Sunday, May 4, 2008

Does Your Mortgage Company Really Own Your Mortgage?

One of the major issues in the foreclosure arena today is whether the foreclosing mortgage company really owns the mortgage. In many states, the foreclosure action may be pursued by the mortgage loan servicing company or the actual purported holder of the mortgage. Since many mortgages have been sold to securitized trusts and the paperwork is often in disarray, there is often a question of who actually holds the mortgage note.

Very often a review of the public records does not reflect that the purported mortgage company actually was assigned the mortgage note. Often the mortgage note has been indorsed "in blank", that is transferred to the bearer or holder of the note. Often the assignment of the mortgage lien does not exist or has not been recorded in the public records.

Many courts around the country have recently dismissed foreclosure action due to failure of mortgage companies to properly prove that they hold the mortgage note and mortgage. One should note though, that usually the dismissals are "without prejudice" which means that the foreclosures may be refiled once the mortgage company gets their paperwork in order.
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