Produce The Note – and Avoid Foreclosure!

Here are three little words – produce the note – that are being used by thousands of savvy homeowners all across America, to prevent their bank from foreclosing on their homes. Or at least you can slow down the process, so you can try to fix your finances or sell your home at a decent price. So what is it all about?

Before your bank can put you out in the street, they have to prove that they really do own your mortgage. When you demand that they produce the note, you are asking that they produce the original mortgage document with your original signature on it. This is not as easy as you might think.

During the boom years, most mortgages were sold and resold many times. They were packaged into financial securities and funds, peddled on Wall Street, and sold around the world. Believe it or not, no one may actually know where the original document is now.

When a lender forecloses on a home, he may even state up front that he cannot produce the note. Do not let them get away with that excuse. Demand that they produce the note before going any further.

Then use this as a negotiating tactic to extract better, more reasonable terms from your lender. A while ago, a homeowner in Florida stonewalled Wachovia Bank in their foreclosure attempt, precisely because the bank could not produce the note. Instead they agreed to renegotiate the terms of the loan. And we all know what happened to Wachovia shortly afterwards!

This is important, even critical. Whoever has the original mortgage document can demand full payment from you, even if you have already paid up with another lender. Don't laugh; it's happened.

Even if your home is already in foreclosure, all is not lost. Demand immediately that your bank produce the note, and watch them become much more reasonable! Remember, you are not trying to get something for nothing. All you are asking for is fairness and justice. Go for it!

One final note: If you are really fed up with the whole business and just want to sell your home, go here. They will help.