Miami Foreclosure Lawyer Blog

Huddled in their tiny cubicles, hundreds of "vice presidents" churn out a quota minimum of Miami foreclosure documents every single day - 10 is generally the minimum.

Our Miami foreclosure attorneys know how complicated the foreclosure process can be - and at that rate, there are bound to be a host of mistakes, any one of which could wrongly force someone from their home.

A recent article by a senior producer at MSNBC offered a rare, inside look into these so-called "foreclosure factories," particularly at Wells-Fargo, although we know the same general practices are prevalent at each of the major banking institutions. Here, in the first of two Miami Foreclosure Lawyer blogs on the expose, we're going to break down what this report revealed, and what it means for you.

The news agency started investigating deeper after one of these Wells-Fargo "vice presidents" contacted a reporter there, saying that she was horrified at the ongoing practices within the bank. She still works there, so her comments were all under the cloak of anonymity, but her statements were backed by numerous internal memos, e-mails and faxes.

According to her, the loan modifications of many families - those left in a deeply precarious financial situation following the burst of the housing bubble - were denied after merely cursory reviews. In other cases, borrowers who were trying to get a break on their underwater home mortgages were sending highly-detailed and extremely sensitive financial information to the bank - to a fax that no one had checked for weeks. In other cases, customers were falling into foreclosure for owing paltry interest payments - sometimes as astonishingly little as $1.20.

There is precious little that shocks our Miami foreclosure attorneys anymore when it comes to the egregious actions of these large banking institutions. But it's infuriating to know that it's still happening - even after widespread enforcement actions last year by the country's most powerful banking regulators and then a recent $25 billion settlement among the nation's five biggest banks and 49 states attorneys general, which was specifically aimed at wrongful foreclosure problems attributed to employees attesting to facts of which they had no firsthand knowledge.

While banks say that these wrongful foreclosures are less likely to happen, if the paperwork is never challenged in court by an experienced Miami foreclosure attorney, there is absolutely no way a homeowner would know whether a mistake was made - or even if the bank had legally proven that it was the owner of the loan and had foreclosure rights.

While regulatory investigators back in 2010 reported that Wells-Fargo's document processors were regularly signing off on affidavits containing facts they had no personal knowledge of, the banks have insisted things are better. Those who work there, however, tell a different story.

Not only do they not have personal knowledge of the facts in the documents, the internal system is specifically designed so they can't have that knowledge. In fact, they are copying-and-pasting information in a manner that would suggest that rather than the "vice president" titles they own, they are merely data entry clerks.

Continue reading "The Miami Foreclosure Factory: Part 1 " »

While countless, everyday Americans continue to struggle with impending foreclosure in South Florida, one bank is again facing allegations of wrong doing at the highest level.

As our South Florida foreclosure defense attorneys understand it, Bank of America is being accused of preventing homeowners from obtaining lowered mortgage payments from a federal program, even though it was reaping the financial rewards of participation.

The allegations were reported by the media earlier this month, when a whistleblower complaint was unsealed in federal court. The complaint is part of the $1 billion settlement reached between the New York U.S. Attorney's Office and Bank of America in February. Specifically, the settlement has to do with allegations that the bank violated the federal False Claims Act, which is outlined in 31 U.S.C. 3729. This act essentially allows the government to collect punitive and compensatory damages for anyone who files a false or fraudulent claim to the government - as the banks have become notorious for doing.

All of this too comes after another settlement for $25 billion that was reached between five major banks and attorneys general from 49 states, addressing widespread mortgage fraud over the last several years.

What this newest revelation essentially comes down to is this: That the bank actively worked to defraud the Federal Housing Administration by exaggerating appraisals and inflating claims that involved the Home Affordable Modification Program (HAMP). The whistleblower said he was working closely with bank executives when they reportedly set out to intentionally stop countless homeowners from receiving HAMP benefits, which would have significantly lowered their mortgage payments and likely allowed scores to remain in their homes.

The complaint alleges that as a matter of routine practice, agents for the bank would act as if it had lost important documents, they would fail to mark payments that had been made and they would intentionally mislead homeowners about whether they qualified for the program. They let only enough people into the program to avoid garnering the suspicion of the federal government. That way, they could continue to collect government rewards for their participation in HAMP.

