Miami Foreclosure Fraud Revealed in Grand Jury Testimony

December 14, 2011

A recent article out of Las Vegas reports that grand jury transcripts in the criminal cases of several defendants charged with robo-signing and other mortgage fraud-related allegations reveal the massive problem happening in that state and nationwide. Those struggling with foreclosure in Miami cannot afford to go it alone.

The alleged criminal acts in Nevada mirror the fraud that was going on with mortgage servicers, bank officials and real estate officials dealing with Miami foreclosures as well.
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Our Miami foreclosure defense lawyers have worked on behalf of homeowners in Miami and throughout South Florida, fighting back against lenders who used fraudulent and unlawful tactics to take away people's homes.

Sadly, while foreclosure defense lawyers have been pointing out the fraudulent behavior of banks in foreclosure cases for years, prosecutors have taken their time actually bringing criminal charges against those involved. There are obvious signs of fraud going on still today and certainly during the last four years and yet little has been done.

The Las Vegas' Attorney General recently brought charges against two mortgage servicers. They are accused of running a foreclosure scam by telling their employees to forge signatures in violation of the law.

Employees testified before the grand jury they followed orders because they needed the work to pay for school or family expenses. One notary came to a deal with the prosecution and was found dead on the date of her sentencing. She testified she notarized 25,000 false documents on notices of default for Bank of America, Washington Mutual, Fannie Mae and Freddie Mac.

An investigator testified that of tens of thousands of documents that the company produced for banks, a majority seemed suspicious. One homeowner testified that her house was sold without her knowledge.

She had gotten behind on payments, but was working with Bank of America on a short sale. She said she had no idea a notice of default had been recorded.

When she returned home one day, she found the house had been sold without her knowledge through a trustee sale. Many of her things, including medical records, personal information, furniture, collectibles and other items were still inside. Many of these things were stolen by the time she was able to get into the house.

These injustices should not be tolerated. And yet the government has allowed it to go on for far too long. Stories of people being kicked out of their houses without their knowledge is a travesty and yet it happens every day.

Miami homeowners are blindsided by shady dealings by the banks and the companies they hire to do this dirty work. And while robo-signing procedures -- where mortgage servicers sign documents that are false or they sign for a person who never confirmed the documents are accurate -- are still going on today, even after they have been found to be illegal. The whole reason banks cut back on filing foreclosures in the last year was because of robo-signing and yet it still happens.

Top bank officials who allowed this to happen have, so far, gotten off free, without consequence. In fact, many have enjoyed seven-figure bonuses. It's criminal and it needs to end. Let's hope our attorney general makes this more of a priority than it has been thus far.

In the meantime, hire an attorney and negotiate from strength.

If you're battling foreclosure in Miami or the surrounding areas, contact Jacobs|Keeley for a confidential appointment to discuss your rights. Call (305) 358-7991.

More Blog Entries:

Former South Florida Banker Tells how Banks Are to Blame for Miami Foreclosure Mess: December 7, 2011

Banks May Still Be Getting Away With Crimes in Miami Foreclosure Cases: December 2, 2011

Additional Resources:

Massive foreclosure fraud's scope revealed by transcripts, by Marissa Mike, NBC Las Vegas