While reading some information on an online forum about foreclosure and legal issues, I came across this extremely interesting post by a homeowner dealing with a foreclosure. It really illustrates the importance of opening all of the mail that comes from the lender and the court system, as well as reading all of the documents. This particular homeowner is facing a situation that does not seem to be all that unique, based on recent news.
Lenders are often unable to keep organized enough to know exactly what is going on with the loans that they are collecting payments on and the homes they are foreclosing. People who are making the payments (or not) on these mortgages should understand how disorganized the banks are, and how that confusion can lead to a farcical legal process where the mortgage company and courts have to rely on the ignorance of homeowners to auction off homes and generate legal and court costs.
The homeowners were actually sent a document with the following admission from the bank and the lawsuit is continuing. It is amazing what some local courts will stoop to in order to take properties from homeowners and keep up the charade of virtuous banks fighting against greedy defaulting borrowers. The more loans that the banks cancel off through foreclosure, the more bailouts they will be able to request from the federal government.
“8. ORIGINAL NOTE LOST: The original note has been lost and is not in the custody or control of Plaintiff. The note was continuously in possession and control of Plaintiff’s assignees and predecessors from the date of its execution until the loss and has not been paid or otherwise satisfied, assigned or transferred. Plaintiff’s assignees and predecessors were in possession of the instrument and entitled to enforce the note when the loss occurred.
“9. NO TRANSFER: The loss of possession of the note was not the result of a transfer by the Plaintiff or its asignees and predecessors or a lawful seizure. Plaintiff cannot reasonably obtain possession of the note because its whereabouts cannot be determined.”
Obviously, the bank is admitting that it can not prove that the owners even have a mortgage contract in force that requires them to make payments to the lender. They are admitting to have lost the original note on the house, but they are suing for foreclosure anyway! If this is legal, then what is stopping every mortgage company in the country from foreclosing on every property — they can just admit that they “lost” the contract and ask the court for foreclosure anyway.
It seems as if the people working for the bank and its attorneys have not watched a single episode of the popular Court TV-type programs, where judges typically throw out lawsuits that are not backed up by any written agreement. And if the agreement was written but had been lost or destroyed — no difference! It is as if it never existed. Just because a bank is larger and can hire more attorneys than the average person who appears on such shows, the law should not change.
The bank is relying on the homeowners to be so frightened of the foreclosure process that they do not take the time to read this startling admission. The lawyers should also be fired, as they did such a poor job of shrouding the admission in confusing legalese.
Of course, the last line of defense for the mortgage company will be the judge, whose corruption may determine whether the owners are able to escape this admittedly fraudulent foreclosure lawsuit with their homes. The homeowners may want to request a copy of the original contract and proof that the bank still owns the loan. This confusing admission that they have no standing to bring a foreclosure lawsuit to court should not even allow them to continue with the process of wasting the homeowners’ and the court’s time.
The entire basis of a foreclosure lawsuit rests on a breach of contract case. This bank is admitting that it can not even prove that it ever had a contract with the homeowners, yet it is also saying that it did not sell or transfer the nonexistent contract. It is simply asking the judge in the case to trust that the bank had a contract with the owners, that it was a valid contract, and that the owners are in breach of some clause of that contract. But they will not show the contract!
The homeowners may want to hire their own legal counsel to fight back against such situations. A few questions that they should ask the mortgage company, however, are as follows. Who owns this mortgage? What proof is there that a contract ever existed? Can it be proven that this document had all of the elements of a valid contract? What specific clause in the contract has been breached that has led to legal action being taken? Is the bank relying on arbitrary opinions for any of their answers, or are their answers backed up by facts? Where are those facts? Is the bank concealing evidence?
For any of these questions, the bank can venture guesses and offer legal opinions, but they have already admitted that they can not prove the facts of the case by offering the original contract into evidence. Local attorneys who take on such cases show that they are corrupt and willing to make up anything to generate extra legal fees, while judges who rule in favor of banks on such lawsuits show that they are so addicted to the filing fees that pay their salaries that their corruption will allow their paymasters to steal homes without any proof.
It is cases like this one that really bring out the corruption of the financial and legal system, and how they work together to trick homeowners into obtaining loans they will not be able to pay back and then stealing their homes despite not even being able to prove that they are entitled to the money. This type of incompetence and fraud goes much further than just a handful of homeowners, though, and exposing it is one reason that all people facing foreclosure should pay attention to the lawsuit documents they are sent by the bank and the courts.