You may have had the intentions to pay your mortgage installments religiously and on time, but due to unforeseen circumstances like losing a job, a sudden medical emergency, divorce or death may have caused you to delay those payments. It is a sad event, wrought with fear and anxiety, if you are made to foreclose your home. But there is hope as you can stop foreclosure.
In the instance, that you have been treated unfairly by the lender you can use the “Produce the Note” strategy to fight back and stall foreclosure. Here’s how to stop foreclosure using the “Produce the Note” strategy.
- Draft a legal request, letter to lender and motion to compel documents and submit them to your attorney. You may download templates of the legal documents from the Net. In the note, you will be demanding the lender/servicer/mortgage company to produce the original promissory note. This is the document, which proves that you owe the debt. Many lenders today are not the original owners of the note as they may have bought or inherited accounts from other lenders and servicers that disbanded during the lending boom. In the rush during the turnover, many of the lenders today do not have the complete paperwork and thus cannot prove that they can foreclose your home.
- The clerk of court must file the legal request, letter to lender and motion to compel documents. Present a copy of the documents to the lender’s attorney. Call the nearest clerk of court in your area regarding the technicalities of the documents and procedures.
- The lender must produce the original note within thirty days. If the lender’s attorney does not provide the necessary documents within the said period, you may file a motion to compel.
- The judge will then be the one to issue a ruling at your hearing. Most judges no longer place value on lost note affidavits submitted by lenders. Judges understand the predatory practices of lenders so judges are more sympathetic towards homeowners. The judge will be the one to demand that lenders produce the original documents proving ownership.
- If the lender is unable to produce the original promissory note, he may not proceed with the foreclosure.
- The “Produce the Note” strategy does not promise that your debts will be absolved or that you will easily get back your home. It will, however, pressure the lenders to renegotiate their terms and buy you the time to come up with a Plan B.
- When coming up with a Plan B, you may seek out other firms and agencies that can refinance your home with a workable payment scheme. Consult with brokers, finance officers and even accountants to develop a plan to save your home.
Consider whether you can truly afford to make the monthly payments on your mortgage. To lenders, a home means nothing more but a piece of paper and a load of money. To you, it is your home so take the necessary steps to save it from foreclosure with this effective strategy.