turning lemons into lemonade

To TOC http://www.AnitaBelle.info

Turning Lemons Into Lemonade

Shifting the Paradigm for Real Estate Investing

Anita E. Belle, J.D.

http://www.AnitaBelle.info/

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Copyright

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reproduced or transmitted in any form or by any means

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without written permission from the publisher.

Copyright © 2009 Anita E. BelleP.O. Box 19116

Detroit, MI 48219313-736-5505

Disclaimer

This e-book provides information about the law designed to

help readers safely cope with their own legal needs. But legal

information is not the same as legal advice -- the application

of law to an individual's specific circumstances. Although I go

to great lengths to make sure our information is accurate and

useful, I recommend you consult a lawyer if you want

professional assurance that my information, and your

interpretation of it, is appropriate to your particular situation.


Table of Contents

Legal Notice ......................................................................................................................2

Terms & Rights.................................................................................................................4

Dedication.........................................................................................................................5

Trapped in a Box?..............................................................................................................8

A Paradigm Shift ............................................................................................................28

The Multi-Generational Investment Network................................................................44

Running with the Vision.................................................................................................53

About the Author............................................................................................................55



Terms & Rights

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DedicationDedicated to the Glory of God.

If necessity is the mother of invention, then my

mother, Thelma Belle, made it necessary for me to study

land patents. Thank you and thanks to the rest of my

family.

If inspiration is the father of invention, then thank

you, Allen Brown, for inspiring me by love and fury.

Inspiration is like spiritual passion and fertilization.

Once there's conception, the womb takes over and brings

forth the creation. Thank you for this “baby”.

Thanks to Morella Riley Beyah for teaching me the

basics about land patents and introducing me to Art

Kirkland.

Thanks to the University of Florida for the legal

education. Even if the State of Florida took away my

ability to practice law for others, you taught me the basics

about how to represent myself. When I think how racists



fought for years to keep blacks like Virgil Hawkins out

of your halls, now I see how knowledge can be dangerous.

I hope I've done you proud.

Thanks to the Wayne State law library for making

legal research facilities available to the public. Wayne

State University is also my alma mater for the bachelor's

degree. Thank you for providing the stepping stone for

success.

Thanks to my legal adversaries, particularly Greg

MacKay of Trott and Trott, the law firm representing the

banks trying to foreclose and repossess my mother's

house. I also want to thank Art Kirkland and Jess

Medina's daughter-in-law. (Please forgive me for not

remembering your name.) Iron sharpeneth iron. I raised

one issue. You countered with another, which provoked me

to raise another issue. We're uncovering branches to a

family tree for the genealogy of land. When we reach the

roots of this tree, I hope you and the judges will agree that,

in this game of Spades, the land patent is trump, the Ace

of Spades. (Unless you play with the jokers...)



Thanks to the instructors of free courses teaching

about the purpose of an individual's life and the thought

of creation at Kabbalahlearningcenter.info.

Last but not least, it is said that blacks have their

own language or dialect called “Ebonics”. If I may be

permitted to respectfully speak to the President, in

“Ebonics”, on behalf of homeowners facing foreclosure:

Chicago, can you hear Motown singing?

We shall not, we shall not be moved.

We shall not, we shall not be moved.

Just like a tree that's planted by the waters,

We shall not be moved.



Trapped in a Box?

President Barack Obama, during campaign speech in Detroit, Michigan on Labor Day, September 1, 2008.

his book is being first written in late January/early February

of 2009, after the inauguration of a new president in the

United States of America. As an African-American, I am

one of the 90+% of African-Americans and majority of non-blacks

who helped change history by electing the first African-American

president, Barack Obama. I'd like to take this opportunity to point

out that his first name, Barack, means “blessing” in Swahili (the

language of his father's native land of Kenya), Hebrew, and

probably Arabic as well (all three are Afroasiatic languages.)

Regardless of your political persuasion, whether you believe the

person of Barack Obama to be a messiah or anti-christ, I wanted to

begin this book with a spiritual message of hope. For those

thinking outside of the Box, this is our time for blessings.

T



The actual person, with all due respect to Mr. Obama, may

simply be a Prince Hall mason carrying on business-as usual for

his masonic grand masters. If this is true, then the only thing that

will change in the White House is the complexion of the skin of the

commander-in-chief. Much ado over nothing could be made about

the Supreme Court's Chief Justice botching up administering the

oath of office. What will ultimately be important to the status quo is

if Obama took the masonic oath to keep his brothers' secrets.

Literally, the penalty for breaking the Masonic oath is death.

Even for presidents who were not freemasons, (for example,

Abraham Lincoln), the masons could conspire to assassinate,

select one person to be the fall guy, spin the “lone gunman” theory

for the trial and press, while the rest of the co-conspirators get

away with murder. (Did this conspiracy play out against John F.

and Robert Kennedy? Even Martin Luther King and Malcolm X?)

An alternative is to assassinate his character. I briefly alluded to

the power of the masons and Catholic secret societies in my earlier

e-book, “Land Patents: Scam or Revolution?”, available on

www.mylandpatent.com. I will go into further details in a future

book. Suffice it to say for now, I'm not expecting many immediate,

radical changes from a president because the invisible hand of

powerful secret societies might literally cut his throat or otherwise

make heads roll in order to keep the rest of us trapped in their Box.

In this president's defense, I will add that Obama would be

empowered to enact radical changes if a grassroots groundswell

movement supported or forced him to shift paradigms.

Before I get into developing the grassroots groundswell, let's

address a burning question: What is the Box?


http://www.mylandpatent.com/


I am in Detroit, Michigan, the automobile capitol of the world.

My mother, uncles, cousins, and at least one sweetheart, are

members of the United Auto Workers (UAW), headquartered in

Detroit. General Motors (GM), the once-touted largest automotive

manufacturer of the world, is headquartered in Detroit. Chrysler

and Ford, the other two parts to America's automotive trinity, are

headquartered in suburbs of Detroit. Recently, GM and Chrysler

appealed to Washington, DC for a bailout, stating that their

corporate financial conditions are so dire that they were on the

brink of bankruptcy. Grudgingly, and at the 11th hour, Former

President George W. Bush okay'd a bailout. Nevertheless,

Michigan has the highest unemployment rate in the nation. With

the layoff of thousands of auto workers, there has been a spiral

effect on the rest of Michigan's economy. To be expected, laid off

workers no longer have the income to pay their mortgages.

Foreclosures are epidemic! In fact, you can buy a house (more truthfully, you can buy several houses) in Michigan for less money than it costs to buy a single car, whether new or used.

The Box would say that if things keep going the way they've

been going, even real estate investors, who could cheaply buy a lot

of land in Michigan, would be wise to invest their money elsewhere.

Even if the auto manufacturers escape bankruptcy (by the skin of

their teeth), they may do so at the sacrifice of the auto workers. No

one's job is security, including white collar workers, management,

and executives. Those still working may be doing so with lower

wages and fewer benefits. Unions, which I believe had a hand in

elevating workers to a socioeconomic status other than waged

slaves, would become a casualty of this recession/depression. No

job. No house. No health care. The Box would say that things are



going to get worse if they'll ever get better. Add the snow and cold,

people are migrating out of Michigan so fast that somebody should

holler for the last person out to please turn off the lights.

If you're outside of Michigan, you might say, “Who cares?”

But I remember performing in a high school musical as part of a trio

that sang this short song:

Three rousing rahsA few huzzahsAnd a hip, hip, hip hooray.What's good for General Bullmoose Is good for the USA.

Skyline of Detroit, Michigan, with the world headquarters of General Motors, also called the Renaissance Center, in the forefront.

Even as a teenager, I remember wondering if General

Bullmoose was General Motors. Curiously, the “Lil Abner” musical

mixed political commentary with entertainment by alluding that the

motor driving the USA is in Michigan rather than Washington DC,

New York, or even sunny California. Of course, the Federal

Reserve Bank of New York may beg to differ.

