I took a mortgage with Millenium. Now, years later, Residential Mortgage is trying to foreclose. They say they are attorney in fact for Saxon. They have a note that I signed to Millenium and an allonge that says pay to the order of WMC Mortgage. At the bottom of the page, there is a stamp that says "Pay to the Order of ______ Without Recourse". It is blank. No where does it say Residential Mortgage or Saxon or any other bank besides Millenium or WMC. So how can Resdidential Mortgage , acting on behalf of Saxon, foreclose on me? This is really upsetting so if you can help me thank you.
It sounds like the note was transferred. Often times it is done improperly or even involves fraud. You need to hire a foreclosure attorney to assist you.
Criminal Defense Attorney
It sounds like they bought the loan. I suggest that you retain counsel to review the documents.
The above answer, and any follow up comments or emails is for informational purposes only and not meant as legal advice.
The first level of inquiry you should be asking yourself is "have I been paying this mortgage"? If the answer is no, and someone (anyone) is suing you for foreclosure, you probably are at the point where you have to get a lawyer involved.
This is AVVO, a place for users to obtain general legal information to general legal questions. I am glad to help you in any way I can, within those limits. I wish to make clear I am only communicating with you for the sole purpose of exchanging such general information, and nothing more. It is not legal advice, which I can not provide because among other reasons I know few of the necessary details of your situation. I do not purport to represent you in any way, shape or form. Of course, if you would like to seek out my services, and if you are a NY resident, I will probably not put up very much resistance but representation would still necessitate a signed retainer agreement between yourself and I. Thank you.
Real Estate Attorney
It is not uncommon for loans to get sold to other lenders (other than the origingal mortgagee). Your Millenium Mortgage loan was likely transfered to Saxon, who then went under and sold their assets to 5 different companies (Ocwen Loan Services ; Specialized Loan Servicing, PHH Mortgage,
AMS Servicing and finally Residential Credit Solutions). Residential is now foreclosing on the mortgage as holder of the note and mortgage (the collateral).
For the note and mortgage to be enforceable instruments, they have to have been assigned properly from lender to lender (while defects don't render them useless, they might help you fight). This means that the note from Millenium must have an allonge or endorsement stamp leading to the current owner of the note (Residential). Same goes for the mortgage of record, where assignments (which are recorded documents) must lead the chain from lender to lender until reaching your current servicer/lender (Residential).
Just to address your blank endorsement stamp - the stamp is supposed to be filled out by the transfering bank, upon selling the loan to the new holder of the note (in this case Residential). What it should say in theor is "Pay to the Order of Residential Credit Solutions, without recourse" and signed by the selling bank.
An attorney (experienced in real estate banking procedure and familiar with collateal reconstruction and investigation) must look at the documentation to determine whether the mortgage chain is in fact correclty intact and whether the current lender that is pursuing the foeclosure action has the right to do so.
The statements herein are for informational and educational purposes only. In no event shall these statements constitute legal advice. These communications do not in any way form an attorney-client relationship nor are they protected under any attorney-client privileges.