Park Place Securities, Inc.
Foreclosures by Caliber Home Loans Often a Scam
Learn How to Fight Them

We recently looked into Caliber Home Loans and the scummy trusts that they service and we were shocked at what we found. Then we developed defenses to their tactics.

Chances are you are not in default for the first time. Chances are your loan was owned by a REMIC trust and was purchased by Lone Star Funding (the LSF in the trust names) and sold into one of their Master Participation Trusts. The trusts are not REMIC trusts which were authorized by Congress and are filed with the SEC. These new trusts are Delaware Statutory Trusts and that is a whole long story.

If you have a loan serviced by Caliber Home Loans involving a loan in a trust of which U.S. Bank Trust N.A. is the trustee, your foreclosure was or is being done using fraud and deception. There are things you can do to stop it or in the worst case, delay it for years.

What few people understand is that the "trust" does not actually own the note they are trying to collect upon. LSF9 (LSF6 to LSF10) and all the other Delaware Statutory Trusts such as Wilmington are nothing more than vulture debt collectors.

The Depositor, LSF or Lone Star Funding purchases defaulted loans on a contingency deal and they are only held in the trust on a provisional basis. Nobody pays for them until after foreclosure and sale of the property. If this was not true, when Freddie and Fannie auction off billions of dollars in defaulted notes, there would be billions of dollars flowing into the U.S. Treasury, but no such thing happens. This is the primary reason they never let anyone see the PSA. The best they do is providing the two pages on Caliber as the Servicer and the other some 50 pages are all blacked out. Yes, they actually do that. I have no idea what legal authority there is for that.

They give the original owners --- REMIC trusts and the banks -- who have not been able to foreclose on their own -- for whatever reason -- a second free chance to get some of their money, though only 68 percent of it or less.

Let me tell you about one real case here in Florida. Over many years, the banks owning the note filed foreclosure actions. The first two included counts for a lost note. In other words, they did not have the original note and the cases were voluntarily dismissed. Then there was a third case where they claimed to have the note, but for whatever reason they voluntarily dismissed that case too. In none of these cases was there a default notice or payment history attached to the complaint.

Years later, we have U.S. Bank Trust, N.A. filing a foreclosure action. This time they claim -- via an affidavit from some law firm clerk -- they have the original note. This claim is based in reality on the fact that somebody used a rubber stamp, to stamp "ORIGINAL" on a copy of the note. This was never on any copy that came before. And I am sure this is the foundation for the claim that they have the "original" note. The thing is, in Florida, the original note must be surrendered to the court before final judgment and can be inspected. Needless to say it is too early in the case for that. The homeowner filed a Motion to Dismiss with a excellent legal memoradum of law in support. The plaintiff did not file any reply so the court issued an Order to Show Cause why the motion to dismiss should not be granted. They have asked for and gotten two extensions of time and he is still waiting. This should be good.

Here is your first free legal lesson. A court can only grant relief that is properly pled in a civil complaint or in a motion. A motion is the document telling the court what you want the court to do. It must be filed along with a Memorandum of Law or legal brief that tells the court the controlling law on the issue and why the court legally can and should grant the motion. Some routine motions, like for an extension of time, generally do not require briefs.

You might think that because the site, books and podcasts talk about REMIC trusts that is somehow different than the situation with your foreclosure and the Delaware Statutory Trust your loan was sold into. That would be a very wrong assumption. The DST's did not learn anything from the REMIC crisis and when in 2008 the ecomony nearly collapsed due to REMIC trusts which were proven to be a Ponzi scheme by Wall Street.

They are playing the same game and dirty tricks that the REMIC trusts did. They are following the same model. So, to understand the DST game you must first understand the REMIC game. You must also understand the vocabulary and concepts you will get from our two books which are critical building blocks to understanding the legal defenses available to you.

If you think you are going to work out a loan modification or work out some other deal with them, you are sadly deluded. Listen to our podcast warning about that illusion. They will string you along until you have fatally damaged any legal defenses you might have had and then they will take your home.

Caliber will collect your mortgage payments for as long as they have to, but once you are in default, your cash is the VERY LAST THING they want. The LSF and other Delaware trusts want your house. Taking your house is the entire purpose of the trust and its reason for existence.

REMIC trusts were investments wherein the investors got a steady income stream from the mortgage payments. Delaware statutory trusts -- of which the LSF trusts are only a few of many hundreds -- are in the specific business of buying your defaulted note at 60 percent of value -- waiting only as long as they must should you make your mortgage payments -- to then foreclose and take your home. The investors in these trusts do not care about your pathetic mortgage and interest payments, they invested for the income stream generated by foreclosures and the sale of your house to other third parties.

