Author Topic: When my last payment is made, what if Lender cannot “Produce the Note”.  (Read 920 times)

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foolsmission

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Has anyone considered the possibility that their mortgage servicer may have lost the deed on a mortgage that they are not under-water or otherwise in trouble on?

I'd hate to find out that WAMU lost my note and I go on making payments to Chase for the next twenty years and then:
"opps sorry, we can't find your deed".

flacorps

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In a paid-off mortgage situation, the lender would do whatever is necessary to make it right and give you clear title. Might not be as timely as you want, but it gets done.

I recently had a friend who had a bit of a runaround when selling his home up in the carolinas.
"History has taught us that weakness is provocative. To the extent that people see an area of weakness, they will take advantage of it..." - Donald Rumsfeld

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Flyingifr

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When a mortgage is paid off the lender doesn't have to produce a Note - they simply file a Satisfaction of Mortgage with the County Recorder/Clerk.
BTW-the Flyingifr Method does work. (quoted from Hannah on Infinite Credit, September 19, 2006)

I think of a telephone as a Debt Collector's crowbar. With such a device it is possible to pry one's mouth open wide enough to allow the insertion of a foot or two.

Morality of Debt? No one ever went to the Nether Regions for not paying a debt.

Founder of the Credit Terrorist Training Camp (Debtorboards)

flacorps

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When a mortgage is paid off the lender doesn't have to produce a Note - they simply file a Satisfaction of Mortgage with the County Recorder/Clerk.

In the case I spoke of, the loan had changed hands several times and the lender was having trouble getting the chain of ownership connected up enough to issue a satisfaction that would satisfy the purchaser's title company. It held up the closing for a couple of weeks and almost cost my friend the sale of his home to that buyer.
"History has taught us that weakness is provocative. To the extent that people see an area of weakness, they will take advantage of it..." - Donald Rumsfeld

http://www.myhopeseries.com

foolsmission

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Thanks for the replies.

Does anyone know if WAMU or other well know banks "split" individual mortgages into multiple pieces?

My mortgage has changed hands several times but remains in one piece (I assume).

Flyingifr

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In the case I spoke of, the loan had changed hands several times and the lender was having trouble getting the chain of ownership connected up enough to issue a satisfaction that would satisfy the purchaser's title company. It held up the closing for a couple of weeks and almost cost my friend the sale of his home to that buyer.

And your friend didn't stat an "Action to Quiet Title" and stick the servicing company with the legal bills? Must not be  a Credit Terrorist.
BTW-the Flyingifr Method does work. (quoted from Hannah on Infinite Credit, September 19, 2006)

I think of a telephone as a Debt Collector's crowbar. With such a device it is possible to pry one's mouth open wide enough to allow the insertion of a foot or two.

Morality of Debt? No one ever went to the Nether Regions for not paying a debt.

Founder of the Credit Terrorist Training Camp (Debtorboards)

 

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