[01:20:05.660 --> 01:20:08.660]  I get it now but then I must not fool you.
[01:20:08.660 --> 01:20:09.660]  Okay, folks.
[01:20:09.660 --> 01:20:16.780]  All right, we were talking about getting this original lender to clean up the credit report
[01:20:16.780 --> 01:20:22.500]  and Aaron, you said that you have some contacts with the original lender and you think you
[01:20:22.500 --> 01:20:27.140]  might be able to swing that and we were discussing other ways as well.
[01:20:27.140 --> 01:20:34.540]  Now, with the MIRA's method, it doesn't really apply to mortgage situations in general.
[01:20:34.540 --> 01:20:38.580]  It's all about, his thing is all about the debt collectors and the creditors suing them
[01:20:38.580 --> 01:20:43.380]  under violations of the Fair Debt Collections Practices Act and the Fair Credit Reporting
[01:20:43.380 --> 01:20:44.380]  Act.
[01:20:44.380 --> 01:20:45.380]  Okay.
[01:20:45.380 --> 01:20:50.260]  And so the situation would have to be in collections, they would have to be making phone calls
[01:20:50.260 --> 01:20:56.220]  and you'd be having to send dispute letters and these sorts of things to get them to lay
[01:20:56.220 --> 01:21:03.060]  bait as it were, to get them to trip up and have violations of these civil rights laws
[01:21:03.060 --> 01:21:08.340]  and so Mike Miras has already said that in general, his methods don't apply to mortgage
[01:21:08.340 --> 01:21:16.420]  situations but however, I'm sure that say for example with the original lender of this
[01:21:16.420 --> 01:21:21.260]  mortgage, I'm sure there's plenty of TILA and RESPA violations and so if worse comes
[01:21:21.260 --> 01:21:25.660]  to worse and we can't get the original lender to clean up the credit, well then file a lawsuit
[01:21:25.660 --> 01:21:30.660]  against them for TILA and RESPA and then maybe use that lawsuit as some kind of leverage
[01:21:30.660 --> 01:21:36.620]  to get them to clean up the credit and then you drop the suit as a settlement.
[01:21:36.620 --> 01:21:42.820]  Yeah, I suspect if the bank goes to the original lender and says, hey, we screwed up, can you
[01:21:42.820 --> 01:21:44.060]  take this off?
[01:21:44.060 --> 01:21:45.460]  They will say sure, they'll take it.
[01:21:45.460 --> 01:21:48.700]  You mean if the second lender goes to the first lender and says that?
[01:21:48.700 --> 01:21:49.700]  Yes, yes.
[01:21:49.700 --> 01:21:50.700]  Probably so.
[01:21:50.700 --> 01:21:56.340]  They can get that done if you twist their arm enough with a good hefty lawsuit and they've
[01:21:56.340 --> 01:21:58.900]  given you plenty to go after them with so.
[01:21:58.900 --> 01:22:05.220]  Well that's generally what happens with Mike Mears method when you sue under these civil
[01:22:05.220 --> 01:22:09.780]  rights laws, you sue the debt collector and the original creditor because they're two
[01:22:09.780 --> 01:22:18.020]  different entities and then generally the debt collector will go and petition to the
[01:22:18.020 --> 01:22:25.660]  original creditor to remove the negative entries as part of the settlement to get them both
[01:22:25.660 --> 01:22:26.660]  off the hook.
[01:22:26.660 --> 01:22:32.380]  Yes guys, and the phone lines are open, we'll take questions on this issue or other issues.
[01:22:32.380 --> 01:22:37.660]  Eddie Craig, I know he's sounding unusually intelligent tonight.
[01:22:37.660 --> 01:22:38.660]  Really?
[01:22:38.660 --> 01:22:39.660]  I'm trying.
[01:22:39.660 --> 01:22:40.660]  Articulate.
[01:22:40.660 --> 01:22:45.340]  But he's here with us, so if you have any questions or comments, feel free to call
[01:22:45.340 --> 01:22:46.340]  in.
[01:22:46.340 --> 01:22:57.260]  If you have any questions for Aaron, call in 512-646-1984.
[01:22:57.260 --> 01:23:02.580]  Okay we were talking about how to make a claim against him.
[01:23:02.580 --> 01:23:09.820]  One thing I was looking for was emotional distress.
[01:23:09.820 --> 01:23:18.620]  I suspect we can get a lawsuit four or five times the original principle, easy enough
[01:23:18.620 --> 01:23:27.580]  to bring against these guys and I certainly expect that when the corporate moguls find
[01:23:27.580 --> 01:23:32.340]  out that the guys at the bottom are screwed up, heads are going to roll and they're going
[01:23:32.340 --> 01:23:35.580]  to come and play let's make a deal.
[01:23:35.580 --> 01:23:43.900]  So Aaron, you have one of our lawsuits in a New York court, I have a question.
[01:23:43.900 --> 01:23:45.660]  In a federal court in New York, yes.
[01:23:45.660 --> 01:23:49.940]  Did you get a Rule 12 motion to dismiss on that one?
[01:23:49.940 --> 01:23:56.860]  No, tomorrow will be the 21st day since it was served, so we haven't gotten anything
[01:23:56.860 --> 01:24:00.500]  yet, we haven't gotten any kind of an answer or any motion to dismiss.
[01:24:00.500 --> 01:24:03.060]  Oh wonderful.
[01:24:03.060 --> 01:24:08.020]  This may be an important indication that when an attorney files it, they're not filing the
[01:24:08.020 --> 01:24:15.300]  same kinds of responses and they're looking at actually having to answer and I don't think
[01:24:15.300 --> 01:24:17.260]  they can.
[01:24:17.260 --> 01:24:26.060]  The primary thing we do is that HUD-1 settlement statement is under U.S. state settlement procedures
[01:24:26.060 --> 01:24:34.100]  act, the lender is required to show documentation to demonstrate that the fees charged are not
[01:24:34.100 --> 01:24:43.020]  otherwise prohibited by statute, that the services rendered are necessary, that the
[01:24:43.020 --> 01:24:51.460]  amounts charged for the services are reasonable and that the lender did not take an undisclosed
[01:24:51.460 --> 01:24:59.220]  or unauthorized markup on the amount charged by the lender, I mean by the vendor.
