Distressed home owners are being advised of a new way to stop foreclosure on their homes, and it's not the silver bullet that it claims to be. The newest urban legend in real estate is a version of the "Produce the Note" strategy. The theory is that your mortgage has been resold 3 times to different banks, and the bank that now holds your mortgage probably can't find the official documents that show you owe money - the "Note". If the bank can't produce the Note, they can't legally make you pay your mortgage payments or foreclose on you (this doesn't have any credibility in non-judicial foreclosure states, and little evidence of long-term value in other states).
Attorneys, unfortunately, are some of those people propagating a scam based on this strategy. California has begun prosecuting attorneys who charge distressed homeowners thousands of dollars up-front, thousands in ongoing monthly fees, and never get any results. They file a simple lawsuit and never follow up. Why? Because there is no evidence that any of their clients actually get help. The vast majority end up being foreclosed upon anyway.
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