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Show me the Note! Oppenheim Law Explains New FL Supreme Court Ruling

2004109385Taking a page from Cuba Gooding, Jr. in the movie Jerry Maguire, a new rule in South Florida courts has homeowners and foreclosure defense attorneys screaming: “SHOW! ME! THE! NOTE!!!”

Until now, banks have been abusing a Florida statute allowing them to file a foreclosure based on a “lost note.” The problem: the notes aren’t lost; the banks are just too lazy to look for them. This new rule is halting foreclosure filings in their tracks, as banks scramble to find the notes so they can foreclose.

Before, foreclosure mills were simply filing a complaint and claiming a ‘”lost note,” without actually ever looking for it. Now, the courts are requiring attorneys to prove the banks have at least attempted to find the note. Prior to this rule, banks would file the complaint, and the note would always mysteriously appear four months later IN ALMOST EVERY CASE.

An article published today in The Sun-Sentinel found foreclosure filings have dropped 36% since last month in South Florida. Local attorneys and judges are attributing this to the colossal mess at the banks, as they scramble to find the notes.

Before, they had plenty of time to look for it. Now, they can’t do anything without it. While this might seem like good news for the overwhelmed court system, in reality it is simply delaying the inevitable. Like the receding waters before a tsunami, we can expect a substantial increase in filings once the banks begin finding these “lost notes,” and then the entire system could drown.

Anthony DiMarco of the Florida Bankers Association sees it a bit differently, claiming the decrease in filings is due to the banks’ increased number of loan modifications, and an increased willingness to approve short sales.

tsunamiGIVE ME A BREAK!

Based on raw numbers, DiMarco is dead wrong! Although Obama’s Making Home Affordable plan had promised over 3 million loan modifications by now, in reality the banks have accepted only 300,000. Furthermore, of these 300,000, only 13,059 were in South Florida. Thus, it is ridiculous to say the banks are being more cooperative.

Maybe DiMarco has never tried to call a bank to discuss a short sale or loan modification. If he had, he would likely find that being on hold for hours at a time, having the bank tell you they have lost your sensitive financial documents, and being constantly hung up upon, is not exactly “cooperation.” If DiMarco actually believes what he is saying, he should stand by the receding waters until he is swept out to sea by the forthcoming foreclosure tsunami.

From the Trenches,

Roy Oppenheim

Tags: Anthony DiMarco, Florida Bankers Association, Florida real estate, Florida Supreme Court, foreclosure defense attorney, foreclosure filings, Lost Not Ruling, Oppenheim Law, Roy Oppenheim

3 responses to “Show me the Note! Oppenheim Law Explains New FL Supreme Court Ruling”

  1. Al says:

    “Now, the courts are requiring attorneys to prove the banks have at least attempted to find the note.” Oh, for crying out loud! What I’m seeing is a systemic corruption all across the board. Some people that are capable of critical thinking are unhappy, they are getting active, and they want changes in the way our justice system deals with these criminal bankers. Thing is, a vast majority of the population inherently trusts the establishment, and most everyone in some kind of prominent position in the establishment is in the banks’ pocket, including judges. What a septic tank!

  2. What will happen in our collective responsiblity as a result of all of these lost bank notes? Where is the accountability? Let me tell you a true story with the names left anonymous:
    Two years ago a seller starting contacting us and it turned out he owed 1.1M on a home worth around $900K. Owner did not want to short sell the home and even with the upgrades we were unable to secure a buyer so the home was withdrawn from the market.

    Less than a year later the homeowner contacted us again to sell his home and that he was no longer upside-down because his second mortgage of $500,000 had been mysteriously satisfied, a full payoff and satisfaction of mortgage. He had received notification that the mortgage had been satisfied even though he never paid it off.

    Title company verified the information and the home is due to close in a few weeks.

    What happened there?

  3. Aolqoa says:

    Let me get this straight, homeowners who rightfully and
    knowingly have signed a contract and a legal promissory note are now blaming the
    banks for their unwillingness to pay back the loan. They are scamming banks by
    saying “show me the note.” You knowingly under your own content signed a promissory
    note to pay back the loan.  Hence that is
    a legal contract, a PROMISE. Who cares where the note was sold. I don’t care if
    a pile of dirt owns the note, you have a legal obligation and contract to pay
    back the note or you should go through foreclosure. You get notice to where you
    need to send payment to! What a scam, you should not have the right to get a
    loan!  You know you owe money on a loan,
    yet you try and intentionally deceit the lender by saying “show me the note”. Last
    time I checked that is fraud: intentional deception made for personal gain!