[01:24:59.220 --> 01:25:08.260]  Now we know that some of them are bogus, they always are, but not all of them, so we take
[01:25:08.260 --> 01:25:20.940]  all of them and in some 300 suits we have yet to have one lender prove up one fee.
[01:25:20.940 --> 01:25:30.100]  They don't dare, they know some of those are bogus, they know some cannot be documented
[01:25:30.100 --> 01:25:35.820]  or substantiated, they're junk fees, they add in these extra fees so they stick them
[01:25:35.820 --> 01:25:43.080]  on the principle of the note and collect interest on them for the next 30 years.
[01:25:43.080 --> 01:25:50.300]  When it was intended for most of those fees that they be included in the finance charge,
[01:25:50.300 --> 01:25:56.420]  let the bank take these fees out of the interest that they collect, instead of doing that
[01:25:56.420 --> 01:26:02.460]  they add them to the head of the note and charge the interest on it for 30 years and
[01:26:02.460 --> 01:26:05.020]  some of them they weren't allowed to charge anyway.
[01:26:05.020 --> 01:26:11.860]  If there's just one fee in there that they're not allowed to charge, can they prove up any
[01:26:11.860 --> 01:26:18.740]  fees, creates an adverse inference that the fees they didn't prove up are exactly what
[01:26:18.740 --> 01:26:21.540]  we said they were?
[01:26:21.540 --> 01:26:30.820]  We maintained that the lender charged these bogus fees so that he could take this extra
[01:26:30.820 --> 01:26:42.580]  cash and use it to bribe the broker to breach his fiduciary duty to the purchaser and induce
[01:26:42.580 --> 01:26:48.100]  him, the purchaser, to accept a predatory loan product.
[01:26:48.100 --> 01:26:53.600]  So when they fail to prove up the fees, the court's required to take our accusations
[01:26:53.600 --> 01:26:54.600]  as true.
[01:26:54.600 --> 01:27:01.620]  So they're screwed, they're screwed either way they go.
[01:27:01.620 --> 01:27:06.940]  They back themselves into a corner and they don't have a way out.
[01:27:06.940 --> 01:27:11.500]  So what they've been doing is this dance around, dance around trying to get the case thrown
[01:27:11.500 --> 01:27:16.740]  out, the last thing they want to do is address the merits.
[01:27:16.740 --> 01:27:21.740]  They claim that we failed to make a claim on which recovery can be had.
[01:27:21.740 --> 01:27:25.420]  Well this one is very, very clear.
[01:27:25.420 --> 01:27:35.780]  It absolutely is a statement that's complete even up to Ashcroft and Bell Atlantic standards.
[01:27:35.780 --> 01:27:41.780]  We state precisely what they did, how they did it, when they did it, how much they overcharged
[01:27:41.780 --> 01:27:45.860]  us when they did it and how much it would cost you over the life of the loan.
[01:27:45.860 --> 01:27:54.260]  So I'm really looking forward to some attorneys filing these documents and see if we get any
[01:27:54.260 --> 01:27:58.420]  defendants actually trying to answer this.
[01:27:58.420 --> 01:27:59.420]  So far so good.
[01:27:59.420 --> 01:28:03.780]  If I do get a Rule 12 motion to dismiss, what's the next step?
[01:28:03.780 --> 01:28:12.940]  Sanctions, move for sanctions against counsel, filing frivolous pleading and we have a redesigned
[01:28:12.940 --> 01:28:19.940]  response to the Rule 12, Chris can crank you that out really quick.
[01:28:19.940 --> 01:28:25.540]  We've gotten a lot of those but then again we haven't got as many as I would have expected
[01:28:25.540 --> 01:28:30.660]  with over 300 filings and not everybody's responding.
[01:28:30.660 --> 01:28:34.900]  We've got over 30 no answer defaults so far.
[01:28:34.900 --> 01:28:38.900]  Well what about the rest of them, over 300 filings, that's like 10%, what's happened
[01:28:38.900 --> 01:28:41.220]  with the other 90%?
[01:28:41.220 --> 01:28:50.620]  They get a crap answer, we deny all allegations, we got one here in Texas, on the very last
[01:28:50.620 --> 01:28:56.660]  day at the last minute they filed an answer that was one sentence, we deny all allegations
[01:28:56.660 --> 01:28:57.660]  by plaintiff.
[01:28:57.660 --> 01:29:07.980]  Oh yeah, like that's really an answer, no because they have to answer with specificity.
[01:29:07.980 --> 01:29:14.900]  We made our accusations with particularity, they needed to ask with specificity and we
[01:29:14.900 --> 01:29:20.020]  have had no one answer with specificity.
[01:29:20.020 --> 01:29:25.540]  They all jump to the, they either give us a nothing answer and nobody's ever touched
[01:29:25.540 --> 01:29:27.740]  the fees.
[01:29:27.740 --> 01:29:33.700]  Not one person's ever touched those fees, they just generally deny them and go on.
[01:29:33.700 --> 01:29:38.580]  Okay we have one call on the board, when we come back we'll take that call so if anybody
[01:29:38.580 --> 01:29:49.020]  else wants to call in, it's 512-646-1984, it's Randy Kelton, Debra Stevens, Eddie Craig,
[01:29:49.020 --> 01:30:00.020]  Wheel of Law Radio, we'll be right back on the other side.
[01:30:00.020 --> 01:30:03.900]  Top ten reasons to question the official story of the Oklahoma City bombing, reason number
[01:30:03.900 --> 01:30:04.900]  five.
[01:30:04.900 --> 01:30:07.820]  As witnessed by millions of viewers, the rescue efforts were interrupted several times due
[01:30:07.820 --> 01:30:10.120]  to the presence of other explosives.
[01:30:10.120 --> 01:30:13.940]  Government log entries indicate and witnesses report that after the initial devastating
[01:30:13.940 --> 01:30:18.900]  blast a bomb complete with timer was discovered and removed in wreckage by the bomb squad.
[01:30:18.900 --> 01:30:22.460]  Yet we are told it's all due to baseless bomb scares or other contrivances.
[01:30:22.460 --> 01:30:26.740]  So while officials try to sort out their stories, all we ask is who planted these bombs and
[01:30:26.740 --> 01:30:28.660]  why is the government lying about them?
