Pro Se Primer 101 – 1 – Mortgage loan terms and documents: promissory note, mortgage or deed of trust

“Damn my eyes… The people I’ve seen… Crawling through the wreck of the american dream”

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Perhaps the biggest help to illegal foreclosure parties is the word “mortgage.”

In all 50 states, this word is universally misused as a synonym for “mortgage loan.” Home loans are known as mortgages as a slang term.

But, a mortgage is not a home loan at all. It is simply the name of an incidental, but non-essential, instrument used to define the security that a borrower of any type of loan has agreed to pledge as security for the repayment of a loan. The lender and the borrower have agreed that the collateral promised by the borrower will be forfeited in the event of default. The term mortgage evolved from the fact that the mortgage loan included the property as collateral. The mortgage described the guarantee. In fact, the correct name for this type of document or instrument is “security instrument”.

The term “mortgage” is used to identify the security instrument in most judicial foreclosure states. But, in most non-judicial foreclosure states, it is known as a “deed of trust.” In all 50 states, it is the Note that binds the borrower to their debt.

Additionally, in all 50 states, the security instrument is only needed or used when a borrower signs a Promissory Note as physical evidence of the money borrowed and used for the purpose both lending and borrowing parties have agreed to. This security instrument (remember, it may be called a mortgage or deed of trust) is used only if the borrower finishes repurchasing their Note (ie, paid off the home loan), or becomes unable to repay it.

This is important to remember because court judges do not know how real estate deals work and are being misled over and over again by their perception of the situation and not the law. You must make the judge understand that the Note is not the top priority. Debt, or money, is the real real. It was the money that paid the house. The Promissory Note is the physical evidence that a money loan was made. But, each executing party must prove how they legally came to possess it. Possession of the Note is no more proof of ownership of the loan than possession of a car is proof of ownership of that car. Proof of ownership must come from contracts, transfers, cashier’s checks, etc. involved in the deal. The constitution says that without “concrete and particularized” evidence to support claims of the right of performance, there is no right of performance.

You do not owe a Promissory Note to the Holder at the Maturity of your loan, you must repay the money you received as a loan. The Promissory Note is important because it is all that exists to evidence the debt in case the borrower pays everything or does not finish paying. We focused on directing that message to the judges. The enforcement party as a debt collector will focus on the words of his claim and only the words and not the money he represents.

If you did not receive the money from the lender in the name of your Note and Security Instrument, then there is no way for either party to claim that they purchased the Note legally. The fraud is that they just say they have the Note and don’t even try to prove how they got it. Without proving this affirmation with “concrete and specific” proof, then the Promissory Note that they claim to have is null. A debt collector cannot collect money from someone who does not owe you money.

The debt collector must show that they have the right to collect (foreclosure is an act of “debt collection”), so they must also show beyond a doubt that they paid money for your Note before they can demand your money back. No borrower can be forced to pay someone he does not owe. I am convinced that 100% of home loans made after 1999 or possibly even earlier named a lender who did not give the borrower any of the promised money. Yes, the borrower absolutely got the money, but from whom? He must pay only the real part in interest.

The collector must prove that it was him or them. Once a borrower has spent the borrowed money for its intended purpose, there must be evidence of the loan and repayment terms. The promissory note is that evidence and is the essential proof that a loan has been made and is due. If the borrower and the lending party have agreed that something substantial is needed to ensure that the lending party can get back the money they lent, even if the borrower is unable to pay it back. The borrower may pledge something of his property as security commonly called collateral.

Some synonyms of the word collateral are: surety, guarantee, guarantee, insurance, compensation, support, compensation; as in “she put her house up as collateral for the loan”

There is a great deal of confusion caused by the use of the word mortgage to refer to a home loan. Part of this is an innocent evolution of the terms Promissory Note and Mortgage, which in the past formed part of a document or instrument.