A critical addition to my books not found on the site is specific, detailed step-by-step information on how to defend yourself in court. Our main book at the end also explains a low cost foreclosure audit that we offer which spells out what is wrong with the paperwork in your case and how you can put on a defense.

Secondly, chances are that your loan was owned by a REMIC trust before it was sold into one of the LSF trusts. There is an entire chain of title that existed before which must establish a chain of custody of your loan and mortgage. Thus, although you are facing a DST now, the original REMIC trust and what was done is still very much a part of the picture and provides various opportunities for defense.

Understand that the trust contracts called the Pooling and Servicing Agreement PSA required the notes to be endorsed each step of the way to the trust. This was too much trouble and too expensive so most notes are only endorsed once with a rubber stamp. This now applies to both trusts. There are more things in common between REMIC and Delaware trusts than there are differences. I am not going to explain these things right here. That is what the books and podcasts are for.

This is where allonges and mortgage assignments come in. Understand that a mortgage assignment is always a fraud, but the courts do not care. There are ways to make them care which is just one of the things that my books will explain to you. The first step to defending your home from foreclosure is to purchase my books so you can understand what is going on and what is being done to you.

The real problem for homeowners is that few people -- even defense lawyers -- seem to understand rules of evidence and do not use them like they should. This is especially true when it comes to the mortgage assignments. Most lawyers have other cases before the judge that they need favorable ruling on -- cases that are more important and pay better than yours -- and they do not want to piss off the judge or slow the case down too much. We should you how to really make them work. The whole point is to force the court to makes decisions on the record. This is called building the record, which means there are likely to be mistakes that you can use on appeal.

Legal lesson 2 is that mortgage assignments are critical in most cases. The promissory note will have at least one endorsement in blank turning it into a bearer bond, although sometimes they have specific endorsements and that can get very interesting. The big problem for them is that virtually no endorsement (made with a rubber stamp) is DATED. They need the mortgag assignment to prove standing, that they owned the note before filing the foreclosure, or in a deed of trust state, before sending the default notice.

The thing that the defense bar ignores is the fact that a mortgage assignment is created for purposes of litigation and is not a business record that falls under the business record exception to the hearsay rule. This can be used to make it much more difficult for them to get the assignment admitted into evidence. Your typical defense lawyer -- including the big names on the internet -- will not fight this issue at all. There are other ways to attack a mortgage assignment but it must be done early in a case. Issues not properly raised at the correct times are often considered waived and you lose precious defense opportunities.

If you think you will cobble together some defense off the internet, you also are dreaming. Much of the information is out of date or applies to fact specific situations different than yours. You probably have mortgage assignments in your chain of title which we will explain in detail. On the internet you will find lots of crap about robo signing and the like. There are a handful of cases where the homeowner might have did okay or even won. (They were probably foreclosed upon again later.) That is all obsolete. The courts did away with those sorts of defenses by ruling that the borrower is not a party to the assignments and can not challenge them. There still are ways to defeat them but you won't find that on the internet.

Want to argue that the trust contract (PSA) was violated? DITTO. You are not a party to the trust. The funny thing is, the servicer and original lender are not parties either. Nevertheless we have ways to fight the assignments, allonges, deeds of trust and the other paperwork that is often fatally defective.

You can read the start of each book and see the table of contents on First, you can listen to my podcasts and determine for yourself if I know what I am talking about.

Our information and help has allowed many people to stay in their homes for years longer than they otherwise could have. We know people who have lived rent and mortgage payment free for 10 years. We are involved in cases where our information has provided such good defenses to people that they walk away with their homes free and clear.

Although I, Dan Schramm, the author of this site, the ebooks and podcasts am not a licensed attorney, I have learned more foreclosure law than most foreclosure defense attorneys know. In fact, I regularly write answers to complaints with affirmative defenses, motions, memorandums of law and even entire appeal briefs for lawyers. This often happens because the client is not happy with the performance of their attorney and turns to us for help. Additionally, many dozens of lawyers and law firms have purchased my books. Nobody has EVER asked for their money back.

However, knowing foreclosure law is only part of it. There are skills in researching and writing law. I also have a solid grasp on procedural law and how things work. I often suggest tactics to lawyers that they had not thought of and point out errors to avoid.

In non-judicial foreclosure states the borrower/homeowner has to commence a civil action in order to stop the foreclosure. We assist lawyers in writing these civil complaints and many clients have us review their lawyers work to make sure all available defenses are included.

