Due to a drop in business income, we are 5 months behind on the mortgage of a vacation home. We currently have the house listed for sale and have talked with the lender about a short sale option which we will probably qualify for. But, the other day, I recieved a certified letter stating that "the original note is unavailable and cannot be produced" and they are going to assign a lawyer as the substitute trustees under the Deed of Trust and they are going to start the foreclosure process on May 1st. I am a little confused at what this letter says and never asked the bank to produce the deed but I know that this is common stall tactic these days. Can the bank start foreclosure of the property if they cannot produce even a copy of the deed? What should be my next action?
Property is located in Virginia
While state laws vary as to the exact method by which this can be accomplished, virtually all of them provide some method by which a lost note can be re-established so long as sufficent facts can be established and authenticated. However, it is often true that the holder of the mortgage cannot meet its burden if they are properly forced to do so.
There are attorneys who specialize in foreclsoure defense and financial services litigation. Check the web site of the National Association of Consumer Advocates, www.naca.net to find someone there who specializes in foreclsoure defense.