DENVER -
You've heard it before, in real estate. It's location, location, location.
That applies even when it's time to foreclose on a home. More and more lawyers now want to know something that seems simple: where, exactly, is the loan that went bad.
"It's not clear where the notes are located, it's not clear where they physically there are," lawyer Jose Vasquez told us.
Many banks simply file an affidavit, saying they have a right to foreclose.
But Vasquez, a lawyer for Colorado Legal Services, is asking lenders to actually show him the paperwork.
Its part of a nation wide trend called "produce the note."
"For homeowners in this situation, it could produce some valuable time, it could produce some ability to get some type of leverage in dealing with those lenders," Vasquez told us.
(The idea is featured on the internet based "Consumer Warning Network" where lawyers explain that homeowners in trouble can ask the bank for a copy of their mortgage. If they don't get it in 30 days, they can file a notice with the court asking a judge to force the bank to cough it up.
In some cases, it's stopped foreclosure.
But many judges in Colorado have taken away homes even with out seeing the actual mortgage.
Vasquez hopes that's changing.
"The courts are not used to seeing this defense raised in Colorado. I think there's an education process that needs to take place." he said.
A spokesman for the American Securitization Forum, which represents banks and investors, called this merely a stalling tactic. They say many loans exist electronically, which is fine for most judges. But, as we learned today, not all.
To get a form to file your own produce the note request go to:
http://www.consumerwarningnetwork.com/2008/06/19/produce-the-note-how-to/
That applies even when it's time to foreclose on a home. More and more lawyers now want to know something that seems simple: where, exactly, is the loan that went bad.
"It's not clear where the notes are located, it's not clear where they physically there are," lawyer Jose Vasquez told us.
Many banks simply file an affidavit, saying they have a right to foreclose.
But Vasquez, a lawyer for Colorado Legal Services, is asking lenders to actually show him the paperwork.
Its part of a nation wide trend called "produce the note."
"For homeowners in this situation, it could produce some valuable time, it could produce some ability to get some type of leverage in dealing with those lenders," Vasquez told us.
(The idea is featured on the internet based "Consumer Warning Network" where lawyers explain that homeowners in trouble can ask the bank for a copy of their mortgage. If they don't get it in 30 days, they can file a notice with the court asking a judge to force the bank to cough it up.
In some cases, it's stopped foreclosure.
But many judges in Colorado have taken away homes even with out seeing the actual mortgage.
Vasquez hopes that's changing.
"The courts are not used to seeing this defense raised in Colorado. I think there's an education process that needs to take place." he said.
A spokesman for the American Securitization Forum, which represents banks and investors, called this merely a stalling tactic. They say many loans exist electronically, which is fine for most judges. But, as we learned today, not all.
To get a form to file your own produce the note request go to:
http://www.consumerwarningnetwork.com/2008/06/19/produce-the-note-how-to/
