If you have been paying attention to Real Estate news in the last couple of years you might have heard about robo-signing and how it has affected the foreclosure process.
Robo-signing is a term used by consumer advocates to describe the robotic process of the mass production of false and forged execution of mortgage assignments, satisfactions, affidavits and other legal documents related to mortgage foreclosures and legal matters being created by persons without knowledge of the facts being attested to. It also includes accusations of notary fraud wherein the notaries pre and/or post notarize the affidavits and signatures of so-called robo-signers.
Basiclly you have people hired by banks to sit at tables and just sign forms so that they can foreclose on homes. These employees do not read the documents and also sign as other people’s names, such as lenders, so that the banks can get the paperwork done faster.
If you were foreclosed on by one of these so called robo-signers the government is now trying to do something about it.
Under orders from federal regulators, 14 mortgage servicers began mailing out 4.3 million letters to potential victims of wrongful foreclosure practices. The letters will invite borrowers to submit their cases for a free review by independent consultants that are funded by the lenders but vetted by regulators.
Borrowers may be compensated if the reviewers and regulators find that the homeowners were harmed financially.
Those letters will go out to people who were in foreclosure in 2009 and 2010, a period identified by the regulators as the peak of foreclosure misconduct.
The mortgage servicers that agreed in April to clean up their foreclosure practices and compensate victims include the nation’s largest: JPMorgan Chase Bank, Bank of America Corp., Citibank and Wells Fargo & Co. Lesser-known servicers and foreclosure processing firms, such as Lender Processing Services of Jacksonville, Fla., also signed on to the enforcement orders.
Each mortgage servicer is required to mail one letter to each customer eligible for the review. About 70% of those potentially slated to receive letters are still in their homes.
Borrowers who want to learn more about the federal claims process can visit Independent Foreclosure Review or call (888) 952-9105.
Borrowers must request reviews by April 30, and the foreclosures must have been on primary residences to be eligible.
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Because of the many legal and tax situations that can arise through the sale and purchase of real estate ALWAYS consult with your ATTORNEY or ACCOUNTANT before making ANY decisions in ANY transaction
* THIS ARTICLE WAS POSTED AT Thomas Feng’s Bay Area Connect *
