Florida Real Estate Law Firm Assists Lenders with Collection Efforts

North Central Florida Real Estate Attorneys Dedicated to Providing Clients with Positive Solutions

A mortgage note, also known as a promissory note, expresses the personal obligation and liability of a homeowner to repay the mortgage bank all the money, including interest, that the bank originally loaned them when they purchased their home or made improvements.

The Mortgage Note

Although homeowners sometimes think of the mortgage as the contract they signed with the bank to borrow money to buy their home, it is actually the mortgage note that contains the promise to repay the amount borrowed. The owner of the note is the only party that has the legal right to collect on the debt and foreclose on the property if the payments are not made.

Producing the note can sometimes be difficult for banks because they don’t typically retain possession of a loan for its full term. In many instances, the debt is sold over and over again to different banks and investors, and there is always the chance that the new owner of the loan does not get the proper paperwork to show that they own the note and the mortgage.

Florida Law Regarding the Mortgage Note

Florida recently passed a law that requires banks to produce the note at the time of foreclosure. Effective July 1, 2013, a plaintiff (the bank) in Florida must prove its right to foreclose by filing additional items along with the complaint, including:

• A certification that the plaintiff is in possession of the original promissory note, or
• If the note cannot be located, a lost note affidavit with a clear chain of all endorsements, transfers, or assignments of the promissory note.

Are you a lender or a note holder looking for legal advice regarding the collection of a Florida mortgage note? Dean and Dean, LLP represents lenders throughout north central Florida, including those in the counties of Marion, Sumter, Citrus, and Lake. Or, perhaps you are a homeowner in need of advice and counsel regarding your rights in defending a mortgage foreclosure action. In either case, Dean and Dean, LLP can provide effective, professional representation for your mortgage note collection or defense needs. For effective legal representation, contact our firm online or call (352) 515-9221 to set up your initial consultation today.