Fighting foreclosures with paperwork
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From ‘Homeowners stave off foreclosure by demanding the bank produce the note’ at latimes.com, here’s a strategy some are using to save their homes:
ZEPHYRHILLS, Fla. (AP) -- Kathy Lovelace lost her job and was about to lose her house, too. But then she made a seemingly simple request of the bank: Show me the original mortgage paperwork. And just like that, the foreclosure proceedings came to a standstill. Lovelace and other homeowners around the country are managing to stave off foreclosure by employing a strategy that goes to the heart of the whole nationwide mess. During the real estate frenzy of the past decade, mortgages were sold and resold, bundled into securities and peddled to investors. In many cases, the original note signed by the homeowner was lost, stored away in a distant warehouse or destroyed. Persuading a judge to compel production of hard-to-find or nonexistent documents can, at the very least, delay foreclosure, buying the homeowner some time and turning up the pressure on the lender to renegotiate the mortgage.
Seems like this can be a job for you do-it-yourselfers:
[The] Consumer Warning Network website offers the free court documents Lovelace used to file her request. ...
The story does say, however:
Exactly how many homeowners have employed it is unknown. Nor is it clear how successful it has been; some judges are more sympathetic than others.
But I’d love to hear from any Southern Californians who has tried this -- successful or not.
--Lauren Beale
Thoughts? Comments?
