While the homeowner’s records may indicate that they have been paying the mortgage, they may not have been paying to the right bank. The cause may be a clerical error on the homeowner’s part or that of one of the banks. Regardless, if the current lender is not getting the payments, foreclosure is possible.
Can you foreclose on a note?
If the promissory note has been lost, destroyed, or is otherwise unavailable, the foreclosing party will frequently use a “lost note affidavit.” A lost note affidavit is a sworn legal statement in which the bank states the note is lost or destroyed, or something similar, but that it is the true and rightful owner of …
When does a foreclosure not need a recorded note?
This means that when the foreclosing party has the right to enforce the note, a recorded assignment of the mortgage might not be needed. However, in other states, there must be a valid assignment or else the foreclosure can’t go forward.
Can a bank foreclose if you are not current on your taxes?
Your lender has every reason to want you to stay current on your taxes—if you don’t, the taxing agency can file a property tax lien against the property, sell the house, and use the proceeds to pay off the tax debt.
Can a bank foreclose on a property if the original borrower dies?
If the property is in foreclosure when the original borrower dies, the mortgage lender will sometimes continue with the foreclosure process without informing their heir(s), which could possibly result in the home being sold in a Sheriff Sale.
Can you use a ” produce the note ” defense in foreclosure?
In the “produce the note” defense, the homeowner demands that the foreclosing party produce the original note—or prove in some other way that it is the true owner of the note—to demonstrate it has the legal right to foreclose.
