THERE'S A NEW SHERIFF IN TOWN

ONE WAY TO SLOW DOWN FORECLOSURE

When a Lender of Investor tries to foreclose on a property they normally do not have the original promissory note that displays the wet signature of the homebuyer. When a lien holder does not have the original note they produce an Affidavit of Lost Promissory Note. This Affidavit is a loophole in the law created under a special statute that creates a mechanism to prove prior procession of a financial instrument that was lost by the lien holder. The statute takes into consideration that the lien holder may have lost the note involuntarily, like in a burglary, fire or flood.

Rules of Summary Judgment say that any pleading to be used by the moving party (here, the lien holder) must be filed with the court or Sheriff’s Office prior to the sale. The timeline is different for individual states. Your representative can demand to see the original note at court sale, and if there is no note and no prior notice the party who is running the sale is supposed to stop it.

This tactic should not be used as a rabbit out of the hat trick to allow the homeowner to live in the house for free; rather it is a way to delay a sale in order to continue with a short sale or negotiate a loan restructure. There is more than one way to skin a cat.