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Into The Pit

My Adventures with Bank of America!

By D.L.

This book is dedicated to all who are awake and fighting the same fight I have
fought, and those of you who are not yet awake but hopefully will rise from your
slumber before its too late. If you have no idea whats going on in the realm of
banking, then the following pages should enlighten you. The world you live in is
far from what you think it is. You have to dig for the truth, and dig deep.
I probably wouldnt have written this book without my close friend Jay prodding
me to do so. If my experience and research can help someone else who finds
themselves in a similar situation, then it was worth the time and effort to write.
No Disclaimer
I have nothing to disclaim. You are responsible for your actions, or lack thereof,
and nothing in this book is responsible for that. Only you can make that choice.

Foreword..................Part 1
Preface.....................Part 2
Negligence................Part 3
Busted for fraud........Part 4
The Onion.................Part 5
Demand for documentation......Part 6
Mers..................... Part 7
Short Sale..............Part 8
The Closing...........Part 9
Testimony of a BankerPart 10
Quotes and LinksPart 11

Part 1
The last thing I ever thought Id be doing is writing a book about mortgage fraud
and the biggest Ponzi scheme ever perpetrated on the American people. But here I
am doing just that. What I am about to tell you is cold hard fact based not only on
my years of research but my own personal four year foreclosure fight with Bank of
America. Just because you didnt know about it doesnt mean its not true. It only
means you never bothered to look beyond what you saw in the news and read in
the paper. You believed what you were told and never questioned any of it. You
and I have been living the biggest lie ever schemed upon the masses. Im here to
enlighten you to the facts. Its about time you woke up to reality. Stop listening to
the news, turn off your TV and do some research and you, as I have, will find out
that we are ALL In the Pit!
Some actually did know about the fraudulent banking system and yet felt already
defeated. They remain part of the problem by refusing to become part of the
The ultimate ignorance is the rejection of something you know nothing about and
refuse to investigate. Dr. Wayne Dyer
The American dream......thats what we were told right? Get married, buy a house
and raise a family. Sounded good didnt it? For those of us in the know, the
American dream actually ended in 1933 with the bankruptcy of the United States
Corporation. Before I can get into the details of my personal journey fighting the
second largest fraudulent bank in the United States, there are some facts youll
need to know.
Lets look at some history you werent taught in school to see how all of this could
have happened..................
You heard me correctly.....I said CORPORATION. The United States
Government is NOT a government and has been a corporation since the Act of
1871. (Links provided at the end of this book) In 1912, they passed The Federal
Reserve Act and then the fractional reserve Ponzi scheme was hatched.
Reach into your wallet and pull out a dollar bill. Already, you have a big problem
in your hands. Read what it says on the front of your dollar bill. It says "Federal
Reserve Note". First of all, the Federal Reserve is not "federal". It is no more
federal than Federal Express. For detailed proof, see Lewis v. United States, 680

F.2d 1239 (9th Circuit, 1982). There is no government copyright or trademark on

using the word "federal". Secondly, there is no "reserve." Federal Reserve banks
(aka Bank of America, JP Morgan Chase etc.) are privileged to loan money they
don't have. This is called "fractional reserve" banking. Thirdly, Federal Reserve
Notes are not real promissory notes, because they do not promise to pay anything
like gold, or silver, or something else with real substance. The Federal Reserve
System was conceived by a conspiracy of bankers and politicians who met secretly
off the coast of Georgia (Jekyll Island) to create the Federal Reserve Act. This Act
of Congress was designed to remove the Constitution as a constraint on the
financial operations of the U.S. government corporation. It created a private credit
monopoly which Congressman Louis T. McFadden once called "One of the most
corrupt institutions the world has ever known." Congressman McFadden was
Chairman of the House Banking and Currency Committee from 1920 to 1933. The
operations of the Federal Reserve are complicated and secretive. For example, this
huge syndicate of private banks has never been publicly audited. I will do my best
to simplify its operations for you. The Federal Reserve was set up to encourage
Congress to spend money it doesn't have -- lots of it. Rather than honestly taxing
Americans for all the money it wants to spend, Congress runs up a huge deficit
which it covers by printing ink on paper and calling them bonds, or Treasury Bills
("T-Bills"). Some of these T-bills are purchased by hard-working Americans like
you and me, with money that we obtained from real labor, something that has real
value. But the deficits have become so huge; the wage earners do not have enough
money to purchase all these bonds every year. So, Congress walks across the street
and offers these bonds to the Federal Reserve. The FED says, "Sure, we'll buy
those bonds. Your interest rate is 8.25, or 9 and a half. Take it or leave it."
Congress always takes it, because there's nobody else with that kind of money.
Remember, the Federal Reserve is a private credit monopoly. Now, what does the
FED use to purchase those bonds? They create money out of thin air, using
bookkeeping entries to manufacture credit out of nothing. They used to do it with
pen and ink, then typewriters, and now computers do the job.

By 1933, the United States was broke, and the international bankers (who own this
country and everything in it) demanded President Roosevelt steal all of our gold
and silver, forced it into bankruptcy and ALL laws had to be revised. Before all of
the Federal Reserve Notes became IOU's backed by the labor of the people, you
exchanged a gallon of milk for a dollar, which is a promise to pay gold or silver;
real value for real value. Now, because the US Dollar is the global reserve
currency, debt based on fractional reserve banking that requires interest to be

imposed constantly on the debtors, all nations and all over the world are forced
under this IOU system with infinite debt due to interest for our children's children.
Under this system, you exchange a gallon of milk for a promise to pay "nothing
plus interest", thats what money became after 1933. Final point, since the money
is worthless, literally and lawfully, but you exchange something of real value, your
labor - we are getting scammed at a phenomenal rate. It is financial slavery.
After the bankruptcy of the USA Corporation in 1933, normal contract law could
not function - there was no way to actually provide consideration for services
under Common Law and Equity Contracts without lawful money. Since Common
Law (criminal) and Equity Law (contracts) require remedy or exchanges of real
value, the entire 'Justice System' was turned upside down. A new system needed to
be created which appeared lawful, but was not in any true sense - as long as there
was a presumption of true law (colorable), the average Joe (YOU AND I) would be
none the wiser. This is the system we know today as the UCC, the Uniform
Commercial Code. And you and I are an important part of this diabolical system.
You probably just dont know it. (Links provided at the end of this book)
Our mind is of 3 categories: what we know, what we dont know, and what we
dont know we dont know. Not knowing is unfortunate; not knowing that we dont
know is tragic. W. Erhart.
And banks no longer loaned their money. They appear to loan you money when in
fact, they loan you nothing plus interest! Thats right - YOU create the money out
of thin air with your signature. The banks monetize YOUR credit via YOUR
signature. The Powers that Be figured out a long time ago that YOU are the
value. Your energy, your labor etc. And since they pledged you and your labor and
your property and your children (via the birth certificate) to the International
Bankers to pay off THEIR debt, you ARE the real value. Money has NO value, its
just a representation of the value which is YOU! Money isnt worth the paper its
printed on. So, when you signed that stack of papers at your closing, you created
the money for your house out of thin air (you loaned yourself your credit) and what
should have happened is they should have handed you the deed/title (paid in full)
and the keys and told you to go enjoy the American dream.


But they didnt hand you the keys and deed/title did they? Quite the opposite. They
loaned you NOTHING (Not one penny of their or their depositors money) and not
only that but they have the gall to charge you interest on top of that and make you
think youre getting a good deal. Well youre not. Youve just been screwed! Like
all of the rest of us. The American dream benefits the banksters, not the people.
For those of you now having a knee-jerk reaction to all of this and dont think I
know what Im talking about, let me put it in perspective using some simple math:
Lets just take Bank of America for example. Lets just say that they have
20,000,000 home loans. And lets say that the average home loan is for $250,000.
(Low ball figure) That equals $50 TRILLION! And considering that they would
like you to believe that they loaned all these mortgages out in full, and continue to
loan out huge sums every day, and that they only get a tiny fraction back in the
form of house payments every month, they are taking you for someone who
flunked math class. Sooner or later, they would run out of money and not be able
to make any additional loans until they re-cooped tens of billions of dollars. But
they NEVER run out of money to loan. And once or twice a year they get fined by
the Feds for billions/trillions of dollars for their daily fraudulent activity, and that
they seem to have no problem coughing up the money should tell you something.
Not to mention their hundred million dollar bonus to their CEO every year! Sorry,
but the math doesnt add up! Now, if they didnt loan you any money for your
home, car, college tuition, but took in billions every month in the form of those
house payments, car payments, college tuition payments plus interest, then our
current fraudulent financial system could continue as a bloated PARASITE
gambling trillions of dollars of YOUR money on derivatives and other unethical
practices and stay afloat. And thats exactly how it is staying afloat. Dont you just
love math??

An organism in dependence on something else for its existence or support as
without it, it would not exist.

A corporation in dependence on our money and our signatures for its existence or
support as without it, it would not exist.

