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Report: #1157386

Complaint Review: HIS Advocates - Costa Mesa California

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  • Reported By: Consumer Help Group — Sacramento California
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  • HIS Advocates 2973 Harbor Blvd Suite 475 Costa Mesa, California USA

HIS Advocates Kelby Smith Consumer SCAM ALERT, COTA, DECLARATORY JUDGMENT, FRAUD, SCAM Costa Mesa California

*Consumer Comment: No Basis for a Claim

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Buyer Beware of this SCAM targeting distressed Homeowners from HIS ADVOCATES, and KELBY SMITH.  

 

SCAM ALERT, SCAM ALERT.  

My Client (name confidential) came to me and showed me proof of payment of almost two thousands dollars, for a Chain of Title Analysis and Declaratory Relief package from www.hisadvocates.org, and he never received the service, all follow up phone calls and emails were ignored..

My client was completely ripped off and never received a refund or the service that he requested.  KELBY SMITH lied to him repeatedly and than gave him nothing.

This company, WWW.HISADVOCATES.ORG referred my client to Michael T. Pines, a disbarred Attorney in San Diego, CA.  Mr. Pines likewise took advantage of my client, despite an active injunction as against him preventing him from practicing law or giving any form of legal advice.

Kelby Smith and hisadvocates claimed that my client's payment for the services was a "donation" and it most assuredly was not.  A report to the Attorney General's Office will accompany this report as these criminals and hucksters need to be stopped immediately.

Additionally, these scammers claim that they can get you relief via some administrative remedy!  This is a scam.  Persons in foreclosure should seek free government assistance through hud.gov or by way of contacting their bank directly or through the courts!!

PLEASE BE FOREWARNED TO NOT GET CAUGHT UP IN THIS SCAM.

 

Mortgage Relief Scams

 

The possibility of losing your home to foreclosure can be terrifying. The reality that scam artists are preying on desperate homeowners is equally frightening. Many companies say they can get a change to your loan that will reduce your monthly mortgage payment or take other steps to save your home. Some claim that nearly all their customers get successful results and even offer a money-back guarantee. Others say they're affiliated with the government or your lender and still others promise the help of attorneys or real estate experts.

Unfortunately, many companies use half-truths and even outright lies to sell their services. They promise relief, but don't deliver. In fact, many of these companies leave their homeowner customers in worse financial shape.

The Federal Trade Commission (FTC), the nation's consumer protection agency, has a Rule in place to protect homeowners. The Mortgage Assistance Relief Services (MARS) Rule makes it illegal for companies to collect any fees until a homeowner has actually received an offer of relief from his or her lender and accepted it. That means even if you agree to have a company help you, you don't have to pay until it gets you the result you want.

If you're struggling to make mortgage payments or facing foreclosure, the FTC wants you to know how to recognize a mortgage assistance relief scam and exercise your rights under the new Rule. And even if the foreclosure process has already begun, the FTC and its law enforcement partners want you to know that legitimate options are available to help save your home.

How the Scams Work

Fraudsters use a variety of tactics to find homeowners in distress. Some sift through public foreclosure notices in newspapers and on the internet or through public files at local government offices, and then send personalized letters to homeowners. Others take a broader approach through ads on the internet, on television or radio, or in newspapers; posters on telephone poles, median strips, and at bus stops; or flyers, business cards, or people at your front door. The scam artists use simple – but potentially deceptive – messages, like:

"Stop foreclosure now!"

"Get a loan modification!"

"Over 90% of our customers get results."

"We have special relationships with banks that can speed up the approval process."

"100% Money Back Guarantee."

"Keep Your Home. We know your home is scheduled to be sold. No Problem!"

Once they have your attention, they use a variety of tactics to get your money. By knowing how their scams work, the FTC says you'll be better able to defend against fraud.

Phony Counseling or Phantom Help

The scam artists tell you that if you pay them a fee, they'll negotiate a deal with your lender to reduce your mortgage payments or to save your home. They may claim to be attorneys or represent a law firm. They may tell you not to contact your lender, lawyer, or credit counselor. They promise to handle all the details once you pay them a fee. Then they stop returning your calls and take off with your money.