We have stepped in after foreclosures when people come to us for help when they are facing eviction. The foreclosure process is so often sloppy or corrupt or there is something major wrong with the underlying documentation there have been cases where is was possible to get the foreclosure judgment vacated. You will never know without reading my books and ordering the foreclosure audit.

This is not a "mortgage audit." We do not charge you $500 or $1,200 or more for a document that is worthless. It might be interesting, but is is NOT admissible in a court of law. No judge is going to consider it, much less read it and admit it into evidence. I am sure you do not even know how to get a document admitted into evidence. Much less would you know how to keep a plaintiff's document out of evidence. That is something else you will learn from my books.

When you purchase the two books -- available in a bundle at a discounted price -- for only $49.95 you receive access to our member resources area where you will find 50 or more original newsletters and reports, together with case law and many other foreclosure defense resources.

Our foreclosure audit is only $89.95. We have never had an unhappy customer. If you have a current or past foreclosure case, there is an additional charge of $100 to read the docket and filed documents so that we can formulate accurate and meaningful defense strategies. These strategies are put into a report form (with your personal information redacted) so other members can learn from them.

We can also help in other ways described on the site, such as providing Affidavits in order to defeat Motions for Summary Judgment. Most judicial foreclosure cases are decided in summary judgments, long before you might otherwise have a trial in the case.

Our tactics involve making full use of the legal system including competent motion practice that gives you more opportunties to win your case, but will at minimum slow the case down and keep you in your home far longer than otherwise. Motions require the judges to make decisions which increases the chances of appealable error. This is called building the record. Even if you don't have a winnable case based on the bank's documentation, you can still build a winnable case from the plaintiff's and court's procedural and legal errors. They deal with thousands of foreclosure cases and you only have to worry about one.

Every foreclosure situation and legal case is different. There are no cookie cutter approaches. The first step is to invest in your foreclosure defense education. Even if you have the money for an attorney and you are willing or currently paying an attorney -- chances are $350 an hour or so -- you must understand yourself what is happening in your case.

Begin your foreclosure defense education by listening to the podcasts and ordering my books RIGHT HERE.

U.S. Bank Trust, N.A. Did you know?

More than a few stumbles have been made in court by people who did not understand what this "bank" is. First, it is NOT a bank. Federal banks are chartered by the Federal Reserve Board. This "bank" lost its bank charter years ago. Although it was purchased by U.S. Bank N.A., U.S. Bank Trust N.A. is a totally separate operation and corporation.

U.S. Bank Trust, N.A. is chartered as a Federal Trust Company by the OCC -- Office of the Controller of the Currency.

U.S. Bank Trust, N.A. has assets of around $10 million, which is insignificant compared to U.S. Bank N.A.. It is the primary reason they are totally separate. If these Delaware Statutory Trusts which hold trillions of dollars in mortgage loans ever BLEW UP, U.S. Bank N.A. is free and clear of the blast damage. Investors suing U.S. Bank Trust, N.A. over billions of dollars of investments can fight each other over the 10 mil.

LSF or Lone Star Funding is the Depositor. It buys the defaulted mortgage notes and deposits them into the trust vehicle. Then the trustee, U.S. Bank Trust N.A. issues the security certificates back to the Depositor, who together with the Underwriter sells them to qualified investors.

Who are the qualified investors other than rich people? The qualified investors are retirement funds, pension funds, 401(K) plans, small banks, credit unions and the like. Yes, the very places that got burned on REMIC trusts. Sound familiar?

This time though the money does not come from the income stream of mortgage payments. It comes from the income stream of foreclosing and taking your house. This works very easily as 90 percent of those forelosed do not put up any defense at all.

Do not be part of the 90 percent. Do not be a sheep.

More about Caliber Home Loans and Lone Star Funding --

The following case was in federal court and is an issue of diversity jurisdiction. Most foreclosures are conducted in state court.

In states allowing non-judicial foreclosure, in order to challenge or stop the foreclosure, you must file a civil action against the parties trying to foreclose. Generally you should file in state court, as the filing fees are generally much lower than federal court. The defendants will then generally remove the case to federal court under the basis of diversity of citizenship. If you wanted to buy time, you could fight the removal by using the following case and you will find various similar cases by sheperdizing this one.

In order to understand the details of Delaware Statutory Trusts you need the basic foundational information in our two books on foreclosure defense. Our main book explains the foreclosure audit we offer that will provide you the information on your specific situation that you can use to fight the foreclosure.