Contempt, prior to complete investigation, enslaves men to ignorance. Dr. John

Whitman Ray
When a well-packaged web of lies has been sold gradually to the masses over
generations, the truth will seem utterly preposterous and its speaker a raving
lunatic. Dresden James

Part 2
Stop renting....BUY a house! Thats what everyone says. So we did. In 2007 I
bought a $120,000 house for $115,000 and we thought life was good. I had already
discovered 9/11, Vietnam, the Kennedy assassination, WW 1 and 2 were all
fabricated by the The Powers That Be, but had no idea that the Bankers WERE
The Powers That Be. All of their power not only controls ALL world events but
also the debt slavery system weve been buried in for the last 200 years. Three
years after buying the house, I suffered some financial hardships and having a
house I could no longer afford anymore I tried selling it, and then tried selling it in
a short sale. No one was interested in it and about six months later I stopped
making payments because I could no longer afford to. Then came the threatening
letters from Bank of America. I, like most people in this situation simply freaked
out, ignored the problem thinking sooner or later it will just go away. But, it
doesnt go away. And deep down, I knew it wouldnt. So I started contacting
lawyers and getting bankruptcy consultations over the phone. If the bank was
going to take my house and come after me for the deficiency, they werent going to
get one penny! I was now starting my slippery slide into the pit.
The Sheriff showed up one day with a thick packet of papers for
foreclosure notice! Nothing rattles you more than a Sheriffs deputy standing at
your front door. That is when the real intimidation from the bank starts. Which
brings up another interesting question: In the case of serving foreclosure notices,
who is the Sheriff actually working for? If you ask the deputy at your front door,
hell say his boss (The Sheriff). And what will the Sheriff say? Thats rightThe
BANK! The county has nothing to gain by the bank kicking you out of your home.
In fact, the counties are getting screwed out of tens of thousands of dollars every
year by MERS. (Youll learn about that in Part 7.) Thats when you realize how
insidious the banks really are and that you are looking into the eyes of an actual
monster and they control the system from the top down. And thats when the
seriousness of my situation came to rest on my chest like a large boulder. My
girlfriend and I had moved out of the house shortly after and for around six
months, nothing happened. We had moved into an apartment and basically ignored
the problem at hand. I did however; go pay a lawyer $150.00 to file a Delay of
Sale for me, thinking this would give me six more months from this point in time.
In the very back of my thick packet of foreclosure papers was a flyer to get help if
you found yourself in this situation. But, you had to live in the house to get their

assistance. I called the 800 number and they sent me a packet of papers to fill out.
They were a financial counseling company and basically I filled out a stack income
to debt forms, sent them back and waited. In the meantime, to qualify for the loan
assistance we moved back into the house. After a few tweaks of the documents
they had a complete file on me and they forwarded it on to Iowa Mediation
Services. I was assigned a wonderful mediator whose name I wont mention to
protect their privacy. They negotiate with Bank of America on my behalf to try to
get me a loan modification. Except for supplying some documentation (that the
bank has no business having) they would do all of the work. In the meantime, my
research into the banking fraud escalated and continued down the rabbit hole!

Part 3

About three weeks my mediator called me and said the bank wants two months
bank statements, the last two years tax returns and your last two months pay stubs.
Ok I said and emailed him the documents. (Stupid me......NO ONE has any
business seeing these documents...think about it....really?) However, supplying
them the documents in question was part of their game. And if I wanted a loan
modification, I had to play along. Meanwhile, Bank of Americas first Law Firm
filed a motion for summary judgment against me. I ignored them. After about eight
months of these repeated documentation requests from the bank, and the frustration
my mediator was having getting anywhere with these parasites, I was quickly
learning just how their game was played, and how to play back. Eventually, the
court sent me a letter with a date to take up my case for summary judgment. My
mediator typed up a letter showing we were negotiating a loan modification and I
filed it at the court house. A week after the date my case was to be brought
before the court, I got another letter from the court delaying any decision for 60
days so we could continue negotiating. The initial fear of this BIG BAD BANK
foreclosing on me slowly turned into amusement, and as I learned their game, and
continued researching their fraud, I actually started to look at it as a game of chess.
I used to be really good at chess and only a few people ever beat me at it. Could I
shake off the rust and win again? Banks dont like people like me. And they dont
like people like me telling you what I know. It soon became apparent that they
were intentionally stalling as they make far more money foreclosing on you then
they do modifying your loan!
Banking Facts from National Mortgage Investigators Inc.
Its easy to understand why the business of foreclosing on a homeowner is much
more profitable than the business of home lending, if you understand how a bank
works behind the scenes. In 1961, the Federal Reserve Bank of Chicago published

a booklet entitled Modern Money Mechanics, which revealed the inner workings
of our modern banking system. Known as a fractional reserve system, banks must
keep a monetary reserve of 10% of their depositors funds on hand at all times. In
other words, if a bank has $10 billion in total deposits, $1 billion must be held as
required reserves; the other $9 billion is considered to be an excessive reserve
and this amount can be used as the basis for new loans.
We would logically assume that banks are taking quite a risk by creating new loans
for consumers derived from 90% of depositors money, but this is not reality. What
really happens is that banks create new loans for consumers on top of their
excessive required reserves out of nothing; banks dont actually touch their
depositors reserves for lending purposes; they only need to prove they have it to
get freshly printed money from the Federal Reserve. This practice of fractional
reserve lending is how our money supply expands and where the term inflation is
derived from. As long as the 10% depositor reserve requirement is satisfied, banks
can keep issuing new loans with money created out of thin air. Banking institutions
such as Citi Group, Wells Fargo, Chase, Goldman Sachs, Bank of America and
PNC are only a sampling of banks that can literally use the Federal Reserve to print
free money for mortgages. Homeowners believe their mortgage is backed with
money derived from their banks existing assets or other depositors savings, not
fractional reserve funny money. So what does the bank stand to lose when it
creates loans for consumers and then forecloses on them? Thats right, nothing.
When a contract is made between two parties, both parties put forth some form of
consideration, or something of value to fulfill the contract. For example, if Bob
signs a contract to buy a car from Shawn for $5,000, Bobs consideration is the
$5,000, and Shawns consideration is the car. Both parties are sacrificing
something of value to fulfill their contract. In the case of a home loan, banks
simply create a piece of paper called a Mortgage Note and create money from
nothing to produce the loan. On the other hand, borrowers put up valuable
consideration by pledging their hard earned finances and their current home to
fulfill the contractual obligation as stated in the Mortgage Note. If a homeowner
fails to pay as stipulated in the note, the bank can take that homeowners home.
The homeowner literally bears all the risk while the mortgage lender puts up
nothing. As stipulated in Modern Money Mechanics: To banks, a home loan is
nothing more than a bookkeeping entry. They put up no consideration of their own.
It is well enough that people of the nation do not understand our banking and
monetary system, for if they did, I believe there would be a revolution before
tomorrow morning.
- Henry Ford

Foreclosure is now an industry

In recent years, banks began buying what is known as a Credit Default Swap
(CDS) to make massive profits from non-paying homeowners. A credit default
swap is literally a bet that a certain loan will fail. These bets are bought for pennies
on the dollar by banks and other for-profit corporations. A CDS creates a major
pay day because it acts like an insurance policy when a homeowner defaults on
their mortgage. Why wait for a homeowner to pay off their loan in thirty years
when a bank can make a high risk loan designed to fail and then cash a CDS in? It
has been revealed that in some cases, banks and other investment firms purchase
CDSs up to 100 times a homes mortgage value, creating an enormous payout of
100 times the original mortgage balance.
The credit default swap is one explanation as to why loan modifications are being
denied so often and why foreclosures are such a profitable occurrence for the
banks. When a bank has such an enormous incentive for a homeowner to fail, then
why would that bank help the homeowner by modifying their loan? A modified
loan interferes with the bigger, more profitable picture. This explains why, for the
first time in financial history, banks created mortgages for people who they knew
would go into default.
The big bailout of 2008 was made out by the media to be a government play
designed to help ailing banks who were losing billions on foreclosures. It
wasnt. Much of the bailout went to pay off the credit default swaps the banks
bought from companies like AIG who sell them. AIG didnt have enough money to
honor all the credit default swaps they sold, so a taxpayer bailout was constructed
by Treasury Secretary and former Goldman Sachs CEO, Henry Paulson in the fall
of 2008. Goldman Sachs bought enormous amounts of credit default swaps on
toxic mortgages they made to low income, low credit borrowers. With enough
taxpayer bailout money to pay off companies like Goldman Sachs, AIG sent many
of their execs on a luxury vacation. The modern foreclosure crisis is, in part, an
insurance scam which has caused the largest transfer of wealth in global history.
Bankers continue to get the largest salaries and bonuses in the world; despite the
worst housing market in US history. Mission accomplished.
Michigan Attorney Vanessa Fluker recently testified in front of the House
Judiciary Committee in the Mortgage Services and Foreclosure Practices hearings.
In her testimony, she reminded the Congressional panel that mortgages guaranteed
or underwritten by Fannie Mae or Freddie Mac ensure that banks are paid nearly
the full mortgage balance upon foreclosure. Lets be clear here: the banks dont get
paid the remaining mortgage balance when they foreclose, they get paid 90% of
the full original mortgage amount. This is in addition to all the interest the

