The note actually belongs to the maker unless the maker transfers ownership or sells it to another party, like the lender. The holder in due course merely holds, and does not own, the note, and must return it to the maker (borrower) upon satisfaction of the note’s terms. The mortgage allows the lender to sell the note, but that does not mean the owner gets to keep the proceeds of the sale, since the note belongs to the borrower. This messed up language in the mortgage constitutes a fraud. It seems to mean the lender owns the note, but it actually mans the lender owns the beneficial interest in the note, the right to receive the payment stream. Attorneys around America have allowed this insane language to creep into the mortgage to imply an untruth and non-fact. The lender does not own the note. The lender owns ONLY the right to receive payments of principal and interest, and the right to assign that right in whole or part to others. Read Article III of the UCC (Uniform Commercial Code).
Posted on: Sun, 28 Jul 2013 08:01:15 +0000
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