Discovery is a necessity when defending a foreclosure
Publish Date : 7/7/2013 4:42:00 PM   Source : John Cunill

When defending a foreclosure, I immediately beging requesting discovery to establish what Bank owns the note and does the party bringing the foreclosure have standing to sue the homeowner.  Recent cases have supported Bank when the Bank brings an open ended note or allonge, whereby the note is payable to the bearer.  In Riggs v Aurora Loan Services, LLC the Courts held: The indorsement in this case was not a “special indorsement,” because it did not “identif[y] a person to whom” it made the note payable. § 673.2051(1), Fla. Stat. (2008). Because it was not a special indorsement, the indorsement was a “blank indorsement,” which made the note “payable to bearer” and allowed the note to be “negotiated by transfer of possession alone.” § 673.2051(2), Fla. Stat. (2008). The negotiation of the note by its transfer of possession with a blank indorsement made Aurora Loan the “holder” of the note entitled to enforce it. §§ 673.2011(1), 673.3011(1), Fla. Stat. (2008).Riggs v. Aurora Loan Services, LLC, 36 So. 3d 932, 933 (Fla. 4th DCA 2010)

This is a very important piece of evidence, I have discovered several lenders who have attached blank endorsements to the note, even when the actual note had been closed and transfered to another lender.  If you are facing foreclosure and are confused about your options, contact a competent attorney in your area who has experince in foreclosure defense. 

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