Across the country, banks are attaching “allonges” to original promissory notes, then using the attached allonge to allege their ownership of the note and their standing to foreclose.
The problem for the banks is an allonge is only supposed to be used when there is not sufficient blank space on the front or the back of the original note to stamp a “wet” endorsement on the face of that original document to transfer ownership from the lender whose name appears on the face of the note to the next holder of the note.
Attached here is a Motion to Dismiss I just filed which includes all the relevant research from across the United States that pertains to the use of allonges. It is fascinating to consider that allonges are being used perhaps millions of times across the country in support of bank’s efforts to foreclose on homes when the use of allonges in many of these cases may not be supported by the law or the facts of the case.
I publish this Motion and challenge attorneys, advocates, academics and any interested party to weigh in on the issue…if anyone can find proper legal justification for the widespread use (misuse) of allonges that currently exists in mortgage foreclosure cases, please send me information and correct me…having said that, I don’t expect that any contrary case law exists.
As we’ve learned from depositions taken of Angela Nolan (her full deposition here) and other Robo Signers, allonges are being produced by word processors and not signed by hand (as they are supposed to be). The original note is not even in possession of the party when the alleged allonge is created and the allonge is merely stapled or affixed at some later date. All of this violates the intent and purpose of original “wet” endorsements on the face of the documents which are intended to be a permanent record of a negotiable instrument’s chain of title.
Examine all documents carefully, and challenge the authenticity of everything….this issue is begging for an appellate court decision!
Interesting article my partner who is an attorney in New York just got creamed by a judge who issue summary judgment in favor of plaintiff for not knowing rules of indorsement for negotiated instruments pursuant to the UCC
The plaintiff Deutsche Bank fabricated documents including allonges, MERS resolutions and defective power of attorney’s if you semd me an email. I’ll send you exhibit’s
thx. weidnerlaw@yahoo.com
there is more work coming out of new york bankruptcy court….they’re looking into systemic document fraud on the part of creditors….stay tuned.
hmm, very uinteresting . I am very interested in seeing these documents. As I too am going toe to toe with Deutsche pro per.
will be looking foward to seeing them!!
Thank you
Hello James Green. If you could send me an exhibit, I would really appreciate it. I am having the same problem with Deutche right now. Thank you
Would like to see those exhibits.
hello
very interested in copies of motions on allounges
thank you
gary
Interesting article my partner who is an attorney in New York just got creamed by a judge who issue summary judgment in favor of plaintiff for not knowing rules of indorsement for negotiated instruments pursuant to the UCC
The plaintiff Deutsche Bank fabricated documents including allonges, MERS resolutions and defective power of attorney’s if you semd me an email. I’ll send you exhibit’s.
Please do not publish my e-mail info. Thank you.
Happy Holidays!
Hello,
I would like to see your exhibits. I work for a mortgage servicing company with a less than savory reputation and I execute allonges and now and have done assignments for them as well. I have to admit that I only took the job because I needed a job, and I am now questioning many things, and would like to learn more about foreclosure and document fraud. We deal with Deutsche Bank and I am very, very interested in seeing what they did!
i would love to see your exihibits and anything else you have on Deutsche Bank;s fraud.
I’m confused. I have Saxon Mortgages Services as Plaintiff. The Mortgage and note are endorsed in blank with lender Drew Mortgage associates. In response to a RTP any assignment or evidence that Saxon is proper plaintiff they provided a copy of the note and mortgage-endorsed in blank with an allonge attached “pay to the Order of Ohio Savings Bank”?? Then shouldn’t the proper plaintiff by Ohio Savings Bank?
Me and my partners purchased a hotel in 2005 we have been only able to keep the doors open due to contributing every bit of our savings to the business as of Oct 2010 we were no longer able to make the payments and the bank would do nothing to help. We were just served papers ware as the orginal bank used an “Allonge” to transfer the note to HSBC for the amount of $10? HSBC without any notification beside a demand letter to pay in full never(20 days pryor)never contacted us. Question the original mortgae was turn into a derivitive by the banks own acknowment can a transfer by Allonge be used as the mortgage. Is HSBC entiltled to collect the mortgage since they have no ivestment beyond the $10 transfer fee or is their legal right limited to the $10 payment since no mortgage has been presented?
I am facing a possible foreclosure and asked ‘servicer’ to please send original documents, of course they sent a copy (minimal copy at that). But what I now find ‘interesting’ is they sent TWO ALLONGE OF NOTE PAGES (Supposedly signed / stamped by 2 separate yet connected AIG companies both ‘without recourse’). My question/comment:
Is the ‘Allonge of Note’ supposed to be seen or signed by homeowner while signing closing mortgage paperwork? I can prove I have never seen these before BECAUSE the Title Company actually provided me with a CD on the day of closing and Allonge of Note IS NOT on there either. So can the ‘servicer’ move forward with foreclosure when THEY sure don’t own it?
No. Not even close. An allonge is an attachment to a note on which endorsements are placed. An endorsement is basically the way in which interests in mortgages are transferred from one beneficiary to another. Endorsements are signed by the beneficiary of the mortgage, not the individual who borrowed the money. The fact that you didn’t sign the endorsement is of absolutely no consequence. Sorry for the bad news, but if you go into court complaining that you, the borrower, didn’t sign the endorsement, you’ll get laughed out of court.
I cannot speak to other states, but in CA the allonge IS sufficient evidence of assignment even if it is attached to the Note as opposed to stamped on the Note–regardless of whether there was space on the Note for the stamp… . As explained by the Bankruptcy court in In re Macklin, the no-space test no longer stands in California:
” Moreover, any argument that the allonge is ineffective, since space remains on the Note itself for the placement of an endorsement, also fails. California law clearly permits the use of an allonge even if there is space on the Note. Cal. Com.Code § 3204 (” For the purpose of determining whether a signature is made on an instrument, a paper affixed to the instrument is a part of the instrument.”); see also Official Comment to Cal. Com.Code § 3204 (” The last sentence of subsection (a) is based on subsection (2) of former Section 3″“202. An indorsement on an allonge is valid even though there is sufficient space on the instrument for an indorsement.”) Macklin’s reliance on Pribus v. Bush, 118 Cal.App.3d 1003, 173 Cal.Rptr. 747 (1981), is misplaced since that decision interprets former Section 3202 which was superseded when the current version of Section 3204 was enacted in 1992.” 10-44610-E-7, 2011 EL 2015520 (Bankr. E.D. Cal.), May 19, 2011.
I would advise anyone who plans to hang their defense on the no-space test to double check that their state has not codified around it.
the no space test is largely gone, the key is getting judges to understand why this has just been ignored…..
the no space test is largely gone, the key is getting judges to understand why this has just been ignored…..
Thanks Carissa. I’ve been looking for a case that says (1) allonges are ok, and (2) that there is no need for there to be no space on the note for an allonge to be valid. Guess I should have included the bankruptcy courts in my search. Very helpful.
In my case I have an allonge of the Note attached to the note. There is no allonge of the mortgage and no mention of the mortgage in the allonge to the Note. There is also no assignment of the mortgage. Please verify that the allonge of the Note does not act as an assignment of the Mortgage.
Hello. If you could send me an exhibit, I would really appreciate it. I am having the same problem with HSBC and Law firm of Marshall Watson right now. Thank you
I would love to see your exhibits as well. I just found out I may have a robo-signer on my Allonge, The Allonge may be a fraud since it appears that the Original Note does have enough space to endorse it.
Thanks