[01:30:28.660 --> 01:30:31.100]  For more information go to okcbombingtruth.com.
[01:30:31.100 --> 01:30:35.540]  You've heard of hairspray, but how about DNA spray?
[01:30:35.540 --> 01:30:39.700]  It's a high tech way to catch robbers, but down the road it could be abused.
[01:30:39.700 --> 01:30:43.780]  I'm Dr. Catherine Albrecht and I'll be back in a moment with what you need to know about
[01:30:43.780 --> 01:30:46.180]  aerosol micro dots.
[01:30:46.180 --> 01:30:47.780]  Privacy is under attack.
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[01:31:01.300 --> 01:31:03.900]  Privacy, it's worth hanging on to.
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[01:31:49.060 --> 01:31:51.700]  Maybe we should all be wary of DNA spray.
[01:31:51.700 --> 01:31:56.460]  I'm Dr. Catherine Albrecht, more news and information at CatherineAlbrecht.com.
[01:32:51.700 --> 01:33:15.420]  Diane, thanks for calling in.
[01:33:15.420 --> 01:33:16.420]  What's on your mind tonight?
[01:33:16.420 --> 01:33:20.820]  Would you have a question for Aaron or Randy about the current topic of discussion?
[01:33:20.820 --> 01:33:21.820]  Diane?
[01:33:21.820 --> 01:33:24.700]  I lost Diane off my board.
[01:33:24.700 --> 01:33:28.180]  Okay, she must have dropped.
[01:33:28.180 --> 01:33:29.180]  Okay, all right.
[01:33:29.180 --> 01:33:33.700]  Well, at any rate, please continue, Randy, while we're waiting for more callers.
[01:33:33.700 --> 01:33:34.700]  Okay.
[01:33:34.700 --> 01:33:44.180]  Anyway, there's one thing that your client might want to look at is the loan that he
[01:33:44.180 --> 01:33:51.820]  had because every loan that we look at is just riddled with fraud.
[01:33:51.820 --> 01:33:56.140]  Fraud was just so much a part of the way people were doing things.
[01:33:56.140 --> 01:34:01.560]  I suspect that a lot of the people who were actually perpetrating the fraud had no clue.
[01:34:01.560 --> 01:34:05.220]  They were doing things the way they were taught to do things and the way that everybody else
[01:34:05.220 --> 01:34:09.940]  had been doing things and they thought it was perfectly all right.
[01:34:09.940 --> 01:34:13.220]  Well, let me back up a little bit.
[01:34:13.220 --> 01:34:21.700]  I talked to a couple of people who were lenders and they said absolutely they knew and numbered
[01:34:21.700 --> 01:34:25.060]  them quit because they just couldn't live with themselves with what they were doing
[01:34:25.060 --> 01:34:26.060]  to people.
[01:34:26.060 --> 01:34:31.740]  So, for the most part, these guys did know they were committing this fraud and especially
[01:34:31.740 --> 01:34:32.740]  with the fees.
[01:34:32.740 --> 01:34:39.980]  I know we have a lot of issues that we argue.
[01:34:39.980 --> 01:34:47.380]  Show me the note that even if you show me the note, prove to me that you're holding
[01:34:47.380 --> 01:34:55.540]  it to the exclusion of all others, that you are in fact the proper holder of the note.
[01:34:55.540 --> 01:35:03.300]  And then even if you're holding the note, show me the mortgage and prove that the mortgage
[01:35:03.300 --> 01:35:07.780]  hasn't been separated from the note because if it has been, the mortgage became void at
[01:35:07.780 --> 01:35:11.740]  that point and it's unenforceable.
[01:35:11.740 --> 01:35:15.540]  Even if you can do that, then you need to prove to me that this hasn't already been
[01:35:15.540 --> 01:35:24.340]  paid in the secondary market where it's been sold into a pool and payments have been made
[01:35:24.340 --> 01:35:29.460]  into the pool sufficient to pay off the full amount of all the indebtedness.
[01:35:29.460 --> 01:35:32.460]  This may have already been paid and we don't even know about it, so there's a lot of these
[01:35:32.460 --> 01:35:35.500]  other arguments.
[01:35:35.500 --> 01:35:44.700]  But primarily they can't get past the first one is they charged false fees and we accused
[01:35:44.700 --> 01:35:51.660]  them of charging false fees very clearly, very specifically.
[01:35:51.660 --> 01:35:57.500]  We accused them of lying to the lender in order to induce the lender to accept a more
[01:35:57.500 --> 01:36:01.700]  expensive loan product than he qualified for.
[01:36:01.700 --> 01:36:08.940]  It's real clear, it's not hard to understand and none of these guys have addressed it.
[01:36:08.940 --> 01:36:11.940]  It looks like we have Diane back up on the board.
[01:36:11.940 --> 01:36:17.660]  Diane, do you have a question or comment?
[01:36:17.660 --> 01:36:18.660]  Not on the topic.
[01:36:18.660 --> 01:36:19.660]  Okay.
[01:36:19.660 --> 01:36:21.940]  Are you ready to go on to something else?
[01:36:21.940 --> 01:36:22.940]  Yes we are.
[01:36:22.940 --> 01:36:23.940]  Okay.
[01:36:23.940 --> 01:36:31.060]  I called in probably about, I want to say six months ago now and I told you a story
[01:36:31.060 --> 01:36:36.940]  I had worked at a law firm and there was a lot of strange things going on and I mentioned
[01:36:36.940 --> 01:36:42.740]  that the office manager had a gun and was threatening people and there was a lot of,
[01:36:42.740 --> 01:36:48.500]  it was just a hostile work environment basically and he gave me some advice and I at the moment
[01:36:48.500 --> 01:36:52.780]  cannot find my notes as to what you told me to do, but I did do everything you told me
[01:36:52.780 --> 01:36:53.780]  to do.
[01:36:53.780 --> 01:36:59.180]  I think you told me to, I don't know, I can't remember what, but I did it and they said
[01:36:59.180 --> 01:37:08.460]  oh we can't help you so basically what ended up happening was I got fired from the job.
