Posted on 05/25/2010 1:30:38 PM PDT by longtermmemmory
--SNIP--
Partly responsible: a new Florida Supreme Court rule that requires lenders to verify they are the actual owners of a home before making the initial case for foreclosure.
Show me the "note," in other words.
The problem is that the notes — legal promises from borrowers to repay a debt — have been sold and resold, bundled into securities, scanned into computers, sealed in unknown vaults and lost in other ways as homes got caught up in the puzzling markets of the real estate boom.
"The original note is something very significant, and they just seem to have lost thousands of them," said Boca Raton attorney Marlyn Wiener, who handles real estate cases. "Nobody knows where the stuff is."
The new rule was approved in February with the intention of unclogging the foreclosure courts, which have an estimated statewide backlog of 500,000 cases. It also gives judges power to sanction plaintiffs who make false accusations on the ownership of notes or missing notes.
"I believe it has affected the number of new filings," said Palm Beach County Circuit Judge Meenu Sasser, who handles the county's foreclosures. "It streamlines the process."
Law firms handling the foreclosure overload, sometimes called foreclosure mills, have routinely filed a "lost note" claim with the original default notice, regardless of whether they looked for the note, said Miami-Dade Circuit Judge Jennifer Bailey.
The legal move gives lenders a statutory out if the original note truly can't be located. When asked what efforts were made to find the note, however, such statements as "searched file cabinet" and "searched fire proof safe" have appeared on several court records.
"It was very confusing. How can you foreclose on the note if the note is lost?" Bailey said.
(Excerpt) Read more at sun-sentinel.com ...
FOLKS,
Florida has a law/rule/mandate which states a laywer MUST find and have ready for production THE ORIGINAL NOTE or have a VERY VERY VERY detailed explanation why they do not BEFORE THEY CAN FILE SUIT.
This is not about the debt, this is about standing to sue. Banks which have lost the original notes and have NO LEGITIMATE EXCUSE for not having it can not legally forclose on a persons house.
That is HUGE and the media is not reporting this.
no, because the bank with the actual real promossory note can still sue you anyways.
I think their should be a way to extinguish defective mortgages and collect against the last bank for unjust enrichment. But who to sue? the servicing bank? the traunch? the trust?
I agree, if they cannot produce the note...there is no debt.
There is a debt,
without the note you have no standing to sue or enforce the debt.
(until monica produced the dress, there was no way to prove her claim...)
Mom’s been having issues with Bank of America, too. Might be time to register a complaint or two with whoever is supposed to be overseeing that sort of thing?
google “loan verificationâ€. Lot to read but under various USc stuff you can demand loan verification which means they have to supply a copy of the original note. Often the first step in Identity Theft cases.
“Exactly! Step one of any foreclosure process is to prove you have the authority to foreclose.”
Does that mean that they must include a copy of the note with the foreclosure papers?
Class Action? Tag Team them?
Well, that's why they call it "real estate." It means "property of the Crown."
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