Miami Foreclosure Lawyer Blog

An article published in Daily Finance puts the blame for the foreclosure crisis squarely on the shoulders of banks, not homeowners.

As our Miami foreclosure defense attorneys have reported on our Miami Foreclosure Lawyer Blog, homeowners looking to prevent foreclosure in South Florida stand a solid chance in 2011 now that the illegal and unethical behavior of banks is being brought to light by criminal investigations and the work of foreclosure defense attorneys in all 50 states.

Forged affidavits, false documentation, fake witnesses and invalid notarization are just a few of the tactics banks used in an attempt to prove ownership of homes they may have never had the right to foreclose on in the first place.

This article pins 90 percent of the blame on banks and just 10 percent on the backs of troubled homeowners. In every case the bank made the loan. And usually it and several other banks or Wall Street institutions profited from securitizing the loans and selling them as investments. Other banks profited from servicing the loan.

-Banks knowingly made millions on loans doomed for foreclosure from the start.

-Banks deliberately, or through shear incompetence, failed to modify mortgages for many homeowners who could have saved their home with a little help.

-And banks were so careless with paperwork that they have improperly foreclosed on thousands of homes, tied up the court system, and turned the foreclosure process into a disaster that has choked the real estate market and caused significant harm to the overall economy.

It began with lax underwriting standards, making mortgages almost as easy to get as using a debit card at the ATM. Underwriting is one of the most basic tenants of banking. The advent of the so-called "liar loan," which required little or no documentation, drastically increased the income of those writing mortgages (who typically received commission-based compensation), which virtually assured the foreclosure crisis. In 2006 and 2007, more than half of all new subprime loans were liar loans. Keep in mind subprime loans are loans made to people with subpar credit -- the loans, in other words, that should have received the most scrutiny.

In many cases, the banks knew the loans were no good -- they made them anyway because they were not going to hold them. Instead, they made even more money by selling them as investments.

Ratings agencies were complicit in that they gave AAA ratings to inferior packages of securitized loans. Banks shopped for the best rating. Rating the loans had become really profitable for the rating agencies, which looked the other way in order to get the business.

These problems were exacerbated by the fact the servicers of loans got paid to foreclose not modify. So banks did so in record numbers, despite having to forge documents and engage in other illegal and unethical behavior in order to do so. We will explore that end of the equation in an upcoming post to our Miami Foreclosure Lawyer Blog.

And remember, if you are a Miami homeowner facing foreclosure in 2011, seek the advice of a qualified real estate attorney and negotiate from a position of strength.

Continue reading "Banks responsible for mortgage mess: Miami homeowners facing foreclosure have options in 2011" »

The conclusions of the Florida Attorney General's report regarding abuses by banks and law firms in foreclosure cases make it clear that consulting an experienced Miami foreclosure defense attorney is vital to protecting your rights.

As we have reported on our Miami Foreclosure Lawyer Blog, the advent of electronic mortgages was a way for banks to make even more money by packaging and selling them as investments. Never satisfied, banks made even more by cutting corners, which in many cases included the loss or destruction of original mortgage documents. Mortgages were sold and resold on the investment market with only the electronic system to assign a bank servicing and foreclosure rights.

The hundreds of thousands of foreclosures that resulted from the collapsing real estate market led banks and law firms to forge tens of thousands of mortgage documents, providing banks with proof of the proper assignment necessary to carryout a foreclosure action. Homeowners looking to help stop foreclosure in Miami have a number of options. In some cases, a homeowner may negotiate away a deficiency judgment. In other cases, a homeowner may even be able to fight for a cash settlement or the return of their property.

Regarding the misuse of falsified assignments, the Florida Attorney General's Office found:

-Improper assignments were recorded in county land offices and submitted to the court in support of foreclosure actions.

-Improper assignments were accepted by the court as valid.

-Homeowners were foreclosed upon based on falsified assignments by banks that did not hold the note.

-If a foreclosure judgment is obtained by a bank that does not hold the note, then the homeowner risks a second lawsuit by the true note holder.

Possible solutions mentioned by the Florida Attorney General

-Banks and their law firms must submit true and accurate paperwork. (You would think this would be a given, unfortunately it's just another reason why it's critical to have an experienced foreclosure defense attorney by your side).

-Homeowners must be given due process. Substantive review of paperwork prior to foreclosure (this flies in the face of the request of banks to expedite the foreclosure process by taking it outside the court system).

-The foreclosure crisis in South Florida will continue. With many more foreclosures in 2011. But they must be done within the law.

