MAKE THE BANK PROVE OWNERSHIP OF THE NOTE

The only person or entity that can displace you from your house is the entity that actually owns the mortgage and holds the note and can prove it. 

What did the holder of the note do with that document?  Not so long ago it was put in a vault or a file, so that if the homeowner fell behind in payments, the owner of the note was able to locate the document that proved ownership of the debt. 

But in the frenzy of greed that characterized the last few years, this practice was substantially modified. Instead of keeping the original note securely, those notes were packaged with hundreds or thousands of other notes.  They were sliced and diced and sold, and resold and passed on again.

There is a reasonable chance that if you fall behind on your payments, no one will be able to produce the original note and so no one will be able to say to a court of law that they for sure are the owner of the note.  True, there will be a record of payments but this may not be sufficient to establish actual ownership of the note. 

Some distressed homeowners have been going to court, and when the time comes for that dreadful moment for them to hear that they have been foreclosed upon, instead the intrepid homeowner speaks up and says, “Where is the original note?”  Some courts are proving sympathetic to such a challenge, and have put the alleged owner of the note to the task of proving they are indeed the true owner. 

Some Courts, are have been ignoring this basic concept of Real Property and Contract Law.  They sometimes take the position that the homeowner is in default of the agreement (the Mortgage) so we’ll let the bank foreclose anyway.  Why let the poor homeowner off on some tiny legal technicality.  Yet this is what much of the practice of law is about.  Tiny Technicalities.

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Foreclosure Defenses