Sometimes, phony counselors insist you make your mortgage payments directly to them while they negotiate with the lender. They may collect a few months of payments – and then disappear.

The "Forensic Audit"

In exchange for an upfront fee, so-called forensic loan "auditors," mortgage loan "auditors," or foreclosure prevention "auditors" offer to have an attorney or other expert review your mortgage documents to determine if your lender complied with the law. The "auditors" say you can use their report to avoid foreclosure, speed the loan modification process, reduce what you owe, or even cancel your loan. In fact, there's no evidence that forensic loan audits will help you get a loan modification or any other mortgage relief.

Rent-to-Buy Schemes

Con artists who use the rent-to-buy scheme tell you to surrender the title to your house as part of a deal that allows you to stay there as a renter and buy it back later. They say that surrendering the title will let a borrower with a better credit rating get new financing and prevent the loss of the home. But the terms of these deals usually are so expensive that buying back your home becomes impossible. You lose the house and the scam artist walks off with the money you put into it. Worse, when the new borrower defaults on the loan, you're the one who's evicted.

In a variation, the scam artist raises the rent over time so you can't afford it. After missing several rent payments, you're evicted, leaving the "rescuer" free to sell the house.

In a similar equity-skimming scam, fraudsters offer to find a buyer for your home, but only if you sign over the deed and move out. They promise to pay you a portion of the profit when the home sells. Once you transfer the deed, they simply rent out the home and pocket the proceeds while your lender goes ahead with the foreclosure. The result: You lose your home – and you're still responsible for the unpaid mortgage because transferring the deed does nothing to transfer what you owe on the mortgage.

Bait-and-Switch

In a bait-and-switch scam, con artists give you papers they claim you need to sign to get another loan to make your mortgage current. But buried in the stack is a document that surrenders the title to your house to the scammers in exchange for a "rescue" loan.

Know your Rights

The FTC's MARS Rule gives you rights – and sets out requirements for people who sell mortgage assistance relief services:

You don't have to pay any money until the company delivers the results you want.

It's illegal for a company to charge you a penny until:

  1. it's given you a written offer for a loan modification or other relief from your lender; and
  2. you accept the offer. The company also must give you a document from your lender showing the changes to your loan if you decide to accept your lender's offer. And the company must clearly tell you the total fee it will charge you for its services.

Companies must disclose key information.

The Rule requires companies to spell out important information in their advertisements and telemarketing calls, including that:

  • They're not associated with the government, and their services have not been approved by the government or your lender;
  • Your lender may not agree to change your loan;
  • If a company tells you to stop paying your mortgage, it also has to warn you that doing so could result in your losing your home and damaging your credit.
  • Companies can't tell you to stop talking to your lender. You should always feel free to contact your lender directly to see whether they can offer you additional options. Companies that tell you otherwise are breaking the law.

If a company doesn't follow these rules, it could be trying to scam you.

Getting Help from a Lawyer

Some lawyers may offer to help you get a loan modification or other mortgage relief. Under the MARS Rule, lawyers can require you to pay an upfront fee, but only if:

  • They're licensed to practice law in the state where you live or your house is located;
  • They're providing you with real legal services;
  • They're complying with state ethics requirements for attorneys; and
  • They place the money in a client trust account, withdraw fees only as they complete actual legal services, and notify you of each withdrawal.

Unfortunately, some people advertising mortgage assistance relief services falsely claim to be getting you help from lawyers. So before you hire someone who claims to be an attorney or claims to work with attorneys, do your homework:

Get the name of each attorney who'll be helping you, the state or states where the attorney is licensed, and the attorney's license number in each state. Your state has a licensing organization – or "bar" – that monitors attorney conduct. Call your state bar or check its website to see if an attorney you're thinking of hiring has gotten into trouble. The National Organization of Bar Counsel has links to your state bar.

Ask relatives, friends, and others you trust for the name of an attorney with a proven record of getting help for homeowners facing foreclosure.

Beware of attorneys who make bold promises or try to pressure you into hiring them.

