Banks Still Using Robo-Signed Documents in Miami Foreclosures, Report Shows

A recent report by the news agency Reuters found that banks are still using the controversial “robo-signing” process, despite investigations in 50 states and pressure from the government to fix its ways.

Miami Foreclosure Lawyers continue to keep you informed about the shady practices of banks and other mortgage lenders. In the last few years, as the real estate market has collapsed, defense lawyers have discovered and brought into the public eye the unlawful actions of banks and those they hire. While this is no doubt a disturbing trend, it can be advantageous to homeowners seeking to fight a foreclosure in Miami.
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Robo-signing is the practice of outside companies signing documents that have never been looked at or checked for authenticity by the officials who should be doing so. Usually, it is done by mortgage service companies hired by banks to process documents that are used in official foreclosure proceedings in court. While the documents should be accurate, many times they are not and haven’t been looked at. They are then filed in foreclosure cases against homeowners who could possibly lose their houses, thus violating their rights.

Last fall, foreclosure proceedings from all major lenders halted amid allegations that this was a rampant and systematic problem and attorneys general from all 50 states began investigations into robo-signing and other questionable practices. The purpose of stopping foreclosures was for banks to clean up their collective act and provide accurate paperwork if they are seeking to take away a person’s home.

The Reuters story focuses on an 87-year-old woman in Immokalee, in Southwest Florida. According to the story, the bank attempting to foreclose her home signed and filed a mortgage assignment, a document essential to proving who owns a mortgage once the original lender sells it, months after the foreclosure was filed.

The news agency documents that large banks and “loan servicers” are still filing thousands of false or fraudulent documents in foreclosure cases statewide and nationwide.

Some people might question why these documents are needed since people facing foreclosure have stopped making monthly mortgage payments. But even a representative for the banks acknowledges that people must have their rights protected during the foreclosure process.

The article also points out problems with securitizaitons — bundled mortgages that are sold and resold to investors. Some of the problems include inaccurate or incomplete signatures that would be needed to legally transfer the securitizations from party to party. When one of the mortgages included in the bundle go into foreclosure, the paperwork must be accurate to prove who owns the property at the time of foreclosure.

Luckily, through the work of mortgage foreclosure defense lawyers in Miami and throughout the nation, judges are more closely looking at these cases and holding banks accountable for their mistakes and missteps. And that’s good news for homeowners who expect that their rights be upheld in any type of court proceeding, including a foreclosure. If you need help fighting back, call today.

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

More Blog Entries:

Feds Continue To Blow the Whistle on Banks in Miami Foreclosure Cases: July 15, 2011
More Problems for Countrywide in Miami Foreclosure Cases: June 28, 2011
Additional Resources:

Mortgage Mess Redux: Robo-Signers Return, by Scot J. Paltrow, Reuters