Banks Hitting a Roadblock When Trying to Foreclose on Miami Homeowners

The Wall Street Journal reports that homeowners have had some recent successes stopping banks trying to foreclose on their properties.

As Miami Foreclosure Lawyer Blog has pointed out before, banks have made it a habit of filing inaccurate paperwork with courts in Miami and across the country, hoping that defenseless homeowners won’t catch the mistakes on the way to giving up their homes. That’s where Miami Foreclosure Defense Lawyers step in and hold banks’ feet to the fire. Incorrect documentation is frustrating and it violates the rights of homeowners everywhere. If you’re in this position, fight back!
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The article reports that in recent months, some judges have been siding with homeowners and stopping foreclosures after concluding that lenders’ paperwork problems are more serious than previously thought and bring up ethical questions. The cases cited are from Florida, North Carolina, California, Maine, Alabama, New York, New Jersey, Texas and Massachusetts.

Last fall, banks temporarily halted foreclosures to address a multitude of problems involving inaccurate and fraudulent paperwork submitted by banks. In that time frame, banks discovered deeper documentation issues, further delaying the process.

In some cases, borrowers are showing judges that banks didn’t properly assign ownership of mortgages after they were pooled into mortgage-backed securities. In other cases, borrowers say that lenders backdated or fabricated documents to fix those errors, the article reports.

In a case in Maine recently, the Maine Supreme Court reversed the foreclosure on a couple after concluding the mortgage company filed “inherently untrustworthy” documents. In an Alabama case, a judge said a bank couldn’t foreclose on a woman because her loan hadn’t been properly assigned to its owners — a trust that represents investors — when it was securitized. The mortgage assignment showed that the loan hadn’t been transferred to the trust from the subprime lender that originated it.

It’s encouraging to see that judges across the country are finally starting to hold lenders accountable for the bad documentation they are filing against homeowners. The Florida Attorney General’s Office, along with prosecutors in all 50 states, has been investigating banks and their mortgage servicers to determine how deep the problem runs nationwide.

And along with that fight, Miami Foreclosure Defense Lawyers fight shoulder-to-shoulder with a group of foreclosure defense attorneys in “Max Gardner’s Army.” It’s a national movement where lawyers share tactics and information in real time to stop banks from stealing people’s homes without due process.

Seeking a loan modification can sometimes be fruitless and a short sale can leave you unsatisfied, but fighting a foreclosure may be the most advantageous route for Miami homeowners facing foreclosure.

If you are fighting foreclosure in Miami or the surrounding areas, contact Jacobs Keeley for a confidential appointment to discuss your rights. Call (305) 358-7991.

Previous Blog Entries:

Bank’s Actions Make it Clear – Consult a Foreclosure Defense Lawyer in Miami: April 22, 2011