Posted on: 16th Nov, 2011 09:44 pm
My friend is delinquent on her mortgage payments but she is reluctant to file bankruptcy. She has asked her bank several times for the original paperwork but they haven’t given it to her. She has decided to leave the house but is not sure whether or not the bank is legally entitled to foreclose it. In such a situation is she liable for paying the mortgage?
Unless the bank can show the original paperwork for the loan, they won't be entitled to claim the mortgage payments. Your friend should not walkaway from the property and let the lender foreclose it and file a case in the court. If they cannot prove ownership of the loan, your friend can own the property free and clear.