Mortgage mess could drag on for years; foreclosed homeowners could still win settlement or beat deficiency judgments

The paperwork nightmare that has snarled the foreclosure crisis will result in lawsuits and investigation that will drag on for years, if not decades, MSNBC reports.

For those who have already lost their home, consulting an experienced Miami foreclosure attorney could permit you to fight a deficiency judgment, win a monetary settlement or even reclaim your home. At this point, struggling homeowners stand an excellent change of stopping foreclosure in Miami with the assistance of a Miami foreclosure defense firm. A number of major banks have been forced to halt the foreclosure process and the sale of foreclosed homes after questions about their tactics and the tactics used by the law firms that represent them. Federal lawmakers and President Obama are also questioning their actions and calling for independent investigations.
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Of primary concern is the fact that bank representatives and their attorneys have apparently signed off on ownership of hundreds of thousands of properties without adequate knowledge or proof that the bank was the rightful owner — millions of mortgages, after all, had long since been packaged and sold to investors as securities. Meanwhile, lawmakers accuse banks of stalling, being intentionally obtuse and ignoring the pleas of struggling homeowners trying to work out a reasonable deal to save their home.

Both JPMorgan Chase and Ally Financial (formerly GMAC) are facing skyrocketing numbers of homeowner lawsuits and investigations by a number of state law enforcement agencies — not to mention both houses of Congress.

In December, a GMAC employee testified that he and a team of 13 employees signed 10,000 documents a month without verifying accuracy.

Meanwhile, the cost of title insurance is increasing and at least one title insurance company has indicated it will not insure foreclosed titles from some of the banks in question. About one-fourth of U.S. home sales in 2010 have involved properties in some form of distress, whether short sale or foreclosure.

If you need help with foreclosure issues in Miami or the surrounding areas, including short sales, deficiency judgments, strategic defaults or other help for Miami homeowners, contact our South Florida foreclosure defense firm for a confidential appointment to discuss your rights. Call (305) 350-5055.