homeowner paid up until the point when they defaulted, the eventual resale price
of the home and the monies generated from any credit default swaps bought behind
the homeowners back. How can foreclosures cease when the rewards for
foreclosing are so great for banks?
If you think thats bad, please remember that Fannie Mae and Freddie Mac are
government sponsored enterprises. In other words, every working Americans tax
dollars fund these companies! On Oct 21, 2010 The Federal Housing Finance
Agency (FHFA) estimates revealed that the bailout of Freddie Mac and Fannie
Mae will likely cost taxpayers a total of $224360 billion, with over $150 billion
already provided. In reality, it cost taxpayers $27 trillion! This money is used to
pay the banks that refuse to help homeowners.
So one day, for no apparent reason, Bank of Americas first Law Firm sent a
request to the court asking to be removed from the case. Request granted. (Wow, I
had won one small battle and my confidence was growing.) Every few months the
bank would come back to my mediator and ask for the same documents from me,
saying the ones I sent two months ago were obsolete. (Really?) This went on for
over a year!!! During that year I went through three or four different Customer
Service Representatives or CSRs. I literally was going through them like water. I
would get a letter from Bank of America stating that I had a new CSR and that they
would be calling me soon. I never answered when they called because I had
nothing to say to them. They are mere pawns in the banks game. Besides....what do
they know? Then one day, a year and half into this and six different CSRs later, I
received a letter in the mail from Bank of America. They were doing a tour and
would be in my town in July 2013 at a hotel banquet room and if I was in need of a
loan modification, I should bring some pay stubs, bank statements and tax
returns.......hummm...(Didnt I already do this a dozen times through my
I actually thought it was funny. So guess what, I was starting ALL over again!
How could they not know they were trying to foreclose on me AND modify my
alleged loan? The letter actually sounded like they had no idea who I was....but
then, why would they send me this letter if they didnt? So I called up my
mediator and informed him of this letter. He was in shock. None of his other four
Bank of America clients had received this flyer. I might want to mention, that once
you are in foreclosure, they will NOT accept another house payment from you.
They want it ALL or nothing! I believe at that time they said I allegedly owed
around $32,000.00. When I did attempt to send them a payment in the form of a
cashiers check from my credit union, they started to cash it, then sent it back to
me. My credit union was quite amused as I deposited it back into my account.

My mediator told his other Bank of America clients about the letter I received and
ALL of us met at the hotel that day. They werent expecting the other four people
so it took a lot longer than we had thought it would. Basically I sat down with
another CSR, filled out another pile of financial documents and he scanned them
plus the re-occurring documents they kept asking me for every two months and
started a brand new file on me. (Actually, they just added to the file they already
had) As I just stated, they wont take a house payment from you, so I was living
there house payment free for a year and a half. Some of you may think Im bilking
the bank. Actually, they are bilking YOU and ME because there IS NO LOAN! In
the meantime, their second set of lawyers (I had already exhausted the first firm)
from Waterloo were now pushing for a summary judgment against me. Now I had
their game figured out and learned how to use it against them. I simply got another
letter from my mediator stating we were still working on a loan modification and
filed it with the clerk of court and a week or two later I would get a letter from the
court giving us 60 more days to get it done. There would be no court action before
then! Delay delay delay! If thats how Bank of America wanted to play, I was all
in. Every time they delayed my loan mod by asking for more documents, I would
delay the court decision by filing more papers stating we were still negotiating.
(And we were so I wasnt lying) And all of their ridicules delays kept me in my
house longer payment free.
Next, I get a phone call from my eighth CSR who was a no nonsense get-r-done
type of woman. I cant remember her name but she was quite amusing to say the
least. She stated that some of the documents that I had filled out at the hotel (which
were looked over for errors on the spot) had errors on them and needed to be
corrected. (Can you say incompetence?) So we went round and around and finally
she said they were correct and submitted them. She actually apologized for the runa-round Id gone through and said to me point blank, This should have never
taken more than 30 days. I could only laugh and so did my mediator when I told
him about it as now this had taken over 20 months. I told her all of this delay was
squarely on the shoulders of Bank of America and they had only themselves to
hold responsible and she actually agreed with me! Around two weeks later I got a
letter from Bank of America offering me a loan modification. I was shocked! It
finally had happened. As I read through the letter my shock quickly vanished and
turned into more amusement. After all this time, their loan mod was a measly
$130.00 off my house payment every month. Really? For my financial situation, it
would have to have been around $300.00 a month less or more to make any
difference and keep me in my house. Were they on drugs???? I called them up the
next day and said I DO NOT ACCEPT your loan modification offer. She became
bewildered. I think she stopped breathing, What do you mean Mr. L? After all of

this work?? I told her the modification was so small as to be irrelevant. She stated
(LIED....well get to this a bit later) that because my loan was a Freddy Mac loan
and they were the investor, that they had very strict rules on loan mods and that
Bank of Americas hands were tied. (Another lie) And shortly after that I got a new


Part 4
During these past two years or so, the mainstream media actually reported on
Bank of America, JP Morgan Chase, Wells Fargo, Citi-Bank and others of massive
fraud in illegal foreclosures, and robo-signing as many mortgages as possible with
fake signatures to pump as many mortgages through the system using MERS
(Mortgage Electronic Registration System) as possible. They were fined
BILLIONS of dollars. (Of course no one went to jail) and of course, all of these
banks magically had the money to pay these fines. (Sound familiar?) The banks
actually have a secret agreement with the government corporation that none of
them ever go to jail over their massive fraud. Theyll pay out whatever hefty fine is
handed down to them, but once one goes to jail! The money went to
the states according to a ratio of home loans per capita, and California came out the
biggest winner. The problem was, that the states (parts of the USA Corporation)
were broke and needed the money for more important things (according to them)
then helping out the ponzi-schemed homeowners in foreclosure. The states spent
the money on other things and little was left to help out people like me. Families
who had been illegally foreclosed upon and had been kicked out of their homes got
a measly $2000.00 for their suffering!!!!! That is beyond pathetic and starts to
show you the real cold blooded reality of our wonderful banking system and our
government corporation who is supposed to be looking out for us! Have you ever
wondered why the bank doesnt show up to your closing? Did you ever pay
attention to the fact that the bank NEVER signed any of the documents?? Only
YOU signed the documents. Did you ever wonder why? Like I explained earlier,
they ARENT loaning you any money so they have no reason to sign anything.

And they ARE not a victim/nor did they suffer a loss in a suit through the courts
because they never lost any money. (Well get to how the courts are bought and
paid for later) This is just one of a dozen news stories over the past three years on
the BIG-5 Banks screwing homeowners over any way they can and now these
stories are being featured on 60-Minutes! Now former employees of Bank of
America have come forward in a suit stating they were told to lie and misplace
documents to push homeowners who were trying to get a loan modification into
foreclosure. You can read about that here:
These are but a few of the atrocities Bank of America and the other Too Big to
Fail banks have perpetrated on the American public. And in 2008, YOU bailed
them out! But you didnt need the $27 TRILLION dollars did you?? Just sayin!
Now, the too big to fail banks are trying to push through Congress (hidden in a
1600 page bill that NO ONE read) a stipulation to have the FDIC (The tax payer)
insure all of their trillions of dollars in risky derivatives. If they win in their
derivative gambling, they win, and if they lose, YOU and I, the tax payer will bail
them out yet again. You can read about it here!
And you can read about how banks fake your mortgage documents and even
admitted to it here:

Part 5
Seriously looking for the truth in any matter can be compared to peeling an onion.
The outside skin is nothing but lies and garbage. As you keep peeling, youll find
some truth mixed with lies, more truth mixed with disinformation and so on until
you reach the core where youll finally find the cold hard truth. Youll also notice
as you keep peeling, the closer you get to the core (truth) the more your eyes water.
(The truth hurts) Most people who get told the truth right away become very
defensive and angry at whoever told them. They are not able to wrap their mind
around it as this promotes the idea that they were either lied to their whole lives, or
whoever just told them the truth is a liar and has no idea what they are talking
about. This gets back to the quote at the beginning of this book:
The ultimate ignorance is the rejection of something you know nothing about and
refuse to investigate. Dr. Wayne Dyer

For most people, the onion approach is the best way to ultimately find the truth
about something by getting it in small doses, keeping what resonates with you and
discarding what doesnt, and then keep on peeling until you finally get to the core.
For me, the onion started out as follows:
1. The outside layer of the onion myth: Banks are wonderful businesses that are
here to help you meet your financial goals such as car loans, college tuition, and
home loans by loaning you THEIR money and by charging you a fair interest rate
so they can make a fair profit for the long term use of THEIR money. And by
THEIR money I mean mostly their depositors money along with a small amount of
their profits.
Fact: FALSE! Banks are not permitted to loan you THEIR money, THEIR
depositors money or THEIR credit by law!
See Generally Accepted Accounting Principles (GAAP)
A national bank has no power to lend its credit to any person or corporation . . . Bowen
v. Needles Nat. Bank, 94 F 925 36 CCA 553, certiorari denied in 20 S.Ct 1024, 176 US
682, 44 LED 637.
Countrywide Home Loans, Inc. v Taylor - Mayer, J., Supreme Court, Suffolk County /
American Brokers Conduit v. ZAMALLOA Judge SCHACK 28 Jan 2008
Aurora Loan Services v. MACPHERSON - Judge FARNETI 11Mar 2008
A bank may not lend its credit to another even though such a transaction turns out to
have been of benefit to the bank, and in support of this a list of cases might be cited,
which-would look like a catalog of ships. [Emphasis added] Norton Grocery Co. v.
Peoples Nat. Bank, 144 SE 505. 151 Va 195.
"It has been settled beyond controversy that a national bank, under federal Law being
limited in its powers and capacity, cannot lend its credit by guaranteeing the debts of
another. All such contracts entered into by its officers are ultra vires . . ." Howard &
Foster Co. v. Citizens Nat'l Bank of Union, 133 SC 202, 130 SE 759(1926).

