Sick Of Paying Your Mortgage? You May Not Have To Pay!

Sick of paying your mortgage?

There's a good chance you can stop paying it and never be foreclosed on.

Zero Hedge reports:

Wondering if you are one of those suckers paying a mortgage in limbo, with all the payments due to some non-existent mortgage noteholder getting retained at the servicer banks? Well, if you can spare 3 minutes then "Where's the Note" is for you. The website, which is on the verge of a viral break out, has a simple message: "Whether you are facing foreclosure, have an underwater mortgage, or are just a concerned homeowner, it’s important that you contact your bank and demand to see the original note on your mortgage. It only takes a few minutes using our free online tool." Quick, simple and easy. And in a few days your mortgage bank will have no choice but to tell you if they do in fact have your original mortgage note. And if not - welcome to cost-free living, courtesy of MERS and millions of rushed and fraudulent mortgage note assignments. Yes, it will mean the end of the GSEs, but it will also mean the accelerated write downs on thousands of MBS tranches which will rapidly collapse into insolvency (there is only so much Mark to Unicorn can cover up) and eventually take the insolvent TBTFs banks with them.

Further, Bank of America has currently halted all foreclosures in all 50 states due to them not having the mortgage notes on a large portion of the properties they hold.

If the bank doesn't have the mortgage note, they can't foreclose.

This is a result of the securitization of the mortgage market that the banks engaged in to bundle the sub-prime loans in with the AAA rated loans. When the banks bundled the mortgages together, they lost track of who held the mortgage notes. Hence, they can't legally foreclose.


One important item of note, if you do ask for the note and the bank can't produce it - the mortgage can now be considered in dispute.

One completely safe course of action is to ACTIVELY SUE THE BANK to get out of the mortgage payments. Since the mortgage is now disputed, they can't expect you to continue paying on it.

A judge would be forced to nullify the debt unless the bank could produce the note. To my knowledge, you would not be obligated to continue paying after determining that the bank did not have the note. I don't believe the bank could sue you for back payments if they suddenly found it.

The proper way to do this is with the aid of a competent attorney. It's going to involve requesting who ever services your mortgage to show the actual note. Then you pay your mortgage into a court escrow until they can prove whoever holds the note. If they can prove it the money from the escrow goes to get you back current if not then you take the escrow and file for quiet title. The process would probably vary wildly from state to state so competent, legal aid is a necessity.

I care not if a miniscule amount of people walk away with free houses. I just want to finally see some prosecutions of the banksters with at least a few of them ending up in orange jumpsuits.

Again DO NOT follow this path without legal advice. You're just asking to be foreclosed on. Especially in a fast (non-judicial) foreclosure state like Georgia.

I have heard of this. I am going to be looking into this closely int he next few months, and thank you for the link to the webpage, Bank of America happens to be the mortgage holder in the situation I am thinking about. I wonder if they will be able to find the note?

This is great! I just sent in my information and will respond back here if I do in fact find out that my bank does not hold my mortgage. I hope this really makes the banks own up to the mess that they had a huge part in creating.

I don't know why anyone would...but just in case...PLEASE people...DON'T listen to the OP.

Because once they find the original note...you will be defaulted...and trust me...they WILL find the note. They may not have it on hand to show you right away...but please please please don't think that means you don't have to pay your mortgage.


OP...you are dangerous...because you spread misinformation.

Originally posted by hotbakedtater
I have heard of this. I am going to be looking into this closely int he next few months, and thank you for the link to the webpage, Bank of America happens to be the mortgage holder in the situation I am thinking about. I wonder if they will be able to find the note?

Here's the deal.

If you have enough money saved to afford a down-payment on a new home or to front for rent on a new apartment, I don't see any reason why you shouldn't simply stop paying if they can't produce the note.

It may take years before this is resolved.

As long as you keep making your property tax payments, I don't think there's anything they can do to you.

Just make sure you have enough cash to create a backup plan if they suddenly produce the note and begin foreclosure proceedings. At worst, you'll get kicked out of your current home and have to find somewhere else to live. - which is peanuts for getting to live rent free for several years.

Originally posted by OutKast Searcher
I don't know why anyone would...but just in case...PLEASE people...DON'T listen to the OP.

Because once they find the original note...you will be defaulted...and trust me...they WILL find the note. They may not have it on hand to show you right away...but please please please don't think that means you don't have to pay your mortgage.


OP...you are dangerous...because you spread misinformation.

I don't see any "danger" in not paying.

As I just posted, worst case scenario is they dig up the note - which is highly unlikely if they don't have it to begin with - and foreclose on you.

