Show me the (money) note!

[IDrinkaRum]

Want to delay foreclosure? Ask for proof the company actually owns your mortgage.

It's been sucessful in a few cases, but can it really forestall all foreclosures?

[Greenday]

It's a pretty fair request. If it can't be proven that they own your mortgage, then there's no reason they should be able to foreclose you. If the banks get all mad because they can't find the copies, whose fault is that really?

[Sylvia727]

Sounds absolutely right to me. I mean, yeah, the home-"owners" have a responsibility to pay back their debts, but this is common sense. Read (or have a lawyer read) everything before you sign it, keep your mouth closed around cops and lawyers, and don't give anybody anything unless they can prove you owe it to them. Any bank that can't keep track of a piece of paper worth at least $50,000 and usually much more shouldn't be in the money business in the first place.

[IDrinkaRum]

See, the problem happens when banks and/or mortgage companies are bought out by other companies/banks or they sell an x amount of mortgages to someone else.

Our original mortgage company was bought out by a different mortgage company. That's only a 1 to 1 sale. But what about those that have sold mortgages repeatedly (and I'm sure there are some companies who have done just this). Paperwork should have a close eye on it (especially important papers like how much people owe the company), but the papers can get shuffled and misplaced.

[Sylvia727]

Paperwork should have a close eye on it (especially important papers like how much people owe the company), but the papers can get shuffled and misplaced.

Papers should never be misplaced. The purchasing company should take responsibility for the mortgages they're buying and triple check that everything is present, accounted for, and properly filed and stored.

[the_std]

There is absolutely no leeway here for the company who lost the paperwork. This is vitally important stuff. If they can't keep their hands on the paperwork, it's their fault, pure and simple.

[PepperElf]

better yet... if they can't find the paperwork to prove they own the house... what happens next?

is it just a delay for the home-owner or... can the home-owner then avoid paying the bill totally?

[IDrinkaRum]

OoO! PepperElf ... I never thought about that. Would that actually hold water? Would the courts allow that? Bigger can of worms than I thought!

[Boozy]

Basically, if the original paperwork is never found, the homeowners could become squatters, and have squatter's rights. After ten years or something like that, the house would belong to them.

But I doubt they can get away with it for long. I'm assuming that many of these people made payments for as long as they could. Many courts would consider that an acknowledgement of a debt owed.