As foreclosures rise to record numbers, beleaguered homeowners are desperately looking for ways to stave off, or at least postpone bank repossessions of their homes. If you find yourself in this situation, there is a new foreclosure defense you may want to be aware of- the show the note, or prove I owe you defense has become one common way to stall or stop foreclosure.
What is the "Prove I Owe You" Foreclosure Defense?
The “Prove I Owe You” defense against foreclosure involves a homeowner facing foreclosure petitioning the bank or the court to have the bank produce the original mortgage documents that prove that this homeowner was responsible for this mortgage in the first place. Now, clearly the homeowner knows that this mortgage belongs to them, but legally a bank must be able to prove that the debtor is on the original mortgage documents.
During the frenzy of buying and selling mortgages over the past decade, many mortgage companies have lost track of where original mortgage documents are. Some have been lost between lenders, others have been filed improperly, and others have been destroyed.
The “Prove I Owe You” defense forces the lender to look for the documents, and at very least postpones the inevitable foreclosure proceedings. This strategy is also known as “produce the note.”
What are Some Arguments for the "Prove I Owe You Defense?"
Those who are in danger of having their home foreclosed sometimes need just a little more time to get their finances in order, or to find additional resources to help them make their mortgage payments. This defense may buy them that time. It does not remove the foreclosure threat, but it may afford them some precious time.
What are Some Arguments Against the "Prove I Owe You Defense?"
Most banks know that this defense amounts to little more than an effort to delay the inevitable. Many also maintain mortgage notes electronically, so the defense will not even buy the lender more time. Furthermore, this defense is not always admitted by judges, and some even look unfavorably on it as a tactic.
Get Legal Help
If you are facing foreclosure now or in the near future, speak to an attorney about your reasonable options. Ask questions like:
- Should you consider the “Prove I Owe You Defense,” or are there other, more effective foreclosure-fighting strategies?
- If you have lost your job, and have no income and are simply unable to make your mortgage payments what options do you have open to you?
An attorney may help advise you, and protect you from losing your home.
