Archive for the ‘robo-signing’ Category

California Passes Landmark Foreclosure Legislation

Tuesday, July 3rd, 2012

In an effort to tighten controls on banks and to prevent unlawful foreclosures, California legislators approved a bill Monday to prevent mortgage lenders from continuing foreclosure procedures on homeowners while simultaneously negotiating loan modifications.

Homeowners who are in any stage of talking with lenders about modifying their loans may not be foreclosed on. The law will also open the door for individuals to sue big banks over “robo-signing” errors, where banks signed off on foreclosure documents without proper review. A $25 billion settlement has already been made between most states and several of the major banks over this issue, but this California law will now likely begin a flood of lawsuits against those companies by upset homeowners.

The state’s website says there are currently about 500,000 Californians in the process of foreclosure, one of the highest numbers in the nation. The new law may lead the way for other states to allow ‘robo-signing’ lawsuits.

Many groups, like the California Labor Federation, cheered the legislation as a major protection for homeowners.

“While the big banks … fought this much-needed reform tooth and nail, in the end the legislature chose common-sense reform over the banks’ special interest power,” said Executive Secretary-Treasurer Art Pulaski in a . “That’s good for California and a positive sign for our democracy.”

Yet others see this as a step backward for the housing recovery. In an opinion piece in the John B. Taylor, a fellow at the Hoover Institution, and Douglas Holtz-Eakin, former director of the Congressional Budget Office, wrote

“One way or another,…excess housing has to be cleared off the market as quickly as possible… Intervening into this process to try to delay foreclosures will add uncertainty to the market and slow down the recovery process.” And they added, “With about 133,000 foreclosures completed in California in the past year, it is important not to clog the pipeline.”

Robo-Signing And Foreclosure Fraud

Sunday, November 14th, 2010

Following having published more than one thousand articles on different topics involving the foreclosure crisis through the high point with the market in 2006 until the present, it’s clear that the most up-to-date scandal involving banks, title agencies, and county government recording offices is nothing new. With all the fraud and abuses of customers as well as the true estate course of action that have come to light given that the Federal Reserve lowered interest rates and encouraged the housing boom, this most up-to-date instance of fraud is logical and should really have been predictable by nearly everyone.

In essence, the scandal covers numerous sorts of fraud involving probably fraudulent affidavits, foreclosure paperwork, and mortgage loan transfer paperwork. When a homeowner gets behind on their loan along with the servicing organization decides to foreclose, it is supposed to complete a thorough assessment of the paperwork to prove it has the authorized authority to go ahead with removing the home owners. It need to have proper authorization from your trust that holds the note, and it have got to verify that the trust in fact has lawful ownership on the promissory be aware.

But servicing vendors as well as other banking institutions have apparently not been performing their due diligence, instead automatically signing off on hundreds of hundreds of foreclosures with small or no proof that they have any lawful right to sue the home or advertise its forced sale. And this is where the serious difficulties commence for house owners attempting to from this insidious fraudulent foreclosure technique.

Through the title businesses processing home finance loan transfer paperwork and recording them with county clerks or recorders offices, to so-called “foreclosure mill” law offices churning out hundreds or countless numbers of foreclosures each day with out any review, there has been minor checking which the banks and servicers are doing everything legally. And when the case goes to court, the legal professionals for the fiscal establishments lie to get a foreclosure for their banking clients and earn their fee, whilst the judges are additional inclined to believe a university educated lawyer rather than the home owners who may possibly or might possibly not be behind and may perhaps or may perhaps not owe the bank cash even if they’re behind. But when the courts are backed up with the tremendous number of foreclosure, a thirty second hearing may be all that property owners are provided as their “day in court.”

The most incredible component of this entire scandal is that the media is treating it as if it really is new and just currently being discovered. Maybe the media is just discovering it year later, but such foreclosure fraud has been going on because the early 2000s at the hottest, and quite possibly even earlier. Working directly with foreclosure victims in 2004, it became apparent that neither the legal professionals nor the financial institutions nor the house loan servicers really had any strategy of why a foreclosure was happening or could produce evidence that the parties foreclosing had a legal ideal to complete so. Home owners just got caught up inside system, and no amount of begging, pleading, or even paying income could quit the method at times.

The only big revelation in this current robo-signing scandal is the fact that countless processing organizations and title businesses had been provided mass authorization to sign off on mortgage loan paperwork as vice presidents of financial institutions, notaries, and other representatives. For signing purposes, these title companies were the massive banking institutions, processing tens of hundreds of home loan transactions and transfers every last week, and also the consumers engaging in the paperwork had little or no strategy of what a promissory be aware actually does or stands for. And this is when these workers even had to put their actual signatures on a single with the thousands of paperwork that crossed their desks each individual day; in some instances they did not even have to do this, as their signatures had been automatically electronically added to documents.

But is this robo-signing fraud a substantial surprise following the many instances of fraud discovered in the method of approving these mortgages inside the very first place? A lot of people today qualified for huge loans by overstating their incomes, banks overstated the quality of these loans in order to package them into triple-A rated securities, which they then sold around the world and then bet on the ultimate worthlessness of the loans. Courts have discovered legal professionals for banks committing egregious errors and fraud when prosecuting foreclosure cases, with paperwork being lost or mixed up.

All of the fraud that has become such a noticeable aspect belonging to the banking and genuine estate business is unfortunate, but should be expected to continue. After all, not a single big player within your scandals has gone to jail, and the largest monetary institutions have received even more dough in bailouts through the federal government than they’ve received fines from regulatory agencies. With no accountability for their crimes and monetary rewards of hundreds of billions of dollars for destroying people’s lives, who could probably expect the banks to straighten up and start imposing any kind of high quality control on their lending processes?

Nick writes articles on how foreclosure works, what possibilities might be utilized to quit the method, and numerous trends inside the authentic estate and home loan industries. He has written more than 1 thousand content on topics ranging from stopping a sheriff sale, to deficiency judgments, to bankruptcy, and many others. It is possible to visit his web-site to read significantly far more about the ongoing foreclosure scandals and fraud that are currently being discovered every last day, too as various ways to escape from the method if you’re facing the loss of your home. Also, take a look at his web site to download a free, quick to comprehend e-book on solutions to foreclosure:

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