The Box would also say that even though the effect of the

auto companies declaring bankruptcy may lead to the state

government declaring bankruptcy, such a catastrophic economic



event would be localized to Michigan. If you haven't figured it out

yet, the Box is lying. (And I don't say that because I'm the daughter

of a GM retiree.) True, the auto companies need some

reorganizing. True, the auto companies can't take for granted that

the fate of a nation rests on their shoulders and waste money on

stupid luxuries and poor-quality products. However, my bias and

moral conscience intervenes when health care and pensions for

senior citizens is considered “stupid” legacy costs. Furthermore,

decentralizing environmental impact rules to the legislative whims

of 50 different states is another action equivalent to pulling the plug

on an industry and a state already on life support. Michiganders,

irrespective of race, overwhelmingly supported Obama in the 2008

election. From the GM Cadillac that is Obama's presidential

limousine to Detroit's own Queen of Soul, Aretha Franklin, gracing

his inauguration with a song, we don't deserved to be betrayed.

But I digress.

What is true is that the two major purchases in the “American

dream” is a house and at least one car. The Box would say bail out

the banks because of the housing crisis. In the predecessor book,

Land Patents: Scam or Revolution?, I went into more detail

about how the banks caused the housing crisis. Like a college

course, I deem my Land Patent book to be prerequisite reading for

this book. Otherwise, I'd have to repeat too much. For now, let me

say that banks and, to a lesser extent, insurance companies, are

part of the Federal Reserve Box that is imploding. This is why

we're suffering, both as a nation and internationally. Cuba Gooding

Jr. made famous the movie line, “Show me the money!” The first

problem is the money. We can't save the Federal Reserve.

Constitution lovers shouldn't want to.



Sometimes, the Box pushes for the “right” thing to be done,

but for the wrong reasons. Of course, if the right thing is done for

the wrong reasons, without a correction, the right thing will become

wrong. What I see happening is that the federal bailout of bank

loans for foreclosed mortgages can be the right thing. The wrong

reason is to save the bank. After all, banks are committing fraud:

1. First by failing to loan constitutional money as consideration

for their promissory note contracts,

2. Second by issuing mortgages and notes on property for

which the land patent is not assigned or transferred, and

3. Third by repeatedly selling the promissory note without notice

to the borrower.

A state-legislated document, whether called the warranty

deed or trust deed, is issued in the land patent's stead. The right

reason is for the federal government to correct the land patent

issue. After all, it was the federal government that granted the land

patents while the states were federal territories. Moreover, HUD

regulates closings and should have required that, in the 32 states

with land patents, the documents disclosed at closing should

include assignments of the land patent. Is the federal government

simply negligent or complicit in another conspiracy to fraudulently

separate people from the fruits of their labor, redistributing wealth

from the relatively poor to the rich?

Let me boldly assert that both the state and federal

governments are active participants in this conspiracy. Maybe their

superficial motive for “forgetting” the land patent is to standardize

one closing procedure that would apply both to the former

territories that had land patents and the former colonies or other



states that did not. Of course, this motive hints at a more ominous

motive beneath the surface. If the love of money is the root of all

evil, then an explanation for the federal government to forget

mentioning that the legal title contained in land patents should be

disclosed at closings is in order to make it easier for banks to mortgage and foreclose on borrowers.

My legal reasoning for a conspiracy is this: The land patents

of the early 1800s give legal title to the heirs and assigns forever.

This legal title can be mortgaged, but a bank's interest in using the

property to secure the loan would best be served by an assignment

of rights to the lender. Let's say the homeowner/borrower wanted

to take out a second mortgage or home equity loan. This would

require another assignment. God forbid if a third mortgage is

wanted. Compound this problem with the phenomenon that mortgages are repeatedly bought and sold, then there would be more assignments on top of assignments. Add to this

problem the fluctuations in equity, home value, and adjustable rate

mortgages. God forbid that the borrower defaults on one or more

of the mortgages. It may be difficult for a court to equitably and

uniformly distribute these rights among all the competing interested

parties, but most certainly, a court proceeding would be necessary.

There is little likelihood foreclosures could be handled without

judicial intervention and lengthy litigation. An alternative to this

scenario could have been for banks to simply issue land contracts:

After a borrower has paid off the terms of the land contract, the

borrower could then receive the assignment of the land patent.

However, it was more profitable for banks to simply mortgage and

foreclose based on color of title from the state-created deeds. One

problem: What happens when a person wants to buy a house for



cash or if the promissory notes are satisfied?

America runs on debt, so if a person ever pays off their debts,

then the promissory note (which should be canceled) is satisfied.

Not only does the bank often fail to give the borrower the original

promissory note, the bank also does not transfer the full legal title

to the homeowner, that legal title being the assignment of the land

patent. Similarly, if a property owner with a mortgage were to sell

the property to a cash purchaser, neither the property owner or the

mortgage company has a legal title or land patent assignment to

transfer to the purchaser. Oftentimes, the mortgage company no

longer has the promissory note either. Hence, the only thing that

can be conveyed at closing is a color of title.

Let's look again at the closing documents home buyers are

NOT given: Let's say a home was purchased for $100,000, has a

mortgage for $90,000, but the homeowner went into default. The

loan balance is $105,000, but the real estate market is depressed,

so the bank agrees to a short sale of $60,000. The homeowner,

now seller, goes to the closing where a buyer agrees to purchase

the property for $60,000 cash. When the seller walks away

homeless, does the seller at least get back the original promissory

note to signify that the mortgage is canceled? Does the buyer, who

just spent $60,000 cash, get the assignment of land patent to

signify legal title to the property? No, the seller, at best, gets a

satisfaction of mortgage and the buyer gets a color of title and title

insurance. The seller is at risk that the holders of the promissory

note will still try to collect on part or all of the $105,000 debt

because a satisfaction of mortgage is not the same as a

cancellation. The buyer is at risk because the holders of the



promissory note that has not been canceled still have the right to

foreclose on the property for the $105,000. Title insurance for the

purchase price of $60,000 does not cover the risk.

Banks pretend that the above scenario would never happen

because of their secret agreements (otherwise known as

unregulated business practices) to honor satisfactions of

mortgages and color of titles. However, with mortgage fraud so

prevalent, bank closures, multi-billion dollar Ponzi schemes, and

the world going through a financial meltdown, the time has come

for property owners and buyers to no longer blindly trust the banks.

Given that real estate is usually the most expensive purchase most

people will ever make, such an investment should justify the need

to protect the investment with a perfect title of ownership.

Property owners who ever mortgage their property with the

banks cannot give perfect or legal title. Legal title would not even

be in their chain or abstract of title. Consequently, bankers try to

“make up” to their customers for the mere color of title with title

insurance in the amount of the purchase price. But what if you

want a specific property and perfect title, not title insurance? You

must do a title search (also called abstract of title) back to the land

patent's heirs and assignees or otherwise quiet their claims by

having a court declare you the land patent assignee.

If cash purchasers of real estate could go to court to quiet

title, nothing prohibits a borrower from doing likewise, particularly

after the borrower has occupied the property for the time required

under the state's laws for adverse possession. Preferably, this kind

of lawsuit would be initiated before any mortgage default or

foreclosure proceedings. Then a court could order the assignment



of land patent to be duly recorded in the county or parish's registrar

of deeds. Such a document would not mean the land patent

assignee can stop paying the mortgage, but it would be harder for

the bank to foreclose nonjudicially. In the foreclosure proceedings,

I recommend suing the mortgage company for fraud in failing to

disclose or transfer the legal title at the closing, among other

issues. These are some of the issues being raised in my mother's

lawsuits.

Allow me to digress further regarding my mother's lawsuits.

These cases are turning on the issue of the promissory note. As

some of you may know, my mother is the victim of a mortgage

fraud that has afflicted many senior citizens, African-Americans,

and other non-sophisticated borrowers: She lost title to investors

who lease-optioned the property back to her. Never mind that

when she re-purchased the property, it was for a purchase price in

violation of the lease option due to an over-inflated appraisal.

There were other glaring irregularities, but most important was that

she was promised one interest rate, yet due to the mortgage

company failing to file the deed and mortgage for 2-1/2 years (!), this neglect effectively imposed a higher-than-contracted interest

rate upon her in the guise of a higher escrow for property taxes. In

other words, the principal and interest she was supposed to pay

was $750, but with the “property taxes” escrow, her monthly

payments exceeded $1300. By the time the lost deed and

mortgage were recorded, she was in default. However, what we're

employing as a strategy to stop the foreclosure is demanding

discovery of the original promissory note because this would show

the real interest rate my mother agreed to pay.



