So, it’s not just an urban legend

I’ve been hearing anecdotal stories for months now about people who challenge banks when they attempt forclosure.  The stories have it that the homeowner says something like “Show me the mortgage” or “Show me my signature”.  And it makes a great story, yet it always seemed to me to have a big hole in it; the record of payment would be de facto acknowledgement by the mortagee of  the existence of the contract. Or so I thought. A front page story on Huff Post tonight says that homeowners are indeed getting relief using the tactic. Although it sometimes only buys the homeowner time, it very often contributes to a willingness of the mortgage holder to negotiate new terms. And many signed mortgage papers indeed cannot be located; the banks were in too much of a hurry to flip the loan.

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