It's cliche to say the bank was having its cake and eating it too - but that's exactly what was happening.

This is unsurprising to our Miami foreclosure defense attorneys, who know that banks are capable of almost anything, especially if it's in their own interest - regardless of whether it's legal or going to have a negative impact on those who are struggling.

The whole scenario illustrates why it is so crucial for people who are considering a Miami foreclosure to contact a skilled attorney who is familiar with the banks' tactics, and can help you avoid some of the common pitfalls that have ensnared so many others.

Continue reading "Whistleblower: Bank Defrauded Taxpayers" »

When a former Countrywide Financial employee was on the witness stand late last year, she testified that the bank tried to buy her silence about its part in the Miami mortgage meltdown.

She refused to cooperate, and the bank fired her. She turned around and sued the banking giant on federal whistle blower violations - and won.

While this single employee was awarded back pay, it's really a small drop in the bank's bucket. Our Miami foreclosure attorneys believe the whole instance raises a much larger question: Why does the U.S. Justice Department not go after these banks and hold them criminally liable for breaking the law?

Even though it's been proven that financial misrepresentations and fraud played an integral role in the financial crisis we find ourselves in, not a single major financial firm or Wall Street executive has been brought up on charges.

As the former bank employee was quoted as saying to CBS News: "They asked me to sign a 14-page document that would basically buy my silence in exchange for a large amount of money."

She wondered how many people the bank had already paid off.

It had been her job, the news station reported, to follow-up on allegations of fraud against company employees, and ensure those allegations were reported to both the U.S. Treasury Department, and the company's board of directors.

What she found during the course of her employment probably won't surprise you at this point: She testified that fraud was systemic at the company. It wasn't just one or two people, either. It was entire branches and regions of people, and it involved forging documents to inflate a person's income so that they would be able to get a home loan - a loan everyone knew they couldn't afford and weren't qualified for. This is the practice that everyone now knows led to the financial crisis that hurled our economy into a recession, and left millions of Americans homeless and jobless.

And yet, there has not been a single prosecution.

This is also despite the Sarbanes Oxley Act of 2002. This is the act that was passed by President Bush in the wake of the Enron and Tyco scandals, and it was intended to restore the population's faith in big corporations. The act imposes very specific rules for corporations (including banks), which require CEOs and CFOs to certify under oath as to the accuracy of their financial statements, as well as have established internal controls to make sure all relevant information is passed on to investors. If you falsely sign one of these statements, it is a crime, for which you could serve up to five years in prison. The whole intention was to prevent corporation leaders from being tempted to sign fraudulent paperwork to enrich themselves, at the expense of everyone else.

It hasn't seemed to matter.

Justice Department officials told CBS News that sometimes these cases take years to bring forward, and not to count them out yet.

Our Miami foreclosure attorneys aren't holding our breaths.

Continue reading "Despite Miami Mortgage Fraud, Banks Escape Criminal Charges" »

Despite the fact that the government is touting the extension of the Home Affordable Mortgage Program (HAMP), the move is likely to have little effect in terms of slowing Miami foreclosures or helping struggling homeowners.

The government program, aimed to help homeowners, had been set to expire at the end of this year, but will now run through the end of 2013.

Our Miami foreclosure attorneys understand that while the Obama administration had promised 18 months ago that more than 4 million people would be aided by the modified loans, less than 1 million have actually been helped. Media reports indicate there were almost 24,000 loan modifications made nationwide in December - bringing the grand total to about 933,000 - falling far short of the 4 million initially promised.

So why extend a program that has clearly not been effective in its goals? Because it benefits the banks.

The Department of Treasury reports that 84 percent of the people who sought help through the HAMP received it. What they don't tell you is that often, people are sinking money into homes that - no matter what - they are not ever going to be able to afford. These are hard-working individuals who are hoping to maintain their credit and keep their homes.

The truth is, though, that many of these people are simply being squeezed for a few more mortgage payments on their underwater homes before they finally realize it's simply not worth it and give up. The reason is because many of these modifications are temporary. The person may make smaller payments for a set period of time, without penalty. But if a person isn't approved for a permanent loan reduction, he or she is still going to be responsible for the difference.

When they realize they still can't afford it, they are going to be in the same position they were in to begin with.

The HAMP program was introduced by the Obama administration in 2009 to help distressed homeowners get back on their feet in a housing market that was fast dissolving into quicksand.