Back to the evolution of land patents: I can imagine that, back

in the day, real estate with assignments of land patent were easier

to sell than real estate with mere colors of title because the land

patent assignment conveyed legal title. Banks had to cover up

their cover up of the lack of conveying legal title, so they lobbied

state legislatures to effectively render land patents obsolete by

replacing them with colors of title. This happened in Michigan with

the Marketable Record Title, Act 200 of 1945, MCL 565.101 et seq.

This Act permitted abstracts of title to be researched no further

back than 40 years, so that at the time the Act was enacted, the

furthest back marketable title would be recorded was until 1905.

MCL 565.106 extinguishes any prior claims. Of note is that land

patents in Michigan were issued at least as early as 1820. My

mother's lot can be traced back to a land patent issued in 1833. At

that time, while Michigan was a federal territory, the federal

government gave the land patentee, Benjamin Woods, a fee simple

title and declared the rights which would inure to his heirs and

assigns forever. Michigan became a state in 1837. Did Michigan

decide that forever should end in 1945? When did forever end in

your state?

If the Michigan law effectively eliminated legal title to land,

then isn't such a law an unconstitutional exercise of eminent

domain, in violation of the Takings Clause in the Fifth Amendment

to the U.S. Constitution? Not only was private property taken for a

non-public use, but also without just compensation. The U.S.

Supreme Court has ruled it is legal for a state to take private

property, even if for non-public use, as long as the state could

somehow justify the taking by increasing the tax base and

economic development. Kelo v. City of New London, 545 U.S. 469



(2005).1 Of course, it has yet to be addressed how homeowners

for the past 64 years, from 1945 to the present, have been

compensated by the State of Michigan for the taking of their legal

titles. If the Michigan law is construed to not extinguish legal title,

(such a politically-based court decision would favor the state by

preventing money-strapped Michigan from having to pay

reparations to 60+ years worth of homeowners,) then the same law

can be used to go to court and have the occupant of the property

declared the assignee of the land patent. On the other hand,

banks might use this law as a defense to mortgage fraud by

claiming that legal title is no longer necessary, only marketable title.

Yet such a defense is circular, leading us back to the issue as to

whether marketable title effectively replaces legal title, and if so,

then isn't marketable title unconstitutional?

The banks and states would be hard-pressed to find a U.S.

Supreme Court decision that supports any contention that

marketable title is indistinguishable from legal title. So far,

numerous precedents that have not been overturned have found

the land patent to be the legal title in fee simple.2 Indeed, the

relatively recent Summa decision3 is illustrative of why legal title is

important. Howard Hughes' Summa Corporation obtained a land

patent from heirs of the original patentees. The land patent was to

Ballona Lagoon, a narrow body of water connected to a man-made

1 Michigan amended its state constitution to restrict the way its municipal corporations take private property for private economic development and property tax use. See Michigan Constitution of 1963 Article X, §2 as amended on November 7, 2006 in reaction to the Kelo decision.

2 Congress has the sole power to declare the dignity and effect of titles emanating from the United States and the whole legislation of the government, in reference to the public lands, declare the patent to be the superior and conclusive evidence of legal title. Until it issues, the fee is in the Government, which by the patent passes to the grantee, and he is entitled to enforce the possession in ejectment. Bagnell v. Broderick, 38 U.S. 436, 450 (1839). A patent for land is the highest evidence of title and is conclusive against the government and all claiming under junior patents or titles... United States v. Stone, 69 U.S. 525, 535 (1864). The presumption is that the patent is valid and passed legal title. Minter v. Crommelin, 59 U.S. 87, 88 (1855).

3 Summa Corp. v. Cal. State Lands Commission, 466 U.S. 198 (1984).



harbor located in the City of Los Angeles on th Pacific Ocean. The

city and county tried to exercise a public trust easement over the

lagoon, but the U.S. Supreme Court found that the state needed to

assert these rights at the time the land patent was initially issued by

the federal government in or around 1851, otherwise California's

claims against the land patentees were forever barred. If Howard

Hughes had settled for merely a state-created marketable color of

title over Ballona Lagoon, then the state could take away just as

easily as it could give. With the federal land patent, his corporation

at least had legal title to give the corporation more ammunition to

fight in court against over-encroachments.

Although some land patent websites equate the fee simple

with allodial title, this is not completely accurate. The fee simple is

a term derived from fief and is part of the feudal land system. The

only two states that offer allodial title are Nevada and Texas, and

these titles are only partially allodial.4 Yes, most of America is a

feudal system as evidenced by the Takings Clause of the Fifth

Amendment. Land patents do not stop eminent domain or property

taxes.5 The U.S. Supreme Court has recognized the states' ability

to tax property as part the constitutional rights reserved to the

states. Land patents make it harder, but not impossible, to

mortgage the property or forfeit it to property taxes by elevating the

property to a status in which challenges regarding the patentee's

rights must be decided in court of equity rather than nonjudicially.

At the minimum, land patents defeat the power of sale clause in

mortgages and give assignees an absolute title.6 In this way,

4 See “Allodial Title” at http://www.reference.com/browse/allodium?jss=15 See for example Wright v. Mattison, 59 U.S. 50 (1856). See also Glen W. Fisher's History of Property Tax in the

United States, http://eh.net/encyclopedia/article/fisher.property.tax.history.us. 6 See “Foreclosure by Power of Sale” at http://realestate.findlaw.com/foreclosure/foreclosure-by-power-of-sale.html


http://eh.net/encyclopedia/article/fisher.property.tax.history.us


Americans can decide that their feudal lords will not be the banks.

Banks and mortgage companies may foreclose by a power of sale

in the following 29 states. More than half of these states, the ones

highlighted in red, are also land patent states:

● Alabama ● Alaska ● Arizona ● California ● Colorado ● District of Columbia ● Georgia ● Hawaii ● Idaho ● Maine ● Maryland ● Massachusetts ● Michigan ● Minnesota ● Mississippi ● Missouri ● Montana ● Nevada ● New Hampshire ● North Carolina ● Oregon ● Rhode Island ● South Dakota ● Tennessee ● Texas ● Utah ● Washington



● West Virginia ● Wyoming

At least if a court declares you to be the assignee of the land

patent by operation of adverse possession, then you have a

fighting chance to have a court declare the mortgage note void for

fraud. If enough of us flood the courts, then land patents can

become the revolution that frees us from the Federal Reserve Box.

Although more banks may be willing to negotiate now that

Obama's stimulus plan has been passed, here's another way to

stop a foreclosure and help a bank see the wisdom of negotiating a

reasonable loan modification: Demand to see the original promissory note. The original, not a copy, not an affidavit, not a

“certified” copy (unless certified by a government agency). Just like

Federal Reserve Note, the Uniform Commercial Code, enacted in

every state, recognizes the original promissory note as a

negotiable instrument.

Banks will lie and say that the original promissory note was

lost or destroyed. The reason that's a lie is because the

promissory note is a negotiable instrument. Most likely, it's your

promissory note that's created this global mortgage crisis because

the notes were used for mortgage-backed securities. This is the

U.S. Securities and Exchange Commission's definition of

mortgage-backed securities:

Mortgage-Backed Securities Mortgage-backed securities (MBS) are debt obligations that represent claims to the cash flows from pools of mortgage loans, most commonly on residential property. Mortgage loans are purchased from banks, mortgage companies, and other originators and then assembled into pools by a governmental, quasi-governmental, or private entity. The entity then issues securities that represent claims on the principal and interest payments made by borrowers on the loans in



the pool, a process known as securitization.

Most MBSs are issued by the Government National Mortgage Association (Ginnie Mae), a U.S. government agency, or the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac), U.S. government-sponsored enterprises. Ginnie Mae, backed by the full faith and credit of the U.S. government, guarantees that investors receive timely payments. Fannie Mae and Freddie Mac also provide certain guarantees and, while not backed by the full faith and credit of the U.S. government, have special authority to borrow from the U.S. Treasury. Some private institutions, such as brokerage firms, banks, and homebuilders, also securitize mortgages, known as "private-label" mortgage securities.

Found at http://sec.gov/answers/mortgagesecurities.htm

Another explanation of mortgage-backed securities is available at

http://www.pimco.com/LeftNav/Bond+Basics/2007/Mortgage+Basics.htm :

There are several steps involved in creating a mortgage-backed security:

• A mortgage lender, such as a bank, extends a loan to a homeowner. • The mortgage lender then sells the loan to one of the government sponsored enterprises (agencies),

such as Fannie Mae or Freddie Mac (see below for more on MBS issuers) or to a private entity, like a bank or finance company. The lender may still service the mortgage, making this process invisible to the borrower.

