The basic concept behind “Produce the Note” is if there is no signed mortgage note or recorded assignment, foreclosure is barred. The defendant must normally raise this defense, and most defaulting homeowners, unaware of legal procedure just let their homes go uncontested. But when the plaintiff trying to bring a foreclosure actions has been challenged with this “Produce the Note” defense they may not be able to or it may take them months before they can do so.

It appears to be more than just sloppy paperwork. The banks that originally entered into these subprime loans generally did so because they had no intention of keeping the loans on their books. The mortgages were immediately bundled up as mortgage backed securities and sold off to investors. Loan originators sold the mortgages to financial institutions or other banks, while transferring the responsibility to collect these payments to specialized mortgage servicing companies. The result has been no party really having ownership of the original paperwork. When foreclosure has been initiated, the servicer or trustee acting as plaintiff now has trouble proving that it originated the mortgage or owned the loan. With the collapse of the housing market, many of the subprime lenders have gone out of business, making it impossible to contact the originating mortgage company.

This process is not meant for you to get your home for free. The goal here is to stall the foreclosure and pressure the lender to negotiate with you for a possible loan modification or short sale.  Many homeowners have experienced resistance from their lender when trying to work out a new payment structure and this is a tactic that you can use to force the issue.  Most homeowners just want these lenders to give them a reasonable payment on their mortgages.  The laws work both ways so the same law the bank is using to force you out of your home can be used to also keep you in your home.  You can visit  Consumer Warning Network to learn more and download how to documents.