LSF9 Master Participation Trust

[Bill Flanders]

I'm trying to understand what options I have to gather more information regarding an abandoned home in a neighboring town.  The house has been vacant for a couple years and is in a nice neighborhood (values around $400k to $450k).  JP Morgan Chase did hold the mortgage, but recently I saw that it was sold to LSF9 Master Participation Trust. 

I'm not sure if that is a bank, or some other entity?  I'm assuming the house will go to foreclosure at some point but I'm not sure how this recent change affects my potential next steps.

Any help, or advice, is greatly appreciated.  Thank You!

[Christian Barth]

I used to rehab houses for them. They sit for a while and even after they’re rehabbed I’ve seen them sit for a year

[Trevor Aydelott]

I see a bunch of these properties owned by 

Lsf9Master Participation Trus!t

I will be bidding on a property that they own. So I shall see how that goes. Wish me luck. 

[Chris Seveney]

@Tyler Bushey

They most likely foreclosed on property and the payoff / auction bid was $110k. They probabaly paid half that or lower for the note when they acquired it.

I invest in notes and with a note it is not public record what it was acquired for, but if you foreclose the lender has to bid at auction. That is what is public record. So if house was worth $65k and they were owed $100k they may bid the $100k at auction - which is what was recorded, take it back and resell

[Cassandra Sifford]

I was interested in a triplex they owned locally.  It was in really bad shape.  Original listing at $155k.  Everyone's offer was too low and they'd counter back at the listing price.  They took it off the market and relisted at $110k.  Someone submitted an offer and it's note continent.  I did a bunch of due diligence and found out the area council is rejecting MF variances apps.  With that said, whoever buys it is stuck with a 3550 sq ft SF.  That's a HUGE HOUSE.  I hope they know what they're getting into...

[David Zabran]

Lone star claims to have 1.1 million properties and $85B in assets so I am sure they use multiple property management companies but it seems WRIPM has a lot of them. WRIPM in a Georgia based property management company Owned by George Andy Capps from Residential Capital Management and various other LLCs. In 2014 Premium Point Investments purchased a majority in Residential Capital Management. PPI's CEO was just sentenced to 5 years for securities fraud related to that fund. When PPI shut down in 2016 WRIPM pops up and then ResiCap which looks to be a new joint venture with Lance Popp. They just rebranded everything under ResiCap label. WRIPM is now ResiHome as the property management service of ResiCap. Google them they are easy to find. 

[Maurice George]

Originally posted by @Tyler Bushey:

There's a house for sale near me owned by the trust, they bought it in 2/17 for 110k and listed it yesterday for 65k. Seems weird to me!

 Tyler, they bought the mortgage at a discount. 

[Paul Falbo]

Hello All. I have been researching and tracking Lone Star Funding specifically US BANK TRUST NA AS TRUSTEE FOR LSF11 MASTER PARTICIPATION TRUST since 2015. When they bought a loan that I was negotiating a short sale with Citi Mortgage. My short sale was approved and all of the sudden I couldn't get final HUD approval to close. The radio went silent for 90 days and then the law firm I work at received a letter from Caliber Home Loans/ New Rez Servicing. I had to start the entire process over again and in the end Caliber insisted the house was worth a lot more than any investor was willing to pay for it. One and half years of work gone with no reward.

It has purchased 1.1 million  properties since 2014 in the US alone. The plan all along is to rehab and rent most of the portfolio. They are doing this through their many subsidiaries, The last one being  Hudson Home Management. Through the site https://use.rently.com/.

Good luck.

[Pierre A.]

Hey I am also going through an issue with a seller with Caliber home bank who services the loan for an investor named “LS F11 Master Participation Trust”. They claim they do NOT do short sales because they’re private investors. We have been trying since 2019. Has anyone had any luck getting in touch with someone from that trust?

[John B.]

OK all, here are some things y'all need to know.

First, LSF(insert number here) Master Participation Trust does not own any of these mortgages, or properties.  Period.  The answer is right there in the name--these are participation trusts, and you need to research what a participation agreement is.  Participation trusts don't own anything, they enter into "participation agreements" with the actual owner for profit.  This does a couple of different things, but when you really get down to it, this is just one more example of mortgage fraud.  I've never seen a participation agreement that allows the participation vehicle (the trust) to enforce the mortgage agreements in case of default.  That right has always remained with the actual owner/holder.  And yet, here we are, with LSF8/9/whatever other number filing fraudulent foreclosure cases all across the country without any actual authority to enforce anything.  You will also notice, if you look into these cases, that 100% of the time they claim to the courts that the trust they are using the name of actually owns, holds or otherwise has the legal right to enforce the security interest.  In other words, they are lying to the court.

In the case of LSF9, there have been some bread crumbs scattered about. If you look around on the net, you will find things like this. This link shows a portion of a purchase agreement that was revealed through a bankruptcy proceeding. Notice that LSF9 Mortgage Holdings, LLC is listed as the actual purchaser? That's because the "master participation trusts" don't own these mortgages. You'll also notice that in all these cases, they present an "assignment of mortgage" to the court that claims the prior holder assigned the note and mortgage directly to the trustee for the named trust they use in each foreclosure. Even though the purchase agreement linked below shows a different actual purchaser. That's another indication of fraud--the assignment of mortgage is an intentional lie to the courts and to the homeowners.

https://www.valuewalk.com/2016...

Now, ask yourself this question. Trustees are needed for a trust, right? So why would a company that's organized as an LLC have, or even need, a trustee and a trust name to enforce security interest? If the Mortgage Holdings LLC purchased the loans, why would they need a trustee for said loans? Why wouldn't the LLC just enforce its own claimed assets in its own name? You're looking at smoke and mirrors, folks. Using Google Scholar, I searched "LSF8 Mortgage Holdings" in all state and federal courts...and came up with exactly ONE case that even mentions that company--and that case only mentioned them as a detail in the mix, not as a related party before the court. So, if the "Mortgage Holdings" companies are the ones actually buying up these mortgages, then why are they never in courts enforcing the security agreements? Even if they granted POA to Caliber Home Loans, or anyone else, they would still have to produce the POA as well as a competent witness to testify to the foundation of that document. But they are not involved and not present on any of these cases. At the very least, shouldn't the Mortgage Holdings LLC's be a part of the chain of title for these loans? You betcha. But they aren't ever included in front of the courts, and that means the stated chain of title is simply a lie.

If you're looking to buy one of these properties, my advice is to run--not walk--away.  LSF(_)/Caliber have shown themselves to be rather crooked in their dealings, and there's at least a chance you could be purchasing a property that was actually stolen without proper lawful authority from the homeowner.  At the worst, that's the case.  At best, you're going to be dealing with a company that has a very bad reputation for messing things up.  Just research Caliber online....there are more than a lot of complaints about them, and not just from homeowners fighting them in court either.  

[John B.]

As a follow up to my post, here's some really good info on LSF9, from a private investigator who has been very involved in digging into these folks.  

https://bpinvestigativeagency....