Colorado Homeowner Demands Note, Alleges Fraud In Suit Seeking To Block Foreclosure

In Platt Park, Colorado, The Denver Daily News reports:

• Platt Park resident Vicki Dillard is demanding that the bank that controls her mortgage “show me the note” if it wants to foreclose on her home. Dillard is joining a national movement in which homeowners are attempting to delay or block foreclosures by asking that banks produce the original mortgage note if they want to foreclose on a home. Because mortgages are sold and packaged into bonds many times over after a lender issues a mortgage note, many banks have been having trouble producing the original note.

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• She has filed a lawsuit seeking to block the foreclosure. In addition to her “show me the note” argument, Dillard also is arguing that her lenders violated federal regulations requiring them to be completely honest and disclose all terms and conditions of the mortgage agreements. The lenders have signed an affidavit of lost note acknowledging that they have lost the original mortgage documents, which Dillard believes will bolster her case.

• But the law is vague when it comes to requiring banks to produce the note. It’s unclear whether in Colorado the “show me the note” argument is an acceptable defense. Mortgage counselors warn against the defense, instead counseling their clients to work with lenders to save their homes.

For more, see ‘Show me the note’ (Woman asks lenders to show original mortgage note in foreclosure).