Predatory lending, dramatic home price increases, irresponsible lending, irresponsible borrowing, and the current economic climate is making foreclosures more common than ever. Often people just walk away from their homes and let the banks easily assume control, but here is a way to help stall your foreclosure so that you can get back on your feet or renegotiate with the lender. It requires just three simple words :
‘Produce The Note”
This isn’t a magic phrase to help you get a free house from the bank, but an attempt to use the legal system to help put off your foreclosure and put the pressure on banks to work out a deal. What you are asking is for the lending company to produce the original papers that you signed when you initiated the mortgage. This is the key piece of evidence that proves you actually owe the bank the money.
The goal is to make sure the company attempting to sue you actually has the right. If you don’t challenge the bank the courts will usually just let the foreclosure proceed without the proper paperwork. Companies are often unwilling to work with their delinquent payees unless their hand is forced.
Why does this work?
During the housing and mortgage bubble zealous lenders were often less than diligent with their paper filing and loans were often transferred around from company to company. Often loans don’t even have the proper paperwork filled out at all.
Even if the lender does have the papers it might take them a while(months) to produce them. If the lenders don’t have the papers, they are often eager to work out a new agreement and get a fresh signature. Sometimes judges have been known to throw the foreclosure out a court all together.
The Consumer Warning Network was the original site to break the strategy and they have the best coverage of the produce the note strategy. Here is the main how to article that includes video and text instructions along with legal templates to produce the appropriate letters. Here are some success stories of the “produce the note” strategy. Finally, below is Good Morning America(GMA) segement on the “produce the note strategy”.