Produce the Note!
By Greg Hunter
I was on the nationwide overnight radio show, Coast to Coast AM, last week to talk about the real estate crisis. The topic of foreclosures naturally came up, and I told people to make sure you ask the judge in the foreclosure proceeding to force the bank to “produce the note.” That is the legal document called a promissory note that someone signs for the loan for a certain property. I got several email inquiries about this subject from people like Nick who said, “I just started foreclosure Feb 2010. My loan is with Citimortgage. Where can I see or how can I get the information you said on Coast to Coast AM about going to foreclosure court and having them produce what document. The original loan was thru a different company. Any information you could provide would be greatly appreciated.”
I simply ran out of time for a proper explanation because my segment on C to C AM was ending. Please check the video below for what the banks do not want you to know. It is a story I did called “Produce the Note” that originally aired on CNN in June 2008.
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Since Greg’s report was aired there have have been some new developments. As everyone in foreclosure knows, banks refer to some “investor” who must approve the workout or modification.
Guess what kids. This “investor” is the person or entity who bought the mortgage. No bank can produce this so-called investor. Not even the investment banks on Wall Street can produce this so-called investor.
Mortgages have been so sliced, diced, chopped, minced and FUBAR’ed there is no actual investor and nobody to represent the investor. Fact is to achieve round numbers in Mortgage Backed Securities (MBS), Wall Street has chopped up mortgages into 3-4 and more parts and any mortgage is often bundled in 3-4 or more MBS
The problem for us little guys is this, even though a bank cannot prove its case by producing a note or the investor, the banks still win about half the time this issue goes before a court.
Why? You ask. The buzz phrase for us working in the trenches is known as “economic bias in the system.” Economic bias is the new racism. It is my particular passion and honestly one we lose more than we win. Finding people with both the stomach and some means for the fight is no easy task.
I could burn this site’s bandwidth with horror stories from the courts. So yes, as Greg says, demand the bank produce the note. Demand the bank produce the investor, the actual owner of the note.
Just don’t play that card to win. You play that card to negotiate a better deal.
Brad,
Since I did the story it has become a national strategy to combate banks in foreclosure. If you are facing foreclosure use the “Produce the note” strategy to get a better deal. Brad you so right on that point.
Greg
Greg,
Great story and a help to people in need. There was an article on the net a few days where a guy finally came up with the balance due on his mortgage and the bank refused to settle because they could sell the property for more. He bulldozed the house to the foundation.
George,
The outrage and desperation is growing.
Greg
Greg-
So did the British lady in the story win and get the fees removed or what? Where’s the followup to this?
Brian,
She was still in the house a year after I did the story. I have a call in to her and will update when I get more info.
Thanks for the question.
Greg
IMHO, they do not have to produce the (original) note, or the (multitude of) investor(s) (if any). The note is recorded at the courthouse. A certified copy obtained from the clerk of court is all the is necessary, along with a paper trail if it was later sold.
The mortgage processor is usually the one, and has the legal authority, to file the foreclosure. Case closed.
You could DELAY everything by insisting that they produce the note, but they would mearly have to go get the certified copy if they had not already done that. There is no need to try to track down the original that may be in a warehouse in another state.
Thinking that someone’s obligation to pay goes away, or the note holder should not be able to foreclose because there is no original present is wrong.
All that said – the only way out is for a total collapse, which BY THEIR ACTIONS is what it looks like they WANT to happen.
SUCK IT UP and live with your original decision to get that overpriced house in the first place. Move on. Be ready for the collapse, and maybe you will be one of the lucky ones that survives to the other side of it.
“When I am president….”
Yep – look for me in the future…. I have the solutions. Many won’t like them…….
Herschell,
You do not know what you are talking about and that is a fact. I have the expert lawyers and foreclosure court cases to prove it. For starters, see the story I did while at CNN: http://www.youtube.com/watch?v=YUZdANb6UaY Also, Google the term “Produce the Note” and you will see it is a current nationwide strategy to fight foreclosure. Thank you for your comment.
Greg