The Law of Negotiable Instruments Could Save Your Home
As aggressive foreclosure defense lawyers, we stay on top of evolving case law. A prime example is that numerous U.S. states have "thrown out" foreclosures when the lender could not produce the original note. In other words, if the lender seeking to foreclose on your home is not in possession of, or entitled to enforce the original note you executed at your loan closing, the lender will likely be barred from foreclosing.
With all the "selling of paper" that has occurred in the mortgage industry, defending cases using the laws of negotiable instruments is more common than you might think. Please contact our Las Vegas, Nevada, or Miami, Florida, area law offices to determine if your legal rights are being violated. This may be the key to stopping your foreclosure.
We Determine Whether the Foreclosing Entity Has the Right To Take Action
The law of negotiable instruments goes back nearly 150 years in this country, and it continues to apply in all states, including Nevada and Florida. It has three important purposes:
- Protecting parties from paying the wrong person or entity
- Guarding the integrity of negotiable instruments themselves
- Guarding the integrity of the court system by forcing lenders to prove they have standing to foreclose
Your home loan has an underlying promissory note that defines to whom you owe payment and all terms. Like a check, this note is the negotiable instrument that allows a transaction to be completed. Only the party that holds legal title to your note can pursue a foreclosure on your property, and that party must be able to prove its standing.
Demanding the Original Note May Stop a Foreclosure
When our attorneys review your loan and any action against you, we will determine whether you have a defense based on the law of negotiable instruments.
If the bank or other entity attempting to foreclose does not have the legal right to do so, you can depend on us at The Schwartz Law Firm, Inc., to identify and pursue the best available legal action.
In Nevada, you must file suit to stop a foreclosure. In Florida, the lender must file suit to foreclose on your property. In either case, if the party taking foreclosure action cannot produce the original note, they must reestablish ownership by following certain specific legal procedures. Forcing them to do so can buy you time. In other cases, pursuing this foreclosure defense can save your property.
Contact The Schwartz Law Firm for complete foreclosure defense.