• The agency or private entity then takes a number of the mortgage loans it has purchased and bundles them together into a "pool" (the actual number of individual mortgages in the pool can vary from a few loans to thousands of loans).

• The agency or private entity then sells claims on the cash flow generated by the pool of mortgages, in the form of securities, to investors. After the initial sale, MBS trade on the open market.

• Mortgage payments, consisting of interest and principal, are passed through the chain, from the mortgage servicer to the bondholder.

What all this means7 is that Fannie Mae, Freddie Mac, or

some purchaser of the mortgage-backed security owns your

promissory note. These purchasers could be anywhere in the

world, hence the reason America's troubles have caused a

worldwide recession or depression. Of course, no one ever told

you. No one ever recorded an assignment of the promissory note

in your county or parish's recorder of deeds. So if you wonder why

your bank or mortgage company is so unwilling to negotiate a

reasonable mortgage modification, why banks are so eager to

foreclose even though bank-owned real estate is so unprofitable, 7 Josh Clark wrote an insightful article about how mortgage-backed securities caused Babylon to fall, available at

http://money.howstuffworks.com/mortgage-backed-security.htm


http://sec.gov/answers/mortgagesecurities.htm


why Congress is so slow to draft legislation that gives bankruptcy

judges the power to modify loans, it's because investors

purchased your promissory note with the expectation that the

exact terms of the note will be fulfilled.

This is the mortgage fraud for which even the U.S.

Government is complicit. After all, Congress bailed out Fannie,

Freddie, Ginnie, and a host of banks and investment firms that

were involved with mortgage-backed securities. In fact, Fannie,

Freddie, and Ginnie are guaranteed with the full faith and credit of

the U.S. Government. Moreover, the U.S. Government is able to

grant itself sovereign immunity and declare itself above its own

laws. Like prostitution, mortgage-backed securities were a

relatively victimless crime as long as property values were rising: If

you couldn't afford your mortgage payments, you could either re-

finance or sell your home at a profit. The crime was that you didn't

know who owned your promissory note and even though you

weren't truly victimless you had other remedies.

Now, however, when property values began to fall, so did

Babylon: American homeowners, upon whose backs the wealth of

the world depended, should demand to see the original promissory

note before relinquishing possession of their home. (To be fair,

international mortgage-backed securities were also issued in

Europe, Canada, Hong Kong, and Australia.8) In some

circumstances, like my mother's, a court of equity may decide that

due to the mortgage company's monkey-business that fraudulently

manipulated her interest rate, a lost promissory note requires the

court to issue an order canceling the mortgage. In other

8 See press release “Merrill Lynch Launches Ground-Breaking Guide to International Mortgage and Mortgage-Backed Securities Markets, http://www.ml.com/index.asp?id=7695_7696_8149_8688_8585_7783



circumstances, the lost promissory note can be the basis for

negotiating a loan modification with your bank-turned-collection

agency.

Bottom line, I'm not promising something for nothing. If you

want your house for free due to your own greedy, egoistic

intentions, then land patents and demanding production of original

promissory notes won't help you. Courts want to be fair, even to

banks. Indeed, their bias is in favor of the bank. But there are

many people who aren't greedy, just needy: They have been laid off

from their job, or no longer work a lot of overtime, or became

disabled, or their home lost value, or their adjustable rate mortgage

adjusted more than their income, or they are victims of mortgage

fraud. These are the people with the honest intention of just

wanting to keep a roof over their heads. These are the relatively

poor people, the relatively little guys, who even lawyers will tell to

give up and move out.

One exceptional lawyer who doesn't dish out “give up” advice

is Chris Hoyer9, a fellow graduate of the University of Florida

College of Law, now practicing in Tampa. Chris is part of the

Consumer Warning Network (CWN) that is advocating the

“Produce the Note” strategy to help homeowners save their

homes.10 The CWN website contains documents that you may use

to request production of the note. (Personally, in the initial letter to

lenders, I like to make a Qualified Written Request, according to

HUD guidelines, so I can make a full TILA and RESPA compliance

analysis. In the case of home equity loans, TILA violations allow

the loan to be rescinded or canceled. This strategy has helped one

9 For biography, see http://www.jameshoyer.com/attorney_chris_hoyer.html10 See http://www.consumerwarningnetwork.com/2008/06/19/produce-the-note-how-to/



other person, this time in New York, stay in their home for the past

two years.) Need Legal Help? Use the LegalMatch Priority Service to Find Pre-

screened Lawyers in Your Area Now!

What follows on the next page is a tweaked version of the

letter Hoyer made available on the CWN website referenced

above. It is a scaled-down version of my Qualified Written Request

interrogatory that will be available through the M-GIN newsletter.

The Qualified Written Request allows 60 days for the mortgage

company to respond and will not stop a foreclosure. Indeed, if

you're already in default, use the Qualified Written Request in

conjunction with a Chapter 13 bankruptcy and challenge the

mortgage company's claim that you owe them. Declaring

bankruptcy can stop the foreclosure.

More and more judges are coming out of the rubber-stamp

box and demanding that the banks strictly comply with the law

before foreclosing on homeowners. We are finally in an era where

there's justice for homeowners. Because of this, my mother, a

victim of an egregious case of mortgage fraud, has lived in her

house two years without paying a mortgage. You, too, can fight to

keep your home. There's hope for you.


http://www.anrdoezrs.net/click-3369136-8262004

http://www.anrdoezrs.net/click-3369136-8262004


Date:

TO: [Name of lender] [Address of Lender]

[City, State, and Zip]

Re: My request for a copy of the Promissory Note QUALIFIED WRITTEN REQUEST Name: [your name] Property Address: [address of property subject to mortgage] Loan Number:

Dear _________________:

This is a "qualified written request" under Section 6 of the Real Estate Settlement Procedures Act (RESPA). I understand that under Section 6 of RESPA you are required to acknowledge my request within 20 business days and must try to resolve the issue within 60 business days.

I am the owner of certain real property located at [property address ], which is security for a loan made by [company which issued the loan] to me on [date of the loan] .

Please produce for my inspection the original Promissory Note which I signed on [date note was signed] . Please also produce for my inspection the Truth-in-Lending Disclosure Statement, the HUD-1, other closing documents, accounting of my payments, and accounting justifying the imposition of any of your fees.

If you have any questions regarding my request, please call me at __[your daytime phone number]_ .

Very truly yours,



A Paradigm Shift

arning! What I'm about to advocate may have the

consequence of creating a land crunch to offset the

banks' credit crunch. What I'm about to advocate may

increase property values. Indeed, what I'm about to advocate may

be a hedge against the inflation that is sure to come. (I say that

inflation is sure to come because the federal government's

borrowing of billions of dollars from the Federal Reserve cannot

help but decrease the value of the Federal Reserve Note, a.k.a.,

the U.S. Dollar.) The greed in this world has gotten so bad that it

has become necessary to start over with a more just distribution of

wealth and power.

W

Simply put, I advocate taking a few old things and making

them new again:

1. I advocate buying land for cash and obtaining a color of title

at closing.

2. I advocate going to court in a quiet title action against the

land patentee's heirs and assigns. Each state provides for

service of process by advertisement in a publication of

general circulation. Find out which publication meets your

state or county's requirements. Have a judge issue an order

declaring you, the one holding a color of title, to be the

assignee of the land patent and holder of the legal title.



3. I advocate having that judgment also declare that, because

prior existing mortgages were satisfied, then those mortgages

are therefore canceled.

4. I advocate filing that order in the county or parish's recorder

of deeds.

5. I advocate no further mortgaging of the land.

6. The paradigm shift also advocates no longer accepting

Federal Reserve Notes as payment whenever renting or

selling the land, but to instead use silver and gold coins

minted by the U.S. Government.

7. Convert the gold and silver coins to Federal Reserve Notes,

at a premium, if you need or want to.

Some people don't want to declare their independence from

the banks and debt. They think that the idea of not mortgaging the

land will mean they can't sell it or borrow a home equity loan.

However, those following the strategy I outline below will have a

hedge against inflation by possessing precious metals instead of

Federal Reserve Notes.

The first objection is how to buy real estate for cash. The

problem is that most people don't have the cash. However, if you

bring me the right deal, I can arrange the cash. I will teach you

about the right deal in the monthly Multi-Generational Investment

Network (M-GIN) newsletter.

