Bob Ivry of Bloomberg News is reporting that 5 states have held that the Mortgage Servicer must prove up the original note in order to proceed with a foreclosure. The allegation of, we own the note will not work anymore. The Bank must produce the actual piece of paper and it must be the original. A lost note affidavit will not work.

The industry is saying we have not really lost the notes we just cannot find them right now. The mortgage industry contends it is caught up in the tension between the electronic age and the papers age but Ivry says it is much more complicated than this.

All consumers should challenge the foreclosure servicer and require proof of the original note. The notes should be held by a named custodian but in many cases the custodians cannot find them. If they have really lost them, then the servicers should be required to establish how and under what circumstances they were lost and what they have done to find them.

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