jmw1212

How can a bank foreclose on your home without the note, but you can't sell your car..

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Why is it ok for a bank to foreclose on your home without the note, but you can't sell your car without a title?

Isn't that the same thing? If a bank can't "produce the note" of your mortgage because it was lost, shouldn't they have to prove they are the legit owners of the note? Why is it ok for a bank to legally foreclose on a home with a "copy" of a note, when you can't even purchase a car without an original title? What is wrong with this picture and what should be done about fixing it fast!

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nothing can be done to fix this ...

As i understand it most banks don't have the "notes" tucked away somewhere , everything is on MIRS .....

If we made it illegal for banks to forclose without the note , most people would stop paying their moratge and the entire market would collapse ..

i think it's sensless to forclose on people at this time , because let's face it , we already have enough empty properties out there .... but if the powers that be, want to go through the motions of havining a functioning economy ( even though that's not the case ) , there's nothing people like you or i can do to stop them ..

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Why is it ok for a bank to foreclose on your home without the note, but you can't sell your car without a title?

Isn't that the same thing? If a bank can't "produce the note" of your mortgage because it was lost, shouldn't they have to prove they are the legit owners of the note? Why is it ok for a bank to legally foreclose on a home with a "copy" of a note, when you can't even purchase a car without an original title? What is wrong with this picture and what should be done about fixing it fast!

Every case is different. And it depends on the state and the judge and what you mean by "produce the note." Are you talking about a wet ink copy? For the vast majority of legitimate notes, the wet ink copy is held offsite with a document storage company. The servicer does not have the wet ink copy & neither does the lender. If they cannot produce a canon copy, then something is probably suspect. Some judges will allow the lender to win their case with a canon copy in court - which should never happen. I believe the borrower is entitled to have the wet ink copy in his hands (stamped foreclosed by the court) when the case is closed. Just like we often get a stamp that says "paid." But there is so much discombobulation in the courts with bad origination & servicing, the courts are ignoring a lot of rules and laws.

Is there confusion about WHO really holds the note? Good attorneys have tied up these cases in court. Some pro se borrowers have also. Check out a forum called msfraud.org. Lots of comments there about this & many other mortgage matters. On the left side, click "The Forum."

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They will also say that you were provided with a copy of the note at the closing, and your attorney also has a copy. There may not be any signatures on them, but the content should be the same. To make the argument that they can't produce the original is a bit specious, it sounds like you are either saying you never signed it or that they have a forgery. Common defenses against foreclosure are fraud, payment, or mistake. Proving ownership is like standing to sue with these JDBs.....they will have to show who legally owns the note, and that entity has to be the one to foreclose. Loan servicers can't foreclose. If there was any funny business with the contract or the transaction, that comes back to the owner, as he inherits all these problems. They can't be held liable, but it creates a new conflict between them and the bank that sold them the loan. Not your problem.

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When I signed the note it was through a different company that sells mortgages, they sold it to national city, then national city merged with PNC who is now the servicer, the investor is fanne mae. Now PNC is foreclosing and I don't understand why these banks don't have to prove they have the blue ink original. I'm not saying I didn't sign the note, but why they don't have to produce it. It would be like selling a car with a copy of the title, you can't do that. I just don't understand why the law allows the banks to foreclose without that original in hand. By the way I am just trying to save my home from foreclosure, I've heard asking the bank to produce the note can delay things a bit. Hoping for a loan modification and hoping they don't foreclose before I can get approved. That's all. You don't have the right to accuse me of fraud because I want to see if they have the original blue ink loan docs.

They will also say that you were provided with a copy of the note at the closing, and your attorney also has a copy. There may not be any signatures on them, but the content should be the same. To make the argument that they can't produce the original is a bit specious, it sounds like you are either saying you never signed it or that they have a forgery. Common defenses against foreclosure are fraud, payment, or mistake. Proving ownership is like standing to sue with these JDBs.....they will have to show who legally owns the note, and that entity has to be the one to foreclose. Loan servicers can't foreclose. If there was any funny business with the contract or the transaction, that comes back to the owner, as he inherits all these problems. They can't be held liable, but it creates a new conflict between them and the bank that sold them the loan. Not your problem.
Edited by jmw1212

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I don't recall if there was an attorney, it was a refinance by lender "your best rate financial llc", Atlanta

what company was she with and why did she go to prison?

Did you have a closing attorney? Hope it wasn't Mary Reagan from Alpharetta. She went to prison.

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Here is what the servicer and their foreclosure attorney will do in order to prove standing. Check with your county court house or registrar of deed - whoever keeps property records in your county. The attorney of a processing servicer will create the MERS assignment with the rights to the mortgage agreement to the servicer. Then the foreclosure attorney will get a copy of the note and state that the servicer is the holder/owner of the note. If you had Fannie or Freddie as the investor on the loan. The note was placed into a REMIC Trust. The trust becomes the holder/owner of the note. Once the trust creates the securities certificate (bond), the notes are paid off and transferred to the certificate. They do this so there are not two debt instruments in the possession of to entities. The note becomes non-negotiable.

The attorney will play a smoke and mirrors game if it gets into court and tell the judge that the servicer met all of the state foreclosure requirements. The trust, not Fannie or Freddie own the loan or if it was an institution, the trust will still own the note.

It is the same in every state that whoever owns the note, owns the mortgage as well. Once the note goes into default, the note becomes non-negotiable - meaning the trust cannot endorse the note to another party to become the holder-in-due course. Especially the servicer, the servicer knows the loan is in default.

The banks and attorneys will try to dirty the waters. Now, MERS may not even be able to assign the rights to your mortgage based upon your states case laws.

Legal is right the servicer cannot foreclose and neither can the trust. So you need to find a qualified attorney to help you.

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