[01:37:08.460 --> 01:37:14.500]  So I filed unemployment and it was ruled in my favor and of course they appealed it and
[01:37:14.500 --> 01:37:22.020]  we went through three hearings and I won all three of the hearings, but during the hearings
[01:37:22.020 --> 01:37:29.900]  they lied in the testimony under oath to the Texas Work Source Commission and I have tapes
[01:37:29.900 --> 01:37:35.700]  that I had made because I had already been aware that they were doing some things that
[01:37:35.700 --> 01:37:40.980]  I didn't think were ethical and when I had the opportunity I would take conversations
[01:37:40.980 --> 01:37:47.340]  that I had with managers in the managing partner of the law firm.
[01:37:47.340 --> 01:37:55.100]  So since then I've tried to contact several attorneys that, you know, handle these kinds
[01:37:55.100 --> 01:37:58.620]  of cases because I feel like it was a wrongful termination.
[01:37:58.620 --> 01:38:05.260]  Well what I keep hearing now is that maybe it was, but unless it was under like, you
[01:38:05.260 --> 01:38:10.580]  know, some sort of discrimination thing like, you know, race, religion, sex, whatever like
[01:38:10.580 --> 01:38:11.580]  that.
[01:38:11.580 --> 01:38:13.580]  Okay, weren't you disabled?
[01:38:13.580 --> 01:38:14.580]  No.
[01:38:14.580 --> 01:38:17.580]  Okay, you're not the one with the walker?
[01:38:17.580 --> 01:38:18.580]  No, no, no.
[01:38:18.580 --> 01:38:20.580]  Okay, okay, that was a different.
[01:38:20.580 --> 01:38:23.580]  Diane, is Texas an at-will employment state?
[01:38:23.580 --> 01:38:24.580]  Yes, ma'am.
[01:38:24.580 --> 01:38:25.580]  Okay.
[01:38:25.580 --> 01:38:26.580]  It is.
[01:38:26.580 --> 01:38:32.580]  And I guess my question right now is, you know, all the attorneys I've talked to, like
[01:38:32.580 --> 01:38:39.580]  several of them have said to me, well, sorry, you know, we can't take your case when they
[01:38:39.580 --> 01:38:41.580]  ask which law firm I work for.
[01:38:41.580 --> 01:38:47.580]  It was like there's not a conflict of interest here, but I happen to know one of the attorneys
[01:38:47.580 --> 01:38:50.580]  there and I just wouldn't feel comfortable taking this case.
[01:38:50.580 --> 01:38:55.580]  And everybody has advised me, I even talked to the state board, and they have all advised
[01:38:55.580 --> 01:39:00.580]  me to go out of the county to find an attorney to handle this.
[01:39:00.580 --> 01:39:06.580]  And I'm like, you know, this is, to me it's like what I'm hearing is like isn't an at-will
[01:39:06.580 --> 01:39:11.580]  state so they have any reason, they can fire you, let you go for any reason without notice.
[01:39:11.580 --> 01:39:18.580]  But the issue I have is that they had a reason, they came up with a reason, it was a bogus
[01:39:18.580 --> 01:39:24.580]  reason, they basically set me up, they lied, they manipulated the time clock, and I can
[01:39:24.580 --> 01:39:26.580]  prove all of that.
[01:39:26.580 --> 01:39:31.580]  And so I feel like there was wrongful termination, and there is a wrongful termination, you
[01:39:31.580 --> 01:39:36.580]  know, so you can file against these people, but everybody seems to think that, well, because
[01:39:36.580 --> 01:39:42.580]  it's not related to sex, religion, blah, blah, blah, there's nothing we can do about this.
[01:39:42.580 --> 01:39:47.580]  And I'm like, you know, this is a dangerous situation for the other people who are employed
[01:39:47.580 --> 01:39:48.580]  there.
[01:39:48.580 --> 01:39:53.580]  In fact, you had advised me at the time that you wouldn't even go back to work at that
[01:39:53.580 --> 01:39:56.580]  place unless I myself was armed.
[01:39:56.580 --> 01:39:57.580]  Oh.
[01:39:57.580 --> 01:40:00.580]  Do you remember me now?
[01:40:00.580 --> 01:40:05.580]  No, I wouldn't have made that particular recommendation.
[01:40:05.580 --> 01:40:08.580]  No, I think Deborah said it after.
[01:40:08.580 --> 01:40:09.580]  Okay, yeah.
[01:40:09.580 --> 01:40:17.580]  I'm an ex-combat veteran, and I've spent time on the sharp end of those things, and
[01:40:17.580 --> 01:40:19.580]  I do not advocate them.
[01:40:19.580 --> 01:40:25.580]  Well, I absolutely do, because you can defend your life with it, and that's why we have
[01:40:25.580 --> 01:40:31.580]  the Second Amendment, and if it's a dangerous place to be, absolutely, I would recommend
[01:40:31.580 --> 01:40:33.580]  doing what you need to do to defend yourself.
[01:40:33.580 --> 01:40:38.580]  Now, I mean, we don't advocate breaking the laws, and in this state, you're supposed to
[01:40:38.580 --> 01:40:43.580]  have a concealed carry license in order to carry a weapon on your person.
[01:40:43.580 --> 01:40:46.580]  You don't have to have a license to carry it in your car, okay?
[01:40:46.580 --> 01:40:47.580]  You can have it in your car.
[01:40:47.580 --> 01:40:49.580]  However, it has to be concealed.
[01:40:49.580 --> 01:40:53.580]  You can't have a pistol laying on the seat for whatever reason.
[01:40:53.580 --> 01:40:57.580]  Now, if it's a long arm, like a shotgun or rifle, you can have it in your back window.
[01:40:57.580 --> 01:41:00.580]  You don't have to have long arms concealed in the car.
[01:41:00.580 --> 01:41:02.580]  You have to have a pistol concealed in the car.
[01:41:02.580 --> 01:41:06.580]  If you want to carry it on your person, according to law, you have to have a concealed carry
[01:41:06.580 --> 01:41:12.580]  license, and I did find out, I don't have the exact statute yet, but I did find out
[01:41:12.580 --> 01:41:14.580]  Texas is not an open carry state.
[01:41:14.580 --> 01:41:16.580]  It is illegal to open carry.
