Quote:
Originally Posted by Big Mountain
This sounds like something has happened to the original paperwork. Possibilities include:
- Fire or catastrophe is believed to have destroyed it.
- It was accidentally thrown out.
- It was stolen.
- The loan was sold to another company, and something subsequently happened to that company (Hurricane Katrina caused many occurrences of this).
The last part says that if someone subsequently finds the original paperwork and demands payment for the loan, the bank will pay it if a judge orders payment.
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It looks like you're not alone. This article indicates that this might be becoming a fairly common situation which really compounds the problems for the mortgage industry. They can't foreclose because they can't prove they own the collateral. Thus the loans aren't really secured at all.
In the rush to handle all the accounts in during the boom, they didn't transfer all the paperwork correctly. Often times, the loans were resold numerous times. The originating bank and other interim lien holders have been bought or gone out of business during the mortgage bust. Whoever thinks they have your note right now can't really prove it. So ... as long as you keep paying your taxes, it sounds like you could live there indefinitely without making payments.
I'm not sure how/if you could sell the property though. So, I guess that while this post may have started off as a joke or a humorous scenario ... it's actually sounding like a pretty serious problem for the industry at large.
http://www.bloomberg.com/apps/news?p...TCM&refer=home
Hmmmmm. What to do .....
02-23-2008, 11:22 PM
Re: Bank lost my note! What does this mean?
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