The second objection deals with going to court to be declared

the assignee of the land patent. Don't we have to find all the heirs

and prior assignees? That depends. Usually not.

The states' color of title, in Michigan called “marketable title”,



gave birth to title insurance companies who issued policies that

exploited the fact that the original land patentees of the 1800s were

dying off. Title insurers issued policies effectively assuming the risk

that the land patent heirs and assignees would not know about or

go to court to enforce their rights to evict lot trespassers.

Accordingly, title insurers typically refuse to issue a policy on

property that has a recorded assignment of land patent.

Herein lies the opportunity to shift the paradigm, particularly

in a place like Michigan where land is cheaper than a car. This will

take discipline because this is called living outside of the Federal

Reserve Box and freeing the land:

1. Buy a property for cash in a state that used land patents.

Request an abstract of title in addition to title insurance.

Obtain the color of title.

2. If you already own the color of title, find out your state's

adverse possession law. (See table below.) If you have lived

in the property longer than necessary to comply with the

state's adverse possession law, then you don't need to

request an abstract of title or title search for the property. In

Michigan, the abstract will only be traced back 40-50 years.

3. Obtain a certified copy of the land patent. For details on how

to trace the lot legal description back to the land patent,

please read “Land Patents: Scam or Revolution?”.

4. Go to court to quiet title and have a judge declare you to be

the assignee of the land patent under the legal doctrine of

laches and/or adverse possession.

5. If the judge grants the petition, then record the land patent at



the registrar of deeds. The registrar should record the

document in a manner such as a land patent, under the

grantor/grantee index, as a judgment, an assignment, or in

such a way that any subsequent title search would easily find

the land patent assignment.

6. If the judge doesn't grant the petition, then appeal that

marketable title is not the same as legal title, and you have

the right to legal title. Appeal that the mortgage company

failed to disclose the differences in title at the closing. Appeal

that state laws permitting power of sales should be

unconstitutional under the 14th Amendment. A right not

enforced is considered abandoned or waived.11 If your

marketable title doesn't entitle you to legal title, then demand

to know who has the legal title. (That question will be even

more puzzling than the question as to who now owns the

promissory note!)

7. In the judgment of assignment of land patent, if you own the

land free and clear, ask the judge to also issue you a

cancellation of all prior-existing “satisfied” or “discharged”

mortgages. Please don't ask the judge to cancel your

existing mortgages. He or she won't do it except if you are

demanding production of the original promissory note and

making other mortgage fraud claims. However, if you still

owe a mortgage but can convince a judge to simply declare

you the assignee of the land patent, record this judgment. In

non-judicial foreclosure states, this judgment should help to

convert the foreclosure into a judicial proceeding, at which

time you'll demand the original note and other documents.11 Moran v. Horsky, 178 U.S. 205, 208 (1900).



Presently, it has been my experience that title insurance

companies regard the land patent assignment as a cloud on the

title. I think it's weird to perceive legal title as a cloud, but if title

insurers didn't, then there would be no need for title insurance, and

hence they'd go out of business. Consequently, when a land

patent assignee tries to mortgage or sell the land, title insurers ask

for a renunciation of the land patent assignment. Don't renounce!

The result will be that mortgage companies won't loan to buyers or

refinance without title insurance. But that doesn't stop you from

owner-financing the land patent on land contract or lease-

purchase agreement using silver and gold coins as payment.

After the land patent is duly recorded, you can rent out the

property or sell it via owner-financing. A recommended source for

obtaining silver coins is, of course, Silver Snowball,

http://tinyurl.com/silversnowball . Both silver and gold coins can be

obtained at SavonCoins, http://tinyurl.com/savoncoins or GovMint

at http://tinyurl.com/govmint .

Gold or silver coin payments can be made in person, by

insured delivery, or via electronic transfer through companies.

Although an e-silver system is still needed to electronically transfer

silver, I strongly recommend iGolder at www.igolder.com . Two

decent alternatives are www.goldmoney.com and E-gold at

http://tinyurl.com/egoldpayments . Most people may be annoyed to

have to convert their Federal Reserve Notes into precious metals,

so to attract renters, make the rent less than the current market

value for that area. As you receive silver and gold, you declare

yourself independent from the Federal Reserve. I don't even


http://www.goldmoney.com/

http://www.igolder.com/

http://tinyurl.com/savoncoins


recommend storing gold coins in a bank's safe deposit box

because the box contents are not FDIC-insured. It's best to get a

home safe, special insurance, or increase your homeowner's

policy.

For those who already own at least one property, but have a

mortgage, then you must determine if you've owned the property

for a time period that fulfills your state's statute of limitations for

adverse possession.

The doctrine of "adverse possession" is one of the most interesting in the field of real property law. The character of the law reflects the pioneer spirit of a growing world in both North America and Europe over the last few centuries.

If a person moves into possession of property, improves it and possesses it in a public manner, then after a certain amount of time he will acquire title to the property even though it is actually owned by someone else. The idea for adverse possession has at its root that land should not lie idle. If it does, it is wasted to the community. Therefore, if someone moves onto the land and makes it productive, that person may earn the right to claim it as his or her own. It is also reflective of the imprecise nature of ancient land sales: a person who believes he owns land, establishes himself on it in public, and if not hindered after a period of time, should be entitled to own the land.

The basic requirement for adverse possession is that the claiming party must take exclusive possession of the property. This type of possession is called "open and notorious" or proactive and absolutely not secretive possession. Some states require that the possession be "under color of title," or that the person must believe that he has the right to possess it and has some form of document or is relying on some fact that while not actually conveying title, appears to do so. In addition, many states require concurrent the payment of property taxes for a specified period of time, and a few states also require that improvements be made upon the land. Eventually, the possessor is required to file for title with the county recorder. The actual owner then has a limited amount of time in which to challenge the newcomer's title. Essentially, the owner's only argument is to claim some sort of disability; such as age, mental instability, or imprisonment. The owner is not required to do much in order to stop the possessor from acquiring title; merely sending the possessor a note granting permission to be there will usually suffice. Various rules exist regarding the continuousness of the possession and the ability to "tack" various periods of possession together in order to satisfy the time of possession requirement; see your state codes or the code of the state in which you are interested for more detailed information.



Table 41: Adverse Possession

State Code Section

Prescriptive Period

Occupation

Time to Challenge

Improvements

Payment of Taxes

Title from Tax Assessor

ALABAMA 6-5-200 20 yrs. Bradley v. Demos 599 So.2d 1148

and Color of Title: 10 yrs. and Payment of Taxes: 10 yrs.

10 yrs. required

ALASKA 09.45.052

and Color of Title: 7 yrs.

Not required but is considered proof Alaska Nat. Bank v. Linck 559 P.2d 1049

ARIZONA 12-522 et seq.

2 yrs. (if occupied with no claim to title)

and Color of Title: 3 yrs. or 5 yrs. if city lot

3 yrs. after cause of action arrives

Taxes plus cultivation: 5 yrs.; Cultivation only: 10 yrs.

5 consecutive yrs. before suit to recover

ARKANSAS 18-61-101, 18-11-101 et seq.

7 yrs. Can't eject after 5 yrs.

After disability lifted: 3 yrs.

7 successive years; 15 yrs. consecutively for wild and unimproved land creates presumption of color of title

CALIFORNIA Civ. Proc. §§318, 325, 328

and Payment of Taxes: 5 yrs.

With disability: 20 yrs.; After disability lifted: 5 yrs.

5 years required

COLORADO 38-41-101, et seq.

18 yrs. and Color of Title/Pay

After disability lifted: 2

7 years



State Code Section

Prescriptive Period

Occupation

Time to Challenge

Improvements

Payment of Taxes


ment of Taxes: 7 yrs.

yrs.

CONNECTICUT

52-575 15 yrs. After disability lifted: 5 yrs.

DELAWARE Tit. 10 §§7901, et seq.

20 yrs. After disability lifted: 10 yrs.

DISTRICT OF COLUMBIA

16-1113, 16-3301

15 yrs. With disability: max. 22 yrs.; After disability lifted: 2 yrs.

FLORIDA 95.16, 18, 191, 192


One way to possess land

7 yrs. 4 yrs.

Table 41: Adverse Possession—Continued

State Code Section

Prescriptive Period

Occupation

Time to Challenge

Improvements

Payment of Taxes


GEORGIA 44-5-161, et seq.