[01:41:16.580 --> 01:41:21.580]  If you have a concealed handgun license, you still cannot carry it openly.
[01:41:21.580 --> 01:41:24.580]  It doesn't give you permission to do both, all right?
[01:41:24.580 --> 01:41:30.580]  You have to keep a handgun concealed if you have a concealed carry license, and in fact,
[01:41:30.580 --> 01:41:36.580]  there's a big push going on right now in this state to repeal the criminalization of open carry.
[01:41:36.580 --> 01:41:40.580]  Texas is one of the few, so I mean, we don't advocate, you know, breaking any laws,
[01:41:40.580 --> 01:41:47.580]  but I definitely advocate proper use and training of firearms for self-protection.
[01:41:47.580 --> 01:41:53.580]  Randy just doesn't want to be around them, but they are absolutely necessary to the
[01:41:53.580 --> 01:41:55.580]  survival of our republic.
[01:41:55.580 --> 01:41:58.580]  Well, you know, I agree with what you said.
[01:41:58.580 --> 01:42:05.580]  I personally don't have, you know, any license to carry a gun, and I didn't, you know,
[01:42:05.580 --> 01:42:09.580]  the whole thing, I mean, I knew the whole thing was going to come down to the fact that
[01:42:09.580 --> 01:42:15.580]  they were going to fire me over something or another, but the point I'm making is that
[01:42:15.580 --> 01:42:22.580]  they, you know, in the law firm had a gun, and they talked openly about it and used it
[01:42:22.580 --> 01:42:26.580]  against our employees and threatened them and intimidated people and created a very
[01:42:26.580 --> 01:42:28.580]  hostile work environment.
[01:42:28.580 --> 01:42:35.580]  And then they lied under oath at a Texas Work Service Commission hearing, and even though
[01:42:35.580 --> 01:42:41.580]  I won, I still think the whole thing needs to be addressed further, because other people
[01:42:41.580 --> 01:42:44.580]  are in jeopardy that still work there.
[01:42:44.580 --> 01:42:50.580]  It's against the policy of the, you know, they have a third-party HR company that handles
[01:42:50.580 --> 01:42:56.580]  all of their, you know, insurance benefits and taxes and things of that nature, and in
[01:42:56.580 --> 01:43:04.580]  their policy it says clearly that it's against the rules to have any sort of weapon in the
[01:43:04.580 --> 01:43:05.580]  workplace.
[01:43:05.580 --> 01:43:12.580]  So my question is, you know, if that's the case, then why would they be above the law
[01:43:12.580 --> 01:43:15.580]  in that respect, and why is it okay?
[01:43:15.580 --> 01:43:21.580]  I mean, basically, literally the state bar told me, it's a right-to-work state, so, you
[01:43:21.580 --> 01:43:27.580]  know, they can basically torture you if they want to and get away with it.
[01:43:27.580 --> 01:43:30.580]  And I'm like, that doesn't sound right to me.
[01:43:30.580 --> 01:43:32.580]  How can...
[01:43:32.580 --> 01:43:35.580]  Okay, listen, we're going to break.
[01:43:35.580 --> 01:43:41.580]  Randy, why don't you give some comments on the other side, and then we need to start
[01:43:41.580 --> 01:43:44.580]  to move on, because we've only got one more segment left, and we've got a bunch of callers
[01:43:44.580 --> 01:43:46.580]  on the board.
[01:43:46.580 --> 01:43:48.580]  Okay, folks, we are going to break.
[01:43:48.580 --> 01:43:51.580]  This is the rule of law, ruleoflawradio.com.
[01:43:51.580 --> 01:43:54.580]  Special guest Erin Vessel, attorney.
[01:43:54.580 --> 01:44:00.580]  We'll be right back.
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[01:46:21.580 --> 01:46:40.580]  All right, somebody's going to police the police, man.
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[01:46:43.580 --> 01:46:45.580]  That's my husband there singing, Jerry Stevens.
[01:46:45.580 --> 01:46:47.580]  That is the Route 1 Project.
[01:46:47.580 --> 01:46:53.580]  We are about to release a double CD set for one for Route 1 and one for Three Shoes Posse.
[01:46:53.580 --> 01:46:57.580]  I'll be letting you listeners know about that very soon.
[01:46:57.580 --> 01:47:03.580]  Okay, so Randy, she's thinking possibly filing a suit for under wrongful termination,
[01:47:03.580 --> 01:47:07.580]  but we need to find maybe some specific causes of action for what's happened to her.
[01:47:07.580 --> 01:47:10.580]  Randy, can you please give her a few words of advice, and then maybe, Diane,
[01:47:10.580 --> 01:47:13.580]  you may need to call back tomorrow because we've got to move on.
[01:47:13.580 --> 01:47:13.580]  Yes.
[01:47:13.580 --> 01:47:14.580]  All right.
[01:47:14.580 --> 01:47:20.580]  I'm looking at you may have a claim for breach of contract.
[01:47:20.580 --> 01:47:21.580]  Hmm.
[01:47:21.580 --> 01:47:29.580]  Those rules that were in place when you took on the employment,
[01:47:29.580 --> 01:47:34.580]  they will establish a contract between you and the lender.
[01:47:34.580 --> 01:47:35.580]  So there's a lot of background noise.
[01:47:35.580 --> 01:47:39.580]  Yeah, Diane, can you get to a quiet location?
[01:47:39.580 --> 01:47:41.580]  As far as I know, I am in a quiet location.
[01:47:41.580 --> 01:47:43.580]  Okay, all right.
[01:47:43.580 --> 01:47:47.580]  These mics pick up stuff that you can barely hear.
[01:47:47.580 --> 01:47:49.580]  Well, yeah, telephones are just like that.
[01:47:49.580 --> 01:47:50.580]  Okay.
[01:47:50.580 --> 01:47:51.580]  Okay.
[01:47:51.580 --> 01:47:54.580]  But I would look at breach of contract.
[01:47:54.580 --> 01:47:55.580]  Okay.
[01:47:55.580 --> 01:47:57.580]  Because it is a right to work state.
[01:47:57.580 --> 01:48:05.580]  However, in working for someone, you develop a property interest in your employment,
[01:48:05.580 --> 01:48:13.580]  and there is Texas case law showing that your time in a particular form of employment
[01:48:13.580 --> 01:48:15.580]  gives you an investment in that employment.
