CNN's Produce the Note Strategy to Delay Foreclosure

Whether you are facing foreclosure, have an underwater mortgage, or are just a concerned homeowner, it's important that you contact your bank and demand to see the original note on your mortgage.

Your home could be owned by the wrong bank, or you could even be paying the wrong amount on your mortgage.

This clip was recently on CNN and helps homeowners who are behind on their payments learn how they can search for a lawyer and ask the courts to have the mortgage bank or servicer produce the note (and hopefully they don't use a robo-signer).... This technique may be able to buy your family several extra months in your home.

California with nine kids Breaks Locks and Reclaims Foreclosed Homes

This local California family with 9 kids went to the extreme to keep their foreclosed house. They originally purchased the house many years ago for over $500,000 and eventually borrowed over $1 million on the property---Needless to say, after a little while they fell behind on their monthly payments and got evicted.

Well after foreclosure-gate and the wrath of the robo-signers signing fraudulently on loan documents the family of Jim and Danielle Earl hired a lawyer so that they could stay on Mustang Drive. Well they managed to get a locksmith to open up the house for them and they moved in---effectively squatting in their old residence. Which must tick off the investor who acquired the property, invested tens-of-thousands of dollars in fixing it up prior to selling it to a new owner... The Earls managed to break in before the new family took position.

In my opinion, the Earls are fully taking advantage of the situation... They borrowed $1 million and now want to own the home free and clear with out paying anything. I think they are delaying the inevitable; but this situation may cost the title insurance company a lot of aggravation seeing as how the title has been based to 2 different people after the Earls.

Do Forgeries Void Mortgage Foreclosures?

The Washington Post details an interesting example of how forgeries on signatures of numerous foreclosure documents are bound to cause head-aches for bank and opportunities for lawyers to delay foreclosure proceedings.

For example, Linda Green claimed to be an executive of Bank of America, Wells Fargo, US Bank, MERS and dozens of other lenders while signing off on tens of thousands of affidavits. In many cases her signature looks like it was actually signed by somebody else.

So depending on the paper work, robo-signers (like Ms. Green) claim to have knowledge of the case and the lending documents in question. Now the US Attorney in Florida, attorney generals from all 50 states and many senators are conducting investigations that may lead to the foreclosures being stopped or delayed.

The Washington Post speculates that some judges were being overwhelmed by the les pending procedures as well and perhaps didn't give each case as much attention and scrutiny as what they really deserved.

How does the foreclosure freeze work?

On the day when JP Morgan reported that in the state of New York it takes almost 800 days from a mortgage being delinquent to the bank being able to sell the property (That's over 2 years), the guys at Fox Business Channel (including Charlie Gasparino) explain how the pending foreclosure freeze caused by improper legal documents can wreak havoc on the foreclosure process.

Barney Frank and other legislatures are scaring some of the bankers with what might happen to the loans on their books.

For homeowners who have fallen behind on their monthly payments one of the best things you can do is to seek out legal council and try and have your bank "show the note" to prove to you and your council that they are actually the rightful recipients of your monthly payments.

The question is if new government involvement will help or hurt the speedy resolution of these issues.

Will my state stop foreclosures?

According to Bloomberg the attorney generals of 40 states may choose to start legal action to stop banks from foreclosing on thousands of homeowners who have fallen behind on their monthly payments.

According to the article:

State attorneys general led by Iowa’s Tom Miller are in talks that may lead to the announcement of a coordinated probe as soon as Oct. 12, said the person, who declined to be identified because a final agreement hasn’t been reached. The number of states may change because several are still deciding whether to join the investigation, the person said.

New Mexico Attorney General Gary King said today in a statement that his state will join a multi-state effort. Lawyers representing the banks are expecting a more widespread investigation, according to Patrick McManemin, a partner at Patton Boggs LLP, a Washington-based law firm that represents banks, loan servicers and financial institutions. Bank of America Corp., the biggest U.S. lender, today extended a freeze on foreclosures to all 50 states.