With millions of foreclosures threatening to further the already weakened U.S. economy, homeowners are finding alternative tactics to delay the foreclosure of their homes. By completing the proper paperwork to request the bank to produce your original mortgage document, foreclosure proceedings can be delayed for weeks or even months, providing a perfect window for reworking the terms of your mortgage rate and keeping your home.
Why Producing the Note Can be Effective
The reason why produce the note is an effective battle cry is because that simple document is part of the original cause for the entire mortgage meltdown. During the housing market boom, mortgages were bundled, sold and bought as high yielding securities for investors. Most of the original paperwork signed by the homeowner is now in cold storage, or in some cases destroyed completely.
The United States legal system provides rights for both the plaintiff and defendant in legal matters. Once a homeowner defaults on a loan and a bank wants to seize the property, the matter of foreclosure goes through the legal system.
The request for asking your bank to produce the note requires them to prove they are the party legally entitled to sue you. Only the original mortgage note will officially establish you owe the debt. If the lender is not challenged to provide the letter, the foreclosure will proceed as scheduled.
If at anytime you believe you are in jeopardy of losing your home to foreclosure, make sure to get advice from a HUD housing counselor or try to speak to the bank directly about renegotiating the terms of your loan. If however, the foreclosure is already in process, the produce the note strategy could provide you with the time needed to explore other options.