While the federal government had set aside more than $30 billion for the program, only about $2.3 billion has been spent to date. Another $10 billion has been committed, but hasn't been paid yet.

Another issue that has been voiced by consumer advocates is that Fannie Mae and Freddie Mac, both government-owned mortgage lenders, are not required to forgive their borrowers' debt. Neither the recent move to extend HAMP nor the deal struck between the U.S. government and 49 state attorneys general address this issue.

One positive aspect to the HAMP extension and modification is that the criteria for eligibility has been somewhat relaxed. Before, the only people who were allowed to participate were borrowers whose monthly mortgage payments comprised at least 31 percent of their total income. Under the new rules, even someone with more affordable payments can qualify. The government's idea is to be able to also include those who are afflicted with other expenses, like credit card debt or hefty medical bills.

Continue reading "Miami Foreclosures Not Slowed by Federal HAMP Extension" »

The deal struck by state attorneys general throughout the country to address foreclosure abuses in Miami and across the U.S. has been touted by many as a victory for homeowners and taxpayers.

Our Miami foreclosure attorneys, however, believe that this is actually proof that the government is not looking out for the best interests of the so-called 99 percent. In fact, it is further evidence that the government is working on the side of big banks.

Here's what the media, including CBS Money Watch, is reporting: The federal government is settling for $25 billion with five major banks over mortgage foreclosure abuses. Mortgage loans will be reduced for about 1 million households, which are underwater on houses that are worth less than what these people owe. For another 750,000 Americans whose homes were improperly foreclosed upon, the banks will shell out $2,000.

But when you consider the average loan for just one of these homes is $180,000, this is a sweetheart deal. A $2,000 fine is less than the price of title insurance. Not to mention that criminal acts of forgery and fabrication on the part of these banks, who have made billions of dollars by scamming taxpayers, will not be punished with jail time. The $2,000 fee paid to homeowners is a slap on the wrist. It's especially frustrating considering that it's a very small consolation for people who are now out of a home, their credit ruined.

The only state not a part of the deal is Oklahoma.

Despite the fact that billions of dollars have been earmarked for homeowners, the money is actually only going to help a small percentage of the millions of people who are behind on their payments and facing a foreclosure. The rest will continue to struggle to make ends meet in a sagging economy, living in a home they can't afford - or having their home stolen out from under them by a powerful financial entity that may not have the legal authority to do so.

Additionally, those large banks already had money set aside to cover this settlement, so all of this is going to have little impact on the banks' every-day operations. That also means the punitive aspect of this settlement is almost nil. It's not going to be enough to jar the banks into consistent compliance. It's a great deal for the banks, which would otherwise spend much more on legal fees if these cases were brought forward with proper litigation.

It's also important to note that of the $26 billion that banks are ordered to pay - banks themselves will only cover about $5 billion. The rest of it is likely to come from security loans - namely, Fannie Mae and Freddie Mac - as well as insurers and 401k savings. That means the taxpayers, ultimately and once again, will be responsible to cover for the banks' messes.

Plus, there is the question of how will it be decided who gets the help. As it turns out, banks will be self-reporting this information to the government. What a joke! Our Miami foreclosure attorneys find it difficult to believe that the Obama administration - or any political players - actually believe the banks can be trusted to self-report with any integrity, considering their past record of fraud and abuses.

Contacting an attorney with experience in Miami foreclosures - someone who knows the system and the tricks bankers pull - can help put you on the path toward financial recovery.

Continue reading "Miami Foreclosure Attorney: AG "Sweetheart Deal" a Wash for Consumers" »

It's a valid question that many Americans have asked in recent years, but that has gone largely unanswered -- why haven't officials from large banks who ordered robo-signing, fraudulent and false documents to be created and other illegal activities not faced prosecution?

Their actions have led to millions of foreclosures nationwide, including foreclosures in Miami and other parts of South Florida. Home values have plummeted and mortgages have fallen to unprecedented "underwater" levels, leading some homeowners to consider what's known as "strategic default." And yet bank officials at the top continue to enjoy multi-million dollar bonuses, raises and other perks.

As our Miami Foreclosure Lawyer Blog has reported, some prosecutors have taken some steps to criminally charge people who were involved in the process. But more needs to be done, as our Miami foreclosure defense lawyers pointed out here.

