Consumer complaint received 2024-04-24 00:00:00
Product: Debt collection — Mortgage debt
Issue: Took or threatened to take negative or legal action — Seized or attempted to seize your property
Company: Nations Direct Mortgage, LLC
State: CA

Complaint narrative:
Nations Direct Mortgage is alleging I owe a debt and initiated illegal foreclosure proceedings on my real property. The issue is Nations Direct Mortgage is the servicer and services have no rights to initiate foreclosed on property. This is fraud because my property should not have been used for the public commercial properties knowing the value of said property is far less the security and note attached to the account that they are servicing. Services are paid a fee to collect debts but have no rights because they are to hold the loan NOT collect. Nations Direct Mortgage should produce the original note and deed as outlined by federal law. Now this brings to question why the interest that the security is producing is not applied as outline by the securities law that govern public trading companies. Abuse of a security is punishable by federal prison time and serious fines.

( a ) A person acquires a security or an interest therein, under this Article, if : ( 1 ) the person is a purchaser to whom a security is delivered pursuant to Section 8-301 ; or ( 2 ) the person acquires a security entitlement to the security pursuant to Section 8-501.

( b ) A person acquires a financial asset, other than a security, or an interest therein, under this Article, if the person acquires a security entitlement to the financial asset.

( c ) A person who acquires a security entitlement to a security or other financial asset has the rights specified in Part 5, but is a purchaser of any security, security entitlement, or other financial asset held by the securities intermediary only to the extent provided in Section 8-503.

( d ) Unless the context shows that a different meaning is intended, a person who is required by other law, regulation, rule, or agreement to transfer, deliver, present, surrender, exchange, or otherwise put in the possession of another person a security or financial asset satisfies that requirement by causing the other person to acquire an interest in the security or financial asset pursuant to subsection ( a ) or ( b ).

( a ) A person has notice of an adverse claim if : ( 1 ) the person knows of the adverse claim ; ( 2 ) the person is aware of facts sufficient to indicate that there is a significant probability that the adverse claim exists and deliberately avoids information that would establish the existence of the adverse claim; or ( 3 ) the person has a duty, imposed by statute or regulation, to investigate whether an adverse claim exists, and the investigation so required would establish the existence of the adverse claim.

( b ) Having knowledge that a financial asset or interest therein is or has been transferred by a representative imposes no duty of inquiry into the rightfulness of a transaction and is not notice of an adverse claim. However, a person who knows that a representative has transferred a financial asset or interest therein in a transaction that is, or whose proceeds are being used, for the individual benefit of the representative or otherwise in breach of duty has notice of an adverse claim.

( c ) An act or event that creates a right to immediate performance of the principal obligation represented by a security certificate or sets a date on or after which the certificate is to be presented or surrendered for redemption or exchange does not itself constitute notice of an adverse claim except in the case of a transfer more than : ( 1 ) one year after a date set for presentment or surrender for redemption or exchange; or ( 2 ) six months after a date set for payment of money against presentation or surrender of the certificate, if money was available for payment on that date.

( d ) A purchaser of a certificated security has notice of an adverse claim if the security certificate : ( 1 ) whether in bearer or registered form, has been indorsed " for collection '' or " for surrender '' or for some other purpose not involving transfer ; or ( 2 ) is in bearer form and has on it an unambiguous statement that it is the property of a person other than the transferor, but the mere writing of a name on the certificate is not such a statement.

( e ) Filing of a financing statement under Article 9 is not notice of an adverse claim to a financial asset.

Company response to consumer: Closed with explanation