Beleaguered homeowners who can’t pay their mortgages and risk losing their property to banks can try a Hail Mary pass to keep sticky-fingered bankers away from their real estate. They can ask banks to show them the promissory note that they signed during closing, promising to pay the mortgage. If the bank can’t immediately dig up the paperwork, homeowners will most likely buy some more time.
CBS San Francisco says “show me the note” is becoming a rallying cry among desperate homeowners.
Electronic processing (dubbed Mortgage Electronic Registration System, or MERS) involved with mortgage trading often renders promissory notes lost or not easily accessible. CBS spoke to a foreclosure lawyer who says banks that foreclose without providing the note are acting illegally.
From the story:
“The deeper you look, the more illegal the actions are of these banks,” the lawyer said. “It’s an industry-wide fraudulent scheme in which the parties that are foreclosing have no authority to foreclose and take the property away from these borrowers and homeowners.”
Some Homeowners Facing Foreclosure Saying To Banks ‘Show Me The Note’ [CBS San Francisco]