As long as you can arrange for alternate living space, this seems like a small price to pay for living rent free for several years.

I could accumulate a tremendous amount of wealth in that time period living rent free.

If the bank doesn't have the note, the odds of them suddenly producing it are remote. Especially as this firestorm unfolds. The banks will be inundated with demands to produce mortgage notes.

Awesome information!

It's About time this got out!

reply to post by mnemeth1

It may take years before this is resolved.

Possible...but they WILL resolve it. That is almost certain...they WILL find that note.

Just make sure you have enough cash to create a backup plan if they suddenly produce the note and begin foreclosure proceedings. At worst, you'll get kicked out of your current home and have to find somewhere else to live. - which is peanuts for getting to live rent free for several years

Along with any equity you have in your home will be gone.

Seriously...you sound like such a slacker and a free loader.




Here is an idea people....PAY YOUR MORTGAGE. You know...the one that you signed 50 papers for saying you will pay it...the one that you intentionally got into...the one that has allowed you to live in a house that you could never afford paying in cash.

Responsibility people...stop looking for a free ride and just be responsible.

reply to post by OutKast Searcher


Yeah, if someone has a ton of equity in their home, this is not advisable.

If you are below water though, I'd totally do this.

reply to post by mnemeth1

I don't see any "danger" in not paying.

As I just posted, worst case scenario is they dig up the note - which is highly unlikely if they don't have it to begin with - and foreclose on you.

Well being foreclosed on is kind of a big deal for responsible people. Losing all your equity...is kind of a big deal.

As long as you can arrange for alternate living space, this seems like a small price to pay for living rent free for several years.

I could accumulate a tremendous amount of wealth in that time period living rent free.

How much in rent/mortgage do you pay? Let's say you pay 2k a month...probably a little high for most people. So in a year you can "save" 24k...24k is NOT a lot of money. It may seem like a lot of money to some people...but it is NOT a lot of money.

If the bank doesn't have the note, the odds of them suddenly producing it are remote.

Really...you base this on what? Just your opinion? It is more likely that they will just need time to locate it...everything has a paper trail...especially when it concerns money.

Especially as this firestorm unfolds. The banks will be inundated with demands to produce mortgage notes

There will be no firestorm...I repeat...there will be no firestorm. At best...I bet a few hundred send letters like these to their banks...which they will probably promptly disregard or have their lawyers that are already on retainer deal with it.

You live in a fantasy world...just take responsibility for your actions and stop looking for a free ride.

Sure yea go ahead and not pay that will give me work to do. I work for the banks FM and BOA are just a couple.
I do the rekeying, clean out and over see evictions as a side job so yea go ahead dont pay I need all the work I can get.
On a side note I would ask to see the note long before I made up my mind weather to quit paying our not.

reply to post by mnemeth1


Only temporarily and at your own peril. The documentation still exists, its the methodology the banks are using to conduct the Foreclosures that was flawed. They have been "rubber stamping" before assembling the documents.

Eventually if you don't pay:

-Your credit will be ruined.
-You will be evicted.
-You won't be able to get a credit card.
-Liens will be placed on what you do own.
-You won't be able to rent or lease decent accommodations without a good credit score, so you will have to live under Slum Lords.
-If you find a buyer to bail you out you won't be able to sell and the buyers won't dare buy anyway.

This has been in the news for a few days now and heavily covered. They hold the notes legally and people who borrowed the money will still have to pay or be evicted. This will just slow down the recovery while they get the papers, which still exist in order.

It's bad news all around. Some people who could not be trusted anyway might take advantage of it making it even worse. Why people think they can just borrow huge amounts of money and not pay it back while still retaining what they bought with it, is beyond reason to me. How much damage this does will depend on how dishonest people are.

Originally posted by mnemeth1
As long as you keep making your property tax payments, I don't think there's anything they can do to you.

Just make sure you have enough cash to create a backup plan if they suddenly produce the note and begin foreclosure proceedings. At worst, you'll get kicked out of your current home and have to find somewhere else to live. - which is peanuts for getting to live rent free for several years.

edit on 12-10-2010 by mnemeth1 because: (no reason given)

They can sue you and the IRS will consider non-payments as taxable income. This will be very hard to get out of.

Originally posted by mnemeth1
[I could accumulate a tremendous amount of wealth in that time period living rent free.

If the bank doesn't have the note, the odds of them suddenly producing it are remote. Especially as this firestorm unfolds. The banks will be inundated with demands to produce mortgage notes.

