Florida Home Buyers and Investors Blog

More and more homeowners are grasping at any string available to prevent or delay foreclosure. 

The most recent tactic is "Produce the Note".  OK, what is this?  The note is the promise to pay.  Every home buyer signs one at the closing table.  The mortgage secures the note and allows the bank to take possession for the failure to pay the note.

The original Note is the most important document in the file.  It states who owns the loan and how much is owed.  When the crafty financial institutions created the MBS and other securitized loans, nobody thought of what happens to the original paperwork on these files.  As banks failed and layoffs rose, these files were in many cases, lost or destroyed.

As a homeowner, who is being sued, you have a right to ask the plaintiff, for proof they actually have a claim against the property.  If they cannot produce the original note, and show proof they actually are the legitimate owners, the courts have no recourse but to dismiss the case.

This happened in a case I was working some time ago, and it's been 18 months with NO foreclosure in sight.  The lender cannot find the original note in 18 months.  I found it in 5 minutes.  How?  I called the title company that closed the loan, and got a copy.  Banks are not that smart.

So, using the "Produce the Note" strategy will definitely slow the process but may not stop the foreclosure.  It just gives you some additional leverage to renegotiate your loan for better terms.

For more information visit: www.consumerwarningnetwork.com for more information.