Consumer complaint received 2022-10-13 00:00:00
Product: Mortgage — Home equity loan or line of credit (HELOC)
Issue: Closing on a mortgage — 
Company: National Default Servicing Corporation
State: CA

Complaint narrative:
Ref : Foreclosure - NDSC File No : XXXX Title Order No. : XXXX4 National Default Servicing Corporation ( NDSC ) is illegally occupying the position of a Trustee and they do not have standing to foreclose on my property. NDSC can not act as the Trustee in this transaction as several Federal and State Codes have been violated making their appointment as the Trustee invalid, Null and Void Nunc Pro Tunc and no standing or authority to foreclose on a consumer 's home. 

Secondly, no debt is owed. NDSC is conducting a fraudulent and wrongful foreclosure. Under full faith and credit of United, States, outstanding balance was settled in full in XX/XX/XXXX. Under UCC 3-603, the debt was discharged. Further, there was no loan from the Bank. However, if there was any loan, due to forgery and material alteration of my instrument that was given on behalf of my person XXXX XXXX to XXXX, the obligation was discharged in the favor of the Borrower and therefore, the foreclosure is invalid, wrongful and fraudulent. Unless, NDSC can rebut ALL of the claims below under penalty of perjury, the foreclosure must be terminated immediately. Otherwise, triple damage claims will be brought forward against NDSC for their involvement in this fraudulent and wrongful foreclosure actions. 

1 ) According to the California Secretary of State, the alleged Beneficiary XXXX, the Servicer XXXX XXXX and the alleged Trustee National Default Servicing Corporation foreclosing my property all have XXXX XXXX XXXX XXXX  as their Agent for Service. How does this fair for the Trustor? 

It was stated by the CA Supreme Court that the trustee be at arms length and independent of both parties to the agreement in order to create fairness. It is the job of the trustee to protect the Title from any wrongdoing of either party during the life of the contract agreement. 

2 ) As of XX/XX/XXXX, per attached evidence, no recording of substitution of Trustee appointing NDSC as the Trustee is found in XXXX XXXX XXXX. Therefore, the Notice of Default filed on XX/XX/XXXX by a defunct Trustee is NULL and VOID Nunc Pro Tunc as they have no authority or standing to act as a Trustee. 

According to California Civil Code 2934 ( a ) ( 1 ) a trustee may be substituted by the recording in the county in which the property is located of a substitution executed and acknowledged by : ( A ) all of the beneficiaries under the trust deed, or their successors in interest 3 ) According to NDSC, XXXX appointed NSDC as the substitute Trustee to handle the foreclosure and the Beneficiary is XXXX. There was no mention of any XXXX who are the true beneficiaries as the notes are securitiezed. 

Per Cal. Civ. Code 2934a ( b ) Substitute Trustee in California needs 50 % of the certificate holders of the XXXX or the XXXX to sign off on appointment of the new Trustee under the Deed of Trust. 

4 ) NDSC and XXXX are not named in the Deed of Trust document. Therefore, neither have any Power of Attorney granted to them on the executed Deed of Trust. 

According to Cal. Prob. Code 5204 ( b ), The special power of attorney under this section shall : ( 1 ) Be in writing. 
( 2 ) Be signed by the person or persons giving the power of attorney. ( 3 ) Explicitly identify the attorney-in-fact or attorneys-in-fact, the financial institution, and the accounts or contracts subject to the power.

5 ) According to the NDSC employee, they work for the Bank and they are following orders from the Servicer. 
Therefore, the Trustee has no interest in protecting the Trustors title from the beneficiary. This means the Trustee in not in control of protecting the Trustors title, as it is assumed and outlined in the Power of Sale clause, or Ca Civ Code 2924, of a Deed of Trust contract agreement in the state of California. 

Further, under California civil code procedure 1131-1134, you can not do a confessed judgment on a mortgage loan unless the borrower has consented to it and that means has to file an oath and certified by an attorney. No such oath was taken which make the Power of Sale clause invalid. 

As it is the job of the Trustee to make sure that all of the rules of the Power of Sale are followed by both Party in order to protect the interest of the other party in the transaction. This also goes against the rules of the CA Supreme Court as per the independence of the trustee necessary in order to protect the interest of both Parties involved in a deed of trust. Therefore, this is a wrongful foreclosure and NSDC has no standing to Foreclose.

