Standing is a legal term that refers to whether your mortgage company has the right to take you to court (such as a foreclosure). When a mortgage loan is involved the question becomes who owns my mortgage (the “Note”). This question is important because many homeowners have dealt with more than one mortgage servicer. The opportunity for error increases when multiple servicers are involved. Also, Notes have been supposedly transferred into securitized trusts. If the proper procedure transferring the Note is not done as required by the securitized trust we contend they don’t have standing.

Every payment made by the home owner to the mortgage servicer must be credited properly to their account. How the payments are to be credited is controlled by the Deed of Trust and the Note. A MSFA provides you with the true facts of how your payments were credited. This information is difficult for a homeowner to obtain, difficult to understand and the mortgage servicer only provides you with what they choose to share with the homeowner. A MSFA will provide true and accurate information regarding the payments you made to your mortgage servicer and how each of those payments were applied.

In a chapter 13, the owner of your Note typically files a document called a proof of claim. The proof of claim reflects what that creditor believes the homeowner owes at the time the bankruptcy is filed. It also includes a copy of the Deed of Trust and Note. These documents support the creditors’ position that they have standing and are entitled to the money they requested in their proof of claim. The MSFA is a valuable tool to the debtors’ attorney in determining whether the proof of claim is accurate or false.

Robert N. Grossbart - My background as a certified public accountant and attorney provides me a unique perspective to analysis your mortgage.