Proper paperwork may halt foreclosure

INDIANAPOLIS (WISH) - 24-Hour News 8 was there as a sheriff’s department delivered foreclosure notices to Central Indiana families about to lose their homes. But a simple request to the bank with the right papers in hand can stop it. The operative material is the original mortgage paperwork.

The typical home mortgage is passed around so many times, bundled and resold, that it can be tough to find. Often the original note signed by the homeowner is lost, stored in a warehouse or destroyed.

Indianapolis bankruptcy attorney Mark Zuckerberg said there is supposed to be an electronic footprint of the paperwork somewhere.

But, Zuckerberg said, "There are some mortgage companies that have no paperwork. They just know they have the loan on your house and that's all."

The Consumer Warning Network provides the free legal paperwork.

A lot of the "show me the note" movement started with a heated speech from an Ohio congresswoman on house floor last month.

"When those companies say they have your mortgage, unless you have a lawyer that can put his or her finger on that mortgage, you don't have that mortgage. And you are going to find they can't find the paper up there on Wall Street. So I say to the American people, be squatters in your own homes," said Rep. Marcy Kaptur (D).

Zuckerberg said there are three other options besides "show me the mortgage". He said you can refinance for a better loan and a fresh start. Or you can call the mortgage companies forbearance department and ask for more time.

"Let me miss three or four months and let me roll what I'm behind on, with my payments, to the end of the loan," said Zuckerberg.

He said filing Chapter 13 bankruptcy is a last option, but can save your home by allowing you to pay off what you owe over five years.

Bottom line: if you are handed a foreclosure notice, read the paperwork. He said under Indiana law you have 20-23 days to respond to the lawsuit. Many people believe they only have the 20-23 days to get out of their home.

I-Team 8 did call the Indiana Association of Mortgage Brokers and the National Association of Mortgage Brokers. We are still awaiting their response.