But if consumer attorneys want to create a situation in which the simple fact of loss of or irreparable damage to an original note vacates the debt, I can promise you you will not like the consequences of that. If it turns into Total War here, don't ever lose an original cancelled check. You should know that there is actually one fairly respectable reason for doing FC filings with note copies, besides servicer laziness or loan sale screw-ups: taking your original note out of the custodian's vault to send to some local attorney to attach to a court filing creates several more opportunities for it to get lost. If it becomes a requirement that FC can proceed only with the original note in the courtroom, and the presence of an LNA always means dismissal, then the things are going to have to be handled and shipped and received with the same level of security as a million-dollar bearer bond. Like, a Brink's truck and a bonded courier carrying a briefcase handcuffed to his wrist. You want to pay the cost of that? No. You don't. But you will.
The problem for banks is that even if the underlying issues favor them -- which is to say that most foreclosures are legitimately the result of homeowners not paying their bills -- politicians are in no mood to side with them.
And while the public may not much like the idea of bailing out their neighbor, which was of course the core issue behind the initial Rick Santelli rant that really got the Tea Party going, they like the idea of giving a free pass to the banks even less.
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