[01:48:15.580 --> 01:48:19.580]  And you actually need to look at suing the lender.
[01:48:19.580 --> 01:48:22.580]  I mean suing the lender, suing the law firm.
[01:48:22.580 --> 01:48:25.580]  It's just going to cost them a lot of money.
[01:48:25.580 --> 01:48:28.580]  Right, and they got a lot of money, I can tell you that.
[01:48:28.580 --> 01:48:30.580]  Yeah, but they don't like spending it.
[01:48:30.580 --> 01:48:31.580]  Oh, I know.
[01:48:31.580 --> 01:48:32.580]  Of course.
[01:48:32.580 --> 01:48:36.580]  You give them a lawsuit, and they're likely to come to you and say,
[01:48:36.580 --> 01:48:41.580]  let's make a deal, make this go away, and we'll pay you this much money,
[01:48:41.580 --> 01:48:45.580]  and this is the best thing you can do, get in their pockets.
[01:48:45.580 --> 01:48:46.580]  All right.
[01:48:46.580 --> 01:48:49.580]  And how do I go about doing this breach of contract if I can't,
[01:48:49.580 --> 01:48:51.580]  I mean can I do that on my own?
[01:48:51.580 --> 01:48:53.580]  Wait a minute, you work for a law firm.
[01:48:53.580 --> 01:48:54.580]  Of course you can.
[01:48:54.580 --> 01:48:55.580]  I don't anymore.
[01:48:55.580 --> 01:49:03.580]  Get, call a few law firms and tell them that you're homeschooling your kids,
[01:49:03.580 --> 01:49:06.580]  and you want to give them a course in law.
[01:49:06.580 --> 01:49:11.580]  Do you have any old litigation guides laying around that I could maybe get
[01:49:11.580 --> 01:49:14.580]  and teach my kids with them?
[01:49:14.580 --> 01:49:16.580]  I had someone in Amarillo do that.
[01:49:16.580 --> 01:49:21.580]  The third firm she called, the guy said,
[01:49:21.580 --> 01:49:26.580]  do you have a station wagon or a pickup truck?
[01:49:26.580 --> 01:49:29.580]  Because they had so many from so many years.
[01:49:29.580 --> 01:49:31.580]  Yeah, once the new ones come out,
[01:49:31.580 --> 01:49:34.580]  the attorneys don't want to use the old litigation guide,
[01:49:34.580 --> 01:49:36.580]  but you don't care if it's a year or two old.
[01:49:36.580 --> 01:49:42.580]  This, Texas O'Connor's causes of action is wonderful.
[01:49:42.580 --> 01:49:43.580]  Okay, Diane, listen, we need to move on.
[01:49:43.580 --> 01:49:45.580]  We've only got barely eight minutes left,
[01:49:45.580 --> 01:49:46.580]  and we have three other calls on the board.
[01:49:46.580 --> 01:49:50.580]  Why don't you call in tomorrow night, and we'll discuss this matter more.
[01:49:50.580 --> 01:49:51.580]  Okay, thanks.
[01:49:51.580 --> 01:49:54.580]  All right, we're going now to Anonymous in Florida,
[01:49:54.580 --> 01:49:56.580]  who wants to discuss promissory notes.
[01:49:56.580 --> 01:49:58.580]  Anonymous, go ahead.
[01:49:58.580 --> 01:50:04.580]  Yeah, I did a refinance with Bank of Atlantic or Bank of America,
[01:50:04.580 --> 01:50:08.580]  and after reading the contract, I canceled,
[01:50:08.580 --> 01:50:11.580]  and they refused to return the promissory note.
[01:50:11.580 --> 01:50:16.580]  Wait, how long after writing the contract did you?
[01:50:16.580 --> 01:50:18.580]  Within 72 hours.
[01:50:18.580 --> 01:50:22.580]  Oh, so you filed a recension within the three days.
[01:50:22.580 --> 01:50:27.580]  Yeah, a lawyer sent them facts, and they didn't answer.
[01:50:27.580 --> 01:50:35.580]  Adam Susanne, another one, and they said it was their property,
[01:50:35.580 --> 01:50:39.580]  and when I said the signature is my property,
[01:50:39.580 --> 01:50:40.580]  and I want my promissory note,
[01:50:40.580 --> 01:50:44.580]  I can't have that floating around for somebody to collect later,
[01:50:44.580 --> 01:50:47.580]  and they refused to answer.
[01:50:47.580 --> 01:50:54.580]  How do I get my promissory note back so I don't get hit down the road for it?
[01:50:54.580 --> 01:51:02.580]  You probably have to file a suit, or at least send them a tort letter.
[01:51:02.580 --> 01:51:06.580]  Well, I had an attorney send a fax to them twice.
[01:51:06.580 --> 01:51:08.580]  Would that work in court?
[01:51:08.580 --> 01:51:09.580]  Yeah.
[01:51:09.580 --> 01:51:11.580]  So I'd have to sue them.
[01:51:11.580 --> 01:51:14.580]  You'd either have to sue them or send them a tort letter,
[01:51:14.580 --> 01:51:17.580]  notice of your intent to sue,
[01:51:17.580 --> 01:51:20.580]  and I know Aaron's going to hate to hear this,
[01:51:20.580 --> 01:51:25.580]  but I'd grieve the crap out of those attorneys.
[01:51:25.580 --> 01:51:27.580]  Yeah, they're claiming it's their property,
[01:51:27.580 --> 01:51:31.580]  and my signature is my property, even though it's on their paper.
[01:51:31.580 --> 01:51:34.580]  Well, you signed that promissory note.
[01:51:34.580 --> 01:51:38.580]  Yeah, they tricked me and then signed it before reading it,
[01:51:38.580 --> 01:51:40.580]  and they said they were out of time.
[01:51:40.580 --> 01:51:42.580]  They just pressured me into signing it.
[01:51:42.580 --> 01:51:47.580]  You've got 72 hours to get out of it, so I have to read it.
[01:51:47.580 --> 01:51:49.580]  Wait a minute, wait a minute.
[01:51:49.580 --> 01:51:52.580]  There could be something else going on here.
