Many people have read or heard that if a lender does not "produce the note," it cannot foreclose. Unfortunately this is absolutely false in California, and has caused many people to waste a lot of money, time, and effort by trying to prevent a foreclosure. Don't be fooled!
Because of the massive foreclosure crisis, a lot of attorneys have flocked to foreclosure defense. Many are honest and sincere and truly wish to help people. Some are just out for a buck. But in either case, these attorneys charge people to file lawsuits to stop foreclosures of their homes or other properties, only to have their cases quickly fail.
California state courts have said, unanimously to my knowledge, that it does not matter who owns the lien for your house; if you do not pay your mortgage, a creditor may foreclose, even if they can't prove that they own your loan. There may be other legal reasons to stop a foreclosure, but forcing the foreclosing creditor to prove that it owns your loan is not one of them in California.
However, a viable Chapter 13 bankruptcy will stop a foreclosure, by law, and may eliminate or greatly reduce your credit card, doctor, and medical debts. You do not have to prove anything to the court, so long as you can afford to make your proposed plan payments that will pay for the arrearage you owe for not paying your mortgage. See the Foreclosure Page on my website for more information on Chapter 13.
No one solution for foreclosure problems is right for everyone. But before you spend thousands of dollars trying to stop a foreclosure by claiming that the foreclosing creditor cannot prove that it owns your loan, consider filing Chapter 13 bankruptcy instead. You will have a much higher chance of saving your home or other property.