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Could Robosigning Affect Your Foreclosure Case?

As part of the mortgage foreclosure process, a lender must prove two things: That the homeowner defaulted on the loan, and that the lender or bank properly owns the mortgage. The lender proves its ownership in the mortgage by submitting evidentiary documents as well as an affidavit signed under oath. The person who signs the affidavit (usually a bank employee) swears that he or she has reviewed the documents, that the information is correct, and that he or she personally believes that the information the affidavit contains is true to the best of his or her knowledge.

During the height of the foreclosure crisis, the term “robo-signing” made headlines across the country. After several high-profile foreclosure cases, it came to light that several large mortgage lenders had low-level employees sign thousands of affidavits en masse, even though the signers did not verify the information and had no personal knowledge of the documents’ accuracy. These employees were referred to as robo-signers because they simply signed anything put in front of them, like robots.

This type of fraudulent activity extended to notaries who either pre-notarized blank affidavits or post-notarized affidavits that they did not personally witness. Additionally, some employees signed affidavits with either forged signatures of bank executives or signed their own name with fake titles.

The robo-signing scandal resulted in millions of foreclosure cases being put on hold while the mortgage servicers scrambled to create new and accurate documents. In 2012, five of the biggest mortgage servicers in the country settled allegations of robo-signing fraud with the attorneys general of 49 states and were ordered to pay approximately $26 billion to the federal government. This money eventually created homeowner relief programs around the country.

Today, the banks and mortgage servicers have largely learned their lesson and are now more careful to ensure that someone with actual knowledge of a case verifies and signs an affidavit before foreclosure. However, it is still important to ensure that the person who signed the affidavit on behalf of the mortgage servicer verified and had actual knowledge of the information in the affidavit.

During a foreclosure case, defense attorneys will often depose the person who signed the affidavit and will make sure that person checked out the mortgage documents before signing. While robo-signing is less common now, a false affidavit can still stop a mortgage foreclosure case and prevent a servicer from taking the home.

Robo-signing is one of just many defenses to foreclosure. If you are facing the prospect of losing your home, it is important to contact an experienced Florida foreclosure defense attorney who understands how to fight back. At Loan Lawyers, our attorneys will review your foreclosure case for free, and help you determine your legal options.

To schedule your confidential and complimentary consultation, contact Loan Lawyers today by calling (888) FIGHT-13 (344-4813)