Creating a lost note affidavit is an essential process for protecting the legal rights of all involved in a promissory note transaction. A plaintiff must allege that it is in possession of the underlying Note in order to establish that it has standing to prosecute the action.If a lender produces a lost note affidavit in lieu of an original note or copy thereof then borrowers may attack the lost note affidavit's validity instead. Title Insurance real estate forms archive containing over 300 forms in MS Word and Adobe acrobat format. The good news is that New York law allows lenders to foreclose under certain conditions even when the note has been lost.