Everyone is required to sign stacks upon stacks of paperwork upon purchasing a home, but how many pages actually are important during a foreclosure process?
A promissory note is a document signed by the home buyer when purchasing a house that shows the buyer borrowed money from the lender. In most cases, the lender is a bank, but in other cases, an individual is the lender for the purchase of property. A promissory note is stored wherever the lender prefers, whether it is in a safe or on the counter at their home.
For those that don’t choose a safe location for their promissory note, they risk misplacing or losing the promissory note. What could this mean for a foreclosure case?
While a promissory note is required to show proof of debt in a foreclosure case, there are ways to work around a lost promissory note. Before proceeding with the case, the lender must sign an affidavit of lost promissory note. In instances where a case was dismissed and the lender chose to re-file, but lost the promissory note in between the previous and new case, the lender can simply claim a lost promissory note.
Regardless of the previous case’s result, a lender has the ability to re-file if they feel their case regarding the foreclosure and mortgage debt is stronger.