20 yrs. and Color of Title: 7 yrs.

Prescriptive period does not run until disability removed.

HAWAII 657-31.5, et seq.; 669-1


IDAHO 5-203, et seq.

and Color of Title: 5 yrs. and Payment of Taxes:


Taxes plus cultivation 5 years

Required



State Code Section

Prescriptive Period

Occupation

Time to Challenge

Improvements

Payment of Taxes


5 yrs. ILLINOIS 735

ILCS 5/13-101, et seq.

20 yrs. and Color of Title: 7 yrs. and Payment of Taxes: 7 yrs.


7 yrs.

INDIANA 32-21-7-1 et seq.; 34-11-1-2

10 yrs. (15 yrs. if cause of action arose before Sept. 1, 1982)


Required

IOWA 614.8, 17, 560.2

Within 1 year (after 7/1/80)

and Color of Title/Payment of taxes; 5 yrs.

After disability lifted: 1 yr.

With occupancy, one way to possess land

KANSAS 60-503, et seq.

15 yrs. With disability: max. 23 yrs.; After disability lifted: 2 yrs.

KENTUCKY 413.010, .060, .020



LOUISIANA C.C. Art. 3473, et seq.


MAINE Tit. 14 §§801, et seq.

20 yrs. and Color of Title/payment of taxes: 20 years

After disability lifted: 10 yrs. notwithstanding 20 yrs. have expired

Required on uncultivated lands in unincorporated areas



State Code Section

Prescriptive Period

Occupation

Time to Challenge

Improvements

Payment of Taxes


MARYLAND Cts. & Jud. Proc. §5-103, 201


MASSACHUSETTS

260§21 20 yrs.

MICHIGAN §600.5801, 5851

15 yrs. After disability lifted: 1 yr.

10 years

MINNESOTA 541.02, 15

15 yrs. and payment of taxes for 5 consecutive years

With disability: 5 yrs. (except for infancy); After disability lifted: 1 yr.


State Code Section

Prescriptive Period

Occupation

Time to Challenge

Improvements

Payment of Taxes


MISSISSIPPI

15-1-7, 13, 15

10 yrs. and Color of Title: 10 years and Payment of Taxes: 2 years


2 yrs. 3 yrs. after 2 yrs. from day of sale by tax collector

MISSOURI 516.010, .030

10 yrs. After disability lifted: 3 yrs., max. 21 yrs.

MONTANA 70-19-401, 411, 413

5 yrs. and Color of Title: 5 yrs. and Color of Title/Payment of Taxes: 5 yrs.


Required

NEBRASKA 25-202, 213 10 yrs. With



State Code Section

Prescriptive Period

Occupation

Time to Challenge

Improvements

Payment of Taxes


disability: 20 yrs.; After disability lifted: 10 yrs.

NEVADA 11.070, 110, 150, 180



Required

NEW HAMPSHIRE

508:2, 3 20 yrs. After disability lifted: 5 yrs.

NEW JERSEY

2A:14-30 to 32; 2A:62-2

30 yrs. or 60 yrs. if woodland



NEW MEXICO

37-1-22 10 yrs. and Color of Title/Payment of Taxes: 10 yrs.

After disability lifted: 1 yr.

Required

NEW YORK Real Prop. Acts & Procedures 501, et seq.



NORTH CAROLINA

1-38, et seq.; 1-17



NORTH DAKOTA

28-01-04, et seq.; 47-06-03

20 yrs. and Color of Title: 20 yrs. and Color of



10 yrs.



State Code Section

Prescriptive Period

Occupation

Time to Challenge

Improvements

Payment of Taxes


Title/Payment of Taxes: 10 yrs.

OHIO 2305.04 21 yrs. With disability: 21 yrs.; After disability lifted: 10 yrs.

OKLAHOMA

12§93, 94 15 yrs. After disability lifted: 2 yrs.

5 yrs.


State Code Section

Prescriptive Period

Occupation

Time to Challenge

Improvements

Payment of Taxes


OREGON 12.050, 160

10 yrs. With disability: 5 yrs.; After disability lifted: 1 yr.

PENNSYLVANIA

Tit. 42§5530

21 yrs.

RHODE ISLAND

34-7-1, et seq.


SOUTH CAROLINA

15-67-210, et seq.



SOUTH DAKOTA

15-3-1, et seq.






State Code Section

Prescriptive Period

Occupation

Time to Challenge

Improvements

Payment of Taxes


TENNESSEE 28-2-101, et seq.


20 yrs.

TEXAS Civ. Prac. & Rem. §16.024, et seq.

10 yrs. and Color of Title: 3 yrs. and Color of Title/Payment of taxes: 5 yrs

With disability: 25 yrs.

Taxes plus cultivation: 5 yrs.; Cultivation only: 10 yrs.

Required

UTAH 78-12-7, 12

7 yrs. and Color of Title/Payment of Taxes: 7 yrs.

Cultivation only: 7 yrs.

Required

VERMONT Tit. 12 §501

15 yrs.

VIRGINIA 8.01-236, 237

15 yrs. and Color of Title: 15 yrs

With disability: 25 yrs. max.

WASHINGTON 7.28.050, et seq.



Required

WEST VIRGINIA

55-2-1, 3


WISCONSIN 893.16, 25 to 27


With disability: 5 yrs., except when due to insanity or imprisonment. After disability lifted: 2 yrs.

One way to prove possession.

WYOMING 1-3-103, 10 yrs. After



State Code Section

Prescriptive Period

Occupation

Time to Challenge

Improvements

Payment of Taxes


104 disability lifted: 10 yrs.

I greatly appreciate the above hard work and legal research cited on the website http://law.jrank.org/pages/11865/Adverse-Possession.html

I cannot vouch for how accurate or current is their “Information on the law of Adverse Possession”.

Law students remember the general elements of the doctrine

of adverse possession by the ECHO mnemonic: The squatter must

have

● Exclusive,

● Continuous,

● Hostile, and

● Openly notorious possession of the land for a statutorily

prescribed number of years.

The beauty of this definition is that banks can't squat,

meaning, a bank can have color of title by virtue of a foreclosure,

but strict interpretation of adverse possession precedents would be

hard-pressed to rule that artificial persons, such as banks and other

corporations, can physically possess or occupy the land. Only a

natural person can. Accordingly, there's an opportunity for

homeowners to sue to quiet the title of the land patentee's heirs,

thus becoming the court-ordered land patent assignee.

Those who haven't resided at the property long enough to

meet the adverse possession requirements can use the legal

doctrine of laches and tacking to tack onto their ownership the time

periods beforehand that the land patentee's heirs and assigns

neglected to exercise their property rights. Again, the purpose for


http://law.jrank.org/pages/11865/Adverse-Possession.html

http://law.jrank.org/pages/11865/Adverse-Possession.html


engaging in land patent litigation is not that the land patent, alone,

can cancel an existing mortgage. However, land patents are not frivolous scams! By itself, the land patent assignment serves

only to defeat the power of sale clause in mortgages issued in

certain states, thus making the mortgage companies pay more by

taking your foreclosure to court. Coupled with demanding the

promissory note, the land patent assignment can then serve to

cancel mortgages or make mortgage companies more willing to

really negotiate loan modifications.

Now you understand why the Box disbarred me. Lawyers can

control the direction of litigation. I kept thinking outside of the Box.

Masons and Catholic secret societies created the Box. I'm a

woman, and an African-American descendant of slaves, but

females can't be freemasons. I'm not even a member of their

women's branch, the Eastern Stars. By raising the question that

slavery isn't really over in America, I place at issue the very issue of

freedom. Maybe the Eastern Stars were hoping I'd join, so they let

me get a law degree and a Florida Bar license to practice for

awhile. Many other lawyers and judges joined their fraternal

organizations, but I didn't. They didn't like my controversial

litigation and the revelation of their many lies and judicial biases.

So while George W. was president and his brother Jeb Bush was

governor of Florida, I became a victim of COINTELPRO

surveillance and sabotage.

Perhaps it was this surveillance that gave rise to my receiving

a telephone call before the first Land Patent book was released.

The caller, from California, warned that the book was so explosive,

it would destabilize worldwide financial markets. It's flattering to



think a black woman in Detroit can have so much power. Let's see

how I can use that power for good. Stay tuned to the Multi-

Generational Investment Network's newsletter.



