The system of mortgage documentation in the U.S. housing industry remains broken.
Courts continue to unearth evidence that banks have been systematically committing fraud by fabricating critical pieces of documentation necessary to foreclose. And yet, since the $26 billion mortgage settlement agreement (the terms of which most of the banks haven't totally adhered to either), no government agency has pursued sanctions against these firms.
Our Miami foreclosure defense lawyers are familiar with countless examples of ongoing fraud going unchecked. Recently, a report by Salon.com writer David Dayen pointed to a number of cases where proving wrongdoing would have been fairly straightforward. Among those:
- A couple from New Mexico learned their mortgage note was assigned to the bank three months after the bank filed a foreclosure complaint against them, meaning the bank didn't own the loan when the foreclosure was initiated;
- An Ohio couple facing foreclosure learned that the bank produced two different versions of the mortgage note, each stamped as the "true and accurate copy";
- A Montana woman's loan was, without her knowledge, changed from a $300,000, 30-year loan to one that was for $200,000, but due in full in just 18 months.