Mortgage Servicing Fraud
occurs post loan origination when mortgage servicers use false statements and book-keeping entries, fabricated assignments, forged signatures and utter counterfeit intangible Notes to take a homeowner's property and equity.
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CheckingIn
I was looking over a case yesterday and the trust only claimed to be the owner. They did not have an assignment of mortgage from the original lender and they filed a lost note count.

I don't remember seeing this before while researching case law. Maybe someone else has seen it and has a better grasp of what it would mean wit regards to a defense against the foreclosure.

Do they still need to allege that they are the holder?
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FnDoomed

If they intend to do something on a promissory note, then they have to allege that they are a person entitled to enforce pursuant to UCC 3-301.   There are generally 3 categories that you see today with a couple other odds and ends that generally don't apply.

Holder, non-holder in possession with rights of holder, person not in possession but entitled pursuant to 3-309.

Since they filed a lost note count you want to start with 3-309, then read everything about UCC 3-301 related cases you can find.

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SPS services our loan...after months of run around and totally incompetent, at times very inarticulate...had them put in writing they don't own our note.
A few months ago a supervisor shouted over the phone, 'oh your loan has been sold possibly hundreds of times.' They then send a letter stating US Bank n.a.,
successor trustee to Bank of America, successor to LaSalle,n.a., as trustee on behalf of the holders of the Thornburg Mortgage Securities Trust 2005-3 loan pass through certificates, series 2005-3.
Exaustive searches with US Bank...told us they do not have our loan.
Thornburg went bankrupt in 2009 and the 2005-3 trust was closed...found on sec-edgar. When I asked why we were not informed of all these assignments...they sent a letter stating MERS is responsible. Any help?

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CheckingIn
Thanks for the info.

I had never stumbled accross a case where they said they were the owner and nothing else. They didn't file a note or an assignment with the complaint either.
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Hank
Quote:
I was looking over a case yesterday and the trust only claimed to be the owner. They did not have an assignment of mortgage from the original lender and they filed a lost note count.

I don't remember seeing this before while researching case law. Maybe someone else has seen it and has a better grasp of what it would mean wit regards to a defense against the foreclosure.

Do they still need to allege that they are the holder?


Use your head and a little common sense.  When a note is lost, missing or otherwise destroyed, the owner cannot claim to be a holder because holdership implies possession

The allegation that the note is lost inherently subsumes that the plaintiff cannot possibly be the holder unless the note is actually found.

Look at the express language of the UCC as to the right of enforcement of a lost instrument.  A defendant needs to hold the plaintiff to the express requirements of the statute.

Also, look at Mr. Roper's suggested discovery questions.  A defendant ought to be asking some hard questions about possession and custody of the alleged instrument prior to its loss.

The note is almost never actually lost.  It remains in the vaults of an institutional custodian.  A bank is no more likely to lose a promissory note than a $100,000 Federal Reserve Note (currency bill).

One reason that foreclosure mills sometimes claim that the note is lost is to cover up prior mischief, such as a forged allonge used in an earlier foreclosure attempt.  If the real note is brought forward, it is likely to have real and valid endorsements.  The production of the original note will then show the fact of forgery as to the allonge.  For this reason, the foreclosure mill will claim that the note is now lost.  I learned this from Mr. Roper.
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jlcam37
Originator, Sponsor, Depositor, Trust. If the Trust doesn't have an assignment to them from the Depositor, the loan may not have made it into the Trust that is why they don't have a paper trail. It has to go in order, A to B, B to C, C to D with an assignment to them each time. Challenge that they are the holder in due course and the true owner of the loan.
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