Is it true that only the original owner of a mortgage may bring a foreclosure suit?

UPDATED: Jul 14, 2011

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Is it true that only the original owner of a mortgage may bring a foreclosure suit?

In FL. If someone else brought it could the case be dismissed?

Asked on July 14, 2011 under Real Estate Law, Florida


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

No this is not true. Typically loans secured by mortgages (or trust deeds) at the original close of escrow are sold by the original lender where the original lender gets to service the loan for the new owner and collect a fee.

If a loan is sold, typically there will be a notice of the assignment or transfer recorded on the property that has the loan secured upon it and notice of the assignment or transfer is mailed to the property owner.

The person or entity who is bringing the foreclosure suit in your question would have to prove that he/she/it actually owns the loan secured by the property to end up winning on the foreclosure suit assuming there is a basis for the foreclosure.

If the person bringing the foreclosure suit is shown not to own the loan secured by the property subject to the foreclose, the case could very well be and should be dismsised.

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