2. The next to outside layer of the onion myth: Banks are somewhat reputable
institutions who get into trouble sometimes by the acts of a few individuals,
however, the top brass had no idea what was going on. Banks in general shouldnt
be judged by the actions of a few.
Fact: FALSE! Sure there are petty thieves in every organization, but the crimes the
big banks commit EVERY day, are known about and administered from the top
down. (Dont let them fool you) They bought Country Wide Mortgage one of the
dirtiest banks in the game, pretending like they didnt know of their massive fraud,
and then this happened. Think the CEO was clueless?
3. The next to outside layer of the onion myth: The banks were Too big to fail.
In 2008 when the dirty fraudulent dealings of the big banks brought them to their
knees, their bought and paid for government (corporation) came to the rescue to
bail them out with YOUR tax payer money. Did you agree to that? Do you
remember voting on that? Did our government LIE and tell you that if these banks
failed, the world would come to an end?? Yes they did. Was that true? No it
wasnt. Actually, that would have been the best thing that could have happened.
You might have lost your savings account (FDIC insurance would have been
bankrupted and is a complete farce anyway) but your home mortgage, student loan,
and car loan would have vanished overnight.
No more bank payments. And remember, you didnt owe them any money to begin
with because they never loaned you a penny. And they can never prove that they
did. (More on this later) But once more, you didnt need that $27 trillion dollars
did you?
Fact: The banks ARE too big and should have failed!
4. The next to outside layer of the onion myth: Your note, deed, and other
relevant paperwork needs to stay together throughout the lifetime of your (alleged)
loan no matter how many banks supposedly buy it. By law, this is true.
Unfortunately for the homeowner, the government (corporation) doesnt enforce
this law. The banks OWN the government.
Fact: Although this is supposed to be adhered to by the banks it isnt. This is
called a break in the chain of title. And what the court will do is ask the bank if
they have all of the original wet ink signed documents. And if they dont, all the

court does is ask the bank to issue a statement that it was lost and file an affidavit.
(Really??) And the bank gets off the hook. (Ive witnessed this firsthand folks!)
As I began researching mortgages I came across several web sites stating that the
banks needed to keep ALL of your original paperwork together no matter how
many different financial institutions had their parasitic claws on your loan. In other
words, your Promissory note, deed, most of the documents you signed at closing
had to travel together no matter what. As I kept researching I discovered that a
good share of those documents DONT stay together and become separated over
time as your loan gets pooled" with other mortgages and sold to Wall Street in the
form of a stock. And a stock is no longer a loan! Over a period of time, most banks
cannot produce all of your original wet-ink signature documents, only copies, and
only some of them. That is illegal. But the court gives them a free pass.
5. The next to outside layer of the onion myth: Were here to help. Thats what
Bank of America tells me in every letter they send me. And in their automated
voice customer responses. They also hint at the true nature of their fraudulent
business. Their automated voice responses always ends with. Were a debt
collector. Yes they are!!! In fact, they are a THIRD PARTY debt collector. In
reality, they are trying to collect a debt that doesnt exist, and they cant provide
the paperwork (accounting) to show otherwise.
Fact: Most courts dont care. A judge (administrator) told me my argument had no
merit. Thats funny since I quoted the Federal Reserves own book, Modern
Money Mechanics which states that to a bank, a mortgage is nothing more than a
computer entry, they put up NO consideration of their own! If one party in a
contract puts up NO consideration, the contract is NULL and VOID! (No merit?)
6. The core of the onion: There is no loan, and there never was any loan.
Fact: There is no loan and there never was any loan.
Weve finally gotten to the core. There are actually many more layers then this, but
Im keeping it simple so you dont lose focus on the facts being presented to you.
See how much peeling we had to do to get through the half-truths, lies,
disinformation, gate keeping to finally arrive at the TRUTH?? Hint: It will never
show up on page - 1 of your google search. You really have to dig for it. Do you
really think they want you to figure out their fraud and deception with a couple of
key strokes? Just sayin!


Part 6

By now I was armed with a ton of evidence and research and was ready to turn the
tables and start making my own demands from Bank of America. And this is where
their true colors really shined! I was assigned my umpteenth CSR named Terrance
Webster, and received a nice threatening letter from him telling me he was HERE
TO HELP! Id had enough of these fraudulent clowns. Dont get me wrong,
Terrance probably has NO idea what his company and ALL other banks are doing.
But as you will soon find out, ignorance of the law is NO defense, and he could
easily do the same research I and thousands of others have done and find out the

TRUTH about our deceptive banking system. And, he is solely responsible for his
actions and cannot hide behind the corporate veil of the bank.
So, using legalese the only language corporations understand I drafted up a letter
to Terrance / Bank of America that stated the following:
Demand for Documentation

Dear Terrance Webster,

Bank of America cannot show they suffered a loss because they cant provide
evidence they put up any consideration. HERE IS WHAT YOU WOULD HAVE
1. Produce documentation of prior title, ownership and rights to the money you
purportedly loaned me.
2. Produce documentation of the history and origin of funds that you purportedly
had prior title, ownership and rights to that you purportedly loaned me (banking
requires 3 generations at least if not all the way back to issuance/creation of the
alleged funds...this is why banks issue a letter of origin/history of funds)
3. Produce documentation of the actual transaction and transfer of said funds (prior
title, ownership, and rights) from loaner to borrower (invoicing/receipts) there is a
difference between a "loan" and "debt," conceptually, legally and factually.
Look up the definitions of loan and debt, difference between statement and
invoice...only an invoice has to be paid...however you would first have to show
that you made me a loan...if no loan, each invoice is fraud - mail fraud to be
Please see attached Courtesy Notice. I suggest you read it carefully and take it
seriously. If you have any questions, this notice gives you the resources to verify
the validity of the information herein.
Sincerely, DL

I sent this letter to him three times (certified mail) 72 hours apart. ALWAYS send
your letters to them by certified mail so you have proof you sent them/they
received them. (The United States Corporation) operates under the Uniform
Commercial Code (UCC) as mentioned previously. Why is this important to
know? You have to understand how the system (designed behind your back) works
in order to play their game and use their rules against them. The UCC is based on
PRESUMTIVE law and CONTRACT law. THEY presume you know how the
system works when in fact, they know you dont. Also, under the UCC, if you
make a presumption against them, three times 72 hours apart, and if they dont
RUBUT your presumption, it cures under the UCC and stands as law. (More on
this a bit later) So I had made three demands of Bank of America to prove, with the
actual accounting, that they had made a loan to me. It wasnt even them, it was
four banks before them (as stated earlier), but they had BOUGHT the alleged
loan from Country Wide Mortgage who they purchased in 2008/2009. They
ignored my three demands of documentation, and responded that I seemed to be
questioning the validity of the note. Well Duh? That is EXACTLY what I was
doing. So what did they do? They sent their second Law Firm after me. After what
I call a soft opening, their lawyers sent me a statement of account (with their fees
included) and stated I had thirty days to rebut their presumptions. And I did! I sent
them the same letter I sent Terrance (Bank of America) and the Law Firm wrote
back stating that I seemed to be questioning the validity of the note. Duh again! I
sent the same letter (above) a second time and they sent me a copy of my
Promissory Note. Funny thing was, I already had one. They had NO intention of
honoring my requests for documentation because they couldnt. They didnt have
what I was asking for because it DOESNT exist! Next, they sent me a threatening
letter that they were initiating foreclosure proceedings against me. All I could do
was laugh as, my three demands of documentation letters were NOT rebutted, they
had just lawfully admitted to their fraud without saying a word. Perfect! That is
how the UCC works. Say nothing - admit your guilt! After several months of their
second Law Firm sending me threatening letters, and I threatened them back, they
out of the blue asked the court to be removed from the case. Werent they getting
paid? Strike two!
Their third law firm, well call them Dewy Cheatem & Howe, started sending me
letters showing me the alleged amount of money I owed Bank of America and that
I had 30 days to rebut this letter or pay in full! I replied because if you dont rebut,
it is PREUMED to be true. (UCC) So my rebuttal letter stated the following

