Florida Bankers Association Admission to Florida Supreme Court: "Original Notes Were Eliminated"

Did Banks Really Destroy Original Mortgage Notes?

Yes. In 2009, the Florida Bankers Association admitted that many banks deliberately destroyed original mortgage notes right after loan closing.

Instead of keeping the paper, lenders converted notes into electronic files and then discarded the originals. Their justification: it was “more efficient.”

But here’s the problem: under long-standing law, the original note is required to prove ownership of a debt in court. Without it, a foreclosure action may lack legal standing.

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Why This Matters for Homeowners Facing Foreclosure

If your lender (or servicer) can’t produce the original note, the case against you may be weak. Banks and their lawyers often try to get around this by filing “lost note” affidavits—but these aren’t the same as proving they actually hold the debt.

This means:

• The party foreclosing may not be the true creditor

• The debt may have been sold multiple times through securitization

• The foreclosure could be based on forged or recreated documents

A skilled foreclosure defense attorney near you can force the bank to prove its claim and, in some cases, get the foreclosure dismissed.

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How Destroyed Notes Fueled the Mortgage Crisis

During the housing boom:

• Banks pushed risky loans, like “NINJA loans” (No Income, No Job, No Assets).

• Appraisals were inflated to justify larger mortgages.

• Investment banks sold the same loans multiple times to investors.

By destroying notes and replacing them with digital images, banks made it nearly impossible for homeowners—or courts—to track ownership. When the market collapsed, millions of foreclosures were filed with questionable or fake documentation.

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What This Means in Today’s Courtrooms

Even after large settlements, banks still argue that borrowers shouldn’t demand original notes. Many courts accept copies or affidavits, assuming banks are acting in good faith.

But if your foreclosure case involves a lost note, your attorney may challenge:

• Whether the plaintiff has legal standing

• Whether the loan was sold multiple times

• Whether the foreclosure is supported by real evidence

Homeowners have successfully defended cases by demanding the original note or exposing flaws in the documents banks submit.

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How a Foreclosure Defense Attorney Can Help

If you’re facing foreclosure, don’t assume the bank’s paperwork is correct. A local foreclosure lawyer can:

• Review your mortgage documents for signs of irregularities

• Demand proof of the original note and loan ownership

• Challenge “lost note” affidavits and fabricated evidence

• Negotiate alternatives or seek dismissal if the bank can’t prove standing

Even if your case doesn’t end in dismissal, forcing the bank to prove its claim can buy valuable time and leverage for settlement.

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Take Action Now

If you’re in foreclosure or have received a notice of default:

• Don’t ignore it — the bank is counting on you to give up.

• Contact a foreclosure defense attorney near you immediately.

• Ask whether the original note exists — and if not, how that impacts your case.

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Conclusion

The Florida Bankers Association’s 2009 admission revealed that destroyed mortgage notes weren’t accidents—they were part of an industry practice that undermined homeowners’ legal protections.

For homeowners facing foreclosure today, this creates opportunities for defense. By demanding proof and holding banks accountable, you may be able to delay, negotiate, or even defeat foreclosure.

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Posted in evidence, foreclosure defenses, Uncategorized |