With new scrutiny of banks and their law firms, homeowners should fight for their rights if faced with foreclosure in 2011. Seeking the help of an experienced Miami real estate law firm can help you negotiate from a position of strength.

Continue reading "Miami homeowners fighting foreclosure in 2011 should negotiate from position of strength" »

OOPS!

Having been caught at their own game, banks and their attorneys are now being forced to withdraw foreclosure documents in case after case. Stopping foreclosure in South Florida is a real possibility with the help of an experience Miami foreclosure defense attorney. In other cases, you may be able to negotiate away a deficiency judgment or even fight for a monetary settlement or the return of your property.

As we have reported on our Miami Foreclosure Lawyer Blog, investigations into the actions of banks and their law firms have uncovered numerous instances of wrongdoing, including false documentation, forged signatures, fake witnesses, fake notaries and false affidavits -- Don't take our word for it. These are the allegations of the Florida Attorney General's Office.

With criminal investigations ongoing in all 50 states, banks and their law firms are now being forced to withdraw foreclosure documentation in case after case.

In many cases, banks and their attorneys are acknowledging assignment affidavits and other paperwork were not properly verified. They are simply taking a step back to regroup. But, as we have reported here, proper verification in many cases may not even be possible because of shoddy paperwork handling and corner cutting done during the boom years. In many cases, proof of a bank's right to foreclose may not exist.

In other cases, the speed at which paperwork was completed has led to many errors, such as bogus dates being listed as 9/9/9999 or incorrect bank names. In one case cited by the Florida Attorney General the bank was listed as Home Savings of America, which ceased to exist in 1998.

In some cases, mortgages were assigned to banks despite the debt having been satisfied by the homeowner. In still another case, the amount of the mortgage is listed at $42 million. In still other cases, the mortgage owner is listed as a defunct institution, such as IndyMac, which was taken over by the FDIC and was closed in July 2008.

And in still other cases fake notary stamps were used or notary stamps were misused. Notary commissions are only good for 4 years in Florida, yet some stamps had expiration dates good for 6-8 years. And the point of a notary is to verify the authenticity of a document and the signing participants. Yet thousands of pre-signed documents were notarized by bank and law firm employees with no knowledge of their accuracy or authenticity, according to court testimony elicited by foreclosure defense attorneys.

If you are facing foreclosure, fight for your rights from a position of strength in 2011. Consult an experienced Miami real estate attorney today.

Continue reading "OOPS! Caught at their own game, Foreclosure defense attorneys force banks to withdraw court documents" »

This is the third blog published by our Miami foreclosure defense attorneys in the wake of a scathing report on the foreclosure industry by the Florida Attorney General's Office.

As we reported on our Miami Foreclosure Lawyer Blog, a bank's right to foreclose is tied to whether it has been assigned the mortgage. As banks and mortgage companies cut corners during the boom, the electronic assignment of mortgages relied less and less on the original paperwork, which was often lost or destroyed. The robosigning scandal involves the signing of tens of thousands of documents assuring the courts that a bank had the proper assignments. Those signing the documents often had no knowledge of whether that was really the case.

In short, the bank foreclosing on your home may be without proof of ownership and without the right to do so. Preventing foreclosure in Miami may be possible for those willing to fight for their rights. In Florida, thousands of foreclosures have come under fire, including those involving the Law Offices of David J. Stern, Law office of Marshall Watson, Shapiro & Fishman, JP Morgan Chase, Bank of America and GMAC.

Other tactics the banks and their law firms are accused of using include fake witnesses, fake notaries, fake documents and false affidavits. In fact, one woman, Linda Green, has dozens of different signatures that appear on hundreds of thousands of mortgage assignments. She is also listed as an officer of dozens of banks and mortgage companies.

And Scott Anderson. And Tywanna Thomas. And Jessica Ohde.

Several companies, including Lender Processing Services, GMAC and Nationwide Title Clearing in Tampa, produced thousands of assignments every day.

In still other cases, the paperwork was rushed through in such a hurry that it is riddled with errors, including bogus effective dates like 9/9/9999.

The end result is criminal investigations into bank conduct in all 50 states. And solid ground upon which a homeowner can stand while fighting for their rights. You may be able to stop a foreclosure, negate a deficiency judgment, or even argue for a monetary settlement or the return of your property.

Continue reading "Mortgage assignment questions could help stop foreclosure in Miami" »

Our Miami foreclosure defense lawyers continue to share the Florida Attorney General's Report "Unfair, Deceptive and Unconscionable Acts in Foreclosure Cases" with struggling South Florida homeowners.