But, today, criminal enforcers (I don’t use the word lender here, because very, very rarely is the enforcer the actual lender or even the legal owner of the Essential Note) are using mortgage assignments (or deed of trust to supposedly transfer ownership of your loan. But, in reality, they are taking advantage of the common misuse of the word “mortgage” as slang for “mortgage loan.”

This is an intentional act of deception and misrepresentation, as there is no such thing as an assignment of the mortgage.” Only the assignment of the promissory note can transfer ownership of a loan. But, it is done by simply endorsing the promissory note itself, just like you endorse a check to deposit into your bank account at your bank, or to take cash.

The mortgage, like the description and security agreement, always follows the Note as it is essential to a loan. The Note never follows the assignment of the “incidental” mortgage.

The United States Supreme Court outlined this in the case of “Longan v. Carpenter” in 1872, and since all Supreme Court rulings and orders of the United States Supreme Court are binding as law on all courts in the nation. All courts are arms of the Supreme Court of the United States.

I learned a lot of what I know as of 2012 from reading authors who seemed to be trying to help borrowers who were locked in fraudulent foreclosures. Today I know that these authors help at the same time. they were not clear about these problems and the real intention was to find a way to make money from misinformed borrowers. I had an advantage over most borrowers because I am not a lawyer. However, I have long been a mortgage loan specialist, because I am both a real estate broker and a mortgage broker (here the term mortgage is once again misused by me).

What we call a lender (amongst worse names) told the borrower that they were going to lend him money to buy your house, but the lender can’t trust everyone to know that you borrowed money. There must be evidence that you borrowed money and that you know who lent it to you.

So if I lent you $200,000 (dreamer) and you gave it to the seller of the house, the money is gone. What is left when the money is delivered to the seller of the house? All that remains after you, the borrower, have paid the money to the seller of the house is the debt owed to the lender, which is the “debt” you must pay.

You signed the Note and gave it to the lender providing physical evidence that you borrowed the money from them and promised to pay it back according to the terms you and your lender agreed to. (This includes the interest rate, the amount of time until everything is paid off, how often you pay, and how much you pay each time you pay.)

So, the Promissory Note is evidence of the debt. (But not actually debt.) The law should require that a Promissory Note be recorded, but as we’ll see later, there is a recording that indicates that there was a Promissory Note at some point.

Now, since you promised to return the money that was delivered to you and there is written physical evidence of the money you received, then we can say that the Note is essential to the deal you have made. For many hundreds of years, everyone knew that the Note (many professionals and other puppets like to say “I Note”, but I have learned to say it exactly how it should be said).

However, for literally hundreds of years, everyone has known that the Note is the only indispensable piece of a mortgage loan.

But, the lender paid for the house for you and that house is really the best collateral for him to tie it to the loan you made. There is no law that defines what you and the lender can agree on as what you will promise the lender in the event he can’t repay the money he borrowed, but the house he is buying with that borrowed money makes logical sense.

In today’s world (after 1994), you probably couldn’t have convinced a lender of any other security, so you probably signed an Instrument of Security that describes the property and what happens when you have repaid all the money, or what happens if you can’t repay the money according to the terms of the Note.

The security instrument is, then, a kind of rule book about what will happen if everything goes well and what will happen if things don’t go well. More simply, the Security Instrument is the rule book for the loan. It describes the Note and is the guide you will use if A. You pay the Note you signed to get the money to buy your house and B. You do not pay the Note.

A better description might be that you don’t really pay for your house as we often think. In effect, you buy back the Note you signed and issued to get the use of the money. When you finish buying back your Note, you used to retrieve the Note marked PAID. But, the banking world influenced legislative bodies across the country to allow shortcuts to this, further confusing the judges.

The promissory note is no longer evidence of any debt, because when you have paid all the money you agreed to, you no longer owe a debt. People used to party and burn the Note when it was returned to them marked paid and this subsequent purchase of a Note can be defined by the term “free and clear”. This term means free of any link.