A New Tip to Stop Your Foreclosure Dead in Its Tracks and Turn the Tables on Banks

Losing your home to foreclosure? Or falling behind on payments and at risk of foreclosure? You're not alone. Millions of Americans, even those with good income and assets have suddenly found themselves buried in a home they can no longer afford.

But here's a novel tip for you that the internet is buzzing about. If your mortgage was originated within the past 7 years, there is a very strong chance your bank abused its privileges, got sloppy in their record keeping, and sold off your mortgage and note in various pools and packages that were poorly regulated.

Greenspan even admitted to a "mistake" in naively trusting lending institutions to oversee themselves without lending abuses. These abuses have contributed to the mortgage meltdown and credit crisis America is facing. And these abuses directly hurt your wallet.

One of the basic requirements of a mortgage loan requires a lender to have the actual original note and mortgage on file that you signed. This is a standard in lending practices that a bank or creditor must "prove up" and validate their claim under the Uniform Commercial Code. Crazy thing is, in most instances banks who claim to be the owner and holder of your note don't actually have possession of the note, which is a big no no.

So there is a movement underfoot in which borrowers facing foreclosure now demand that a lender to prove up their claim by producing the note and mortgage. If a lender is unable to produce these documents, this stops the foreclosure dead in its tracks. I have heard of some judges in Florida, Texas, and midwest quashing foreclosures unless the lender can prove they have the original note and mortgage in their possession.

You have a legal, moral, and ethical right to verify who you really owe and how much. Some mortgages and notes have been sold so many times its possible the wrong party is foreclosing or you could pay off the wrong party.

So here is how you do this:

1. Gather all of your documents pertaining to the foreclosure filing. Look for the lender who claims to be foreclosing.
2. Contact the lender and demand they produce a note and mortgage to prove up their claim. Allow 21 days for a response. Send certified mail or with other delivery confirmation to ensure they received it.
3. If the lender failed to respond, send them a notice that they will be considered in default unless they respond within another short time window, say 72 hours.
4. If the lender still fails to respond, you can petition to seek relief through legal channels, i.e. courts, judge, trustee, or attorney who can demand the foreclosure be stopped until and unless the lender validates this claim.
5. As this article is not legal advice, simply my own research and personal experience assisting clients, please do your own research and seek competent legal counsel if you need representation.

As a result of being able to stop a foreclosure, you get immediate stress relief of losing your home. If you are a homeowner you get to keep your home and stay in it. If you are an investor, you can help others do the same or keep your own properties. This gives you more leverage and the time you need to complete a short sale or loan workout with the lender. The short sale creates a cash payday for you because the lender is willing to accept a discounted payoff to let you step into the property with "equity", and a loan workout is when the lender will lower the payments and/or roll in the back payments to make the property affordable.

Space does not permit me to share with you the latest Supreme Court Rulings or the actual forms or documentation my clients and I have successfully used with helpful results.

In my upcoming Cash Advance Real Estate home-study system I unveil the latest strategies to put cash in your pocket instantly when you buy a property. The latest techniques for stopping foreclosures dead in their tracks are part of this system because this gives you the time you need to complete a short sale or do a loan workout with the lender, or even enact some creative "out of the box" remedies that will absolutely blow your mind--all of which can immediately translate into cash in your pocket just by implementing. These and more you can learn about in the Cash Advance Real Estate System.