Loan Mod (Modification) Strategy – Make The Lender Produce The Note

A recent trend in the last year has been for borrowers to insist that the lender produce the original note in order to foreclose. It is not a simple as it sounds. Because of the way lenders did business the last few years, many cannot produce the note. In about 4 out of 10 times, this may create a legal defense called lack of standing, which means that the lender cannot show that it is the rightful party to sue the homeowner to collect the debt or enforce the mortgage. This can be a useful strategy in some loan modification negotiations, foreclosure litigation, and Chapter 13 bankruptcy cases.

Here is an interesting youtube video on this subject.

Here is a CNN video on this topic also.

Here is a link to an ABA Journal article on a Brooklyn Judge who has dismissed some foreclosures because of documentation and standing problems. Meet Judge Arthur Schack, Foreclosure Watchdog.

My firm provides free phone consults to clients who are seeking legal representation in New York with foreclosure, bankruptcy or loan modifications. If you are reading this and may need my help, please click the email link at the top of this page or call my office at (212) 764-7250 ext. 201.