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cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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How can the "Securitization" issue be used re: Bankruptcy and

Customer Question

How can the "Securitization" issue be used re: Bankruptcy and Forclosure issues in CA. where the courts seem to accept copies of docs. rather than the originals?
Submitted: 5 years ago.
Category: Bankruptcy Law
Expert:  cfortunato replied 5 years ago.
Hi JACustomer,
Securitization means mortgages are grouped together and mortgage shares are then sold to investors. For some unknown reason, many of the original notes were misplaced during the securitization process. If the original mortgage note cannot be produced during a foreclosure procedure, some but not all, courts will not allow the foreclosure to proceed.

I think this is what you wanted to know. If not, please let me know.
Thank you.
Customer: replied 5 years ago.
I will be attending the first meeting of a ch7 bk. What can I expect at the meeting and what should I bring?
Expert:  cfortunato replied 5 years ago.

You have to bring picture identification, preferably a drivers license.

The meeting takes around 30 minutes. The trustee will ask basic questions such as "Is that your signature on the petition?", and "Is everything in the paperwork truthful?", and then he will ask any questions he may have about what is in the paperwork.

Customer: replied 5 years ago.
If there is an attempt to lift the auto. stay, what options do I have?
Expert:  cfortunato replied 5 years ago.
I have never seen a case where a debtor was able to prevent a creditor from lifting the automatic stay.
Customer: replied 5 years ago.
If I claim the 1st mtg. is unsecured, because of the securitization process, what recourse does the creditor have, and what evidence must they produce?
Expert:  cfortunato replied 5 years ago.
The creditor would have to produce the original note.
Customer: replied 5 years ago.
If there is no "original" note due to MERS and Securitization, being that the original note no longer exists, and the "real" creditor is unknown, how can the Servicer, who is forcing the f.closure, prove any "standing"?
Expert:  cfortunato replied 5 years ago.
Mortgage servicers are able to foreclose without the original note because they have other evidence of the note.
Customer: replied 5 years ago.
I had hoped for a more informed answer.
Expert:  cfortunato replied 5 years ago.
The servicers have all the other papers involved with the securitization process. Those papers have each individual note recorded on them. Most judges will accept that recordation in place of the original notes.
Customer: replied 5 years ago.
Is there another attorney who has more knowledge of the securitization process that I can communicate with?
Expert:  cfortunato replied 5 years ago.

I opted out of this question so that someone else can help you further.