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Robo-Signing and the Aftermath

Robo-Signing and the Aftermath

Upon watching the following video posted below, I became ill at what has taken place in America in our current foreclosure crisis. Although the Attorney Generals have settled their case since (with the exception of Massachusetts who is suing on their own), estimates have stated that the settlement equates to about $2,000 per homeowner.

Is that enough?  In a time when the subprime market was on fire and loans were given out so freely to people the lenders had to know could not pay, does it justify what they have done now?  Chances are at closing you were told that your loan could be sold to another lender.  Most often, it is.  At a time when the market was sky-high, those same lenders had to cut corners.  Instead of transferring the actual paperwork they clicked a button on a computer keyboard.

The problem?  They did so with statutes in many states sitting which read that a bank cannot foreclose without the original promissory note.  So where did the documents go?  And how are they showing up all of a sudden?

In many cases, a foreclosure complaint will seek “reestablishment of a lost note” in a separate count.  Then months later the lender will run into court and file an original note and mortgage.  When this happens be very suspicious.

Other situations where homeowners should be extremely suspicious is when an assignment is attached to the Complaint that shows the mortgage and note were transferred to another lender.  Always look at who prepared that assignment.  Quite often it is the law firm that has filed the Complaint against you.

There are multitudes of other situations where homeowners should be weary of the documents that are being filed.  Always look for discrepancies.

Lenders often stand on these fraudulent documents and their pooling and servicing agreements to foreclose.  However, they somehow never produce those very pooling and servicing agreements they are using as standing to sue.  That is because they are buried beneath millions of documents somewhere unknown, and they have no clue where they are.

The Attorney General settlement did not take away the right of a homeowner to sue the lender, and perhaps the time has come to move past mere Motions to Dismiss, Answers and Affirmative Defenses, and start suing back.

The problem is that this needs to be done in the actual foreclosure case to avoid the lenders argument that you should have sued when you had the chance.  It’s the one bite at the apple rule in law.

Many want to run from the issue of being in foreclosure, but know you are not alone.  It is affecting every socioeconomic status and if you are holding a foreclosure complaint in your hand, you have more power than you may realize.  More than a countrywide problem, it is a calling to hold the giants accountable for the fraud and problems they created.


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