Warning Signs

If you're looking for a loan modification or other help to save your home, avoid any business that:

  • guarantees to get you a loan modification or stop the foreclosure process – no matter what your circumstances;
  • tells you not to contact your lender, lawyer, or housing counselor;
  • claims that all or most of its customers get loan modifications or mortgage relief;
  • asks for an upfront fee before providing you with any services (unless it's a lawyer you've checked out thoroughly);
  • accepts payment only by cashier's check or wire transfer;
  • encourages you to lease your home so you can buy it back over time;
  • tells you to make your mortgage payments directly to it, rather than your lender;
  • tells you to transfer your property deed or title to it;
  • offers to buy your house for cash for much lower than the selling price of similar houses in your neighborhood; or
  • pressures you to sign papers you haven't had a chance to read thoroughly or that you don't understand.

Where to Find Legitimate Help

If you're having trouble paying your mortgage or have gotten a foreclosure notice, contact your lender immediately. You may be able to negotiate a new repayment schedule.

Consider other foreclosure prevention options, including reinstatement and forbearance.

You also may contact a credit counselor through the Homeownership Preservation Foundation (HPF), a nonprofit organization that operates the national 24/7 toll-free hotline (1.888.995.HOPE) with free, bilingual, personalized assistance to help at-risk homeowners avoid foreclosure. HPF is a member of the HOPE NOWAlliance of mortgage servicers, mortgage market participants and counselors.

Report Fraud

If you think you've been the victim of foreclosure fraud, contact the Federal Trade Commission, yourstate Attorney General's office, or the Better Business Bureau.

 

THE FOLLOWING IS TEXT TAKEN DIRECTLY FROM THE WWW.HISADVOCATES.ORG WEBSITE:

Complete Information on M.A.P. (Mini-ARK Program)

 

HISA's COTA is the framework of a Declaratory Judgment to identify if an Assignment of a Security Instrument was legally eligible for recordation.  A Sworn Factual Affidavit states the findings of the documents investigated by licensed professionals, both in public and court record.

 

LICENSED PROFESSIONALS???  A Search through the hisadvocates website could not locate any attorneys on his website.  THIS IS AN ABSOLUTELY BOGUS STATEMENT

 

Part 1:  HISAdvocates Chain of Title Investigation:

Enhanced Chain of Title Analysis [A State Specific COTA] of documents purporting to pass a claim of [legal] enforceable right of possession or ownership [true sale] to a securitized Mortgage Loan tangible promissory note and Security Instrument. HISA's COTA compares hearsay alleged colorable claims to ownership, possession, and rights to the mortgage loan instrument as to Federal and State specific Statutory Requirements of Law-Uniform Commercial Code or States’ Equivalent, Local Laws of Jurisdiction, and Case Law to identify what LAWFUL RIGHT may have been conveyed during a purported true sale.

 

THESE ARE NOPT LICENSED ATTORNEYS AND THUS THEY CAN NOT  GIVE ANY LEGAL ADVICE

 

     Focus of Investigation:

  • The union of all elements constituting the “legal right” to control and dispose of real property as alternate means of value to the promissory note. 
  • The “legal link” between a person who owns property and the property itself [Deed].
  • The “legal evidence” of a pledged person’s ownership rights (interests) in real property
  • The conditions necessary to acquire a valid claim to real property

 

     The Chain of Title Investigation is comprised of: 

  • A customized securitization flowchart (if possible) detailing exactly what happened to the various parts of the client’s Mortgage Loan Instruments
  • Applicable Trust Law for the State where the securitized Trust is held
  • Definitions and visual examples of the different kinds of “indorsements” (to properly argue against the banks’ claims of “indorsement in blank”)
  • Analyzing the PSA and 424B5 Prospectus Supplement of the RMBS Trust, or GSE Handbooks, to prove the Trust didn’t follow its own guidelines

 

Part 2:  HISA Mini-ARK Program - Cloud Removal Package:

State specific educational example of a Declaratory Judgment that sets the proper foundation to properly prosecute, or defend an administrative foreclosure is included. A Declaratory judgment is a judgment of a court which determines rights of parties as well as establishing status quo. The declaratory judgment is generally considered a statutory remedy and not an equitable remedy in the United States, and is thus not subject to equitable requirements. Often an early resolution of legal rights will resolve some or all of the other issues in a matter of determining whether an assignment of security instrument purporting to pass a claim to legal enforceable rights of possession to real property was eligible or ineligible for recordation.  Once a judgment has been made, Should the client desire to litigate an equitable cause of action such as Quiet title in court, an attorney services option may be provided.

