Note assigned two weeks before foreclosure

[speculate]

I don't know if this is common or not but I originated a mortgage with WAMU years ago and just the other day, when I received the foreclosure summons and complaint, it shows the plaintiff as bank of america and that the note was assigned to them just about two weeks ago. So boa is the plaintiff and wamu is now a defendant. Confusing.

Aren't I supposed to be notified of these changes?

Do banks normally assign notes away right before foreclosure? Does this mean they're charging the debt off or something

The concept of selling notes is new to me

[DeadManCrawling]

They probably transferred the note from the servicer to the actual lender.

There have been court cases, primarily involving MERS, that have been delayed because in some jurisdictions only the lender can foreclose. So, a foreclosure complaint filed by the servicer could be ruled as invalid. It has happened in the past and delayed foreclosure.

So, now the parties avoid this by transferring the note back to the actual lender who then proceeds with foreclosure.

We had the same thing happen, with MERS transferring our note back to BaC a few days before BaC filed foreclosure complain on us.

Basically, they do these things, and the ones I posted in your other question, as a way of taking away possible defense strategies like "produce the note". They are taking away as many possible defenses as they can, which is smarter than they used to be.

[justbroke]

You probably live in Florida. As DMC hits the nail right on the head, this is because most mortgages, during this housing craze, are actually held by Mortgage Electronic Registration System (MERS). Just before foreclosure, the lender, acting as an agent of MERS who holds the mortgage, assigns the mortgage to the actual holder of the Promissory Note.

This is required because the mortgage is the security instrument or the one thing that allows a lender to foreclose. Having the Note just means that they are the one who is owed money. Together with the mortgage, they can foreclose on the property.

There are many shenanigans going on, but in Florida, you can't bring a foreclosure lawsuit unless you have an actual recorded assignment of mortgage, and you are in physical possession of the Promissory Note and it has been endorsed to you (the lender) or endorsed in blank. Foreclosures have been happening at record pace in Florida without any Court ever questioning the sometimes false and inaccurate documentation that is attached in the Complaint for Foreclosure. It's appalling really.

This is why "Produce the Note" isn't working in Florida anymore. MERS is who really messed this all up, but seems to have rectified the problem. You'll also notice backdating of assignments as well. This is perfectly legal so long as it is recorded with the County Recorder (Public Records) before the foreclosure action is filed.

I could go on and on about this stuff.

[speculate]

You guys are awesome. Thanks for the insight.