[01:51:52.580 --> 01:51:57.580]  Was this a large bank or was it a mortgage company?
[01:51:57.580 --> 01:51:59.580]  Bank of America, you said, right?
[01:51:59.580 --> 01:52:01.580]  Bank of America, yeah.
[01:52:01.580 --> 01:52:04.580]  Well, then it's probably not a table-funded loan.
[01:52:04.580 --> 01:52:07.580]  Good chance they've already sold your note.
[01:52:07.580 --> 01:52:09.580]  Yeah, that's what I figured.
[01:52:09.580 --> 01:52:11.580]  Otherwise, they would return it.
[01:52:11.580 --> 01:52:16.580]  They did give back the check that we sent for the refinancing.
[01:52:16.580 --> 01:52:18.580]  They sent that back.
[01:52:18.580 --> 01:52:28.580]  It was what do you call it, post office money owner or whatever.
[01:52:28.580 --> 01:52:31.580]  Yeah, but with that promissory note still floating around out there,
[01:52:31.580 --> 01:52:35.580]  somebody could try to make a claim on it at any point in the future.
[01:52:35.580 --> 01:52:36.580]  Yeah, that was my point.
[01:52:36.580 --> 01:52:38.580]  And the lawyers sent them a letter and said,
[01:52:38.580 --> 01:52:41.580]  yeah, you've got to get your promissory note back there.
[01:52:41.580 --> 01:52:43.580]  They can hold you for it later.
[01:52:43.580 --> 01:52:46.580]  So I'm assuming that they monetized it already.
[01:52:46.580 --> 01:52:49.580]  Is there some law saying they have to return it?
[01:52:49.580 --> 01:52:50.580]  Absolutely.
[01:52:50.580 --> 01:52:51.580]  That's what I figured.
[01:52:51.580 --> 01:52:53.580]  It's my promissory note.
[01:52:53.580 --> 01:52:54.580]  Ask Aaron.
[01:52:54.580 --> 01:52:55.580]  Aaron.
[01:52:55.580 --> 01:52:56.580]  Yes.
[01:52:56.580 --> 01:53:00.580]  What would you do in a case like this?
[01:53:00.580 --> 01:53:02.580]  We're not asking you to give legal advice.
[01:53:02.580 --> 01:53:04.580]  Yeah, in any situation.
[01:53:04.580 --> 01:53:09.580]  All right, well, in New York State, all refinances have the statutory right
[01:53:09.580 --> 01:53:12.580]  of rescission, meaning it is the borrower's statutory right to have a
[01:53:12.580 --> 01:53:18.580]  three-day right of rescission, and that does not include Sunday.
[01:53:18.580 --> 01:53:22.580]  If you, the borrower, and you should have been given a form that says
[01:53:22.580 --> 01:53:26.580]  right to cancel, notice of right to cancel,
[01:53:26.580 --> 01:53:32.580]  most states will require the lender give you multiple copies of it,
[01:53:32.580 --> 01:53:36.580]  and they'll make you sign multiple originals of the notice of right to cancel.
[01:53:36.580 --> 01:53:40.580]  They are not supposed to do anything with that note until that rescission
[01:53:40.580 --> 01:53:43.580]  period has expired and the loan has funded.
[01:53:43.580 --> 01:53:46.580]  Once they've funded that loan, then obviously, you know,
[01:53:46.580 --> 01:53:49.580]  they can transfer the note and go about their business.
[01:53:49.580 --> 01:53:54.580]  But until that rescission period is over and your loan is funded,
[01:53:54.580 --> 01:53:57.580]  technically they should still be holding onto your note
[01:53:57.580 --> 01:54:00.580]  and have the capability of giving it back to you.
[01:54:00.580 --> 01:54:03.580]  If you have a copy of that notice to right to cancel,
[01:54:03.580 --> 01:54:06.580]  and you signed inside that box that says, I hereby cancel,
[01:54:06.580 --> 01:54:11.580]  and you can prove you did it by midnight on the date that's listed on that form,
[01:54:11.580 --> 01:54:18.580]  that right there is your evidence that you can use later should this come back to haunt you.
[01:54:18.580 --> 01:54:22.580]  But what about suing the lender to get the promissory note back right now?
[01:54:22.580 --> 01:54:23.580]  I think it's definitely worth a try.
[01:54:23.580 --> 01:54:28.580]  I would first send a demand letter, or you guys call it a tort letter,
[01:54:28.580 --> 01:54:31.580]  a demand letter demanding that if they don't return it,
[01:54:31.580 --> 01:54:32.580]  this is what you're going to be doing.
[01:54:32.580 --> 01:54:40.580]  And I would attach a copy of your right to cancel and even a fax submission receipt.
[01:54:40.580 --> 01:54:43.580]  When your attorney is faxing letters saying, you know,
[01:54:43.580 --> 01:54:47.580]  this loan is canceled, do not fund it, please return the promissory note,
[01:54:47.580 --> 01:54:53.580]  I would attach those documents to this demand letter or a tort letter.
[01:54:53.580 --> 01:54:54.580]  I didn't even know.
[01:54:54.580 --> 01:54:55.580]  My attorney did that.
[01:54:55.580 --> 01:54:58.580]  It's a good chance they've sold that note a number of times.
[01:54:58.580 --> 01:55:03.580]  Yeah, my attorney did that before the 72 hours was expired.
[01:55:03.580 --> 01:55:07.580]  So they've already sent a copy of the rescission letter.
[01:55:07.580 --> 01:55:12.580]  Okay, and did he have a fax transmission receipt proving that they received the fax?
[01:55:12.580 --> 01:55:13.580]  Yes.
[01:55:13.580 --> 01:55:16.580]  Okay, they have probably sold it several times.
[01:55:16.580 --> 01:55:18.580]  So now you don't need to send...
[01:55:18.580 --> 01:55:19.580]  Before the 72 hours.
[01:55:19.580 --> 01:55:21.580]  Yes, so now you don't need to send another tort letter.
[01:55:21.580 --> 01:55:22.580]  You can just sue them now.
[01:55:22.580 --> 01:55:26.580]  Most likely they had it sold...
[01:55:26.580 --> 01:55:27.580]  Immediately.
[01:55:27.580 --> 01:55:30.580]  They already had their money before they came to the table.
