As we begin 2011, our Miami foreclosure defense attorneys believe it will be the year that homeowners’ rights move to the forefront amid the growing mountain of evidence documenting the greed and mismanagement of banks, mortgage companies and Wall Street.
If you are looking for help stopping foreclosure in Miami, contact our office to discuss your rights. The Robo-signing scandal is only the beginning. With state investigations looking at the conduct of banks and their lawyers from coast to coast, we believe homeowners who stand up for their rights will find meaningful relief in 2011. Perhaps in your case that means a waiver of deficiency judgment, mortgage modification or the right to remain in your home. Some may even choose to fight the banks for the return of their property or a monetary settlement for damages.
At issue are the electronic processes, trusts and paperwork, companies relied upon to package and sell mortgages as investments. Ownership of your loan could be very much in question. In many cases, banks do not have the proper paperwork and had been relying upon so-called “robosigners” in servicing companies to create documents or assert the bank’s rights to foreclose.
The Washington Post reported the electronic processing of mortgages began in the early 1990s. The system made it possible to bundle loans and sell them as investments. The new system permitted thousands of mortgages to be transferred, bought or sold instantly.
Today the Virginia-based Mortgage Electronic Registration Systems has 67 million mortgages on file. The company tracks more than 60 percent of the nation’s mortgages and employs just 45 people. Several state courts have denied the system’s efforts to foreclose on behalf of banks and Congress is considering forbidding Fannie Mae from buying loans listed in the system.
The Post reports the system was the brain child of Angelo Mozilo, the founder of Countrywide Financial, which would become the nation’s largest mortgage originator before imploding beneath the weight of its own questionable business practices at the start of the real estate meltdown.
Bankers sold the system as more efficient, and thus a better deal to borrowers who would see smaller fees. The real goal was profits, and the elimination of the more than $200 million annual expense of processing physical loan documents.
On top of that savings, billions stood to be made by packaging electronic mortgages and selling them as investments. On the back of this new system, Countrywide’s profits soared from 60 million in 1992 to $2.67 billion in 2006.
Not yet content, banks would begin stripping down the safeguards in the new system to further maximize profits. Look for Part 2 later this week on our Miami Foreclosure Lawyer Blog.
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) 358-7991.