The bottom line is it has been about four years since the bubble began bursting on the real estate market in this country. A lot of the activity happened in Miami and throughout Florida as well as Nevada and California -- places were people speculated on homes, but it has spread nationwide.

And in that time frame, little has been done to punish the people who caused the mess. A recent article published in The Nation begs the same question -- why hasn't more been done?

By now, there is plenty of evidence that bank officials ordered fraudulent activity, including fabricating documents to support a foreclosure on people's houses. But, still, little has been done to prosecute these criminals.

As the article suggests, banks officials pushed bad loans and then used unethical and illegal foreclosure practices after the fact. No Wall Street firm or high-ranking bank official has faced criminal consequences.

The article is critical of the Obama Administration for not doing anything to punish the banks who created the mess in the first place. Rather, the Fed pushed more than 7 trillion dollars to save the banks and created meager programs for homeowners that were rarely used.

The administration is also putting pressure on attorneys general, including those in New York, Delaware, Nevada and elsewhere, who haven't joined the others who are going to agree to let banks walk away from civil lawsuits filed by states for a meager $20 billion. The rogue AGs smartly haven't agreed to such a small sum of money in exchange for letting banks off the hook.

A recent 60 Minutes piece on the topic, in part, included comments from a senior Countrywide executive, who said the fraud was rampant and systematic. Not only a few people, but branches and regions of banks were doing it. The executive, whom our blog has written about, recalled the story about finding documents in a recycling bin in a Boston-area branch that had been literally cut and pasted together to use in foreclosure cases.

Even when Citigroup executives found that 60 percent of the mortgages they were buying from Countrywide were fraudulent and alerted higher-ups, they ignored it and told investors and the public they weren't.

60 Minutes pressed a Justice Department official about why more bank officials and executives haven't been prosecuted and got a typical answer that there are investigations ongoing. It's no wonder the American public has lost confidence in government because of situations like these.

It's obvious that people struggling with a Miami foreclosure can't rely on the government for help. If you are in such a position, an experienced Miami foreclosure defense lawyer can help dig you out of the hole you're in by fighting back against banks.

Continue reading "Why Isn't Government Prosecuting Big Bank Officials For Miami Mortgage Fraud?" »

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.

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.

Continue reading "Miami Foreclosure Fraud Revealed in Grand Jury Testimony" »

Florida lawmakers are at it again. Those elected to help citizens are instead helping the banks, which in turn fill election coffers; lawmakers have taken up the Florida Fair Foreclosure Act bill.pdf.

Sadly, the act does nothing to be "fair" to Miami foreclosure homeowners. Instead, the act, if it becomes law, would give more trust and more power to the banks under criminal investigation over shady foreclosure tactics. This smells of some high-power lobbying by banking institutions.

Time and time again, Miami Foreclosure Defense Lawyers have seen how banks have gone out of their way to take away a homeowner's house without the proper documentation, by using incorrect and manufactured documentation and other means that goes against the spirit of the law.

Because Florida requires banks go through the court system in order to foreclose on a person's property, it's an extra step that banks must take in order to be held accountable for their actions. In other states, however, banks can zoom through the process -- homeowner's rights be damned. It has happened in Florida, but likely less often than in other states with minimal oversight.

There are several key changes to the foreclosure process in Miami if this bill becomes law, according to The Palm Beach Post:

• A bank would have the option of foreclosing without putting the house up for public auction if what is owed by the homeowner is 120 percent of the value of the property, but the lender can't seek a deficiency judgment.
• A borrower who challenges a final judgment would only be able to claim monetary damages and wouldn't have the option of regaining ownership of the house. Currently, homeowners can ask for a reverse judgment and win back the home.
• Final judgements would be required to be entered in uncontested foreclosure cases within 45 days, rather than 90 days.
• If a note is lost, the bank would have to come up with a reason of why it still has the authority to foreclosure and specify the document that gives it that power. Banks now are able to use vague reasons for attempting to explain why they have the authority.

In this blog post, let's look at the first two changes and talk about why this bill is going to be disastrous for homeowners.

