Without seeing the notes an attorney cannot give you a definitive answer by posting on a message board. You should hire a mortgage foreclosure defense attorney to ensure that any possible defenses you have, including fraud on the court, are addressed.
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Could be, but I can't tell that from what you have written. In order to foreclose, the plaintiff is going to have to show that it (or the original plaintiff) held the valid not at the time the complaint was filed. That might be an issue. It sounds like they have the beneficial interest in the note now, but did they when the case was filed? I hope you have an attorney on the case.