Miami Foreclosure Watch: Tell The Banks to Prove It

Miami foreclosure attorneys know that Florida was the epicenter of the national housing crisis. balance.jpg

Nevada had it bad too. But, by and large, it was the sheer number of foreclosures in Miami and throughout South Florida that illustrated how huge this problem had become.

The issue comes down to who actually has the right to foreclose upon a home. With the process so incredibly convoluted by the negligence and outright fraud of banks and servicers, it’s a wonder any foreclosure could actually be completed according to the exact letter of the law.

And yet, it seems the courts have taken steps to protect the financial institutions that have acted negligently, rather than the underwater homeowners who stand to lose their homes.

One of the main reasons why so many foreclosures had been churned out within such a short amount of time had to do with a bank practice called “robo-signing.” This essentially involved the rubber-stamping of documentation needed to complete the foreclosure process. In other words, neither servicers nor banks had to actually prove that they in fact owned the property.

In that vein, Floridians were not the only victim.

California and New York had major problems too – to the point where a chief appellate judge in New York required lawyers representing banks and servicers to personally attest to the accuracy of the documents involved.

However, courts in other areas of the country haven’t been so stringent. California attorneys argue, for example, that the courts will accept even the thinnest of evidence from the banks and servicers to support their foreclosure claim. This has meant that homes are being basically stolen from homeowners who weren’t able to challenge the bank’s authority or force them to prove actual ownership. The courts essentially reasoned that the borrowers surely owed “somebody.”

How is it fair that a bank can profit twice from a foreclosure – once after selling it as a faulty security, and then again by foreclosing on it? Meanwhile, homeowners are made to feel like deadbeats.

Certain case law supports the homeowners’ right to know that the bank or servicer initiating the foreclosure actually has the right to do so. Namely, we look to Kemp v. Countrywide Home Loans Inc. Essentially, the court ruled there that although Countrywide was supposed to transfer documentation of ownership to the investors who purchased it, that never happened. So when Bank of America (Countrywide’s successor) tried to foreclose on that same home years later, the courts found that Bank of America had no right to do so.

What all this illustrates, once again, is that while a foreclosure should be a fairly straightforward process, it has become incredibly convoluted and rife with fraud, with the banks rarely acting in the interest of anything but their bottom line.

The point is, you can’t go at this alone. You need a Miami foreclosure attorney with experience, skill and the dedication to secure you the best outcome possible in your case.

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

Additional Resources:
Shame on California courts: Rubberstamping foreclosures by corporations, By Mark Didak, The Daily Journal

More Blog Entries:
Miami Foreclosure Watch: Court to Hear Landmark Foreclosure Fraud Case, May 13, 2012, Miami Foreclosure Attorney Blog