If banks are able to foreclose and not go to public auction, this means that their actions can fly under the radar and not in the sunshine, as public records advocates like to say. Florida is ahead of most states when it comes to open government, yet this action would allow banks to do dealings behind closed doors. The only benefit is that homeowners could avoid having banks come after them for a deficiency judgement, which can be brutal.

The other change could be potentially crippling to homeowners, as this provision would give banks ultimate power to strip away a person's home. Under this change, homeowners would lose the power to get back their homes even if the banks falsify information, file paperwork that is inaccurate or create documentation to support their foreclosure that was clearly produced after the foreclosure was filed.

As the law currently stands, homeowners can seek a reverse judgement in an effort to win back their home. But if the Act is turned into law, banks would be able to keep the home and just pay the homeowner "monetary damages," of an unspecified amount. How much in damages would a homeowner get? How does that help them if they get kicked out of their home without due process? What if the bank comes after them for a deficiency judgement and just tries to get the "monetary damages" back plus more?

There are many unanswered questions, but Miami Foreclosure Defense Lawyers encourage you to get experienced legal guidance when dealing with a foreclosure in South Florida.

Continue reading "Legislature To Help Banks Ruin Homeowners' Lives With Florida "Fair" Foreclosure Act" »

Sadly, scammers are everywhere: After a disaster strikes, preying upon the elderly and when homeowners are at their most vulnerable.

Mortgage loan modification scams and other ways to help distressed homeowners have been popping up for years. But they've been much more frequent as the economy has collapsed and people have lost their jobs and grown desperate.

Make sure you know who to trust if you're fighting foreclosure in Miami. If it's too good to be true, it probably is. Companies have been set up by schemers to try to get people's money up front while offering a false promise of helping them get a loan modification or getting the bank to reduce the amount the borrower owes on the house.

In reality, these people have little chance at getting a bank to do anything. They are powerless. But an experienced and aggressive Miami Foreclosure Defense Lawyer can fight a bank with the law, in the courtroom and by challenging the lending institution to prove ownership and conduct a foreclosure in accordance with the law.

In a case out of West Kendall, four people are accused of stealing more than $750,000 from more than 500 homeowners. Four people have been arrested and are charged with running a phony loan modification company. They are charged with conspiracy under teh Racketeer Influenced and Corrupt Organization Act.

The company, called Best Value Homes, allegedly promised to help struggling homeowners modify loans between 2008 and 2009. They charged homeowners upfront fees and after taking the money, did nothing to help these people, the Florida Attorney General's Office alleges.

It's too bad that it usually takes a few years of investigation before scams like these are broken up. Homeowners must report the problem to authorities and after compiling complaints, the state must then conduct an investigation. It all takes time. And in the mean time, a homeowner who threw away a mortgage payment on a false promise is now stuck in foreclosure.

But it's not all bad news. There are ways to fight back. And the first step is finding an experienced and aggressive Miami Foreclosure Defense Attorney who has taught other attorneys how to help struggling homeowners.

Not all lawyers have the experience and aggressive approach to take on the banks head-on. Banks have a lot of money on their side, but they also have a lot of problems. Robo-signed documents, shady paperwork dealings and the use of poorly run companies to process paperwork are just a few of the most common problems.

These have been revolutionary times. There are millions of foreclosed homes on the market and experts believe many more may be coming. The rise and fall of the real estate market, especially in Florida, has been historical. And in this time, there have been seemingly unreal problems with the foreclosure process.

Even if a homeowner has missed mortgage payments, they still have rights and they still must be treated fairly. And that simply can't be done on their own. An experienced foreclosure defense attorney will stand by your side and fight the banks.

Continue reading "Four From West Kendall Arrested in Loan Modification Scam Affecting Miami Homeowners" »

A new report by the Homeownership Preservation Foundation shows that Miami leads the nation in reports of fraudsters offering mortgage modification scams, The Miami Herald reports.

Many homeowners are struggling to get by and are worried that because their Miami homes are upside down in value after the Great Recession, they don't know where to turn next. Miami Foreclosure Lawyers urge homeowners to contact them before they try to work with a mortgage modification company.

Some of these companies simply make promises of helping desperate homeowners modify their loans without any power to make it happen. Homeowners can be left with less money and no real change to their loan. Hiring an experienced foreclosure attorney in Miami would allow the homeowner to use the law and the court system to try to modify a loan rather than a company that may not have any luck simply picking up the phone and calling the bank.

