Do you need an original promissory note?

Accordingly, there is no requirement that the original promissory note is required in order to conduct a trustee’s sale in California, as the beneficiary can bond around the missing note.

Do you have to produce original documents for foreclosure?

Yes, the bank is required to produce the original debt document(s) to establish they have a valid claim on your property. However, watch for them to stall on this even to the point where they side-step it completely.

Can a lender file a non judicial foreclosure?

In states that use non-judicial foreclosure, this could be the first document you receive. In these states, the lender does not have to file a notice of default or do anything else. Once you miss a few payments, lender in these states can move to foreclose and sell immediately.

What happens when a lender can’t produce the original note?

Everyone needs to understand the importance of this issue. When a lender can’t produce the original note, allowing a foreclosure to proceed puts the homeowner at risk of owing that debt again to another party in the future.

How does a lender get to foreclose on a property?

If a lender wants to foreclose on a property, it has to be able to show that it is, in fact, the appropriate person to whom the money is owed.

Can a mortgage note be used in a foreclosure?

This strategy depends on the lender’s not taking all the necessary steps to secure the original mortgage note, which carries your signature and those of any witnesses. If the mortgage was sold soon after closing by the original lender (a common practice), that note may not be in the second lender’s direct possession.

When does a lender have standing to foreclose?

If a lender can walk into court waiving the original note, the lender has standing to foreclose and nothing about the assignment of the mortgage, robo-signing, faulty notary stamps, and so on, matter. If the lender has possession of a properly indorsed note, the law will do the rest.

What are loan Docs require an original signature?

Answer by Dan Persfull: This is a state law issue. For IN you can refer to IC 26-2-8 Uniform Electronic Transactions Act. Answer by Andy Zavoina: First, don’t confuse signatures being required and the allowance of an electronic signature. Credit insurance on a TILA loan, signed or initialed.