Banks Don’t Learn Their Lessons — Still Using Robo-Signed Documents in Miami Foreclosures

A Reuters report in July found that banks are still using robo-signed documents, even though most banks have mostly halted their foreclosures in order to refine the process.

Well, it looks like they’re at it again. A recent report by Americanbanker.com states that several dozen documents reviewed by the publication found glaring examples of robo-signing practices this summer, despite ongoing investigations by all 50 attorneys general into the practice.
1110040_dollar_liberty_3.jpg
It’s difficult to find any measure of faith in these banks with all the shady actions they’ve taken in recent years. In order to maximize profits, they doled out loans to homeowners who couldn’t afford them in the first place. Then, when these people began losing their jobs and had to foreclose, they used mortgage servicers that were signing documents on behalf of bank officials without any review. Such documents were then used to take away people’s homes — continuing the cycle ofMiami foreclosures by trampling homeowners’ rights.

And now, some time later, after all of this has been exposed and bank officials promised to review their practices in order to prevent homeowners from being thrown under the bus, they’re still doing it. Now, more than ever, hiring an aggressive Miami Foreclosure Defense Attorney is critical in order to hold the banks accountable and punish them for their misdeeds.

Documents reviewed by the publication include foreclosures filed by Bank of America, Wells Fargo, Ally Financial and OneWest Financial. The review found that banks back-dated paperwork to support their foreclosure.

Some documents included signatures by current employees who claim to represent lenders that no longer exist, the report states. Some banks didn’t include original paperwork from when they securitized mortgages, going back to 2005 or 2006.

Some of the reviewed documents, from Miami and South Florida, also show that banks are creating new documents to make up for the fact that they don’t have original documents. Some courts have accepted this as a routine practice that helps “memorialize” things that should have happened years before. But other courts have found that this invalidates foreclosure actions.

One such reviewed document shows that a Bank of America assistant vice president signed a mortgage assignment this past July that transferred ownership of a mortgage from New Century Mortgage Corp. to Deutsche Bank, a trustee. New Century went bankrupt in 2007 and the Deutsche Bank trust was created five years ago.

Other problems include companies signing documents from companies that no longer exist or no longer deal with mortgages. Homeowners and their advocates argue that these incomplete documents show that banks aren’t meeting the burden to prove they should be allowed to foreclose on a person’s home.

If all this sounds wrong it’s because it is. Banks have cut corners in a scramble to push foreclosures through the court system and snatch up people’s homes. Courts must hold them accountable and ensure homeowners’ rights are being upheld.

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
Additional Resources:

Robo-Signing Redux: Servicers Still Fabricating Foreclosure Documents, by Kate Berry, Americanbanker.com