In the confusing sea of paperwork transferring mortgage notes from lender to holder to securitized pool, many consumers aren't at all sure exactly which entity owns their mortgage notes, or how one entity is related to another. The surprising news that's working to the advantage of many homeowners facing foreclosure is that the mortgage lenders and note holders may not know, either.
Florida attorney April Charney, Forbes magazine tells us, noticed that a lot of the mortgage foreclosure cases she saw involved affidavits of lost notes. An affidavit of lost note is essentially a sworn statement that says, "we own this debt, but we can't find any paperwork to prove it, so please just take our word for it". A bit of investigation revealed that in many cases, the paperwork didn't exist, or originated at the wrong time, or conflicting interests had been recorded. In some cases, notes had been illegally purchased by pools after they were already in default.
These flaws can bring a mortgage foreclosure action screeching to a halt; Forbes reported on one such homeowner who is still in residence five years after foreclosure actions were commenced.
If you're facing foreclosure, don't assume the worst. Get the professional help you need to untangle the paper trail and find out whether you have valid defenses in a forecosure action.
Tags: delay foreclosure, Mortgage Foreclosure, mortgage lenders, mortgage note holder, mortgage servicing, stop foreclosure
This entry was posted on Friday, June 8th, 2007 at 3:18 pm and is filed under Bankruptcy and the Economy, Mortgage Foreclosure. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.
How do i find out who owns my mortgage?
What if your home was foreclosed by your lender when you are thinking that they are modifying your loan, but later find out that they have sold your home. Chase bank sold my home because they mislandled my paper work and said that it was my fault because I did not check with them on the status. I called them weekly and they said everything was okay not to worry that they were going to postpone the sale date because the file was in the supervisor hands for approval. What do you do about that.
Janell, there are a variety of possible legal claims, but without specific information on the process, the terms of your contract and knowledge of your state’s consumer protection laws, it is impossible to assess your case. I strongly recommend that you speak to a local attorney who handles foreclosure cases immediately, as your opportunity to act may be limited in terms of time. If you don’t know of a local attorney who handles this kind of matter, you can call your local bar association for a referral. Please, act quickly to get specific advice on your case before the process goes any further.
I was wondering if when a bank tries to foreclose on your house, can you ask them to provide the original note before foreclosong. I know that it would take alot longer that’s if the bank could ever track down the original note.
my mortgage servicer is a collection agency. I requested a copy of my note, deed, and assignment 30 days ago, and they have failed to provide it.
are they subject to the same FDCPA laws as a normal collection agency? do they have any right to foreclose on a debt they cannot prove they have the right to collect on? does the same 30 day period apply to providing proof?
the original mortgage holder has gone out of business, shortly after they sold the note, so I am pretty sure, they dont have it.
Please get back to me soon, I just recieved a notice of acceleration from them.
thank you.
Dear Sir, I am desperate for help and answers I have a Fannie Mae Loan and Flagstar is my lender and they are not willing to work with me!! I am a homeowner and single mom for the past twenty one years with not one but two dead beat dads. I have worked two jobs for the past twenty years to make ends meet or just to survive.Last year I lost my job. My dad built my home. For ten years, weekends and vacations blood sweat tears and joy and a labor of love and every extra penny he had. then he retired here when it was finished. He took a mortgage out on this home and property when he retired to pay off his debt. After a year of living here he got diagnosed with terminal cancer his last wish to die at home with honor. My sister wouldn’t give up her life and move to take care of him so me and my children did. We gave up everything and we made this community our new lives. Dad’s life insurance wasn’t enough to pay off mortgage (so he gave it to my sister) and gave me this wonderful home and he thought if I stayed current I could get money from equity later. Little did he know the economy would turn upside down the past three years. I got a job here and got a mortgage in my name to pay off the house. My dad was only expected to live for 7-10 days. He lived until the day my mortgaged was signed actually three days after. Diagnosed July 3.2006 he died September 18,2006. no food or drink but he didn’t want me to loose this home. now because of unknowing what my right s are and were I have already foreclosed on my home and about to get evicted unless I can pay $90,393 to redeem or get Flagstar to work with me and this Mod Making Homes Affordable but they said I don’t qualify which I know is a lender based decision. Before my home went into foreclosure last year I used MSHda services and she Alice Yoeman told me my only options were to pay off the $12,000 in delinquency(based on her communication with Flagstar) not because my insurnace lapsed and now which when I was having problems already paying the $632 and in a payment plan I recieved a noticed my payments were going up to $1190 a month. After researching this year I know some of my rights would have included a escrow shortage loan options or anything else not to contact an attorney before the sale So I didn’t know what to do. So My home was sold at the sheriff sale last November 19,2008 and Because I live on more than 3 acres I had a year redemtion. I am nearing the end of my redemtion process with eviction process to soon start. When my home was sold I got letters from Flagstar and Trott and Trott saying that there is still options to save my home and to contact them which I did immediately. In February they told me my only options were to pay $8,000 then we could work on mod. Which I didn’t and still don’t have. In April with the roll out of the Making Homes Affordable program I contacted Flagstar again and they said I qualify send in all paperwork which I did on April 06,2009. In June I received paperwork from Flagstar saying they needed more information which I didn’t know was a Letter of Verification(you see I am on unemployment for the first time in my life and I did not know that I could and should have contacted UIA office to get this so I printed out what was available to me online which only verified that my benefits only ran through December so because of this the Loan Specialist who is no longer with Flagstasr not requesting or knowing what information was needed or how I could get it I was not qualified for Fannie Mae Loan as of July 30 because I couldn’t prove that my benefits weren’t for at least 9 months(Fannie Fannie Guidelines)and now with extensions my benefits run for an other 52 weeks. Any how when I found out I could get a letter from UIA in October 19,2009I did just that and faxed it in immediateley to Flagstar but they at this point will do nothing even with 1 year of benefits remaining. Andrea Boeman-Davis at Flagstar is the supervisor of Loss Mitigation. I have Jarvis from Mission of Peace in Flint, a HUD faith -based-sponsered program helping me and she told us that I don’t qualify now because I am in the redemtion period (this is a lie! I called Fannie Mae hotline and they told me it it a lender based decision. I just payed another company $200 because they insisted that until the eviction noticed is served I have rights. Well guess what they couldn’t help at all either. I already contacted free legal aid, and pre-payed attorneys nobody can help. I continue to fight to my last breath. I think it is great that I might get to rent my home and not be homeless in less than two weeks. I asked the real estate agent who works for Fannie Mae about this and she said she doesn’t think it is for the current homeowner though and she was going to check into it?I also asked Flagstar and they said I don’t qualify for lease for deed because I am through the foreclosure process. I am a first time home owner who don’t know my rights and don’t have to any adult friends or family whom I can turn to for guidance. Me and my family need desperatley your attention to this matter ASAP. Next week starts eviction process and we will be homeless for Thanksgiving! There are no grants, loans, or programs I qualify for Help please!
Any information or guidance will be appreciated. Today I received a call from Congressman Stupak office after I emailed them about this situation. She told me she contacted Fannie Mae and they said they don’t own the loan but they would try to contact the investor and find out what alternatives are available to me. All of the correspondence I received in the past had Fannie Mae Loan number on it so I gave her that information but I am terrified. Tomorrow is the last of my redemtion period and eviction process will start will a Truth in lending audit help me? Who do I ask the judge or free legal aid how what who?
Thanks in advance,
Crystal Young
989-915-2179/989-915-2924
1602 Stephan Bridge Road
Grayling,MI,4973