Not foreclosure-proof. It is not impossible for the banks to dig though and find the documents that properly show the transfers, and the notes can be found. It is just expensive to locate the warehouse, go in, and find the document
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There are many many of these foreclosures where the active agent is several parties 'down the line'. They do not have the paperwork and simply demanding that they produce it can stop the whole process dead in its tracks, largely because it stops being cost effective for said agent. In many cases, the original lending institution is dead and gone and its paperwork lost in the wind.
If done right, this can work very effectively. Of course, if one acts like the schmuck in your above imagined scenario, well, no it may not. And then again, if the paperwork is utterly lost, it might anyway.
I disagree as to how common this. My field is bankruptcy, and I have yet to see this strategy work. It may be difficult and expensive to track down the paper trail, maybe not worth it for a $200 credit card. It may buy someone time in a house before foreclosure, but does not get the the house free and clear. It destroys their credit in the process, which makes home ownership in the future even less possible. Buying time might be worth it for someone, but it makes the eventual eviction so much more certain.
When we see someone in court bring up this strategy, it's a dead giveaway that they will not succeed in their bankruptcy case. People should take anything they find on the Internet with a big grain of salt.
This strategy works very well on credit card collections, too, especially when the original card issuer is dead and gone, a very common situation these days. As always, one needs to do ones homework, but the Internet has vast amounts of good information - applicable statues, form letters, etc - that can be found without too much effort.
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If done right, this can work very effectively. Of course, if one acts like the schmuck in your above imagined scenario, well, no it may not. And then again, if the paperwork is utterly lost, it might anyway.
~M~
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When we see someone in court bring up this strategy, it's a dead giveaway that they will not succeed in their bankruptcy case. People should take anything they find on the Internet with a big grain of salt.
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~M~
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