Notice and Demand for Indemnification
Protection from Multiple Claims on Same Note
The Multiple Claims Problem
In mortgage securitization, your note may have been sold multiple times to different parties. This creates the risk of multiple entities claiming the right to collect or foreclose. This document:
- Forces identification of the true note holder
- Protects you from paying the wrong party
- Creates liability for false claims of ownership
- Exposes securitization fraud if note was sold multiple times
- Shifts risk to the party claiming to own your debt
Securitization Creates Competing Claims
Due to securitization and the mortgage industry's practices, multiple parties may claim rights to your loan:
- Original Lender: May have sold the loan but kept servicing rights
- Current Servicer: May claim authority to collect
- MERS: May claim to hold legal title as "nominee"
- Trust/Trustee: May claim ownership through securitization
- Certificate Holders: Unknown investors in MBS
- Unknown Assignees: Parties claiming through defective assignments
Without indemnification, you risk paying the wrong party or facing multiple claims.
Notice and Demand for Indemnification Template
Date: [DATE]
NOTICE TO PRINCIPAL IS NOTICE TO AGENT
NOTICE TO AGENT IS NOTICE TO PRINCIPAL
FROM:
[YOUR FULL LEGAL NAME]
[YOUR ADDRESS]
[CITY, STATE ZIP]
("Alleged Debtor/Indemnified Party")
TO:
[SERVICER/BANK NAME]
[ADDRESS]
[CITY, STATE ZIP]
("Alleged Creditor/Indemnitor")
RE: Loan/Account Number: [ACCOUNT NUMBER]
Property Address: [PROPERTY ADDRESS]
- Securitization into mortgage-backed securities
- Multiple sales or assignments
- MERS registration confusion
- Lost or destroyed original note
- Separation of note from mortgage/deed of trust
- Fraudulent or defective assignments
- Original Lender: [ORIGINAL LENDER NAME]
- Current Servicer: [SERVICER NAME]
- MERS: May claim to hold legal title
- Trust/Trustee: [TRUST NAME IF KNOWN]
- Certificate Holders: Unknown investors in MBS
- Unknown Assignees: Parties claiming through defective assignments
III. Demand for Indemnification
As a condition of any payment or acknowledgment of debt, I DEMAND that you provide:
- FULL INDEMNIFICATION against all other claims, demands, or actions by any other party claiming an interest in the alleged debt or the promissory note.
- BOND OR INSURANCE in the amount of DOUBLE the alleged debt ($[DOUBLE AMOUNT]) to protect me from claims by other parties.
- SWORN AFFIDAVIT identifying:
- All parties who have ever claimed ownership of the note
- Complete chain of title from origination
- All securitization transactions
- Current location of original wet-ink note
- Identity of current true owner and holder
- AGREEMENT TO DEFEND me against any claims by other parties at your sole expense.
- PERSONAL LIABILITY acceptance by corporate officers for any false claims.
A. Scope of Indemnification
- Protection from ALL claims related to the note
- Coverage for all costs, damages, and attorney fees
- Defense against any legal actions
- Hold harmless from any liability
B. Duration
- Perpetual - surviving any payment or discharge
- Binding on successors and assigns
- Non-revocable
C. Financial Backing
- Bond amount: $[DOUBLE THE DEBT]
- Insurance policy or surety bond required
Deadline: [DATE + 30 DAYS]
Your failure to provide the demanded indemnification within 30 days will result in:
- REFUSAL TO PAY - I will not make any payments without indemnification
- ESTOPPEL - You will be estopped from claiming any right to collect
- ADMISSION - Deemed admission that you are not the true owner
- EVIDENCE - Used as evidence of fraudulent collection attempt
- COUNTERCLAIMS - Basis for counterclaims if you attempt foreclosure
- CRIMINAL REFERRAL - Report to law enforcement for fraud
- QUIET TITLE - Grounds for quiet title action
If you are not the true owner and holder of the note, you must:
- Identify the true owner and holder
- Provide their name and contact information
- Cease all collection efforts immediately
- Correct any credit reporting
- Withdraw any foreclosure proceedings
I, [YOUR NAME], verify under penalty of perjury under the laws of [STATE] that the foregoing is true and correct. I have a good faith belief that multiple parties may claim rights to the alleged debt, and I require indemnification to protect myself from double liability.
Executed on this [DAY] day of [MONTH], [YEAR].
[YOUR SIGNATURE]
_________________________________
[YOUR PRINTED NAME]
Without Prejudice, UCC 1-308
Legal Basis for Demand
- UCC § 3-305(c): You are entitled to assert claims of other parties to the instrument as a defense
- UCC § 3-602: Payment to a party not entitled to enforce the instrument does not discharge the obligation
- Common Law: Risk of double liability entitles you to protection before payment
- Due Process: Constitutional right to know who your actual creditor is
- Real Party in Interest: Only the true owner has standing to collect or foreclose
Personal Liability Warning
Any person who claims right to collect without being the true owner and holder commits:
- FRAUD - Fraudulent representation of ownership
- CONVERSION - Taking property without right
- SLANDER OF TITLE - False claims against property
- RICO VIOLATIONS - Pattern of fraudulent collection
- FDCPA VIOLATIONS - Collecting debt without authority
Corporate officers can be held PERSONALLY LIABLE for authorizing false claims.
Sending Checklist
- Fill in all blanks completely
- Calculate 30-day deadline
- Have notarized for added weight
- Send via Certified Mail, Return Receipt Requested
- Send copies to: Servicer, claimed owner, MERS (if involved)
- Keep all receipts and copies
- Calendar deadline for follow-up
- Prepare Notice of Default for non-response
Strategic Use
This demand is particularly powerful when:
- Your loan was securitized (most are)
- MERS is named on your mortgage
- You've received notices from multiple entities
- The servicer cannot produce the original note
- Chain of title research shows gaps or irregularities
Their failure to provide indemnification is strong evidence they are not the true owner.