The Herald story found that Miami leads other cities, such as Los Angeles, Las Vegas, Houston and Chicago in terms of reported mortgage modification scams. Racial and ethnic minorities were particularly susceptible to the scams, accounting for more than half of all complaints.

The study was conducted by Homeownership Preservation Foundation, a Minnesota-based non-profit group that offers a counseling service for homeowners.

Florida has the nation's second-highest proportion of mortgage scam complaints, accounting for 7 percent of the country's scams. California led the country with 22 percent. A Florida law passed in 2008 made it illegal for companies offering mortgage modification help to charge homeowners upfront. A Federal Trade Commission proposed rule last year did basically the same thing. The Florida Attorney General's Office received 2,500 complaints last year and is investigating 70 companies.

Many homeowners are duped into using these services because they guarantee help with your loan and make promises that if you just pay a certain amount up front or make monthly payments, you can get the help you need. While they sound great, they are often misleading and don't do much good at all.

Loan modifications and short sales aren't the only ways homeowners can look to stop foreclosure in Florida. While they are options, they aren't the only options. Because of banks' heavy use of "robo-signer" documents to force foreclosures and other fake documents they have filed with the courts and presented to be correct even though they aren't, homeowners have a distinct advantage.

Hiring an experienced Miami foreclosure attorney can help you stay in your home, get the bank to make concessions and even modify your loan because of their mistakes. But you need someone who knows how to look for those errors and can expose them in court for your benefit. Trust experience and diligence over fly-by-night companies that may or may not have your best interests at heart.

Continue reading "Mortgage Modification Fraud Reports in Miami Tops in the Nation" »

A Fortune Magazine investigation revealed that Countrywide's mortgage securitizations may be invalid after testimony from a company official, who said many loans weren't properly handled.

It's amazing how many of the country's largest banks have struggled to properly maintain records in foreclosure cases in Miami and elsewhere, this can actually be beneficial to homeowners. Miami Foreclosure DefenseLawyers believe that using the banks' errors against them can be one of the most advantageous ways to save your home. If you want to fight back against the banks and their errors, consult with a law firm that believes negotiating from a position of strength can provide you with the best options.

Court testimony last fall from a Countrywide employee revealed that many loans weren't being properly handled. So, Fortune examined dozens of court records that corroborated the woman's testimony. The magazine reports that if the company's mortgage securitizations failed, Bank of America, which bought out Countrywide for $4 billion in 2008, has potential liability that would dwarf its shareholder equity.

During testimony last fall in a New Jersey bankruptcy case, a Bank of America official testified that Countrywide didn't deliver the notes to the securitization trustee and that the company's notes weren't endorsed except on a case-by-case basis, generally long after securitization occurred. Under all securitization contracts, both steps are required.

Securitization is the practice of pooling various types of debts, including residential mortgages or other types of loans and selling them as bonds to investors. The principal and interest on the debt is paid back to investors.

The testimony led to one investor filing a lawsuit and New York Attorney General Eric Schneiderman is investigating mortgage securitizations by three banks, including Bank of America. Bank of America has denied the woman's testimony.

The Fortune investigation looked at 130 foreclosure cases in Westchester County and the Bronx from 2006 to 2010 filed by Bank of America on a Countrywide mortgage-backed security. In 104 of those cases, the loan was originally made by Countrywide, with the other 26 made by other banks and sold to Countrywide for securitization.

None of the 104 Countrywide loans were endorsed by Countrywide, only including the original borrower's signature. Two-thirds of the loans made by other banks also didn't have bank endorsements. Fortune concluded that the lack of Countrywide endorsements plus the bank's representation to the court that the documents are accurate calls into question the securitization of the loans as well as the bank's right to foreclose.

A problem in many courts, including in Florida, is the issue of "magically appearing" endorsements, where defense attorneys point out the problem and bank officials produce documents they say are accurate and original.

Miami Foreclosure Lawyers have seen these tactics and will aggressively fight to defend our clients from the shady practices our country's banks have endorsed. Sometimes, fighting a foreclosure in Miami allows the homeowner to stay in the house while it is being defended in court, work out a meaningful loan modification, avoid a deficiency judgment and force the bank to settle under better terms.