[01:55:30.580 --> 01:55:31.580]  Oh, absolutely.
[01:55:31.580 --> 01:55:32.580]  That's what they do.
[01:55:32.580 --> 01:55:35.580]  They sell it before they even close the loan.
[01:55:35.580 --> 01:55:38.580]  And most of these banks will disclose that in the loan package,
[01:55:38.580 --> 01:55:43.580]  but they'll do it in like very fine print, in a very nondescript form,
[01:55:43.580 --> 01:55:45.580]  in your closing package.
[01:55:45.580 --> 01:55:49.580]  You might be able to find out who they sold it to.
[01:55:49.580 --> 01:55:50.580]  It's ridiculous.
[01:55:50.580 --> 01:55:53.580]  If you look through your loan package, really look through and read everything you have,
[01:55:53.580 --> 01:55:56.580]  because by law they're supposed to give you copies of everything.
[01:55:56.580 --> 01:55:59.580]  So you should have every single piece of paper.
[01:55:59.580 --> 01:56:05.580]  Look, it is totally ridiculous and naive to think for one second that these banks,
[01:56:05.580 --> 01:56:10.580]  these banksters actually put themselves out on a limb and take a risk
[01:56:10.580 --> 01:56:14.580]  and loan anything whatsoever that they may not get back.
[01:56:14.580 --> 01:56:19.580]  No, they have been reimbursed for that loan before they even cut you a check.
[01:56:19.580 --> 01:56:21.580]  This is what they're doing.
[01:56:21.580 --> 01:56:25.580]  And I would notify that bank or whoever bought that note ahead of time.
[01:56:25.580 --> 01:56:27.580]  That's why if you can find out who that is,
[01:56:27.580 --> 01:56:31.580]  I would notify them that you had canceled this loan and that they paid for nothing.
[01:56:31.580 --> 01:56:40.580]  And what they're doing is they're loaning their license to a non-licensed institution.
[01:56:40.580 --> 01:56:43.580]  They're taking money from someone who's not licensed,
[01:56:43.580 --> 01:56:45.580]  and they're using that to fund your note.
[01:56:45.580 --> 01:56:49.580]  So you're not really dealing with the lender.
[01:56:49.580 --> 01:56:52.580]  You're dealing with someone else who's not a licensed lender.
[01:56:52.580 --> 01:56:57.580]  They're just lending him their license, and that is illegal.
[01:56:57.580 --> 01:56:59.580]  All right, listen, we are almost at the end of the show.
[01:56:59.580 --> 01:57:01.580]  I wanted to try squeezing one more caller.
[01:57:01.580 --> 01:57:03.580]  Zoe from Texas has a short question.
[01:57:03.580 --> 01:57:05.580]  Anonymous, please call back in tomorrow night.
[01:57:05.580 --> 01:57:07.580]  All right, thank you.
[01:57:07.580 --> 01:57:10.580]  Okay, quickly, Zoe from Texas.
[01:57:10.580 --> 01:57:13.580]  Zoe, you had a quick question for Randy concerning a book
[01:57:13.580 --> 01:57:15.580]  about how to file bar grievances?
[01:57:15.580 --> 01:57:18.580]  Yes, I just need the title.
[01:57:18.580 --> 01:57:19.580]  It won't help.
[01:57:19.580 --> 01:57:20.580]  I've got it.
[01:57:20.580 --> 01:57:23.580]  It's a 1990 version.
[01:57:23.580 --> 01:57:25.580]  Let me pull it off the shelf here.
[01:57:25.580 --> 01:57:31.580]  Okay.
[01:57:31.580 --> 01:57:36.580]  Okay, it's called Texas Legal Malpractice in Lawyer Discipline.
[01:57:36.580 --> 01:57:45.580]  Wait a minute, Texas Lawyer Discipline.
[01:57:45.580 --> 01:57:52.580]  It's Charles F. Herring, H-E-R-R-I-N-G, Jr.
[01:57:52.580 --> 01:57:54.580]  G, Jr.
[01:57:54.580 --> 01:57:59.580]  Okay, I hope this is something that would be available.
[01:57:59.580 --> 01:58:01.580]  It's still in plant.
[01:58:01.580 --> 01:58:03.580]  Yes, it's American Lawyer Media.
[01:58:03.580 --> 01:58:06.580]  1991, I can't find it anywhere.
[01:58:06.580 --> 01:58:09.580]  Really, you don't need a form or anything to write a bar grievance.
[01:58:09.580 --> 01:58:13.580]  You just state the case and make a complaint, you know?
[01:58:13.580 --> 01:58:17.580]  According to this, you can sue a lawyer if he breathes.
[01:58:17.580 --> 01:58:20.580]  You mean, yeah, you can bar grieve an attorney if you want.
[01:58:20.580 --> 01:58:24.580]  Really, I have a lot of complaints.
[01:58:24.580 --> 01:58:27.580]  Listen, listen, it's better to file,
[01:58:27.580 --> 01:58:29.580]  if you really want to hurt the attorney,
[01:58:29.580 --> 01:58:32.580]  it's better to file separate bar grievances for each issue.
[01:58:32.580 --> 01:58:36.580]  That will really kill their malpractice insurance.
[01:58:36.580 --> 01:58:37.580]  All right, listen, we have to go, Zoe.
[01:58:37.580 --> 01:58:39.580]  You're welcome to call back in tomorrow night.
[01:58:39.580 --> 01:58:40.580]  We are at the end of the show.
[01:58:40.580 --> 01:58:44.580]  Folks, thanks for listening, ruleoflawradio.com.
[01:58:44.580 --> 01:58:45.580]  The archives will be available later tonight.
[01:58:45.580 --> 01:58:47.580]  Erin, thank you for joining us tonight.
[01:58:47.580 --> 01:58:48.580]  Thanks for having me.
[01:58:48.580 --> 01:58:50.580]  All right, we will be back tomorrow night
[01:58:50.580 --> 01:58:55.580]  for our four-hour info marathon on Friday night.
[01:58:55.580 --> 01:59:05.580]  Y'all have a blessed night.
[01:59:25.580 --> 01:59:35.580]  Thank you.
[01:59:55.580 --> 01:59:59.580]  Good night.