Mortgage lenders frequently have to deal with lost promissory notes. In foreclosure actions, they have to show the court that the borrower actually borrowed the money, that the note has not been negotiated, and that there is a chain of assignments recorded in the public records which make the lender the current owner of the mortgage. If they can do this, judges allow them to foreclose the mortgage. If you are unsure what defenses are available to you in your mortgage foreclosure action, you should consult a lawyer in your area who is experienced in foreclosure defense.
Disclaimer: This answer is provided for informational purposes only, does not constitute legal advice, and does not create an attorney-client relationship. Actual legal advice can only be provided after completing a comprehensive consultation in which all of the relevant facts are discussed and reviewed.
Understand that this happens frequently and is not a complete defense. They can via evidence, affidavits and testimony establish through the standard operating procedure of the company that a promissory note was drawn up, that it was properly recorded and that it is in effect. You need a lawyer to help you through this process as often the lenders and the attorneys they retain have been known to massage the facts and evidence as NY Courts have recently pointed out.
I agree with Atty. Deason. There are ways that a claimant can satisfy the court that it is entitled to foreclose, and what the terms of the debt are, even if the original note is lost. Whether the plaintiff in your case can do so is impossible to say without much more information. However, rest assured that it will have a much easier time doing so if you are not representd by a knowledgable foreclosure defense litigation attorney. From your question it appears you do not have counsel. It would be strongly in your best interest for you to obtain solid representation right away.
Please note that the above is not intended as legal advice, it is for educational purposes only. No attorney-client relationship is created or is intended to be created hereby. You should contact a local attorney to discuss and to obtain legal advice.