Dear Dewy Cheatem & Howe,

In order for you to precede, your client, Bank of America will have to provide the
following documentation to show they are an injured party and that they have
actually suffered a loss:
1. Produce documentation of prior title, ownership and rights to the money you
purportedly loaned me.
2. Produce documentation of the history and origin of funds that you purportedly
had prior title, ownership and rights to that you purportedly loaned me (banking
requires 3 generations at least if not all the way back to issuance/creation of the
alleged funds...this is why banks issue a letter of origin/history of funds)
3. Produce documentation of the actual transaction and transfer of said funds (prior
title, ownership, and rights) from loaner to borrower (invoicing/receipts) there is a
difference between a "loan" and "debt," conceptually, legally and factually.
Look up the definitions of loan and debt, difference between statement and
invoice...only an invoice has to be paid...however you would first have to show
that you made me a loan...if no loan, each invoice is fraud - mail fraud to be
precise. - DL

They sent me a letter back claiming that it seemed to them I was refuting the
validity of their claim (alleged loan/debt) against me and sent me a copy of the
promissory note (AGAIN). They claimed that this signed note PROVED I owed
the money and I was wasting their time. I already have copies of that note and
wondered why they kept sending me copies of documents I already had. So I sent
another letter to them asking that exact question and demanding they prove a loan
was made as stated above. They sent me ANOTHER copy of my signed
promissory note stating the same exact response. The funny thing about this is that
I heard all of this on an Internet radio show months before, stating this exact same
scenario. As they stated on the show, all the banks/lawyers will ever do is keep
pointing back at the Promissory Note. They will never/can never produce the
documentation proving a loan was made. All they have is a note you/I signed
promising to pay back an alleged loan. Well that would be all well and good IF

they could prove a loan was ever made. But they cant! And they wont! And they
A few months later I get a letter from the court stating that Dewy Cheatem and
Howe are asking the court for a summary judgment against me. Are you seeing the
pattern here? They DONT have to provide ANY documentation to prove an actual
loan was made but I have to provide paycheck stubs, taxes and bank statements.
The court stated my defense had NO merit yet my whole defense IS based on The
Federal Reserves own writings/rules. And they regulate how banks operate in
todays society. That judge should be disbarred. And HUNG!
Want proof that this is real? Ask yourself the following questions:

1. Were you told that the Federal Reserve Policies and Procedures and the
Generally Accepted Accounting Principles (GAAP) requirements imposed upon all
Federally-insured (FDIC) banks in Title 12 of the United States Code, section
1831n (a), prohibit them from lending their own money from their own assets, or
from other depositors? Did the bank tell you where the money for the alleged loan
was coming from?
2. Were you told that the contract you signed (your promissory note) was going to
be converted into a 'negotiable instrument' by the bank and become an asset on the
bank's accounting books? Did the bank tell you that your signature on that note
made it 'money,' according to the Uniform Commercial Code (UCC), sections 1201(24) and 3-104?
3. Were you told that your promissory note (money) would be taken, recorded as
an asset of the bank, and be sold by the bank for cash - without 'valuable
consideration' given to obtain your signature? Did the bank give you a deposit slip
as a receipt for the money you gave them, just as the bank would normally provide
when you make a deposit to the bank?
4. Were you told that the bank would create an account at the bank that would
contain this money that you gave them?
5. Were you told that a check from this account would be issued with your
signature, and that this account would be the source of the funds behind the check
that was given to you as a "loan?"

If you answered "No" to any of these questions, YOU HAVE BEEN SCAMMED!
How does that make you feel? It is now up to you to demand your deposit back
and to challenge the validity of your "signature" on any alleged bank "loan"
agreement or check. Since the banks and other lending institutions cannot allow
"full disclosure" of your "loan" agreement and cannot answer your challenges
about it without going to prison, their silence is your key to exposing their
I have now proven with the Federal Reserves OWN writings and accounting
practices that no bank can loan you any of their depositors money. Would you like
to know what they do with your money? From 5:01pm until 8:59 am the next day
(almost every day) they use your money in their own casino!

Few people disagree that the one who provided the original funds to fund the bank
loan check should be repaid the money. Few argue that we should have equal
protection and full disclosure. The lender concealed the true substance in the

Part 7

MERS is an acronym for Mortgage Electronic Registration Systems. About 75% of

all new mortgages in the US are registered with MERS and recorded in its name.
MERS created an electronic mortgage tracking database to keep track of millions
of loans being constantly bought and sold in bundles, or pools. This process of
bundling and selling mortgages is called securitization.
When mortgage lenders began the process of securitizing mortgage debt, they
realized that a significant amount of money would have to be paid in fees to county
recorders. This is because each securitization yields roughly 4-6 sales or
assignments of the mortgage note to various investors. MERS made it possible
for mortgage lenders to bypass having to sign and record mortgages (or deeds of
trusts) properly. This made predatory lending easier. It also allowed MERS to
avoid paying document recording fees in every county in the US, which the
recording party is supposed to do. This includes the initial filing of a mortgage or
deed of trust, as well as any assignments (transfers/sales of the loans). MERS
effectively reduced the transparency of the mortgage market.
By definition, a mortgagee is an organization that lends money to a borrower by
a mortgage agreement. Until MERS, the mortgagee has always been the
homeowners lender who makes the loan, owns the lien on the property, and also
legally owns the right to foreclose should the homeowner not pay. Mortgages that
are passed through MERS list MERS as the mortgagee on the homeowners
mortgage document. This is fraud because MERS does not invest in mortgages or
make loans; they simply record and assign them to other investors through their
electronic database. Once loans are securitized and sold, trustees are put in charge
of the mortgage pools. Trustees are claiming to own the right to foreclose because
they have an obligation to the buyers of the mortgage backed securities to keep
their investments protected.
Each mortgage passed through MERS receives a MERSmin identification number,
which allows a homeowners mortgage to become an unknown chopped-up
securitization and prevents anyone from knowing who the true lender is. This
destroys a homeowners chain of title, which is a propertys title history that runs

from the present owner all the way back to the original owner of the property. All
events, transfers, assignments, liens, endorsements and other notices are recorded
for legal purposes within a chain of title.
According to University of Utah Law Professor, Christopher Peterson, MERS is
nothing more than a faade; a shell company owned by the largest banks in the
world that makes it extremely hard to track down where a homeowners actual
mortgage note is. It is believed by many industry experts that MERS was
intentionally set up to commit various frauds such as document forgery, copying
mortgage notes and selling them in multiple pools, foreclosure fraud, avoiding
county recording fees and destroying the chain of a homeowners title; allowing
MERS to literally steal peoples homes, when in fact they have no legal right to.
MERS has very few employees that manage its operations, yet it claims to have
20,000 employees. Investigators have found that these 20,000 MERS employees
have fraudulently been named Vice Presidents of MERS for the sole purpose of
signing documents that facilitate foreclosure. These pretend Vice Presidents are
actually office clerks, paralegals and customer service reps working in many
locations all across America. Many are MERS member bank employees. They are
paid to forge millions of mortgage documents all day long posing as bank Vice
Presidents! These signers also called robo-signers, make the note look like it has
been assigned and transferred properly for securitization because it has been
signed by bank VPs. These fraudsters also prepared and signed off on millions
of foreclosure affidavits, making the foreclosures completely illegal. MERS has
effectively reverse engineered borrowers loan documents to fool courts all across
America that MERS has standing to foreclose on behalf of its member banks.
Legally, it doesnt however.
At this time, it is not known exactly how many foreclosed homeowners had their
mortgages pass through MERS. One thing is certain judges have ruled in
multiple cases across America that MERS cannot foreclose on a homeowner
because it is not the official mortgagee (lender) as MERS claims it is. The Kansas
Supreme Court was the first to rule that MERS has no legal right to foreclose on
homes. The California Supreme Court followed with a similar ruling in 2010; then
a Michigan court in April, 2011. But still lenders, along with MERS, continue to
Lawyers for homeowners say that MERS lacks the required paper trail to prove
mortgage ownership in foreclosure proceedings. Look at who started MERS (the
CEOs of all the large banks and title companies), and youll see why. The mess

that MERS has created in land ownership could haunt this country for decades to
come. It affects 66+million properties with uncertainty and clouded titles.
University of Utah Professor, Christopher Peterson, gives a very powerful
summary of what the MERS monster has done, and why every homeowner
should be aware of it:
In the mid-1990s mortgage bankers decided they did not want to pay recording

fees for assigning mortgages anymore. This decision was driven by

securitizationa process of pooling many mortgages into a trust and selling
income from the trust to investors on Wall Street. Securitization, also sometimes
called structured finance, usually required several successive mortgage
assignments to different companies.
To avoid paying county recording fees, mortgage bankers formed a plan to create
one shell company that would pretend to own all the mortgages in the country
that way, the mortgage bankers would never have to record assignments since the
same company would always own all the mortgages. They incorporated the shell
company in Delaware and called it Mortgage Electronic Registration Systems, Inc.
Even though not a single state legislature or appellate court had authorized this
change in the real property recording, investors interested in subprime and exotic
mortgage backed securities were still willing to buy mortgages recorded through
this new proxy system.
Now about 60% of the nations residential mortgages are recorded in the name of
MERS, Inc. rather than the bank, trust, or company that actually has a meaningful
economic interest in the repayment of the debt. For the first time in the nations
history, there is no longer an authoritative, public record of who owns land in each
county. Nice eh??

