In foreclosure proceedings in certain jurisdictions, borrowers may require the foreclosing party to produce the note as evidence that they are the true owners of the debt.
Just like with fixed rate bonds and other debt securities coupon (the yield offered as return) and principal become due upon maturity of the mortgage note or MNote.
Yield on mortgage notes and/ or MNotes is reflective of terms offered, liquidity, credit quality,, ranking and type of property collateral.
If someone is holding a private mortgage, these investors will give cash and take over receiving the monthly payments that were being paid to the previous owner.
has become a major impediment in mortgage servicers ability to foreclose on properties in judicial foreclosure states and in relief of stays in Federal Bankruptcy Court.
[11] Attorneys estimate that the documents belonging to as many as 50% of the mortgages made between 2001-2008 have been lost or destroyed, leading to demands by borrowers that the foreclosing party produce the note as evidence of the debt.
claim that almost all entities attempting to foreclose on homeowners are not the Real Lender, but rather a Servicer collecting monthly payments for a mortgage backed security (MBS) Trust.