Home Selling in Chicago>Question Details

ron parker, Real Estate Pro in chicago,, IL

Have You heard of the Strategy called "Produce the Note"?

Asked by ron parker, chicago,, IL Tue Dec 8, 2009

There are many home owners that are facing foreclosure these days, and many are having trouble getting a qualified buyer for their home. I came across some information that detailed how some home owners are getting their mortgages discharged Through proper use of th law.

The law states that in order for the bank to foreclose on your house, they need to have the original promissory note. Most banks do not have access to this note because they have sold it! How in the world are people letting the bank take their home, when it is a known fact that the bank can be beaten.

Just wondering why more people have not taken this route to challenge the bank!

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Answers

3
IMO it's just something not many people are actually aware of...

http://www.consumerwarningnetwork.com/2009/03/05/how-to-use-…

"A recent study of foreclosures in bankruptcy by Katherine M. Porter, a visiting professor at the U.C. Berkeley School of Law, found that in 40 percent of cases creditors foreclosing on borrowers did not show the note"
http://www.huffingtonpost.com/2009/09/22/whos-got-the-mortga…

Lenders hold consumers to their obligations and Lenders need to be held to the same Standard.......
2 votes Thank Flag Link Tue Dec 8, 2009
Such technicalities can be challenged in court by the lender. A note may not need to be produced, at the end of the day. By agreeing to pay your mortgage each month, at the rate requested, and by taking ownership possession of the home, and living within the confines of the property, it can be argued that you are aware of the "note's" existence, and are only challenging it "after-the-fact," once you were no longer able to afford your mortgage payment.

This is not a long term solution, and is a stalling technique at best. True this was mentioned in multiple news reports, but it was also specifically mentioned as a stalling method, not as a method in which you can find yourself with a "free house," should you be in default of your mortgage.
0 votes Thank Flag Link Tue Dec 8, 2009
It was covered by news media a few months ago here. Consult with an attorney. If you are in a deficiency judgement state, and they don't have it as you alluded to great, but if they find it they can sue you faster as they don't have to look for it anymore. As with alltrends, banks have attorneys and lots of them. Some of my clients in which I am short selling their homes and if they have entered the foreclosure stage, and they saved the letters, the banks or third parties they hire send them a copy of the note.
Consult with an attorney.

Good Luck
0 votes Thank Flag Link Tue Dec 8, 2009
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