Foreclosure Ch7 and promissory note Louisiana

[saywhat]

Ok the long and short is this. I have a property I was going to remodel but never got that far. Work slowed for me and I ran out of cash. The house has been sitting behind in notes for about 9 months. The bank served me with a seizure notice today. I will be paying a lawyer to handle a chapter 7 for me.


The property is going to be worth less than I owe the bank now (90,000.00). I also have other bills such as credit cards etc.

The original lender was a local bank that had a terrible track record of holding promissory notes. Another larger local bank bought out the original lender and I have heard from a reliable source the second local bank is having nightmares figuring out what properties they own and the paperwork on many loans was not right.

I would like to first attack the loan or amount based on the promissory note to see if they have the original. I would also like to possibly reaffirm at a lower loan amount if that is possible. ALso what is all this about robo signing that made loan invalid. What are my options here? Again I'm in Louisiana so sometimes the law is different here.

[justbroke]

You could probably just forget about the infamous "Show Me The Note" defense. If there are genuine issues with promissory note and mortgage, then a collateral attack on that, is the best case.

Robo signing did not make the Note "invalid" and in no way could ever make a Promissory Note invalid. The problem with robo signing was about the affidavits and assignments. An assignment never ever nullifies the actual Promissory Note and Mortgage (deed of trust). The assignment just shows the sale or transfer of the rights. The assignment is more about keeping other creditors from suggesting that "they" own the note.

If you have some genuine issues, you could certainly slow down the foreclosure and/or put yourself in a position to negotiate. I haven't ever seen a reaffirmation with a principle deduction and I would never encourage one to seek or otherwise sign a reaffirmation agreement! I received a modification on my mortgage WITHOUT a reaffirmation agreement, while I was pending discharge in my Chapter 7.

The first thing you should do, is speak with several attorneys that either specialize in real estate law and/or bankruptcy law to see what "your" options are.