Consumer complaint received 2017-05-17 00:00:00
Product: Mortgage — Other type of mortgage
Issue: Struggling to pay mortgage — 
Company: SELECT PORTFOLIO SERVICING, INC.
State: CA

Complaint narrative:
In a deed of trust agreement there is instituted a trustee to act as the courts thereby bypassing a standard foreclosure procedure in the court system. The non-judicial foreclosure process was designed to help alleviate the burden to the court system over the standard mortgage foreclosure process. Since the trustee is taxed with acting on behalf of the court it was designed and substantiated in the  [   XXXX   XXXX   XXXX   XXXX   XXXX   XXXX   XXXX   XXXX   ] Supreme Court ruling that the trustee was to be independent due to the fact that it repre sents the court. Thus the trustee is given the presumption of correctness as it is to be independent and arms length throughout the life of the deed of trust contract.     When the bank lobbyists wrote  Senate Bill 1638 i n  XX/XX/XXXX , it was to quietly strip the independence away from the trustee therein setting the stage for any deed of trust to be able to be foreclosed on whether someone was current on their payments or not. In fact this allowed someone who paid cash for their property and had never even entered into a loan agreement to be foreclosed on. Based on the fact that the trustee is fraudulent and owned, controlled and manipulated by the banks or fraudulent law firms they are able to file fraudulent paper and submit this paper to  the County Recorders Office with no oversight as to any legitimacy to the validity of any   information contained in the papers being filed. This fraud against the court has been going on with EVERY document being filed for a deed of trust agreement and for ANY and EVERY non-judicial foreclosure procedure in the state of CA since   XX/XX/XXXX .      The banks are in fact committing fraud by concealing that the Trustee is not independent and incapable of looking out for the best interests of the borrower in the Deed of Trust. When the bank uses a Deed of Trust agreement, knowing that the Trustee is not independent as described by the CA Supreme Court  in  XX/XX/XXXX   ;  XXXX   XXXX   XXXX   XXXX   XXXX   XXXX   XXXX   XXXX , the bank is in fact committing fraud against the borrower at the inception of the contract which makes the contract VOID. Due to the fact that the Trustee is not independent ( as the CA  State Suprem e Court ruled trustees are to be independent and arms length in a Deed of Trust contract ) the bank uses the Trustee and the Power of Sales Clause via CA   Civ Code 2924, to file fraudulent documents with the court.
Without the independence of the trustee in a deed of trust agreement, there is no valid deed of trust agreement as it is outlined in the Power of Sale clause and CA Civil Code 2924, et al. The lack of independence defies the rules of the deed of trust and allows fraudulent paperwork to be filed and no oversight to any wrongdoing by a financial institution or a trustee in a non-judicial foreclosure procedure. Therein, this allows any bank or fraudulent trustee to illegally foreclose on anyone, anytime, anywhere without reason or validity to any paperwork.
There is no party looking out for the interest of the property owner and the courts have handed over the justice system to the Trustee in a Non-Judicial foreclosure action. Because the courts have entrusted the Trustee and the CA Supreme Court has ruled that the Trustee is to be independent in a Deed of Trust agreement, the judicial power of correctness has been given to all of the documents that are filed into the court in a non-judicial foreclosure procedure. The reason a bank or other party is able to file whatever paperwork they choose in order to foreclose on someone is due to a  XX/XX/XXXX  rule that changed the rules to the Power of Sale clause. This rule comes from the  XX/XX/XXXX  Senate bill 1638 : SB 1638, Johnson. Deeds of trust : trustee substitution. Existing law sets forth the procedures for the substitution of trustees under a deed of trust upon real property or an estate for years therein. This bill   would, as an alternative procedure, set forth the procedures for the substitution of trustees under a deed of trust upon real property or an estate for years, given to secure an obligation to pay money, by the beneficiary or beneficiaries under the trust deed who hold more than 50 % of the record beneficial interest of a series of notes secured by the same real property or of undivided interests in a note secured by real property equivalent to a series transaction. The bill would also establish a process through which all of the beneficiaries under a trust deed can agree to be governed by beneficiaries holding more than 50 % of the record beneficial interest of a series of notes in real property or interests in a note equivalent to a series transaction, as specified. In order to substitute trustees or agree to be governed by the majority interest holders, all parties to the transaction would be required to sign and record a document containing specified information.     This rule gave banks the power to substitute a new trustee at the will of the bank thereby destroying any semblance of law to the Power Of Sale c lause or CA Civ Code 2924. It negates the independence of the Trustee as it enables the banks to substitute a trustee rather than having to follow the existing rules of the CA Civil Code. This bill became enacted law in   XX/XX/XXXX , ther ein making EVERY Deed of Trust agreement issued by a financial institution since that date fraudulent on its face and therefore VOID.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation