As millions of homeowners stuck with unaffordable mortgages and looming foreclosure struggle to get loan modification help from their reluctant lenders, a new and powerful strategy has emerged to add some firepower to their fight.  It’s called “produce the Note” and it works like this.

Produce the note is a defensive strategy that can be used to fight off foreclosure proceedings and give you more time to find a loan modification solution with your bank.  Simply put, you are demanding that your lender prove to the court that they in fact own your home by presenting the original Note at the foreclosure proceedings.  You are challenging your lender’s claim that you owe them money, that they in fact have the mortgage on your home and have the right to foreclose for payment default.

While it may seem a given that the lender is the owner of your mortgage, because of the banks bundling and reselling of mortgages, notes are often lost or destroyed.  Most mortgages have been split up and converted to Mortgage Backed Securities owned by groups of investors.  So, who really owns your loan now?  In some cases, the original lender has gone out of business.  The original Note is evidence of the debt, and in a court of law, the plaintiff in a case has the burden to prove that what they are telling the court is actually true.  How does the bank prove you owe them the money?  They must “produce the Note”.

This new foreclosure defense has been given some credence by a recent groundbreaking ruling by a judge in Ohio who dismissed 14 foreclosure filings brought by Deutsche Bank, citing that the bank could not prove it held the notes.   In another case, the judge berated a lender stating that banks must meet the same rules that govern all litigation and that is is the creditor’s responsibility to keep accurate records.  When a plaintiff in a case makes a claim that the defendant does not challenge, then the court usually accepts the plaintiff’s claims on face value, because you had the chance to contradict them but did not do so.

Using the Produce the Note strategy can certainly get your lenders attention and possibly induce them to cooperate with loan modification help.  That is really the whole purpose of using this technique-no one is implying that you should try to get something for nothing-but this is one more weapon in the arsenal you need to fight your lender and win.  In addition, if you don’t challenge your lender and the proceeding is allowed to contiue without proof, there is a possibility that another institution, which may have bought your loan somewhere along the line will also try to collect from you later.  Homeowners need to take any steps necessary to find a solution to stay in their home with affordable monthly mortgage payments.  An informed and persistent borrower will have a greater chance of success and be able to get back on the road to financial security by obtaining a loan modification featuring affordable payments.

You can get the help you need to understand the  loan modification process and negotiating strategies by ordering and downloading The Complete Loan Modification Guide. This is a low cost, easy to read handbook that will provide you with everything you need to prepare a professional and acceptable loan modification application. You are provided with all of the necessary forms and given detailed directions on how to complete them properly. The Complete Loan Modification Guide will take you step by step through calculating your debt ratio, completing the financial statements, writing your hardship letter and then putting it all together to submit to your lender. Get started today on the path to secure home ownership, order and download The Complete Loan Modification Guide.

For more information about mortgage loan modification, please visit us at: http://www.myloanmodificationcenter.com