How to argue the "allonge"

What Is an Allonge?

An allonge is an additional sheet of paper firmly attached to a promissory note to provide space for endorsements. It is only necessary when there isn’t enough room on the note itself.

Key elements for a valid allonge:

1. It is separate from the note but permanently affixed.

2. It contains endorsements (or “indorsements”) transferring interest in the note.

3. It is justified only if the note itself lacks space for endorsements.

4. It must be so securely attached that it is treated as part of the original instrument.

The Purpose vs. The Practice

In legitimate commercial transactions, these rules are strictly followed. But in residential mortgage securitization, courts have been far more lenient—opening the door to abuse.

• Fabricated allonges often appear with a single stamped endorsement even when there was space on the note.

• Many allonges are never attached to the note at all.

• Endorsements are frequently signed by so-called “authorized signers” who turn out to be mortgage brokers or agents from origination—not actual note holders.

This practice enables unauthorized trading in debts where neither the “buyer” nor “seller” ever paid value for the interest.

Allonges and Bearer Paper

An allonge can sometimes convert a note into bearer paper—meaning whoever possesses it can enforce it.

But here’s the problem:

• Ownership of the note is not the same as ownership of the debt.

• Courts often presume enforcement rights from possession of the note, even when no debt ownership exists.

This creates a dangerous loophole where foreclosure judgments can be entered without proof of a creditor or unpaid loan account.

The UCC Requirement Most Courts Ignore

Under UCC Article 9 §203, a party cannot enforce a mortgage or deed of trust without proving:

• They paid value for the debt, and

• They actually own the debt.

This statute has been adopted verbatim in all U.S. jurisdictions. Yet in practice, courts often allow foreclosures to proceed based solely on possession of a note and a fabricated allonge—ignoring the debt ownership requirement.

How Fabricated Allonges Can Be Challenged

With investigation and discovery, foreclosure defense attorneys often find that:

• The endorser and endorsee never paid value for the debt or note.

• The allonge was fabricated for litigation and never properly attached.

• Presumptions about debt ownership can be rebutted with this evidence.

Challenging an allonge may:

• Defeat presumptions that the note equals the debt.

• Undermine application of the merger doctrine (which prevents dual liability).

• Raise arguments that the mortgage or deed of trust is void if it secures only the note rather than the debt.

A Word of Caution

These issues are highly technical and fact-specific. As Neil Garfield emphasizes:

👉 Do not act on internet interpretations—even from knowledgeable attorneys—without professional help.

Every case requires a tailored analysis of:

• The note,

• The alleged allonge, and

• The evidence of actual transactions (or lack thereof).

Only then can homeowners know if they have traction in raising defenses or claims.