Home > Research Legal Advice > Foreclosure > Note with mortgage that says "Pay to the order of Without recourse Washi...
Asked 6 months ago - Saint Petersburg, FL
FlagI am in Florida. It says that above at the end of the note and is signed by vice president. does that mean that no deficiency judgement can be made and they can't come to me for anything other than the property?
What you are referring to is an endorsement on the mortgage. Specifically, if it does not have a name on the stamp other than your lender, it is an "endorsement in blank." This is how banks transfer ownership of the note, and also what allows other banks or servicers to enforce the note through foreclosure. It is similar to signing over a check to someone else's name. The endorsement alone should have no affect on the bank's ability to get a deficiency judgment.
A mortgage note is a negotiable instrument and must be transferred according to the law. The "pay to the order of" language identifies the new owner of the note. The "without recourse" language says that the person or company executing the endorsement cannot be sued for the amount of the note or for any deficience. Without this language, every endorser guarantees the collectability of the note. If you are concerned about your mortgage note, you should consult an lawyer in your area who is experienced in foreclosure defense.
This language is often referred to as a "general endorsement," which allows a bank (other than the original lender) to foreclose on your property. If not properly done, it could provide you with important defenses to which you are entitled -- as long as you properly (and timely) assert them. You should consult an attorney that's expeienced in foreclosure defense work, who can review your paperwork and advise you accordingly.
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