There are many different cases where the lender misplaces or loses the mortgage note. This implies that during the foreclosure process, they are not able to produce the note to ascertain that they are entitled to enforce the note or foreclose it.
The important thing is to know what is a mortgage note. While purchasing a house, the mortgage transactions involves two documents. This include a note and mortgage. The note is promise to repay the money at a future day and should not be recorded. The mortgage note is a security document that states if the homeowner fails to make payments, the bank/lender is allowed to foreclose the property.
Typically, when a lender is not able to produce the mortgage note, then they cannot prove when they took ownership or assignment of the note. In this case the court could dismiss the case. The law states that a person, who is not in possession of a document, is entitled to enforce the document of the person seeking t enforce the document was entitled to enforce the document when loss of possession occurred, the person can’t reasonably obtain possession of the document because its where about cannot be determined.
When the court dismisses the case due to a lost mortgage note, the court will dismiss the case without prejudice. This implies that the lender still has another opportunity to bring the case anytime the mortgage note is found. Therefore, the lender can still file foreclosure if the note is found.
Mortgage Audit Online has experienced foreclosure attorneys to help you in your case. We know the effects of losing mortgage note and what defenses to make in response.
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For information on foreclosure defense call us at (877) 399 2995. We offer litigation document review support, mortgage audit reports, securitization audit reports, affidavit of expert witness notarized, and more.
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