When Mortgage or Lien Destroyed By Fire (Lost Notes and Instruments)

695.16 When mortgage or lien is destroyed.—Whenever any mortgage or other lien required by law to be recorded, to be good and effectual against creditors or subsequent purchasers for a valuable consideration and without notice, has been heretofore recorded, and the record thereof has been destroyed by fire prior to May 30, 1901, such mortgage or other lien or a certified copy thereof, as aforesaid, shall be rerecorded within 9 months from said date, or such mortgage or other lien shall not be good or effectual in law or equity against a creditor or subsequent purchaser for valuable consideration and without notice; provided, however, that if the original instrument of mortgage or other lien has been lost or destroyed, the foregoing provision of this section shall not apply thereto, but such mortgage or other lien shall not be good or effectual in law or equity against creditors, or subsequent purchasers for a valuable consideration and without notice, unless legal proceedings to reestablish the same were begun in the proper court prior to March 3, 1902.
History.—s. 2, ch. 4950, 1901; GS 2493; RGS 3835; CGL 5713.

Conveyances of Property Under Florida Law are to be Recorded

695.01 Conveyances to be recorded.—
(1) No conveyance, transfer, or mortgage of real property, or of any interest therein, nor any lease for a term of 1 year or longer, shall be good and effectual in law or equity against creditors or subsequent purchasers for a valuable consideration and without notice, unless the same be recorded according to law; nor shall any such instrument made or executed by virtue of any power of attorney be good or effectual in law or in equity against creditors or subsequent purchasers for a valuable consideration and without notice unless the power of attorney be recorded before the accruing of the right of such creditor or subsequent purchaser.

The issue arises as to how the transfers from one bank to another is proper without recording

Mortgage Loan Modification – Bank of America giving Principal Reductions of up to $150,000

Bank of America is granting principal reductions on mortgages of up to $150,000 in an attempt to get mortgages back near the fair market value of the home. As with everything having to do with mortgage loan modifications, however, this is subject to change, particularly once Bank of America meets its “quota” of loans modified. If you have a home that is underwater, or worth less than the market value of the property, you should immediately apply to have the loan modified.

This holds true for the other large banks subject to the settlements with the states attorney general, together with other banks as well.

Contact us at 866-438-6574

Law Offices of Michael D. Stewart

Secondary Mortgage Market, Foreclosure Defense, Mortgage Loan Modification

Mortgages – Secondary Loan Market
Law Offices of Michael D. Stewart
Call today: 866-438-6574

What is the secondary loan market and why is it important to you as a homeowner?
When you purchase your home you gave the lender a mortgage in return for the money used. However, lenders cannot lend money forever as they would eventually run out of money. They need to find a way to continue to generate money like any other business.
In order to encourage lenders to lend more money to potential homeowners, the government, including Fannie Mae and Freddie Mac, as well as other private lenders, buy the mortgage from the original lender (bank). This money is then used by the original bank to lend further money.
These secondary lenders then resell the mortgages and notes to additional lenders, often in bundled packages containing many mortgages.
The purchase and sales of the notes from the various lenders on the secondary market caused many problems for homeowners. Often the Note and Mortgage were transferred but never recorded. Or the Note was never in fact transferred, or was transferred to a party not in existence at the time.
The problem for homeowners facing foreclosure is that often the party suing them is not the party who actually owns the note, or who receiving the note without having gone through the formalities required by law.
When facing foreclosure, the homeowner’s lawyer demands that the entity suing prove that they “standing”, or the right to actually bring a foreclosure action in their name. Oftentimes they do not. This is proven through legal techniques referred to as discovery. Through discovery the lawyer sends out Requests for Production (demands that the lender provide all documents related to the original mortgage and note), Interrogatories (questions which require sworn answers relating to the mortgage and the note), Requests for Admissions (“admit or deny your company owns this note”), and through depositions of those responsible for transferring the note to the entity that is suing.
Often it will be revealed that the required formalities for transferring the mortage and note were not met. This is where the term Robosigner arose. A Robosigner is a notary public, who is required to confirm that the signature being notarized is the person actually sitting in front of them. This was often not done and the Robosigner would merely notarize hundreds of documents without the signor even being present.
If you are facing foreclosure, contact an attorney who can assist you in handling the bank and forcing a modification of the mortgage to something affordable to you. Currently banks are knocking off up to $150,000.00, or more, from the principal balances of mortgages, so that they more accurately reflect current market rates.
Contact Law Offices of Michael D. Stewart at 866-438-6574