Produce The Note – New

Do you remember 12 or 18 months ago in Cleveland, Ohio where the judge threw out 14 foreclosure cases because the banks couldn’t produce the paperwork to prove that they were owed the money from the mortgage and therefore had no legal right to start the foreclosure proceedings?

Well that has been taken to a higher level.  Now you can (and maybe you always could) get paperwork to file at the court house to request to see the original of the Note and Mortgage from the foreclosing bank.  If they can’t produce it, the bank must stop the foreclosure proceedings and the homeowner gets to stay in their house or avoid the foreclosure sale a little bit longer.

Because the banks sell and resell paper – the Note – the original promissory Note could be in any banks’ file.  So the foreclosing bank must go back to the other banks and find the electronic copy.  This could take awhile and therefore, stall the foreclosure and the sale. 

But they will find it.  So it’s not a way to get your house for free, never owing anything again.  It’s just an opportunity to delay the sale or the process, giving the negotiator or the homeowner more time to negotiate an agreement with the bank.

Pretty cool idea!  Produce the Note! 

We’re trying our first one.  We have a deal that wasn’t suppose to go to sheriff sale.  We’ve ask them to vacate the sale.  So far they have told us we have 30 days to work the short sale but the banks have to return phone calls to make that work.  That’s the hard part.

So we are getting with the seller to have them sign the paperwork – Request for Production of Document.  I’m guessing that if it is in the packet that gets sent to the homeowner in the very first foreclosure notification file, the bank does have the Note and this tactic can’t be used. 

Stay tuned and see it that’s so or if this works.  One more tool for your Short Sale Queen Short Sale Tool Box!

http://www.shortsalequeen.comcoaching
Deb McMillan
The Short Sale Queen and Coach