The Multi-Generational Investment Network

ama, God bless her, loves to recycle. She grew up

during the Great Depression, a period in American

history which might later be referred to as the First

Depression. She learned the value of not throwing everything into

the trash. Maybe, as she gets older, she's afraid of being thrown

away.

MLikewise, senior citizens like my parents, have touched my

heart. They are a natural resource. I'm not advocating recycling

them like what was done in the old movie “Soylent Green”.

However, in the midst of this terrible financial crisis, one program

extends credit to a group of people without worrying about them

qualifying or mortgage payments. The special group is senior

citizens and the program is reverse mortgage.

Let me quickly clarify: Reverse mortgages can be the

antithesis of land patent assignment. In Detroit, I have seen it

happen many times. The elder would work at the auto companies,

completely or almost pay off his or her home, only to have a fast-

talking mortgage broker swindle him or her our of the home's equity.

Potential heirs would inherit a mortgage payment, if anything.

Whether you call the mortgage canceled or satisfied, once it

happens, it's a beautiful thing. It's peace of mind. Under most



circumstances, I DO NOT recommend reverse mortgages. Under

most circumstances, I advocate getting court-ordered assignments

of land patents for elders to help protect them from swindling

mortgage brokers. This way, parents don't have to be adjudged

incompetent to handle their own financial affairs in order for a

mortgage company to hesitate closing on a property with a land

patent assignment in the title search.

On the other hand, some elders may want to downsize,

upgrade, move closer to family and friends, or move to a warmer

climate. Perhaps family members have been rendered homeless by

the current foreclosure crisis and need to move in with the elder.

These are the circumstances under which it is helpful that an elder

isn't in an assisted living facility or nursing home. Dependent on the

elder's health and the family's resources, these are the

circumstances for which a reverse mortgage may be useful. This

allows a family to “recycle” the elder's ability to obtain a home.

Suppose a retired auto worker in Detroit owns his house free

and clear. Right now would not be a good time to sell the house,

given Detroit properties are selling for less than cars. However,

what if the retired auto worker always wanted to live in a desert

climate like Phoenix or Las Vegas. Why not land patent his Detroit

property, lease or give it to his children, then get a reverse mortgage

for property in the desert? He would not have mortgage payments

as long as he lived in the property. If his children want to be able to

inherit the property after his demise, then they must simply make

sure he has enough life insurance to cover the reverse mortgage.

After the life insurance pays off the reverse mortgage, the heirs can

land patent the property, live in it, rent it, and/or sell it.



Currently, there's a controversy on the purchase reverse

mortgage front: HUD announced in October 2008 that purchase

reverse mortgages would be available in January 2009 and would

be based upon the home's appraised value. That would have

been a great economic stimulus plan! In today's real estate market,

this could mean senior citizens like my mother could upgrade to a

great property with a purchase price below its appraised value. That

way, she could buy the property with no money down and maybe

even get cash back at the closing. However, despite the Obama

family's historic move into the White House, (just the name of the

presidential residence smacks of racism), many blacks are still

“paranoid” about racial segregation, with good reason.

In 2009, America is still racially segregated. (According to the

2000 census, with an 80+% black population, Detroit ranked #1 in

racial segregation for large metropolitan areas.)12 The joke in the

'hood is that the original purchase reverse mortgage stimulus plan

was scrapped to keep black families from moving in with Madea into

a mini-mansion in the suburbs. We'd turn the purchase reverse

mortgage program into reparations, living mortgage-free to the

maximum of Madea's life insurance policy or the new HECM loan

limits, whichever is less. There goes the neighborhood!

Comedian Tyler Perry's “Madea”, showing her support for the right to bear arms.

12 See Table 5-4 in Residential Segregation of Blacks or African Americans: 1980 to 2000, http://www.census.gov/hhes/www/housing/housing_patterns/ch5.html


http://www.census.gov/hhes/www/housing/housing_patterns/ch5.html


By December 2008, HUD issued a statement reconsidering its

generous stimulus plan, saying that it might make the plan more

restrictive. Restrictions would include making the purchase reverse

mortgages based on the purchase price because there has been a

lot of past abuse using inflated appraised values. Other possible

restrictions included a downpayment, no downpayment assistance

or gifts, no seller financing, and a lot of other prohibitions that could

render the purchase reverse mortgage program effectively useless.

So far, HUD hasn't made a final determination of what it wants, thus

the program waits in limbo.13

Even if HUD doesn't want Madea, Ugly Betty's Poppy, and Jeff

Foxworthy's (you might be a redneck...) grandparents moving into

the gated MacMansions, there's still an opportunity to make

lemonade. In fact, during these hard economic times when families

must either stand united or fall divided, the lemonade will shift the

paradigm from individualism to family wealth building.

A word of caution: I'm not advocating that anyone take

advantage of senior citizens! This real estate investment strategy

does not envision taking your wheel-chaired grandparents out of the

nursing home and putting them on the third floor of a mini-palace.

Indeed, as more and more people become unemployed, it is

conceivable that at least one adult offspring of the elder will be

available to take care of their parents and/or grandchildren. Visiting

nurses and home health care services may become more of the

norm than nursing homes and senior living facilities. And if any

senior is mentally or physically unable to handle his or her own

13 See “What Happened to HUD's Plan to Allow Seniors to Buy Homes with Reverse Mortgage?”, http://www.seniorjournal.com/NEWS/ReverseMortgage/2009/20090217-WhatHappened.htm


http://www.seniorjournal.com/NEWS/ReverseMortgage/2009/20090217-WhatHappened.htm


financial affairs, he or she can exercise a power of attorney or the

caregiver could be court-ordered the elder's guardian and

conservator. State laws differ, but typically the courts require the

conservator to periodically submit a report accounting for the elder's

assets. A judge could replace the family member/caregiver as

conservator and appoint someone else, like an attorney, as the

conservator if the court finds the original conservator committed

wrongdoing.

Without taking advantage of a senior, let's use a simple

example of how to take the lemon, plummeting real estate prices,

and make lemonade. Suppose a married couple, John and Jane

Doe, has two children, and lives in Detroit. Suppose the parents

both work for the same employer, like General Motors, and gets laid

off. This is a devastating worse case scenario that has happened to

some people. Suppose six months pass and they can't find new

jobs. Suppose that, despite everything I just mentioned in previous

chapters about preventing foreclosure, the couple loses their house.

Suppose Jane's 80 year old widowed mother, Judy, is relatively

healthy and lives in a senior citizen apartment. Judy has a life

insurance policy of $200,000.

Now suppose you are a real estate investor that comes across

a four bedroom, two bathroom house for $40,000. The house could

easily appraise for $100,000. It is senior accessible, having a

bedroom and bathroom on the ground floor. Using a gold or silver coin as consideration, you option to buy the house, then sell your

option to Judy for $50,000 or the equivalent in gold and silver. You profit $10,000! Repeat this formula ten times a year, and you could earn $100,000! I urge you to convert some or all of that cash



into gold and silver as a hedge against inflation.

Given Judy's age and the appraised value of the house, she

is qualified to get $68,000 with the reverse mortgage. Judy, John,

Jane, and the little Does move into the house and live happily ever

after with no mortgage payments. When Judy dies, her life

insurance policy can pay off the mortgage. When the house is free

and clear, Jane, Judy's heir, can go to court to ask that the judge

enter an order assigning her the land patent rights. Indeed, Jane

can do this as part of the probate of Judy's estate.

Of course, there are many risks to this scenario: What if John

doesn't like Judy and would rather be homeless than live with his

mother-in-law? What if Judy likes to interfere when John and Jane

argue or tries to veto John and Jane's discipline of their children?

I'm kidding. Sort of. Family dynamics are important. However,

money problems contribute to other stressors, therefore a serious

problem develops if Judy's life insurance premium, which could

average around $500 a month, goes unpaid. If Judy dies during the

policy lapse, John and Jane Doe risk being homeless again. Let's

face it, some people want something for nothing. They got a house

with no qualifying, no money down, and no mortgage payments.

Essentially, they got a free house until Judy dies. All they needed to

do was pay her life insurance premium. Eventually, they pay will for

it, one way or another. If property values rise before Judy dies, and/

or John and Jane need to relocate to find better jobs, then they can

refinance or sell the home.