The tide is turning rapidly in favor of the homeowner. This is the year -- 2011 -- to assert your rights. To fight back. Whether you want to prevent foreclosure in Miami, void a deficiency judgment, seek a cash settlement for damages, or even seek the return of your property, the banks are on the run and may be more willing to deal in your case than ever before.

Lawyers for banks continue to withdraw paperwork in foreclosure cases and some areas are even calling periodic halts to the foreclosure process. At issue is whether banks seeking to foreclose even have rights to the property. The shift to electronic mortgage tracking over the past 20 years was done to allow banks to make even more money packaging and selling mortgages as investments. As a consequence, the old paper mortgages were tossed aside, lost or destroyed.

And in many cases there is serious question as to whether a bank even owns the right to a mortgage. As a result, banks and their attorneys have employed so-called robosigners to sign affidavits swearing that is the case. They also have generated new paperwork and lost-note claims, and engaged in other questionable tactics that are now being reviewed by judges and the offices of attorney generals across the nation.

The mortgage-backed trusts that were created each contained 5,000 mortgage notes with a face value of $1.5 billion. These were sold as Residential Mortgage-Backed Securities (RMBS) and could be sold to investors in bite-sized pieces. Rules for operation of the trusts were outlined in "Pooling and Servicing Agreements."

Meanwhile, trust bundles traveled from the lender to the depositor to the securities company to the trustee. Sometimes, the original note was lost in the process. Sometimes the parties were lax about the procedures -- which was often the case in Florida, according to the Attorney General's report.

In short, some of the largest banks in the country, simply lost ownership paperwork. The key to tracking ownership are the "assignments," which track ownership of the mortgage from one bank to another. Only the holder of the note and mortgage can initiate foreclosure.

The robosigning scandal involves people who were signing thousands of assignments without adequate knowledge of mortgage ownership -- banks, in other words, are accused of simply making it up as they went along.

And tens of thousands of such assignments were signed weekly. Other fraudulent practices of which the banks are accused include the creation or use of fake witnesses, fake notaries, fake documents and false affidavits.

What has become abundantly clear is that you cannot rely upon the banks to deal with you in good faith. If you are struggling with a foreclosure, deficiency judgment or other foreclosure-related issues in South Florida, contact a Miami real estate attorney today to discuss your rights.

Continue reading "2011 is the year of the homeowner -- Fight foreclosure in Miami" »

The state's top prosecutor does not mince words. The Florida Attorney General's Economic Crimes Division labels its findings into the actions of the foreclosure industry "Unfair, Deceptive and Unconscionable Acts in Foreclosure Cases."

The tide is turning in favor of homeowners. If you are looking for help stopping foreclosure in Miami, or you wish to fight back against a deficiency judgment or other bank action, now is the time to consult a Miami foreclosure defense lawyer about protecting your rights. In some case you may even be entitled to a monetary settlement or the return of your property.

Since criminal investigations began in all 50 states, law firms for banks have begun withdrawing documents in foreclosure cases -- documents defense attorneys in some cases claim were simply invented to prove bank ownership or foreclosure rights -- and banks have suspended foreclosure cases in some areas. And while the delinquency rate has increased through the downturn, from about 4 percent to 10 percent, the foreclosure rate has increased even faster, from 5 percent to almost 15 percent as banks are accused of playing fast and loose with the facts.

In Lee County Florida, one in 96 homes are now in foreclosure. All of South Florida has high foreclosure rates, joining areas of Arizona, Nevada and California as the most troubled areas in the nation.

As we wrote previously on our Miami Foreclosure Lawyer Blog, at issue is how banks tracked the sale and movement of electronic mortgages. The electronic mortgage system essentially tossed aside the paper mortgages and, in some cases, sold and resold mortgages until ownership is no longer certain. Banks then employed law firms, robosigners and other tactics to quickly foreclose on properties where ownership may have been questionable at best.

This is the first in a series of blogs on the Attorney Generals' report. Check back often for more information.

Continue reading "Florida AG Findings on Wrongful Foreclosures Powerful Weapon to Stop Foreclosures in Miami, South Florida " »

As our Dade County real estate attorneys reported earlier this week on our Miami Foreclosure Lawyer Blog, the nation's electronic mortgage tracking system was invented in the early 1990s to save hundreds of millions of dollars associated with tracking, storing and maintaining paper mortgage documents.

Billions more were made by packaging the new electronic mortgages and selling them as securities. But for those looking to stop foreclosure in Miami, precisely who owns your mortgage could be in serious question as a result of stripped down safeguards, shoddy business practices, greed and the questionable ethics of banks, mortgage companies and their attorneys. Those who stand up for their rights have a significant chance of negotiating a settlement or mortgage modification and may even be able to fight for monetary damages or the return of their property.

