mortgage loan docs

[catsreiki]

What is the name of your state (only U.S. law)? Colorado.
Someone told me that if your mortgage company no longer has copies of your loan documents the contract becomes null and void. Is this true?

[FlyingRon]

Nope, it just makes it a little harder for them. The deed of trust or some other instrument is almost always recorded with the government which means that the document can always be retrieved there.

[tranquility]

I disagree with FlyingRon. This is a big problem. The recording clearing house has not been assuring proper endorsements on the notes and is making it near impossible for many of the loans to be quickly called.

That does not mean it is null and void, it only means the holder of the loan must work back through the chain (some of who may no longer exist) getting the proper endorsements so the holder can prove they have a right to forclose or get the debt. Until fairly recently, the courts were just passing these things through with the word of the attorney/holder that everything is fine. Attorneys for the debtors have started challenging this and are winning.

However, this is a technical area of the law and you would need an attorney to use it to *delay* foreclosure or collections on the note. How long of a delay depends on how much work would need to be done to perfect the securitized note. I've heard some cases go on years.

[HomeGuru]

Originally Posted by catsreiki

What is the name of your state (only U.S. law)? Colorado.
Someone told me that if your mortgage company no longer has copies of your loan documents the contract becomes null and void. Is this true?

**A: not true.

[FlyingRon]

I didn't imply that it wasn't a big problem. That's why I said it is more difficult for them as they need to find the promissory note to take action most likely. However, they're not going to lose their security interest if it's recorded.