So who is Lone Star Funds? It is John Grayken, a man worth conservatively $6.5 billion. Born outside of Boston to relatively modest means he attended the University of Pennsylvania. His claim to fame there was setting a new record for the hockey team. Most penalty minutes ever. Should have been a signpost. After getting his MBA he got involved in the Savings and Loan debacle in the late 90’s, buying up distressed mortgages and repackaging. Wonder where the taxpayer bailout money went? Look no further.

He made a ton of money, so moved his country of residence to Ireland to avoid paying US taxes. In the mid-2000s he started Lone Star Funds. Primary investments were distressed properties. A good term you may be familiar with is vulture capitalist. After the subprime mortgage disaster, Lone Star was heavily involved buying up properties, repackaging and eventually selling. The funds made a lot of money for the investors, and John Grayken. Distressed properties, payday loans, shadow banking is their stock in trade. Mr. Grayken now lives in a $70 million estate in England, owns a 15 bedroom manor house outside of London and has a $45 million penthouse in Boston, so he can visit each year and still avoid paying U.S. taxes. Grayken/Lone Star does not limit his work to the U.S. Apparently we are still accepting of our capitalists who used to be known as robber barons, grave dancers, or the aforementioned vulture capitalists. Globally perhaps not so. In South Korea he is known as “eat and run capital”; in Germany “the Executioner from Texas”, and in Japan “bald hawks” which probably loses something in translation but doesn’t sound like a term of endearment.It should be pointed out that in addition to enriching himself, Lone Star has made a lot of money for the investors in its funds. Who are these investors? Primarily public pension funds. Returns of 20% per year are the norm, and some public pension funds look the other way when that kind of money can be made.Grayken has been investigated, castigated and charged over the years, but as in his formative days he is more than willing to drop the gloves and fight.

Court Case Report

April 7, 2017 U.S. District Court

The United States District Court for the Northern District of New York recently denied plaintiff bank’s motion for default judgment in a foreclosure action and dismissed the complaint for lack of subject matter jurisdiction, finding that plaintiff failed to sufficiently allege the existence of diversity of citizenship to establish subject matter jurisdiction. See U.S. Bank Trust, N.A. v. Monroe, 2017 WL 923326 (N.D.N.Y. March 8, 2017).

In the case, plaintiff filed its complaint in federal court, alleging nonpayment of a mortgage by defendant and asserting subject matter jurisdiction based on diversity of citizenship. Plaintiff, a national bank, alleged that it is a citizen of Delaware based on having a principal place of business in Delaware and that defendant is a citizen of New York. Plaintiff brought the action on behalf of a Master Participation Trust, for which plaintiff bank serves as trustee. Defendant failed to appear in the action and the Clerk of the Court noted his default. Plaintiff subsequently moved for default judgment. The Court denied the motion on multiple grounds.

First, it found that plaintiff’s allegation about its principal place of business was insufficient to establish diversity, and noted that the Second Circuit has expressly held that the principal place of business is not to be considered when determining the citizenship of a national banking association. See OneWest Bank, N.A. v. Melina, 827 F.3d 214, 218–21 (2d Cir. 2016) (holding that a national bank is only a citizen of the state designated by its articles of association as the location of its main office). Plaintiff’s failure to provide the location of its main office meant that it had failed to properly allege its own citizenship.

Second, the Court held that plaintiff was only the nominal plaintiff in the action because it brought the complaint on behalf of a trust, and that the trust’s citizenship controls for diversity purposes. Plaintiff failed to include any allegations concerning the type of trust at issue, plaintiff’s degree of control over the trust assets, or, alternatively, the citizenships of the trust’s beneficiaries, all of which would be necessary to determine the trust’s citizenship. While the Court allowed plaintiff leave to file a motion to amend its complaint to address these deficiencies, it was harshly critical of plaintiff’s counsel for not clearly setting forth plaintiff’s basis for diversity jurisdiction.

Florida Caliber Case - Allonges/Failure of Proof/Lost Note -- ROBELTO Appellants, v. U.S. BANK TRUST, N.A., AS TRUSTEE FOR LSF8 MASTER PARTICIPATION TRUST, Appellee. No. 4D14-4721[May 4, 2016]

Contact Information:
Dan F. Schramm, CEO
Park Place Securities, Inc.
2011 Flagler Avenue, Suite 501
Key West, FL 33040-3732


Office: 305-570-1188

Order and Read the Books Before Calling. We prefer all communications by email, but if you have a specific question, please call. However, order and read the books first so that there is a common base of knowledge. We cannot assist people who will not even buy the books.

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Park Place Securities, Inc. is a Florida corporation.

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