Short Sale
Part 8
After continually winning the battles but seeming to lose the fight I received a card
in the mail from American Home Solutions. It stated:
I almost threw it out but for some reason stuck it in a drawer and forgot about it for
a few days. Lets talk about a short sale. The bank sells your house for less then its
allegedly worth and according to documents I received from Bank of America, In
SOME cases, does not come after you for the difference. Some cases? So that
would imply that in MOST cases, they DO come after you for the difference, its
called a deficiency! I already knew about this option along with a Deed In Lieu
in which you (according to the bank) shake hands with them, and simply sign the
house (that they have NO rights to) back over to them. Supposedly a simple
agreement. Lesson one: Dont EVER believe ANYTHING a bank tells you and
lesson two: Dont EVER shake hands with a bankster!!!! A few days after
receiving the Stop Foreclosure card in the mail, I remembered it was in the
kitchen drawer and dug it out and carefully read every word. It stated that
American Home Solutions would negotiate a short sale with your bank, do all of
the dirty work, and if successful, buy your house at a loss to the bank and you
would receive $2000 - $8000 in relocation expenses. REALLY?? I had my doubts,
but I called them anyway and left a message. A few days later, they called me
back. This phone call was one of the most interesting and relieving phone calls I
have ever had. After they told me what they do in great detail (mentioned above) I
decided to test the waters and I told them what I had been doing - in semi-great
detail. I told them things about banking fraud that most people dont know, things I
have been sharing with you in this book, and to my surprise, they agreed!
FINALLY, I had found someone who actually knew some of what I know about
the Great Banking Deception! I couldnt believe it. Up to around this point, most
of my friends and family thought I was crazy, and didnt believe any of what I had
been telling them about mortgages and bank loans in general. But I never wavered
because I knew the truth and I had been experiencing it firsthand. You just cant
make this stuff up! Every once in a while, a friend or family member would call
me and say, Hey, I just saw something on 60 Minutes about Bank of America
and fraudulent loan practices, etc. and you were right all along! As gratifying as

that may sound, it made me wonder why they didnt believe me when I informed
them about it months earlier, but now believed it only because Morley Safer said
so. Morley Safer wont ever tell you the truth. Oh hell tell you some truth, but
never the whole truth because either A. He doesnt know the whole truth or B. If
he did tell you hed be found hanging in a hotel room closet somewhere.or
worse. The banks own the government corporation who own the mainstream
media. Theyre not going to allow their fraudulent scam to be made public!
Back to American Home Solutions.....I made an appointment with them to stop
over a week later and talk in person. A week later Steve Passmore and one of his
associates stopped by and we had in depth conversation about short sales. They
would do all of the work, take care of negotiating with the bank, everything. They
would even pay for a termite inspection if needed...all at no cost to me. By now,
everything had come into crystal clear focus. Even though Im 100% right about
all Ive just told you, the system isnt going to let me win. It cant. Because if the
system lets me take my house away from Bank of America free and clear, the cat
will be out of the bag and everyone else gets their house free and clear and the
whole fraudulent system would collapse almost overnight. (If only we could be
that lucky!) This was going to be my last chance to stick it to the bank and come
out in a much better position than being foreclosed on. What most people dont
understand, or are scared of is the System collapsing. As I have stated, the
system is designed to enslave all of us in never ending debt. What you must
realize, is that you cant be in a more corrupt system then you are now, so the
system collapsing would actually be a great event and we would all be free from
the debt slavery we have been conned into. So Steve sat a small stack of papers on
my kitchen table, and I started doing what I swore I would never do
again.....signing them. A week or two later, a realtor working for the bank stopped
by to take pictures of my house....inside and out. Then Bank of America started its
delaying tactics again. After two months, they claimed that the date on one of the
documents I signed was different then all of the other documents I signed and they
closed my file! Steve and his partner stopped by again, and I signed the same stack
of papers again, and again another realtor stopped by and took more pictures of my
house. Once again, are you seeing a pattern here? A few months later, Bank of
America wanted to know where a certain amount of money I was transferring out
my bank account every month was going. Are you serious? Do YOU believe thats
any of their business?? However, because you have to play by their rules, I
complied. About a month after that, Steve called me and stated that his partner had
pulled out and he would have to change the name of his business that was trying to
buy my house. He told me that he has six different LLCs (companies) for just this

reason and he would ask Bank of America if he could just change the name of his
business on all of the paperwork. Bank of America closed my file...AGAIN!
By now, I had this strategy down to a science. If Bank of America wanted to keep
delaying (to make us go away) then I would happily do the same. Every day I lived
in that house without making a mortgage payment was a good day. So every time I
was asked for some paperwork, or for a realtor to stop by, I would always put it off
until the next week. We had already lived here for about four years for free; I could
easily make it five! And I had already paid for and filed a Delay of Sale with the
court, so if this short sale didnt go through, I automatically had another six months
to stay here free of charge.
Steve and his partner stopped by for the THIRD time to sign the same stack of
papers again. I asked him why he thought they were doing this to him and he stated
that the banks make more money on a foreclosure then they do on a short sale. If
youve ever bought a house with a small or no down payment, the banks force you
to have (pay for) PMI insurance. PMI insurance guarantees the bank that if you
default, and the bank sells your house for less then you owe, the PMI insurance
will pay the bank the deficiency. (YOU paid the deficiency) However, the banks
dont get the deficiency payment on a short sale! Foreclosure is a multi-billion
dollar a year business and business is GOOD!
Steve also stated that Bank of America had accepted their offer of $79,000.00 on
my house. So lets back up here....Do you remember when I stated earlier that
when Bank of America finally offered me a loan modification of $130.00 a month,
and I told them to stuff it, they told me (LIED) that the investor, Freddy Mac had
very strict guidelines, and that Bank of Americas hands were tied in the matter.
That was a LIE! They accepted $79,000.00 for a house I paid
$115,000.00 for so do the math and see what that mortgage payment would be. A
hell of a lot less than the $130.00 a month off they offered me. So they lied right to
my face on the phone.....PERIOD! So a week or two later, a very heavy set older
woman from some realty company stopped by to take more pictures (again). She
couldnt get up my front steps without some help. Really? Dont realtors have to be
in good enough health to show properties? Walk up and down stairs? Show you
your 30 acres youre buying? About a week later, I got an email from Steve with
the heading: Latest Absurdity. I couldnt wait to read what he had to say. Steve
said that this newest realtor (referred to as The Fat Lady) gave a value of
$115,000.00 to my property and stated that there was no good reason for a short
sale to occur in my neighborhood. Steve was speechless, and so was I. They had
already accepted Steves offer of $79,000.00 and now they wanted 86% - 90% of
$115,000.00. Really? Steve stated that Bank of America also wanted me to dish

out $2800.00 at the closing. He said that he didnt really know how to proceed with
these assholes other than to keep engaging them to keep my short sale file open.
And to buy me more time. He told them that with all of their delays, and motions I
could file, and my Delay of Sale, that I could easily live here another year free of
charge. That works for me! Seriously, I couldnt make this stuff up if I tried!

