Bank of America Sues Nashville Bankruptcy Trustee Over “Show me the note,” Tactic

Bank of America sues Nashville bankruptcy trustee

In a rare legal counter move, Charlotte, N.C.-based Bank of America (NYSE: BAC) has filed a lawsuit against Nashville’s Chapter 13 bankruptcy trustee.

It’s the first time in recent Tennessee history that a large lender has sued a trustee of the court, according to a local bankruptcy attorney.

The move marks an effort on behalf of the bank to put an end to a common defense tactic used by debtors and foreclosure judges in the aftermath of the mortgage meltdown. Known as “show me the note,” the tactic forces a lender to offer up physical documentation that they actually own the mortgage.

It’s a method that has been successful in Nashville, where bankruptcy trustee Henry “Hank” Hildebrand has become well known for his efforts to force mortgage companies to produce the original note when filing a claim in bankruptcy proceedings. (Tennessee is a state that doesn’t require judicial approval for foreclosures, so the process typically takes place in bankruptcy court.)

But it can be a lofty order for lenders that, following the securitization boom, bundled up millions of home loans, sold them and packaged them into bonds.

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5 Responses to “Bank of America Sues Nashville Bankruptcy Trustee Over “Show me the note,” Tactic”
  1. Tim Bryant says:

    This will either get dismissed quickly, or it will be interesting to watch. BofA will open up to the world, their internal practices of how they handle notes and mortgages.

  2. Heather Aquafresca says:

    AWESOME! Prosecuting parties will not even have to prove their standing!! Incredible and disgusting. Standing is a REQUIREMENT to ensure the protection of due process. How could an individual EVER respond to a lawsuit not even knowing if the Plaintiff is the proper party to bring the suit? Standing is a requirement in our justice system, and I applaud the bankruptcy trustee for DOING HIS JOB.

    I find it disgusting that people try to pervert the legal system, especially when they are doing so for their own personal gain. I also don’t care for people referring to it as “show me the note” because I feel like it almost dilutes the real issue here: SHOW ME YOUR STANDING.

  3. barbra orr says:

    I am confident that the bankruptcy trustee will win. I am sure that he is following the law. BOA on the other hand would not recognize lawful if it knocked on the door with a sign.

    • T says:

      Criminals don’t work within the law. And, I am confident of nothing. Look at what BOA has done already. May God have mercy on their souls.

      • JJ says:

        Bank of America wants to hijack our court rooms the same way they have taken over our public officials .. they don’t care about rule of law .. they are not interested in following the law and showing the note .. rather, they want the people they’ve victimiized to “show them the money” or end up on the street .. so unfair !!

        I think they’ve picked a fight with the wrong somebody this time .. I hope that Trustee makes them rue the day they filed a lawsuit .. Go Hank go .. put them in their place !!

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