Part 3:  HISA's Mini-ARK Program - Cloud Removal  webinar for “Quieting a Cloud on Title”:

Consists of many hours of training to assist professionals and individual homeowners alike in identifying if a legal claim to title can be adjudicated in order to challenge equitable claims to title such as an alternate means of collection- foreclosure.  In addition to invaluable research, HISA’s workshop will arm our clients with the most relevant articles, Federal and State specific statutes, and case law available to ensure our clients are educated on the most recent developments in foreclosure defense.

Part 4:  6 Months of Enhanced VIP Support:

We primarily know that we are going to be dealing with situations that are there regarding your house that you will need direction and support to know how to stop the pretender lenders from moving forward.  This is to help insure the fact that you can complete this process.  This will include other templates and ideas not discussed in this package that we may show you that has had success for HISA or others that have tried said process or documentation.  This is a very unique addition to making sure that you have your home secured and locked down.   


 

 Mortgage Fraud Investigation of Securitized Mortgage Loan Instruments


Federal Uniform Commercial Code (UCC) and State statutory law mirroring federal statutes create the Promissory Note of the Tangible Mortgage Loan Instrument.  According to state statutory law, real property secures the Promissory Note.
 
The electronic version of a Warranty Deed may be electronically filed with the County Recorder’s Office by a third-party submitter, but must strictly adhere to State statutory requirements.  The Warranty Deed contains the information transferring title (legal and equitable) of the real property from the Mortgage Loan Originator, operating as an agent for the Seller of Real Property to the Buyer (Homeowner).  In order to secure the property as collateral for the Security Instrument, legal title to the property is required.  The Warranty Deed must be filed with the County Recorder’s Office in order to effectively secure the property.  The Warranty Deed is not governed by the UCC or its State equivalent if filed electronically, but by the ESIGN Act.
 
Of the many documents signed and recorded after the closing of the Mortgage Loan Contract by the Mortgage Loan Originator, only two (2) are required to effectuate the securitization process.  These two documents are the Paper Tangible Promissory Note and the Paper Tangible Security Instrument (Mortgage, Deed of Trust or Security Deed).  These two tangible instruments are collectively considered one tangible instrument.  Filing of the Tangible Promissory Note with the County Recorder’s Office is required to perfect the Tangible Lien according to State statute.  The filing with the County Recorder’s Office identifies to the original Lender who has the rights to the Note and the Security Instrument securing the Note.
 
Securitization occurs when the Mortgage Loan Originator offers as consideration the mortgage loan instrument to an Account Debtor (Sponsor/Seller) who swaps the intangible payment stream for certificates that are sold to investors who are paid the income from the certificates.
 
When the Tangible Obligation (Promissory Note) and the Security Instrument (Mortgage, Deed of Trust or Security Deed) is sold in the secondary market to an Intangible Account Obligee (REMIC Trust) an Intangible Obligation is created under UCC Article 8.  The existence of the Intangible Obligation under UCC Article 8 depends on the Tangible Instrument secured by a properly and continuously perfected security interest requiring the tangible Security Instrument be filed with the County Recorder’s Office.
 
