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Security Interest

Posted on: 04th Apr, 2004 11:43 pm
The Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 focuses on security interest to protect lenders. Security Interest refers to the lender's right to take property that has been offered as security.

Sometimes borrowers fail to repay the loan amount as well as interest. In such cases lenders look for interest in the borrower's asset as a security. Lenders obtain security interest by taking over the borrower's asset and enforcing its sale. They also have the right to hand over the asset to a third party.

For example, Paul took a mortgage from Jack by offering his home as security. Security interest is the right of Jack to take the home which has been offered as security.
I refinanced my home a year ago and recently learned that the mortgage company failed to have me sign the mortgage security agreement. It is my understanding that we sign the note but not the security agreemnet - in checking with the registers of deed - I learned that they did some kind of electronic filing after the fact, but, we never signed the agreement. Do we have any recourse in this matter?
Posted on: 09th Aug, 2005 07:22 am
Hi Nelly
Welcome to MortgageFit forum.

There is no problem if you have not signed the mortgage security agreement. This agreement is basically a legal document that offers the lender the right to demand interest in the borrower's property in case the latter defaults on his mortgage payment. But the promissory note is a legal document through which a borrower promises to pay off his debt in time.

However, it is a legal formality and so I would advice that you talk to the mortgage company regarding this matter and sign the agreement as early as possible.

Hope you will be benefited from this information.

Please feel free to post further queries. Also sign up with us at http://www.mortgagefit.com/signup/ to avail free consultation on related issues.

Regards,
Jessica.
Posted on: 09th Aug, 2005 08:44 pm
I live in Michigan and I want to know if I have a right to have the original mortgage and note produced? Thanks. d
Posted on: 25th Jun, 2008 06:52 am
Hi Guest,

Are you a borrower or a lender? You need to elaborate your question a bit more so that we can answer.
Posted on: 26th Jun, 2008 03:55 am
Dolores can you clarify what it is you are looking for? And from whom?
Brian
Posted on: 26th Jun, 2008 07:38 pm
I am the borrower and I want to obtain the original mortgage and note and was told no one had it - I just found some info on MERS (Mortgage Electronic Registration System) out of VA who has been the trustee of this mortgage but turned it over for foreclosure. d
Posted on: 08th Jul, 2008 06:25 pm
Hi Dolores.

You should have your mortgage documents. Don't you have it? Is it that you have bought a mortgaged property and now want to obtain the original mortgage documents?

Best of luck,
Larry
Posted on: 09th Jul, 2008 02:26 am
The "mortgage" consists of two elements. One is the promissory note; the second element is the security interest. The security interest is registered with the county office as a property lien upon the residential property. Recently the Courts due to the large number of foreclosures precipitated by the Fannie Mae and Freddie Mac Arm programs supported by the National Democratic and National Republican members of the Federal Legislature, has demanded the production of a True copy of the Original Note. The bundling of these Arms over the past twenty years was at best haphazard, and at its worst the true copies of the original security interests were either misplaced, and or lost by the arbitrators.
This failure to produce true copies of the security interest has led a Federal Judge in Ohio to toss out fourteen foreclosure claims moved by Deutsch Bank in November 2007 for the legal inability of the Petitioner to substantiate its ownership of the securities lined upon the residential properties.
Posted on: 11th Jan, 2009 11:18 am
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