The banks might be inundated and might collapse altogether but there will be survivors who own all the debt. they will also own the government and will be able to get away with almost the same amount of stuff (if not more) that they are getting away with now.

This means they can just forge that note, make you prove that it is a forgery (while spending thousands of dollars and countless hours in court), and they will have the law on their side.

So there is a chance of getting away with it but there is also a chance that some badass down the line is ready to bust out the slave whip.

reply to post by wutone


Of course the non-payments are taxable income - and the bank can sue you all they want, but if they don't have the note they will lose.

I think this is a gamble worth taking if someone is underwater on their mortgage.

There are no real cons to this if the bank can't produce the note.

Originally posted by mnemeth1
reply to post by wutone

 

Of course the non-payments are taxable income - and the bank can sue you all they want, but if they don't have the note they will lose.

As I said, they can just forge the note and you will have the burden of proving it a forgery.

Yes they can get away with it.

Originally posted by Blaine91555
reply to post by mnemeth1

 

Only temporarily and at your own peril. The documentation still exists, its the methodology the banks are using to conduct the Foreclosures that was flawed. They have been "rubber stamping" before assembling the documents.

Eventually if you don't pay:

-Your credit will be ruined.
-You will be evicted.
-You won't be able to get a credit card.
-Liens will be placed on what you do own.
-You won't be able to rent or lease decent accommodations without a good credit score, so you will have to live under Slum Lords.
-If you find a buyer to bail you out you won't be able to sell and the buyers won't dare buy anyway.

This has been in the news for a few days now and heavily covered. They hold the notes legally and people who borrowed the money will still have to pay or be evicted. This will just slow down the recovery while they get the papers, which still exist in order.

It's bad news all around. Some people who could not be trusted anyway might take advantage of it making it even worse. Why people think they can just borrow huge amounts of money and not pay it back while still retaining what they bought with it, is beyond reason to me. How much damage this does will depend on how dishonest people are.

That's not true.

This is not some "rubber stamp" problem, this is systemic problem of the banks losing the mortgage notes due to the process of securitization.

The "rubber stamp" problem simply allowed this fraud to go unnoticed.

If they don't have the note, it is highly unlikely they will be able to produce it at some future date.

I'm gonna keep paying my mortgage- I like having good credit, being able to buy a new boat, park model trailer for the resort, credit cards for emergency use, braces for the kids, you know; responsibilty does have it's rewards. When it's time to retire the house will be paid for and hell, if it sells we'll be having a nice savings; it not, I still have a home base. I signed my name to the mortgage and agreed to pay for something I was willing to work for. I'm so weary of cheaters and quitters.

Originally posted by SpaDe_

This is great! I just sent in my information and will respond back here if I do in fact find out that my bank does not hold my mortgage. I hope this really makes the banks own up to the mess that they had a huge part in creating.

It's just a paperwork issue. The documents still exist. Over the weekend they were predicting if people trying to get out of paying back what they borrowed start taking advantage of this, it will delay the recovery by two more years, damaging the whole country and hurting everyone.

You borrowed the money and now you don't want to pay it back, but you want to keep the house you bought with it? They will dig up the original paperwork and when that happens, you will still owe the same plus even more interest and penalties. Will that really help you out? Your credit will be ruined. You won't even be able to lease a decent place to live without a good credit score.

This may buy you a year or so in a house you don't own or can't pay for, but what about the rest of your economic life?

If they had the note they would not be getting various companies and law firms to produce fraudulent documents. If they had the notes and they were properly recorded there would not be an issue with foreclosures. The reasons that they are missing so many notes is that there was major fraud agains the GSEs and the MBS buyers. They destoryed them in attempt to hide the evidence of that.

The proper way to do this is with the aid of a competent attorney. It's going to involve requesting who ever services your mortgage to show the actual note. Then you pay your mortgage into a court escrow until they can prove whoever holds the note. If they can prove it the money from the escrow goes to get you back current if not then you take the escrow and file for quiet title. The process would probably vary wildly from state to state so competent, legal aid is a necessity.

I care not if a miniscule amount of people walk away with free houses. I just want to finally see some prosecutions of the banksters with at least a few of them ending up in orange jumpsuits.

Again DO NOT follow this path without legal advice. You're just asking to be foreclosed on. Especially in a fast (non-judicial) foreclosure state like Georgia.

reply to post by mnemeth1


although the thought of disgusting, corrupt banks having to deal with this mess somewhat amuses me..i think that it would be a huge risk for any homeowner to try and get away with this. they WILL screw you over in the end. the banks run on greed and they will find away to cover all of their "losses" from this incident.