The Washington Post reports that the original electronic system was the brain child of Angelo Mozilo, the founder of Countrywide, which would become the poster child for the abuses of the mortgage industry as the real estate market imploded in 2007. In part as a result of the savings associated with electronic mortgage tracking, and the profits of selling mortgages as investments, Countrywide's profits increased more than 40 fold, from $60.2 million in 1992 to $2.67 billion in 2006.

Today the Virginia-based Mortgage Electronic Registration Systems (MERS) has more than 67 million electronic mortgages on file. The Reston-based company employs just 45 people, despite tracking more than 60 percent of the nation's mortgages.

Not content with profits, banks stripped down the new system and cut corners. The first thing to go was the vault for keeping documents. Instead, the system became a giant card catalogue and banks were told to keep the mortgages and promissory notes. Today, many of those notes are missing and banks or their attorneys routinely file lost note claims when filing a foreclosure action.

The new system lacked transparency. Many mortgages are often sold multiple times and the servicer can also change -- the servicer is typically the bank responsible for collecting payments. The new system allowed MERS to be listed as the mortgage holder in local land records offices. The new owner or servicer would file electronically with MERS but not with local land offices.

The system leaves critical information with MERS and makes it that much more difficult for a homeowner to track who owns the mortgages and the servicing rights.

When the market imploded, MERS found itself listed on millions of mortgages in county land offices. Since the mortgage holder is often required to take foreclosure action -- and MERS employed 45 people, mostly computer techs -- it authorized more than 22,000 agents throughout the country to identify themselves as MERS employees. Many believe that is where the real shenanigans began as law firms and other mortgage servicing companies cranked up robosigning operations to churn out affidavits, false documentation and other paperwork in support of a bank's right to take foreclosure action.

At least three states -- Missouri, Kansas and Oregon -- have issued court rulings limiting or negating the rights of MERS in foreclosure cases. And Congress is looking at forbidding Fannie Mae from buying mortgages listed in the MERS system.

Continue reading "Electronic mortgage system under fire; Miami homeowners facing foreclosure should seek legal help" »

As we begin 2011, our Miami foreclosure defense attorneys believe it will be the year that homeowners' rights move to the forefront amid the growing mountain of evidence documenting the greed and mismanagement of banks, mortgage companies and Wall Street.

If you are looking for help stopping foreclosure in Miami, contact our office to discuss your rights. The Robo-signing scandal is only the beginning. With state investigations looking at the conduct of banks and their lawyers from coast to coast, we believe homeowners who stand up for their rights will find meaningful relief in 2011. Perhaps in your case that means a waiver of deficiency judgment, mortgage modification or the right to remain in your home. Some may even choose to fight the banks for the return of their property or a monetary settlement for damages.

At issue are the electronic processes, trusts and paperwork, companies relied upon to package and sell mortgages as investments. Ownership of your loan could be very much in question. In many cases, banks do not have the proper paperwork and had been relying upon so-called "robosigners" in servicing companies to create documents or assert the bank's rights to foreclose.

The Washington Post reported the electronic processing of mortgages began in the early 1990s. The system made it possible to bundle loans and sell them as investments. The new system permitted thousands of mortgages to be transferred, bought or sold instantly.

Today the Virginia-based Mortgage Electronic Registration Systems has 67 million mortgages on file. The company tracks more than 60 percent of the nation's mortgages and employs just 45 people. Several state courts have denied the system's efforts to foreclose on behalf of banks and Congress is considering forbidding Fannie Mae from buying loans listed in the system.

The Post reports the system was the brain child of Angelo Mozilo, the founder of Countrywide Financial, which would become the nation's largest mortgage originator before imploding beneath the weight of its own questionable business practices at the start of the real estate meltdown.

Bankers sold the system as more efficient, and thus a better deal to borrowers who would see smaller fees. The real goal was profits, and the elimination of the more than $200 million annual expense of processing physical loan documents.

On top of that savings, billions stood to be made by packaging electronic mortgages and selling them as investments. On the back of this new system, Countrywide's profits soared from 60 million in 1992 to $2.67 billion in 2006.

Not yet content, banks would begin stripping down the safeguards in the new system to further maximize profits. Look for Part 2 later this week on our Miami Foreclosure Lawyer Blog.

Continue reading "Miami foreclosure defense lawyer's message to homeowners: 2011 is the year to fight back" »