The Closing
Part 9
Before we get into what happened next, I think its time you take a good hard look
at your bank. Any bank. The whole financial system were under and consider
what Ive just told you. Do you think your employer actually sends a bag full of
cash to your bank for your direct deposit paycheck? Well they didnt, they simply
transferred numbers. (Accounting) No money went anywhere. And, until you sign
the back of your paycheck, or withdraw slip, there was no money, as you just
created it with your signature. They advertise how much they care for you and are
here to help you in your financial journey. Let me be very clear here and awaken
you to the facts. They could care less about you, and all they are concerned with is
getting the money you just created/loaned yourself, plus interest to keep their
bloated books balanced. Once the money flow stops (i.e. your monthly mortgage
payment) youll find out what kind of snakes you are really in the pit with. They
will put forth all of their effort and spend thousands of dollars on attorneys to kick
you out into the streets. Why, would they do this you ask? Because, theres another
uninformed couple/family waiting in the wings to buy that property and create
another $115,000.00 out of thin air with a stroke of a pen to fatten the banks
ledgers. Is your house paid for in full? Do you still think you own it? Stop
paying your property taxes and youll quickly find out who really owns your
property. They will kick you out and sell your property for the TAX debt you
allegedly owe. Take a good long hard look at your are listed as a
TENANT. You never owned your property and under our current debt slavery
system, you never will. Now that were clear on this, lets move on to the closing
shall we? So, out of the blue a few weeks after The Fat Lady ordeal, Steve sends
me an email stating Were Approved! Out of absolutely nowhere, Bank of
America approved the earlier $79,000.00 offer as if The Fat Lady never even
happened. By now, can you take an educated guess as to why Bank of America
would do such a thing? Read the last few sentences of Chapter 8 again. I could
probably live there another year for free. Bank of America now knew that I knew
exactly how the system works and that I could play this game with them
indefinitely. And that was exactly what I was intending to do. By now, they knew
they were dealing with someone they didnt want to be dealing with any more.
Their lawyer fees were rising and their lawyers were quitting every 12 months
because of my tactics against them, and/or they werent getting paid. Let me tell
you something about lawyers. They work for The Money. They dont give a shit

about you or what rights you may arrogantly think you have (which you dont),
they only care about the money. Go try and find a Foreclosure Defense Lawyer
in your state. Chances are you wont find one because they are all bought and paid
for just like the so called Judges and our Contract Law court system. And even
if you somehow did find one, you probably couldnt afford to pay him because you
are a debt slave. Thats why they go where the money is....the banks, insurance
companies and big corporations. They all seemingly have bottomless pockets and
have no problem keeping these parasite lawyers on Retainer! They get a big fat
paycheck every month whether they do anything for the bank or not. Damn.....what
a job!
I filed a paper with the court stating that Bank of America had agreed to the short
sale and gave them the closing date and a copy of some papers Steve had given me
showing the agreement. I also sent a copy of this to Bank of Americas counsel.
About a week later, I received a copy of a letter the banks lawyers had filed with
the court saying the bank had chosen an alternative to the foreclosure motion and
no further court action was necessary, and that their fees would be paid by Bank of
America. Case closed.GAME OVER!
The closing date on the short sale of my property was 10/21/2014. We have
since moved into a rental property that Steve owns that became vacant within
weeks of us needing to move out of our old house. As far as my battle with Bank
of America went, they took an alleged loss of $50,000.00 in missed house
payments, attorneys fees and other non-existent charges. And they accepted
$79,000.00 for and alleged $115,000.00 house. Not too bad for my first fight with
the BIG BANK! In reality, they lost nothing, and received three years of house
payments plus interest on a loan they never made. That, folks is the banking reality
you and I live in. The central banks own everything from your property, your
children (via their birth certificate) and our corporate government. And until the
day you all wake up, and demand to take your country back from the central
bankers, thats the way it will be. Your children and their children are already tens
of trillions of dollars in imaginary debt to these parasites. Did you agree to that?
Did you even know about it before it happened? And most importantly, what are
you going to do about it? You all have a need to use it.

Testimony of a Banker
Part 10

Testimony of a banker
The banker was placed on the witness stand and sworn in. The plaintiffs (borrowers)
attorney asked the banker the routine questions concerning the bankers education and
The attorney asked the banker, What is court exhibit A?
The banker responded by saying, This is a promissory note.
The attorney then asked, Is there an agreement between Mr. Smith (borrower) and the
The banker said, Yes.
The attorney asked, Do you believe the agreement includes a lender and a borrower?
The banker responded by saying, Yes, I am the lender and Mr. Smith is the borrower.
The attorney asked, What do you believe the agreement is?
The banker quickly responded, saying, We have the borrower sign the note and we give
the borrower a check.
The attorney asked, Does this agreement show the words borrower, lender, loan, interest,
credit, or money within the agreement?
The banker responded by saying, Sure it does.
The attorney asked, `According to your knowledge, who was to loan what to whom
according to the written agreement?
The banker responded by saying, The lender loaned the borrower a $200,000 check. The
borrower got the money and the house and has not repaid the money.
The attorney noted that the banker never said that the bank received the promissory note
as a loan from the borrower to the bank. She asked, Do you believe an ordinary person
can use ordinary terms and understand this written agreement?
The banker said, Yes.
The attorney asked, Do you believe you or your company legally own the promissory
note and have the right to enforce payment from the borrower?
The banker said, Absolutely we own it and legally have the right to collect the money.
The attorney asked, Does the $200,000 note have actual cash value of $200,000? Actual
cash value means the promissory note can be sold for $200,000 cash in the ordinary
course of business.
The banker said, Yes.
The attorney asked, According to your understanding of the alleged agreement, how
much actual cash value must the bank loan to the borrower in order for the bank to legally

fulfil the agreement and legally own the promissory note?

The banker said, $200,000.
The attorney asked, According to your belief, if the borrower signs the promissory note
and the bank refuses to loan the borrower $200,000 actual cash value, would the bank or
borrower own the promissory note?
The banker said, The borrower would own it if the bank did not loan the money. The
bank gave the borrower a check and that is how the borrower financed the purchase of the
The attorney asked, Do you believe that the borrower agreed to provide the bank with
$200,000 of actual cash value which was used to fund the $200,000 bank loan check back
to the same borrower, and then agreed to pay the bank back $200,000 plus interest?
The banker said, No. If the borrower provided the $200,000 to fund the check, there was
no money loaned by the bank so the bank could not charge interest on money it never
The attorney asked, If this happened, in your opinion would the bank legally own the
promissory note and be able to force Mr. Smith to pay the bank interest and principal
The banker said, I am not a lawyer so I cannot answer legal questions.
The attorney asked, Is it bank policy that when a borrower receives a $200,000 bank
loan, the bank receives $200,000 actual cash value from the borrower, that this gives
value to a $200,000 bank loan check, and this check is returned to the borrower as a bank
loan which the borrower must repay?
The banker said, I do not know the bookkeeping entries.
The attorney said, I am asking you if this is the policy.
The banker responded, I do not recall.
The attorney again asked, Do you believe the agreement between Mr. Smith and the
bank is that Mr. Smith provides the bank with actual cash value of $200,000 which is
used to fund a $200,000 bank loan check back to himself which he is then required to
repay plus interest back to the same bank?
The banker said, I am not a lawyer.
The attorney said, Did you not say earlier that an ordinary person can use ordinary terms
and understand this written agreement?
The banker said, Yes.
The attorney handed the bank loan agreement marked Exhibit B to the banker. He said,
Is there anything in this agreement showing the borrower had knowledge or showing
where the borrower gave the bank authorization or permission for the bank to receive
$200,000 actual cash value from him and to use this to fund the $200,000 bank loan
check which obligates him to give the bank back $200,000 plus interest?
The banker said, No.

The lawyer asked, If the borrower provided the bank with actual cash value of $200,000
which the bank used to fund the $200,000 check and returned the check back to the
alleged borrower as a bank loan check, in your opinion, did the bank loan $200,000 to the
The banker said, No.
The attorney asked, If a bank customer provides actual cash value of $200,000 to the
bank and the bank returns $200,000 actual cash value back to the same customer, is this a
swap or exchange of $200,000 for $200,000.
The banker replied, Yes.
The attorney asked, Did the agreement call for an exchange of $200,000 swapped for
$200,000, or did it call for a $200,000 loan?
The banker said, A $200,000 loan.
The attorney asked, Is the bank to follow the Federal Reserve Bank policies and
procedures when banks grant loans.
The banker said, Yes.
The attorney asked, What are the standard bank bookkeeping entries for granting loans
according to the Federal Reserve Bank policies and procedures? The attorney handed the
banker FED publication Modern Money Mechanics, marked Exhibit C.
The banker said, The promissory note is recorded as a bank asset and a new matching
deposit (liability) is created. Then we issue a check from the new deposit back to the
The attorney asked, Is this not a swap or exchange of $200,000 for $200,000?
The banker said, This is the standard way to do it. The attorney said, Answer the
question. Is it a swap or exchange of $200,000 actual cash value for $200,000 actual cash
value? If the note funded the check, must they not both have equal value?
The banker then pleaded the Fifth Amendment.
The attorney asked, If the banks deposits (liabilities) increase, do the banks assets
increase by an asset that has actual cash value?
The banker said, Yes.
The attorney asked, Is there any exception?
The banker said, Not that I know of.
The attorney asked, If the bank records a new deposit and records an asset on the banks
books having actual cash value, would the actual cash value always come from a
customer of the bank or an investor or a lender to the bank?
The banker thought for a moment and said, Yes.
The attorney asked, Is it the bank policy to record the promissory note as a bank asset
offset by a new liability?
The banker said, Yes.
The attorney said, Does the promissory note have actual cash value equal to the amount

of the bank loan check?

