FAQ: What Happen When The Lender Cannot Provide Me With My Mortgage Original Loan Note?

If the lender cannot produce the original, there is a chance the case will be dismissed for lack of standing to sue. Further, if the lender who initiated the foreclosure action is not the original lender, then the defendant can challenge the so-called “chain of custody” of the promissory note.

What happens if lender Cannot produce the note?

When a lender cannot produce a note, then they are not able to prove when they took ownership or assignment of the note. A court may dismiss the case as a result.

How can I get a copy of my original mortgage note?

If you lose your closing papers or they get destroyed, you can obtain a copy of your mortgage note by searching the county’s records or contacting the registry of deeds. It’s also possible to obtain a copy from the company who services your loan (that is, the company you get billing statements from).

Does lender need original note?

Furthermore, if a lender wanted to go after you, they would need that original note to present in court and you ‘ll have proof that you’ve paid them in full (your final statement balance). Plus, you’ll have a copy of the “release of mortgage” or trust deed that they sent you.

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What happens if a mortgage note is lost?

Even if a promissory note is lost, the legal obligation to repay the loan remains. The lender has a right to “re-establish” the note legally as long as it has not sold or transferred the note to another party.

Can mortgage be enforced without note?

The lender can still enforce a lost promissory note by executing an Affidavit of Lost Promissory Note. This is a signed and notarized statement that the physical note has been lost, and renders the note legally enforceable (assuming the lender can otherwise prove that the borrower agreed to the loan and its terms).

Who holds promissory note?

The lender holds the promissory note while the loan is outstanding. When the loan is paid off, the note is marked as “paid in full” and returned to the borrower.

Can I get my mortgage note online?

Mortgage notes can be purchased through mortgage note brokerages (you can find hundreds online).

What is a copy of note on mortgage?

At closing, the borrower will receive a copy of the mortgage note. This is part of the legal process and helps the borrower to understand what their responsibility is in paying back a loan. Once they have paid off the entirety of the loan, they will receive the deed to their home.

How do I get my mortgage promissory note?

The title company can provide a copy of the deed and other loan documents. Search the county recorder’s records. Promissory notes are typically recorded as public documents and accessible shortly after the closing. The trustee maintains the original deed until the loan is satisfied.

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Can a lender foreclose without the original note?

They further reason that without the original Note, the deed of trust is a “nullity” and there is no proof the borrower ever incurred the debt. However, in California, the lender is not required to produce a Promissory Note to conduct a non-judicial foreclosure (also known as a “Trustee’s Sale”).

What if the bank lost my loan documents?

If any govt issued document is lost or misplaced, it is mandatory to register Police FIR. In Police FIR, clearly state that Bank has lost your original Document/s or Page/s which you submitted with the bank in original against Loan from bank with that you can give that FIR COPY to concerned bank.

What makes a promissory note invalid?

The note must clearly mention only the promise of making the repayment and no other conditions. All Promissory Notes are valid only for a period of 3 years starting from the date of execution, after which they will be invalid. There is no maximum limit in terms of the amount which can be lent or borrowed.

What is lost mortgage satisfaction?

A Satisfaction of Mortgage is a document signed by a mortgagee acknowledging that a mortgage has been fully paid and that the mortgage is no longer a lien on the property. If the mortgagee fails to record a satisfaction within the set time limits, the mortgagee may be responsible for damages set out by statute.

What is a lost note?

An Affidavit of Lost Note refers to an affidavit filed for the missing or destruction of a note or other indebtedness secured by the deed of trust, mortgage or other instrument from the owner or holder of the instrument. Promissory notes or other instruments are evidence of borrowing.

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