Produce the Note or Forget the Foreclosure

By
Real Estate Broker/Owner with Crossroads Real Estate LLC

Does anyone have any information on the, "produce the note" method to stop a foreclosure? 

I looked at a number of sites to see if this was legitimate and of course there are more sites claiming this is true compared to sites claiming this is a hoax.  This is how it works.

While a home owner is facing foreclosure they can ask the lender to produce the original note promising to pay back the loan.  Because loans have been bundled and sold the lender may not have the original note.  These sites claim if the lender can not produce the original note, the mortgage no longer exists.  The home owner walks out of court owing nothing.

Search the Internet for, "produce the note" and let me know what you think.

This may sound good on the surface and I am not an attorney but, don't all lenders require a form to be signed at closing explaining they have the right to sell the loan?  Has anyone read this agreement?

Doesn't the DEED provide proof there is a mortgage on the property?  It seems to me, they mail you a DEED with the home owners name and the lender.  If there is a mistake what is the home owner's responsibility?  Is there a time limit to disclose mistakes on a deed? 

There seems to be more questions than answers on this situation.

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Rainer
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Charlie Gantz
Keller Williams Commercial, Tampa Bay - Saint Petersburg, FL
J.D., M.B.A.

In any event the owner will have to hire an attorney to defend against the foreclosure lawsuit.  The company could care less if foreclosure is threatened, and an owner says: "Hey, you can't do that.  Show me the note."  The suit WILL be filed.  Now, however, if the owner threatened with a foreclosure suit HIRES AN ATTORNEY AND PAYS HIM, the attorney can make the mortgage holder go the extra mile before filing suit.  If the attorney has a track record in defending this type of suit he MAY be effective in convincing the mortgage holder not to file the foreclosure suit.  Charlie Gantz, Greenwood, IN; J.D., M.B.A.; Owner/Principal Broker, Atlas Commercial Real Estate, LLC

Jan 18, 2010 02:06 AM #1
Anonymous
Stanley Putra

Sir

You have to be more tactful with the judge. You have to challeng the Plaintiff's legal standing to foreclose. I out of curiosity looked at the three pages of forecloseures in the Racine Journal Times and 80 to 90% have no legal standing to foreclose. Yes you can do it yourself. This is a free country.

The key here is to use this method in conjunction with a loan mod. If it is a house you want to keep.

Just think 90% of the people still own their homes!

Stanley Putra

Racine WI

Apr 06, 2010 12:32 PM #2
Anonymous
Kevin Rea

I am currently in foreclosure (since April 1st, 2010).  I printed forms from one of the "produce the note" webpages and sent it in to my county courthouse.  I just checked the Wisconsin Court Access system and it shows as of July 7th that the bank will have to "produce the document".  So no lawyer is needed and it certainly doesnt hurt to try.

Simply fill out the form and send it to the courthouse address on your foreclosure documents that you must have received.  And you will also have to send a copy to the bank (find the correct address on the foreclosure documents that you received from the attorney they hired) and for good measure send a copy to the attorney.

From what I know, the bank will look for the original document and send it to the court.  If they cannot find it then you are NOT off the hook.  I believe what happens is after maybe 3-6 months (some cases are even longer) the bank simply says it was unable to produce the note and the judge usually makes the judgement to go ahead anyways with the foreclosure considering it is highly likely that the note is or did exist.  Especially since the last recorded document that the county has was the mortgage note and no document was filed stating that the mortgage was paid off.

I am not sure how much an attorney would cost for foreclosure, but if it is less than a monthly mortgage payment then I would say it is definitely worth it.

Jul 09, 2010 02:05 PM #3
Rainmaker
223,095
Dennis Herman
Crossroads Real Estate LLC - Waldo, WI
Dennis Herman

I have also read comments on the Internet about alternatives banks are allowed to use if they cannot produce the note.  I would think the 40 pages signed when you close or refinance your home would be sufficient.  But I am not an attorney.  What we need a a better plan to give people more time, until the economy can create the needed jobs.  Most people would be happy to pay up if they had a job and money.

Jul 13, 2010 03:27 AM #4
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