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The attorneys for Wells Fargo were a no-show for a hearing on their suit to enforce a missing promissory note so the judge dismissed it.
For the estate of Kathryn F. Causey, a Cedar Key accountant who died in January 2008, it’s a victory in staving off a foreclosure attempt by the lender who cannot produce the original promissory note.
The property parcel No. 00393-000-00 at 12421 State Road 24 in Cedar Key has a frame home built in 1930 consisting of two rooms and an unfinished screen porch, according to the appraiser’s office records. The County Property Appraiser’s Office sets a just market value of $118,242.
In 2005, the Levy County Clerk of Courts recorded a mortgage for Causey of Cedar Key for $184,000 in book 981, page 552, for parcel No. 00393-000-00. The mortgage company was listed as Wells Fargo.
In 2007, an electronic mortgage registration for $217,500 recorded at the clerk’s office in Book 1058, page 674, for parcel No. 00393-000-00. The company was listed as New Century Mortgage Corporation.
In June 2008, Wells Fargo filed suit asking 8th Judicial Circuit Judge David O. Glant to grant it “an action to enforce a lost, destroyed or stolen promissory note and mortgage.”
The mortgage giant, which filed the case as “Wells Fargo as trustee for certificate holders master asset-backed securities trust 2007-NCW Mortgage pass-through certificates, series 2007-NCW Mortgage” against Terry Hamill, administrator, and Cedar Key School, as heirs of Causey.
Cedar Key School, with about 226 students in kindergarten through 12th grade is one state’s smallest schools.
Glant scheduled a 10-minute telephone hearing in his chambers on Monday, but because Wells Fargo’s lawyers did not call in he granted a motion by Hamill’s attorney to dismiss the case.
The promissory note signed by the borrower is an unconditional promise to pay a certain amount of money to the person who bears or holds the note. The person who holds the note, like Wells Fargo, can sell it to someone else.
It is these promissory notes that were “bundled” and sold as “asset-backed securities.” In news reports they are often called “mortgage backed securities.”
And that is the situation in Wells Fargo v. Hamill and Cedar Key School.
The original note signed by Causey is not to be found.
The bank asked Glant to allow it to reestablish and enforce the note because it “cannot reasonably obtain possession of the note and mortgage because their whereabouts cannot be determined.”
Causey’s will, according to a school board attorney, indicated that if there was money left in her estate a portion should go to the school toward the purchase of a van.