I read this article just a few minutes ago and had to share it with you.
ZEPHYRHILLS, Fla. (AP) -- Kathy Lovelace lost her job and was about to lose her house, too. But then she made a seemingly simple request of the bank: Show me the original mortgage paperwork.
And just like that, the foreclosure proceedings came to a standstill.
Lovelace and other homeowners around the country are managing to stave off foreclosure by employing a strategy that goes to the heart of the whole nationwide mess.
During the real estate frenzy of the past decade, mortgages were sold and resold, bundled into securities and peddled to investors. In many cases, the original note signed by the homeowner was lost, stored away in a distant warehouse or destroyed.
With the paperwork lost, some mortgage companies can't prove that they own the loan and can't do anything about it until the paperwork is found. I applaud Ms. Lovelace for her request and keeping the mortgage company busy looking for paper.
If they can't find the original signed documents, then the mortgage company has to renegotiated the terms of the loan.
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