Every day in America, countless numbers of homeowners are foreclosed on with fraudulent documents. In 2010, it was revealed that mortgage servicing companies were signing foreclosure documents without even reviewing them, spending no more than 30 seconds looking the document over before gracing it with their John Hancock. This concept has been coined “robo-signing,” and has since been getting major banks (such as Bank of America and Wells Fargo) in some serious trouble.
Why Banks Are Fabricating Foreclosure Documents
The banks turned to fabricating documents when homeowners started defaulting on their mortgage payments. In order for any financial institution to start a foreclosure process, it must prove that it actually owned the property itself, rather than the individual living in the home. Many banks found that the necessary paperwork to prove this did not exist, and thus, they began fabricating it. The institutions were signing affidavits, mortgage assignments, and other documents that would make it seem as if it were okay for them to take possession of the house. These fraudulent acts left the banks facing both legal and ethical ramifications, but unfortunately, that is not always the case.
How Homeowners Can Protect Themselves
The truth of the matter is that proving a bank does not have legal standing to reclaim your home is extremely difficult, even with the help of an experienced Miami foreclosure attorney. While fraudulent documents are indeed a problem which homeowners need to be aware of, the true pressing issue is the inability to keep up with payments. In the eyes of the court, late payments often trump accusations of fraud. Even if a suit against the bank is won, the ruling won’t keep you out of the woods forever. If you’re still behind on payments, the lender can always pursue a foreclosure in the future.
The real permanent solution that will allow you to keep your home is to find a way to stay current on mortgage payments. This may involve applying for a loan modification, which can lower your mortgage payments by securing a reduced interest rate, reducing the principle amount, and/or by lengthening the term of your mortgage.
The best option homeowners have is to hire a foreclosure defense law firm that offers clients assistance with loan modification, as achieving approval for one is a difficult task. This way, your lawyer will be able to protect you from foreclosure while working on a permanent solution. If you are facing foreclosure, contact a Miami foreclosure attorney at Graham Legal today.