Some of you may have gotten giddy when I mentioned how

much money you or I could make in flipping wholesale properties,

but I'd rather emphasize the benefits to the end purchasers. Greed



and selfishness got America, the world, in the economic mess we're

in. Prosperity is more sustainable when it's not based on exploiting

others. My personal goal is to get homeowners to the land patent

stage, so I see reverse mortgages and life insurance as a means to

that end. I want to set up people for success, not failure. Our

ambitious goal should be to make the word “foreclosure” extinct from the American vocabulary. One way of doing this is by

structuring life insurance to cancel out reverse mortgages.

For certain reverse mortgages to be a win-win situation, then

a critical component is making sure that the elder has enough life

insurance to cover the mortgage. Referring back to the example of

John, Jane, and Judy: Let's suppose that, in addition to Jane, Judy

has two other adult offspring, Joe and Jim. If Judy already has a

$200,000 life insurance policy, it may be set up with all three adult

children as beneficiaries. Joe and Jim may not want Judy to make

Jane the sole beneficiary in order for Jane to repay the reverse

mortgage after Judy's death. Although Jane's equally-divided

portion of Judy's $200,000 policy is more than $60,000, this won't

be enough to payoff Judy's reverse mortgage. Of course, John and

Jane Doe could simply move again. However, many seniors life

insurance policies aren't for such a high payout amount. As a

result, the elder and caregiver family members may need to take

out an additional life insurance policy in order to cover the reverse

mortgage.

In general, life insurance is a policy whose premiums increase

as the age of the policyholder increases and the payout benefit

increases. Consequently, policyholders who are senior citizens pay

relatively expensive premiums for relatively large payout benefits.



Some insurers won't even issue a life insurance policy to a senior,

except for a meager burial policy. The burial policy, usually $50,000

or less, will make sure Judy has a permanent resting place, but

won't be enough to cover the reverse mortgage so John and Jane

can stay in Judy's house. Netquote.com and

http://www.advantageoneinsurance.com/life-insurance-for-senior-

citizens.php are one-stop shops to find sizeable life insurance

policies to protect an elder's house.

If reverse mortgages are going to be a permanent fixture

among financial products, then younger-than-senior-citizens would

do well to get life insurance policies while the premiums are

relatively inexpensive. I recommend Insurance for Your Children

from GerberLife and RBC's Leave your home to your family not the

bank!!! No agent! All online! Life insurance coverage in minutes!!!

The Multi-Generational Investment Network seeks to unite

families like the Does with bargain properties. Some bargain

properties are available as bank REOs (real estate owned)

foreclosures. You can find these properties on listings such as on a

Free list of every Bank & Government Foreclosure in the Nation! In

Detroit, an REO property can be stripped of its copper, other metals,

toilets, and even the kitchen sink (seriously!) by the weekend. In

short, foreclosed REOs become fixer-uppers. Unless you're

especially handy, you may need to hire a contractor in order to bring

the property into compliance with any city or county occupancy

codes. Click here to find quality contractors for your construction

project! National Contractors.com

Some families prefer condominiums rather than single family

homes. I recommend that you find your condo at Condo.com. View


http://www.kqzyfj.com/click-3369136-10487738

http://www.dpbolvw.net/click-3369136-7330978

http://www.jdoqocy.com/click-3369136-5469525





http://www.advantageoneinsurance.com/life-insurance-for-senior-citizens.php

http://www.advantageoneinsurance.com/life-insurance-for-senior-citizens.php



photos, floor plans, take a virtual tour and more!

Indeed, some people in upside mortgages may prefer not to

negotiate with or sue the bank. I will admit, negotiations and

lawsuits are emotionally stressful. For some, short of winning the

lottery, there is no mathematical way for them to afford their house

and no legal remedy to cancel the mortgage. The best they can do

is delay the inevitable, using the time wisely in order to find another,

perhaps even better, place to live. Others would rather move out of

their current home in order to start over or upgrade into a better

home with Grandma and a reverse mortgage. People in these

situations can click here for Moving Resources .

Contact me via email at [email protected] for

referral to my reverse mortgages sources.

Bottom line, working with the niche real estate market in the

Multi-Generational Investment Network (M-GIN) can be a win-win

situation for investors and end-purchasers. The M-GIN monthly

newsletter will discuss details on how we'll accomplish this goal.

With this book comes an opportunity for you to become an M-GIN

affiliate, or simply pass on the book to others. It costs only $1.00 (in

Federal Reserve Notes) to join as affiliate, but don't let the low cost

fool you. It's work! So for those willing to accept the challenge of

changing America's paradigm, Welcome to the Program!


mailto:[email protected]



Running with the Visionf the course of history can be altered by the smallest change,

then I'm looking for a few good folks who are willing to be the

agent of a positive change. Forgive me if I sound like Barack

Obama, but this is true: I wanted to design a program that can profit

people who don't have money. I live in Michigan, the state with the

nation's highest unemployment rate. I don't (yet) have a factory to

put the unemployed to work. All I have is an idea. A vision. Without

a vision, people perish, but if I write the vision, someone will run with

it. Will you run with this vision?

I

What must you do? Freely you have received, so freely give.

I had a dream of making this book free and I worked until I could

make that dream a reality. Please make the book viral by giving it

away to as many people as possible. Use Craigslist, Kijiji, word-of-

mouth referrals, and other means to educate people facing

foreclosure. However, you will be given a means by which to use

the e-book to develop a contact list. Through the M-GIN newsletter,

you will be taught how to market both on the Internet and in your

community. If you have the confidence, we'll make sure you have

the information with which to even make public presentations. As

you network, helping people, you may not get rich quick financially,

but you will acquire wealth eventually. More importantly, the families

you unite and/or keep in their homes will be grateful. That's a

treasure in heaven and the paradigm shift. Be encouraged, and

stay diligent.



We live in somber times. Some don't have the luxury of

investing time or money. They need quick results, if only small

ones. The M-GIN newsletter will teach you how to put a little

change in your pocket until the bigger money comes. To give you a

hint of one way to make money is by selling the e-book “Land Patents: Scam or Revolution?” While silver is below $15 an

ounce, I recommend selling a coupon code for this e-book for

$35.00 Federal Reserve Notes at www.goldmoney.com .

GoldMoney is rather intrusive in order to deter money-laundering.

However, once the identity is verified, which could take two business

days, the buyer can do a transaction from which you, the affiliate,

get one ounce of silver and I get the other ounce and the remaining

transaction fees. The coupon code will be a link to a page where

the buyer will get the book, Land Patent: Scam or Revolution?, for 1

cent. Of course, those who don't want to go through the bother of

the coupon code can get the “Land Patent: Scam or Revolution?” e-book at the regular $50 price via PayPal for $50,

with $25 going to you (the affiliate) and $25 to me.

In conclusion, we can be a small but diligent army that affects

the world's economic policy. We can slow or halt the tide of America

becoming a place in which the land, even the labor of the people,

belongs to banks. Sometimes enemy banks. As we lose more and

more of our economic independence, our political independence

erodes as well. Frederick Douglass, an African-American

abolitionist, once said that, “The limits of tyrants are prescribed by

the endurance of those whom they oppress.” Have you lost your

job, your business, your house, your car, maybe even a spouse?

Have you had enough? God has heard our prayers. Join me.


http://www.goldmoney.com/


About the Author

Teruah 5769

Anita E. Belle obtained her Bachelor of Science degree from Wayne

State University in Detroit, Michigan in 1985. She obtained her Juris Doctorate

from the University of Florida in 1994 and was a member of the Florida Bar

from 1995-2003. She litigated the Nicaraguan Contra' Narcotics Trafficking

Litigation in which she accused the CIA and other federal agencies and

individuals of racketeering and conspiracy to distribute illegal narcotics into

America's segregated African-Americans and cause harm to all Americans.

She has litigated reparations cases based upon the invalidity of the 13th and

14th Amendments to the U.S. Constitution. She sought refugee protection in

Canada when her life was threatened in the United States. America's good

friend and neighbor refused to protect her. Her complaints about America's

human rights abuses were ignored by the U.S. courts and U.N.'s special

rapporteur for human rights defenders. She now lives again in Detroit and

continues to be a whistle-blowing (or shofar-blowing) activist. She serves as

executive director of the new non-profit organization, Constitution Keepers Inc.

and CEO of Baraka Enterprises LLC. She has one handsome son and three

gorgeous grand-daughters.

The above photo is circa 2008.



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