Mortgage Servicer Sues Lending Processor Over Robo-Signed Docs in Miami Foreclosure Cases

A mortgage servicer run by billionaire investor Wilbur L. Ross recently sued Lender Processing Services Inc., alleging it used improperly signed documents affecting more than 30,000 mortgages, which cost his company millions in legal bills.

The Miami Foreclosure Lawyer Blog for many months has been reporting about the problems with banks’ documents in residential mortgage foreclosure filings in Miami and throughout South Florida. People’s homes have been taken away even though banks are using mortgage servicing companies and processing companies that have falsely filed documents that weren’t signed by the people who were supposed to review them for accuracy.
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Our Miami Foreclosure Defense Lawyers have seen the rights of homeowners threatened by these practices. But we are committed to standing up and fighting back on behalf of the people. These big banks must be held accountable for their actions.

This recent lawsuit is a spat between companies used by the banks as they point the finger at each other about who is at fault. The lending processing company provides software and services to the mortgage industry, news wire service Reuters reports, while a mortgage service is a company that homeowners would pay their payments to. They are responsible for recording payments and keeping paperwork.

In this lawsuit, American Home Mortgage Servicing Inc. v. Lender Processing Services Inc et al in Dallas County, Texas, Ross’ company alleges LPS improperly signed and notarized mortgage assignments on its behalf in all 50 states.

The lawsuit states LPS allowed non-designated workers to sign signatures of others on documents and employed notaries who improperly signed off on the paperwork. LPS denies the allegations.

It appears from this lawsuit that just about everyone was at fault for trying to take away a person’s house without proper documentation. The banks hired these companies to process paperwork and it’s likely that many of these companies cut corners to deal with the onslaught of foreclosure cases that hit the court system throughout the Great Recession.

The sad result is many people lost their homes without due process. But what we’ve come to realize now is that every case must be scrutinized even more thoroughly. That means reviewing all documents, making sure homeowners’ documents are compared to lender documents and following the paper trail to ensure the Is were dotted and Ts crossed.

Problems with documentation can actually be advantageous to homeowners. Many judges have begun holding banks accountable for their actions and not completing foreclosures because banks can’t prove who owns the loan on a house. Likewise, banks are being penalized for using “robo-signed” documentation and other shady practices.

If you are months into missed mortgage payments and don’t know what’s going to happen to you and your home or if you’ve just now considered missing next month’s payment, call. Our lawyers can review your case and help you fight to keep your home. If you no longer want it, we can come up with an exit strategy that best protects you in the future. Whatever the need, we can help.

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:

Banks Still Using Robo-Signed Documents in Miami Foreclosures, Report Shows: July 27, 2011
Feds Continue to Blow The Whistle on Banks in Miami Foreclosure Cases: July 15, 2011
Additional Resources:

Wilbur Ross company sues over mortgage documents, by Jonathan Stempel, Reuters