Alternative Strategies
Commercial Remedies and Expert Support
Phase Overview
Phase 5 introduces alternative commercial strategies that operate outside traditional litigation. These approaches leverage contract principles, the UCC, and expert testimony to challenge the fundamental assumptions underlying debt collection and foreclosure.
These strategies shift the burden of proof to the alleged creditor and create documented records of their inability to substantiate their claims. They may be used alone or in combination with traditional legal approaches.
Important Considerations
- Experimental Nature: Some strategies in this phase are based on legal theories not widely accepted by mainstream courts.
- Documentation is Critical: Keep meticulous records of all correspondence and responses.
- Use in Combination: These work best when combined with Phase 1-4 approaches, not as standalone remedies.
- Professional Review: Consider having these reviewed by a knowledgeable attorney before use.
- No Guarantees: Success depends on many factors including jurisdiction, judge, and specific circumstances.
Phase 5 Templates
Notice of Conditional Acceptance
Accept the debt conditionally upon proof of claim. The "yes, but..." strategy that agrees to pay if they can prove consideration, ownership, and authority. Creates a trap: provide proof or admit they have none.
Estoppel Certificate Request
Demand a binding statement of account status that locks the servicer into specific claims. Once certified, they cannot later claim different amounts. Exposes discrepancies and creates binding admissions.
Promissory Note Discharge/Offset
Tender your own promissory note to discharge the alleged debt. Tests whether banks apply the same rules to your note that they apply to their own. Experimental strategy that exposes inconsistencies.
Demand for Indemnification
Demand protection from multiple claims on the same note. With securitization, your mortgage may have been sold multiple times. Forces identification of true owner and protects against double liability.
Expert Affidavit Template
Template based on Walker Todd's expert testimony on banking practices. Former Federal Reserve attorney's explanation of money creation, lack of consideration, and the true nature of mortgage transactions.
The Underlying Theory
These strategies are built on the foundation established in the Framework:
- Banks create money when they make loans - they don't lend pre-existing funds
- Your signature on the promissory note is the source of value, not the bank's funds
- No consideration is actually provided by the bank in the traditional legal sense
- Lack of disclosure about the true nature of the transaction may void consent
- Securitization often breaks the chain of title and creates competing claims
Whether courts accept these arguments varies, but documenting the attempt creates valuable evidence.
Strategic Use of These Templates
When to Use
- After exhausting Phase 1 discovery (unanswered QWRs create foundation)
- When building pressure through multiple approaches
- To create documentary evidence of bad faith
- When preparing for settlement negotiations
- To support court filings with additional evidence
Expected Responses
- Ignore: Document non-response; may constitute admission by silence
- Form letter reply: Not valid response to sworn demands; note inadequacy
- Refusal: Document refusal and reasons given (or not given)
- Partial response: Note what was provided vs. what was demanded
- Threats: Document; may indicate desperation
Integration with Other Phases
- Reference Phase 1 discovery requests in these documents
- Use Phase 2 Affidavit of Truth as supporting evidence
- Attach responses (or non-responses) to Phase 3 court filings
- Include in Phase 4 regulatory complaints
- Use documented failures as leverage in Phase 7 settlement negotiations