Digitizing the tangible Promissory Note and the tangible Security Instrument into electronic data creates an electronic file called a Mortgage Loan Package.  This electronic file is presented to various parties for evaluation and rating and appears legal.  The Electronic Mortgage Loan Package is commonly, but incorrectly identified as the “Mortgage Loan Package” and is nothing more than an interest in the payment stream from the Intangible Payment Obligation originating from the Tangible Promissory Note obligation.  The electronic digitized version of the Security Instrument is often filed with the County Recorder’s Office and gives the illusion of legitimacy by allegedly providing a security interest for an alternate method of collecting value for the UCC Article 8 Intangible Obligation.  In reality, the maker of the Intangible Obligation pledged the digitized version of a UCC Article 3 Security Instrument which is not perfected as it is recorded without the purchaser’s identity.  The Account Debtor claims to execute a True Sale of the Tangible Obligation and the Security Interest to the purchaser of the Intangible Obligation.  This is impossible as the purchaser never obtained legal rights to an alternate method of collection using the Security Instrument to secure the obligation.
 

The First Electronic Sale happens when the Loan Originator offers the Electronic Mortgage Loan Package to a prospective Buyer (Intangible Obligor/Seller/Securitizer) to offset a pre-arranged line-of-credit for the benefit of the Loan Originator.  The Buyer of the Electronic Mortgage Loan Package conditionally agreed to accept as a tender of funds the conveyance of the Electronic Mortgage Loan Package and takes control of the Electronic Mortgage Loan Package as a transferable record that is not supported by law.
 
Pursuant to UCC Article 3-3203(d), when the First Transfer of Personal Property (UCC 8 Note-Payment Intangible) and the First Sale of the Intangible Obligation (payment stream, rights to future payments or beneficial interest) are bifurcated from the Tangible Obligation, rights to enforce the Tangible Obligation cease as the Tangible Obligation was not properly negotiated from the Loan Originator to the Intangible Obligor.   The only rights conveyed are the rights to hold and possess the Tangible Obligation.  An Intangible Obligor (Seller/Securitizer) cannot be a holder in due course of a properly secured UCC 3 instrument when the laws governing the Security Instrument are not followed.    UCC Article 9 does not govern the signatures on the Intangible Security Interest, Tangible Note or the Tangible Security Interest.  UCC Article 9 governs the collection rights but the negotiation and transfer of an Intangible Obligation (payment stream) is governed by UCC Article 8.  Therefore, negotiation of the UCC Article 8 instrument cannot be negotiated with an electronic signature attempting to transfer under UCC Article 9 and is invalid.
 
As future legal actions were not anticipated, paper documents were either placed in storage (Custodial and Non-Custodial Custody) or destroyed.  The electronic version of the paper documents are stored electronically as an eNote and tracked on a national database.  The electronic database tracks who the UCC Article 8 Intangible Obligee with personal property rights to the UCC Article 9 is.  The electronic database does not track who has a vested legal interest in the Security Instrument as this is governed by State statutory law and typically remains vested in the name of the Mortgage Loan Originator.
 
If Mortgage Electronic Registration Systems (MERS) is involved, MERS is named as beneficiary or nominee agent to the Mortgage Loan Originator.  Registration on the MERS system is required and when registered, an 18-digit Mortgage Identification Number “MIN” is created.  The first seven digits identify the registering lender and the last digit is a checksum number.  If the Electronic Mortgage Loan Package is registered in the MERS registry, there is no physical transfer of the Electronic Mortgage Loan Package.  The MERS Registry updates information as to who has control and ownership rights of the electronic digitized file.  If a Notice of Assignment reflecting the electronic negotiation is not filed with the County Recorder’s Office, rights to the Security Instrument does not occur.  There is no law requiring notice to be filed with the County Recorder’s Office upon the selling or buying of an eNote when dealing with personal property.  However, when dealing with real property, compliance with UCC Article 9, the ESIGN Act and the UETA is required. 
 
The Second Electronic Sale happens when the Seller/Securitizer of the Investment Vehicle sells or assigns the Electronic Mortgage Loan Package to the Buyer (depositor of the Investment Vehicle).  The recipient of the Electronic Mortgage Loan Package accepts the transfer and takes control of the Electronic Mortgage Loan Package under the terms of the Trust.
 
The Third Electronic Sale occurs when the Buyer sells or assigns the Electronic Loan Package to the Trustee of the Investment Vehicle and takes control of the Electronic Mortgage Loan Package.  The Depositor of the Investment Vehicle takes control of the Investment Trust’s Electronic Certificates under the rules of the Trust in exchange for selling or assigning the Electronic Mortgage Package.
 