Don't try to fight your foreclosure by yourself. Trust a firm of lawyers who have fought tooth and nail with the banks and financial institutions who have played these games with homeowners and the courts for years. We have seen the games and we will stop them.

Continue reading "More Bank of America Shoddy Mortgage Documents Revealed in Miami Foreclosure Cases" »

Not even when Wall Street greed finally caused the economy to implode did the fraud stop. Bloomberg News reports that the former treasurer of one of the nation's largest mortgage companies has admitted to assisting in a $1.9 billion fraud scheme targeting the Troubled Asset Relief Program, which was designed to bail the country out of the worst recession since the Great Depression.

Foreclosure attorneys in Miami are generally beyond surprise when it comes to bank antics these days. But this case is as blatant an illustration of brazen Wall Street greed as you will ever find. The actions at Taylor, Bean & Whitaker Mortgage Corp. contributed to the failure of Colonial Bank, which had numerous branches in South Florida. At the time, many South Florida homeowners were fighting to prevent foreclosure by Colonial or other lending institutions.

The 45-year-old executive pleaded guilty in federal court in Virginia to conspiring to commit wire fraud, securities fraud an bank fraud, and is working with prosecutors to bring the former chairman to trial next month. The 58-year-old chairman is accused of a massive scheme to deceive TARP and other financial firms by covering up losses at the company. He has been indicted on 16 counts and faces up to life in prison if convicted.

The treasurer, who is a resident of Hernando, Florida, faces up to 30 years in prison and has been ordered to pay restitution to 250 victims.

Colonial BancGroup Inc. was one of the nation's 50 largest when it imploded. The crime involved transferring money back and forth between the bank and Taylor Bean, in order to hide overdrafts. The treasurer admitted that from 2003 to 2009 she and others conspired to defraud Colonial Bank, its shareholders, the government and other investors.

The group is also accused of selling Colonial Bank more than $400 million in fake assets. They allegedly diverted more than $1 billion and when they again ran out of money they attempted to obtain $533 million through TARP. Federal regulators detected the fraud and Colonial filed for bankruptcy in 2009.

If banks have the gall to attempt to defraud the government, how do you think homeowners are being treated? If you are facing foreclosure in Miami or are dealing with bad real estate debt, please speak to an experienced real estate attorney.

Negotiate from Strength!

Continue reading "Feds alleged South Florida's Colonial Bank attempted fraud to hide foreclosure losses " »

The Congressional hearings involving banking and investment giant Goldman Sachs illustrate the complex nature of the mortgage market and offer a window into the collapse of the real estate market and foreclosure crisis in Miami and across the nation. If you are dealing with a South Florida foreclosure, a Miami foreclosure lawyer can best assist in making sure you are being treated fairly in a dispute involving the mortgage industry.

As the Goldman case illustrates, banks have often failed in their obligation to treat mortgage customers and homeowners in a fair and responsible manner. If a bank was involved in an elaborate scheme to defraud investors utilizing mortgage backed securities, a homeowner may have legal recourse during a foreclosure proceeding.

Central to the argument are the Collateralized Debt Obligations (CDOs), which are a collection of asset-backed securities (like mortgages) structured and sold on the investment market. The diffuse nature of CDOs has turned mortgage lenders into loan services, while the actual owner of your mortgage may be hundreds or thousands of CDO investors all over the world. The complexity is one of the reasons cited for the problem in negotiating and approving short sales. Hiring an experienced Miami foreclosure attorney can be your best course of action to sorting it all out and protecting your rights.

While underwater homeowners fight for their financial survival and record numbers of Miami borrowers seek short-sales, foreclosure defense and home-loan modifications, executives for Goldman Sachs defended themselves by insisting the did nothing illegal. The bankers say they provided a valuable service by allowing customers to manage investment risk, MSNBC reported. Congressional leaders accuse Goldman Sachs of being little more than a giant casino that packaged and sold mortgages to investors even as it made bets against the bonds it was selling to customers.

"There is something unseemly about Goldman betting against the housing market at the same time that it is selling to its clients mortgage-backed securities containing toxic loans," said Sen. Susan Collins, R-Maine. She cited "e-mails of Goldman executives celebrating the collapse of the housing market, when the reality for millions of Americans is lost homes and disappearing jobs."

Continue reading "Goldman Sachs testimony proves need for solid legal advice when facing foreclosure in the Miami area" »