"Real Estate Closing Document Example"
ACTUAL CASE: FLOW FROM REAL ESTATE CLOSING TO FORECLOSURE At Real Estate Closing: Notes: Required documents Borrower signs: GB Company sells before foreclosing entity • Promissory Note Promissory Note to (attorney) can legally foreclose: promising to pay Nations Bank • Original (not copy) wet ink GB Company (Security deed should be promissory note signed by • Security Deed or Deed transferred with Note) borrower at closing endorsed of Trust (deed to secure (signed/notarized) in sequence debt) from the mortgagee to the foreclosing party. Or, absolute proof of loss of note (per UCC America Servicing Company (owned by Note is bundled with Section 3-309). Wells Fargo) buys Servicing Rights other Notes to make • Assignments of Beneficial (responsible for collecting money for the a securities package Interest in Deed to Secure Debt promissory note holder.) Mortgage Backed – in sequence - from mortgagee ASC failed to respond to borrower who Securities (MBS’s) to foreclosing entity offered full payment – rushed to • Signed and notarized Deed of foreclosure. Request for promissory note Trust or Security Deed (with Multiple bundles of (legally required by attorneys to foreclose) recording information) MBS’s are packaged denied.borrower. into Collateralized • Copy of modifications of the Mortgage Obligations Note (with recording (CMO’s) information). Fraudulent Document • Accurate accounting of Recorded in Cobb County: CMO payments and charges. Assignment of Beneficial • Security Deed or Deed of Interest in Security Deed -- MBS MBS Trust has to have a legitimate from MERS to Wells Fargo Power of Sale provision. MBS MBS CAUTION: Why is it the Associate attorneys from the Borrower's right to demand proof foreclosing law firm McCalla that the foreclosing entity is the Raymer signed as officers of MBS MBS legal noteholder? In the event MERS. Also Notary did not CMO’s Sold the judge allows a "copy" to be witness signatures. Stamp to Investors submitted, the Borrower will dated > 4 years from date and be at risk because the original signed. Investment noteholder could later come Houses forward demanding payment. American Home Mortgage Mortgage Electronic buys Servicing Rights Registration Systems Investment Houses: (responsible for collecting (MERS): Bear Stearns money for the promissory Electronic registry formed by Leaman Brothers Government note holder.) heads of mortgage banking Goldman Sachs Bailout industry to track ownership Merrill Lynch and servicing rights in Other Investors: mortgages. Avoids fees Deutche Bank Irwin Mortgage buys associated w/ recording in Groups of banks Servicing Rights public registry. Private Individuals (responsible for collecting money for the promissory MERS registers Security Important: note holder.) Deed or Deed of Trust These Investors are (deed to secure the note) supposed to hold the while servicing rights are original Promissory transferred from one entity to Note signed at closing, the other. It never legally not a copy. holds the Promissory Note and therefore has no beneficial interest in the Note. (See Exhibit on MERS)