The banker said Yes.
The attorney asked, Does this bookkeeping entry prove that the borrower provided actual
cash value to fund the bank loan check?
The banker said, Yes, the bank president told us to do it this way.
The attorney asked, How much actual cash value did the bank loan to obtain the
promissory note?
The banker said, Nothing.
The attorney asked, How much actual cash value did the bank receive from the
The banker said, $200,000.
The attorney said, Is it true you received $200,000 actual cash value from the borrower,
plus monthly payments and then you foreclosed and never invested one cent of legal
tender or other depositors money to obtain the promissory note in the first place? Is it
true that the borrower financed the whole transaction?
The banker said, Yes.
The attorney asked, Are you telling me the borrower agreed to give the bank $200,000
actual cash value for free and that the banker returned the actual cash value back to the
same person as a bank loan?
The banker said, I was not there when the borrower agreed to the loan.
The attorney asked, Do the standard FED publications show the bank receives actual
cash value from the borrower for free and that the bank returns it back to the borrower as
a bank loan?
The banker said, Yes.
The attorney said, Do you believe the bank does this without the borrowers knowledge
or written permission or authorization?
The banker said, No.
The attorney asked, To the best of your knowledge, is there written permission or
authorization for the bank to transfer $200,000 of actual cash value from the borrower to
the bank and for the bank to keep it for free?
The banker said, No.
The attorney said, Does this allow the bank to use this $200,000 actual cash value to fund
the $200,000 bank loan check back to the same borrower, forcing the borrower to pay the
bank $200,000 plus interest?
The banker said, Yes.
The attorney said, If the bank transferred $200,000 actual cash value from the borrower
to the bank, in this part of the transaction, did the bank loan anything of value to the
The banker said, No. He knew that one must first deposit something having actual cash

value (cash, check, or promissory note) to fund a check.

The attorney asked, Is it the bank policy to first transfer the actual cash value from the
alleged borrower to the lender for the amount of the alleged loan?
The banker said, Yes.
The attorney asked, Does the bank pay IRS tax on the actual cash value transferred from
the alleged borrower to the bank?
The banker answered, No, because the actual cash value transferred shows up like a loan
from the borrower to the bank, or a deposit which is the same thing, so it is not taxable.
The attorney asked, If a loan is forgiven, is it taxable?
The banker agreed by saying, Yes.
The attorney asked, Is it the bank policy to not return the actual cash value that they
received from the alleged borrower unless it is returned as a loan from the bank to the
alleged borrower?
The banker replied Yes.
The attorney said, You never pay taxes on the actual cash value you receive from the
alleged borrower and keep as the banks property?
No. No tax is paid., said the crying banker.
The attorney asked, When the lender receives the actual cash value from the alleged
borrower, does the bank claim that it then owns it and that it is the property of the lender,
without the bank loaning or risking one cent of legal tender or other depositors money?
The banker said, Yes.
The attorney asked, Are you telling me the bank policy is that the bank owns the
promissory note (actual cash value) without loaning one cent of other depositors money
or legal tender, that the alleged borrower is the one who provided the funds deposited to
fund the bank loan check, and that the bank gets funds from the alleged borrower for free?
Is the money then returned back to the same person as a loan which the alleged borrower
repays when the bank never gave up any money to obtain the promissory note?
Am I hearing this right? I give you the equivalent of $200,000, you return the funds back
to me, and I have to repay you $200,000 plus interest? Do you think I am stupid?
The banker, In a shaking voice the banker cried, saying, All the banks are doing this.
Congress allows this.
The attorney quickly responded, Does Congress allow the banks to breach written
agreements, use false and misleading advertising, act without written permission,
authorization, and without the alleged borrowers knowledge to transfer actual cash value
from the alleged borrower to the bank and then return it back as a loan?
The banker said, But the borrower got a check and the house.
The attorney said, Is it true that the actual cash value that was used to fund the bank loan
check came directly from the borrower and that the bank received the funds from the
alleged borrower for free?

The banker, It is true, said the banker.

The attorney asked, Is it the banks policy to transfer actual cash value from the alleged
borrower to the bank and then to keep the funds as the banks property, which they loan
out as bank loans?
The banker, showing a wince of regret that he had been caught, confessed, Yes.
The attorney asked, Was it the banks intent to receive actual cash value from the
borrower and return the value of the funds back to the borrower as a loan?
The banker said, Yes. He knew he had to say yes because of the bank policy.
The attorney asked, Do you believe that it was the borrowers intent to fund his own
bank loan check?
The banker answered, I was not there at the time and I cannot know what went through
the borrowers mind.
The attorney asked, If a lender loaned a borrower $10,000 and the borrower refused to
repay the money, do you believe the lender is damaged?
The banker thought. If he said no, it would imply that the borrower does not have to
repay. If he said yes, it would imply that the borrower is damaged for the loan to the bank
of which the bank never repaid. The banker answered, If a loan is not repaid, the lender
is damaged.
The attorney asked, Is it the bank policy to take actual cash value from the borrower, use
it to fund the bank loan check, and never return the actual cash value to the borrower?
The banker said, The bank returns the funds.
The attorney asked, Was the actual cash value the bank received from the alleged
borrower returned as a return of the money the bank took or was it returned as a bank loan
to the borrower?
The banker said, As a loan.
The attorney asked, How did the bank get the borrowers money for free?
The banker said, That is how it works.
. . . And so it is!
You dont get a mathematically Perfected Economy from a snake oil salesmen you
get division.
Modern Money Mechanics, A Workbook on Bank Reserves and Deposit Expansion, by
the Federal Reserve Bank of Chicago ( see Page 6, Paragraph 6 )
What they do when they * banks/money changers * make alleged loans is to accept
promissory notes or the alleged borrowers promissory note in exchange for credits to
the alleged borrowers transaction account (s). Alleged loans / assets and deposits /
liabilities both rise by the amount of the alleged loan.

One could argue the only consideration the bank risks is the mere cost of publication,
which is the mere cost to publish a further representation, ( bank money or credit ) , that
evidences the former issuance of one of our promissory obligations or notes, which
would, then, amount to about $2 to publish $200,000 the obligor, or the alleged borrower
creates by their signature issuing a promissory obligation, before the banks book entry ,
Where they, the "banks, money changers" give up no consideration commensurable, or
equal, to the debt they unjustly falsify to themselves , however the local bank uses the
alleged borrowers credit worthiness or the only lawful consideration given up by the
obligor, which is the alleged borrowers promissory note to , then,
Borrow money from a central bank who in turn then publishes a further representation,
which is a purposed misrepresentation of the former contractual obligation, or
misrepresentation of the obligors issuance of a promissory note so as to then allegedly
loan a further representation or a misrepresentation , ( bank money , credit ) to the alleged
The $2 the bank may give up is redeemed in a fraction of the first loan repayment by the
alleged borrower.
The interest the central bank charges to the local bank, ( using the obligors or alleged
borrowers consideration to publish the bank money ), is always lower than what the local
bank charges on an alleged loan to the obligor, or alleged borrower, thus, the difference in
interest rates is the local banks unearned profit , or unjust reward for stealing, &
laundering circulation, ( principal & interest ), into the hands of the central banking
system .
Both the central bank, & the local banks risk nothing of their own really, the local banks
always use the alleged borrowers consideration or our promissory notes, promissory
obligation . (Not their own consideration), to borrow money that we the people always
create upon conception.
No new money ever comes into existence, not until, one of us issues a promissory
obligation first , thus the bank money, or ANY representation did not even exist, not until
an alleged borrower walks into a bank , ( money laundering office ) ,& signs a promissory
obligation FIRST.

Quotes and Links

Part 10
Have you ever stopped to think..
That we humans are the ONLY species on earth that HAVE to PAY to LIVE here?
All other species on this planet are born free, live free, and die free.
Not Us! - DL

The actual process of money creation takes place primarily in banks ... bankers
discovered that they could make loans merely by giving their promise to pay, or
bank notes, to borrowers. In this way banks began to create money. Transaction
deposits are the modern counterpart of bank notes. It was a small step from
printing notes to making book entries crediting deposits of borrowers, which the
borrowers in turn could spend by writing checks, thereby printing their own
money. Modern Money Mechanics, Federal
Reserve Bank of Chicago

The Illuminati bankers rule the world through debt, which is money they create out
of nothing. They need world government to ensure no country defaults or tries to
overthrow them. As long as private bankers, instead of governments, create money
the human race is doomed. These bankers and their allies have bought everything
and everyone. Henry Makow

The Government should create, issue, and circulate all the currency and credits
needed to satisfy the spending power of the Government and the buying power of
consumers. By the adoption of these principles, the taxpayers will be saved
immense sums of interest. Money will cease to be master and become the servant of
humanity. Abraham Lincoln

I have unwittingly ruined my country. W. Wilson, upon passage of Federal

Reserve Act, 1913

It (the Great Depression) was not accidental; it was a carefully contrived

occurrence. The international Bankers sought to bring about a condition of
despair here so that they might emerge as rulers of us all. Louis McFadden
History records that the money changers have used every form of abuse, intrigue,
deceit, and violent means possible to maintain their control over governments by
controlling the money and its issuance. James Madison

The issue which has swept down the centuries and which will have to be fought
sooner or later is the People vs. The Banks. Lord Acton, Lord Chief Justice of
England, 1875

The Act of 1871 that turned the United States into a CORPORATION:


The Uniform Commercial Code (UCC) and how it took over the world

No Lawful Money

Suggested Reading

The Great American Adventure - Judge Dale (Retired)