Under UCC Article 8, the Intangible Obligee (REMIC Trust) must comply with State statutory requirements in order to have a perfected Security Interest and a continuous alternate method to collect future payments pledged by the Account Debtor.  The Intangible Obligee must be assigned the rights to the Security Instrument according to State statutory law.  If the UCC Article 8 Intangible Obligee attempts to apply UCC Article 9 laws of perfection to support a legal claim to the Security Instrument, the claim is untenable as it is unlawful.  This system of securitization is flawed as it provides the Account Debtor (Intangible Obligor) and the Original Account Debtor (Tangible Obligor) rights to the same instrument which is a legal and logical impossibility.
 
Upon default on the Intangible Obligation a Notice of Assignment is filed with the County Recorder’s Office.  This Notice of Assignment allegedly transfers lien rights from the Original Mortgage Loan Originator (Tangible Obligee) to a third Intangible Assignee (Subsequent Intangible Obligor) who is usually the Trustee of the  Mortgage Servicer.  These filings are a fraud upon public records.  The perfection of lien rights (Perfected Chain of Title) does not match the Chain of Negotiation of the Tangible Note shown by endorsements or lack thereof and shows the Tangible Note is no longer secured by the Security Instrument as the Security Instrument becomes a nullity as an operation of law.  The Trust is conveyed a transferrable record, leaving the Tangible Note, less the rights securing it which include the power of sale as would exist if the Security Instrument securing the UCC Article 3 Tangible Note was assigned in accordance to State statute.
 
The ESIGN Act – 15 USC §7003 excludes instruments governed by the UCC Article 3, 8 and 9 or the State equivalent.  Therefore, the intangible claim cannot be negotiated electronically.  The Tangible Note and the continuous perfection of the Security Interest can only be pledged as an intangible interest in the payment stream of the UCC 8 instrument.  The Intangible Payment Obligation can only be negotiated in paper form.
 
UCC Article 3 allows proving up the Tangible Note, it does not extend to the Security Interest that once secured the Tangible Note as the Intangible Obligee is not perfected by recordation to the Security Interest.

 

IF YOU ARE DUPED INTO THIS SCAM PLEASE CONTACT THE CALIFORNIA ATTORNEY GENERAL'S OFFICE AT 
 
In other words, you are about to get the tangible training and information needed to remove the pretender lender's ability to lawfully foreclose on your home.  This puts you in the most powerful position that HISAdvocates has ever offered.  We have spent a long time watching this process carefully and waited to bring it to you.  Our back end team is the best that we have ever seen. 

 

CALL ATTORNEY GENERAL'S OFFICE AT LINK BELOW-

http://oag.ca.gov/consumers

This report was posted on Ripoff Report on 06/25/2014 10:19 AM and is a permanent record located here: https://www.ripoffreport.com/reports/his-advocates/costa-mesa-california-92626/his-advocates-kelby-smith-consumer-scam-alert-cota-declaratory-judgment-fraud-scam-co-1157386. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year. Ripoff Report has an exclusive license to this report. It may not be copied without the written permission of Ripoff Report. READ: Foreign websites steal our content

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#1 Consumer Comment

No Basis for a Claim

AUTHOR: Seeking Truth - ()

POSTED: Thursday, July 03, 2014

This is really kind of sad.  I am a member of HISAdvocates.  I know several things about HISAdvocates and one of them is that this complaint is based on a program that HISAdvocates came out with 24 hours before this complaint was filed.  Meaning, it is an impossible scenario to have taken place.  HISAdvocates believes that is was done maliciously and from the competition of the vendors that HISAdvocates chose to work with.  There are NO facts given in this complaint.  No supporting information.  No injured party.  Why would this website even allow such a posting from a non-existent and unverified party?  This is considered tortious interference from all parties involved in this fraudulent posting.  HISAdvocates never had a member associated to this program at the time this complaint was filed.  As a member of HISAdvocates, please take down this frivolous attack against this great ministry.  

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