1. They never lent you anything. A bank works on a fractional reserve basis. Up until the "collapse" when a person deposited $1000 in the bank, the bank holds those funds in reserve and then loans you back that $1000 and 9 other people $1000. After a period of time the bank then claims the funds abandoned. Now the banks have no limit to the amount they can loan out since the likes of JP Morgan which have become bank holding companies and are leveraged out 150 to 1.
2. In most cases the bank doesn't have the original note. They just have a copy of the note and in some cases they can't even produce that because they have purchased the loans in derivitive packages and the loans are serviced via a loan servicing company.
So if you are facing foreclosure visit the site below and ask your lender/bank for the note. If they can't produce it you're on your way to winning your case.
http://action.seiu.org/page/speakout...henote?js=true
It all started as a "conspiracy theory" but once again it's being proven as a grand conspiracy which is now causing major lenders to freeze all foreclosures and all 50 states joining together in a class action lawsuits.