Friday, May 1, 2009

Produce the Note, More Information

Back in late February I wrote a piece about using a tactic called “Produce the Note” to prevent your mortgage lender from foreclosing on your home.

A very nice gentleman called me yesterday and left me a voicemail, reminding me that I hadn’t posted the follow up piece I promised. Thanks for reading, sir! I’m sorry, and you’re right. I neglected to follow up.

The attorney I said I was going to call is Diane Drain. She’s a local attorney whom I met at a seminar she presented a few years back which was about foreclosure auction sales. Diane Drain has an excellent website with lots of information and sample forms you can file in court.

I put in a call to Diane’s office and hope she’ll have a few comments for The Phoenix Agents’ readers. If she’s able to speak with me, I’ll post her thoughts here!

Here’s what I think of Produce the Note, after letting it stew around in the back of my head for a couple of months. First, using the tactic in Arizona requires that you file a lawsuit. In my opinion you should hire an attorney to file a lawsuit, so Produce the Note isn’t free.

Second, Produce the Note isn’t very likely to make your mortgage lender roll over and cry Uncle. It’s a stalling tactic at best. If you reasonably think that you can save up enough money to come current on your mortgage (including all back payments, fees and penalties) if you just had more time, Produce the Note might help.

But instead of filing a Produce the Note lawsuit, you could also just hire an attorney to negotiate with your lender on a Forbearance Agreement. (Forbearance is a legal term for “gimme more time and then I’ll pay you back.”)

Bear in mind, I’m not an attorney and I don’t even play one on TV. If you’re seriously thinking about using Produce the Note, you should hire yourself the best attorney you can find.