Fraud: Washington State Bill SB5272

Non-technical special, from Karl Denninger:


In Washington State there is a bill pending, SB 5275, which has as its title "Protecting and assisting homeowners from unnecessary foreclosures." However, buried in the text of the bill is the following:

7 (a) That, for residential real estate property, before the notice of trustee's sale is recorded, transmitted, or served, the trustee shall have proof that the beneficiary (bank) is the owner of the promissory note or obligation secured by the deed of trust. A declaration by the beneficiary (bank) made under penalty of perjury stating that the beneficiary (bank) is the actual holder of the promissory note or other obligation secured by the deed of trust shall be sufficient proof as required under this subsection.

What's the significance of this section? Simple: No proof need be offered that the bank actually holds the note or obligation. A simple declaration that they are in possession is sufficient. If you're in possession of something as simple as a piece of paper, why would not present the actual paper to the court? There's only one reason to "declare" rather than "prove" - you don't have it.

This bill before the Washington State Legislature explicitly permits the filing of perjured documents and the ejecting of homeowners into the street through fraudulent foreclosures. That which has been bad will, if this bill passes, become even worse. Remember from the above: 150,000 counts of perjury, zero indictments. One can only assume that lying about having the loan document will be prosecuted just as often as lying about reading the papers one submits to the court. That is, never.


In summary, the banks have bundled up these deeds of homes into various investment vehicles and have sold them off numerous times. Banks can no longer track down the physical deeds that are required by law in the event of a foreclosure.