6 ) THE NEGOTIABLE INSTRUMENT NOTE BEING FORECLOSED ON HAS FORGED ALTERATION AND THEREFORE, THERE IS AUTOMATIC DISCHARGE OF ANY DEBT. 
The attached was sent to me by NDSC as evidence of the instrument under which they are foreclosing. 

Cal. Civil Code section 1700 ( material Alteration ) & Cal Penal Code 496 ( forgery ) and Per UCC 3-407 - ALTERATION ( a ) " Alteration '' means ( i ) An unauthorized change in an instrument that purports to modify in any respect the obligation of a party, or ( ii ) An unauthorized addition of words or numbers or other change to an incomplete instrument relating to the obligation of a party. 
( b ) Except as provided in subsection ( c ), an alteration fraudulently made discharges a party whose obligation is affected by the alteration unless that party assents or is precluded from asserting the alteration. No other alteration discharges a party, and the instrument may be enforced according to its original terms. 

On XX/XX/XXXX, the attached Debt Validation Notice was received from the alleged Trustee NDSC. 
Response was sent on XX/XX/XXXX, to NDSC disputing the debt in its entirety and explained to them that ( i ) the debt was settled in full on XX/XX/XXXX and therefore, there was no debt owed. 
( ii ) the endorsement pay to the order of XXXX without recourse by the VP of XXXX on my instrument was a master forgery as this was done without my knowledge or my written expressed consent. The Instrument tendered was to be a Special Trust Deposit. 
( iii ) the endorsement by the V.P. of XXXX on the instrument is evidence that the instrument was already cashed by XXXX like a Check and therefore, there was no debt or loan. The Bank was paid when they cashed my negotiable instrument if there was any said loan. 

Despite of the debt being disputed, NDSC acted in dishonor and bad faith and quickly filed a Notice of Default on XX/XX/XXXX even though the notice for Debt validation from NDSC stated I had till XX/XX/XXXX to respond. There was no due process done to validate the alleged debt claim? 

Through research and investigation into this foreclosure, it appears to that the Trustee to a deed of trust contract is acting merely as strawman and there is no fair dealing or protection for the borrower. Secondly, it was not disclosed that after the signing of the loan document, the Bank will alter the instrument into a draft and deposit it at par value. In fact, there was no loan and the alleged borrower unknowingly entered into a security agreement which was not disclosed. Had the truth been disclosed at the time of signing the contracts, I would not have signed the Deed of Trust. This was sheer trickery played by XXXX pretending to me a " lender ''. There was no full disclosure and meeting of the minds to the contract agreement. The bank constructed the contract without giving full disclosure as per the rules of the contract. 

Due to the fact there was no meeting of the minds to the contract prior to the signing of the contract, and that the rules of the contract were deceptive in nature and was designed to benefit one party over the other i.e. to the benefit of the Bank who constructed the contract, this is fraud by the misrepresentation of a material fact. Through the rules that dictate contract law, and through the Statute of Frauds, there must be a meeting of the minds of the rules governing the contract or the contract is to be deemed null and void. 

The truth and the facts of the matter are, according to the legislative acts of Congress and signed into law by the President, all debt is Government obligation. Under Social Security Act of 1935 Title V, Section 501 and 502, everything is prepaid. The consumer is not supposed to incur debt for personal, family and household purposes. The signed instrument given to XXXX that was then endorsed and deposited by XXXX is evidence that my signed instrument funded the transaction and there was no loan from the Bank as purported by XXXX, the Servicer XXXX and the Trustee NDSC. These corporations are being false and misleading about the alleged debt and who the actual creditor is? They are false and deceptive in their practices and actions and i, the natural woman is being harmed by their action and this needs to stop immediately! 

SHOULD NDSC CONTINUE WITH THE WRONGFUL AND ILLEGAL FORECLOSURE, THEY WILL BE INVOICED TRIPLE THE AMOUNT THEY ARE FORECLOSING ON IN DAMAGES.

Company response to consumer: Closed with explanation