Countrywide mortgages a huge headache for Bank of America as homeowners gain ground in stopping foreclosure

Problems with Countrywide Financial mortgage documents could spell trouble for Bank of America as foreclosure defense lawyers in Miami and elsewhere continue to question the practices of banks and their attorneys, Raw Story reported.

The “robo-signing” controversy, in which bank officers and their attorneys are accused of signing tens of thousands of foreclosure actions without proper verification of ownership and other critical information, has already led to investigations by authorities in most states. In many cases, foreclosure actions have been delayed. One Florida resident looking to help stop foreclosure, is even seeking the return of his property. In other cases, a homeowner may be able to negotiate away a deficiency judgment or seek a cash settlement with the bank.
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Banks and law firms involved include the Law Offices of David J. Stern; Law office of Marshall Watson, Shapiro & Fishman; JP Morgan Chase, Bank of America and GMAC.

Testimony in a New Jersey foreclosure case revealed it was customary for Countrywide to keep the original mortgage documents. That means the documents were not properly transferred to other banks, which then used the loans to create packaged securities for sale on the investment market.

Such a scenario would further increase the leverage of those fighting foreclosure; in some cases, foreclosure could be stopped by requesting to see the mortgage documents. As we reported earlier this year on our Miami Foreclosure Lawyer Blog, the Florida Supreme Court ruled banks must do a better job of proving ownership after many routinely filed “lost note” claims as part of the foreclosure process.

An estimated 96 percent of Countrywide mortgages were packaged and sold as securities, apparently improperly.

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 Jacobs Keeley for a confidential appointment to discuss your rights. Call (305) 350-5055.