Why Paper? Part Four- By: Jay Turner

Description : TIP OF THE WEEK

November 25th
PAPER Part IV

Happy Day After Thanksgiving

This will be the last Tip of the Week pertaining to Paper for a bit. We shall get back to real estate and entrepreneurial pursuits next week. That being said, this Tip is probably the most important Paper advice I can give: ( Remember, I am not a lawyer. Always get competent legal counsel whenever you deal with Paper or Real Estate)

KNOW AND DO YOUR PAPER PAPERWORK

1. ALWAYS TAKE POSSESSION OF THE ORIGINAL DEBT INSTRUMENT.

2. ALWAYS RECORD AN ASSIGNMENT OF THE DEBT INSTRUMENT WHENEVER OWNERSHIP OF THE DEBT INSTRUMENT CHANGES HANDS.
BE ABSOLUTELY CERTAIN THAT THERE IS A RECORDED AND CLEAR CHAIN OF TITLE FROM THE DAY THE NOTE/DEBT INSTRUMENT WAS CREATED TO THE PRESENT MOMENT.

3. ALWAYS GET EVERY ORIGINAL NOTE YOU HAVE EVER SIGNED, MARKED “PAID IN FULL” WHENEVER YOU PAY OFF A THE NOTE. DO NOT LEAVE PAID NOTES OUT THERE FLOATING AROUND.

4. NEVER LOSE THE ORIGINAL NOTE.

The above rules of Paper have been around for hundreds of years, Without possession of the ORIGINAL note/debt instrument, it is difficult (and now, almost impossible to collect on a note secured by a real estate mortgage through foreclosure without actual possession of the ORIGINAL NOTE BEING PRESENTED TO THE JUDGE.

Let me ask you a simple question. You have just spent $300,000 in you own cash for a Lamborghini. You start the engine and drive away. Everything looks, sounds and feels great – what a vehicle! OOPS! You did not bother to get the title to the car. Oh well, everyone knows its my car. I’ll just keep driving it like it is my car.

Welcome to the world of the US banks, lenders and Wall Street. Nice car guys! You just forgot to get the title to trillions of dollars of MORTGAGE SECURED NOTES. And now know knows who is owed what and where the original notes are. By not doing the Paper paperwork correctly, the financial institutions of our fine country are being bailed out to the tune of thirteen point eight trillion dollars by the US tax payers. These guys never took title to, nor did they assign and reassign the ownership of all those original notes secured by all those defaulting homeowners who are walking away from their homes and mortgages and notes. No one knows who owns what to whom and where the original notes are located and who is “the holder in due course.”

Only “the holder in due course” has the legal right and the power to foreclose a mortgage. Possession of the note is ten tenths of the law and always has been.

Be knowledgeable of the rules of Paper, mortgages, trusts, title law, recordation procedures, and how the registry of deeds work. It help to have a hefty understanding of the Uniform Commercial Code, and contract law. Take your venture into Paper seriously and do your homework and due diligence in every aspect. When you buy a note, you had better really like the security because if the payments stop, you own it.

Good Luck and Good Papering. Learn to read! I mean really READ – Absorb what the words really mean. Most people can read words; but few really get the some of the very subtle innuendos of some documents that are out there. Be careful; be Paper wise; and become a user of Paper. ( Remember, I am not a lawyer. Always get competent legal counsel whenever you deal with Paper or Real Estate)

Jay

Article Source : http://www.look4articles.com/

Author Resource : Jay Turner has been involved with Real Estate, Paper and Small Business Counseling since 1965 and has been active as an investor, businessman, owner, teacher, lecturer, writer, and author on the subjects of real estate, paper and kitchen table entrepreneurialism as well as a counselor. http://www.OneUpRealEstate.com