What does robo-signing mean?
The term “robo-signing” has been coined to describe rapid fire signing of foreclosure affidavits without adequately verifying the truth of what the affidavits state. Mortgage servicers who process very high volumes of mortgages in quick succession have been accused of robo-signing to speed up the foreclosure process.
Does Robosigning cause customers harm?
Take Away Message – While robo-signing is a hot topic with a lot of media attention, it is unlikely to have any significant impact on the foreclosure system, at least not in California.
How to prove robo-signing?
Typically, the bank proves these requisite facts by submitting documents and a written statement signed under oath (called an affidavit) by a person, usually a bank employee or representative, who has reviewed the documents and who is supposed to have some personal basis for believing the facts to be true.
Is robo-signing illegal?
Mortgages were being transferred between many different parties. This made it hard to know who had the legal right to foreclosure. Robo-signing is not illegal, but the practice is no longer common. Written by Attorney John Coble.
How did the robo-signing scandal end?
WASHINGTON (MarketWatch) — Federal regulators on Thursday detailed a $9.3 billion settlement with 13 banks over foreclosure abuses stemming from the so-called robo-signing scandal, a deal that government officials say is expected to help more than 3.8 million borrowers.
What year was the foreclosure crisis?
2010
The foreclosure crisis was a period of drastically elevated property seizures in the U.S. housing market between 2007 and 2010. The foreclosure crisis was one aspect of the financial crisis and Great Recession that developed during this period.
What are the two types of foreclosures?
There are two types of foreclosure: judicial foreclosures, which require a court order, and non-judicial foreclosures, which do not. In judicial foreclosures, the mortgagee must go to court and prove that it owns the mortgage and has the right to foreclose on it.
Is foreclosing a good idea?
If your total interest outgo is greater than the amount of tax deduction then it is wise to invest the surplus money in closing/reducing the home loan. In such cases, it is not advisable to foreclose the loan because the tax benefits will bring down the effective interest rate.
What is robosigning in a foreclosure?
What’s Robosigning? As part of the foreclosure process in the 25 or so states that require judicial foreclosure, which means the foreclosure goes through court, the foreclosing bank must demonstrate that the homeowner has defaulted on the mortgage and that the bank owns the mortgage (that is, the bank has ” standing “).
What happened to the mortgage servicing industry after the robosigning scandal?
The media and courts slammed the mortgage servicing industry for using false affidavits in thousands of foreclosure cases. Following the robosigning scandal, several large banks temporarily froze all pending foreclosures.
What companies have been involved in the robosigning scandal?
One company that was involved in the scandal, Bank Processing Services Inc., agreed in 2013 to pay $35 million in fines to resolve allegations over the company’s involvement in the robosigning of documents from 2003 to 2009 and one person plead guilty to criminal charges relating to the scandal.
Can You challenge a foreclosure if the bank robosigned documents?
But challenging a foreclosure in court or alleging documentation problems in an effort to negotiate with a bank can be tricky. If you believe the bank robosigned documents in your foreclosure—or that there’s some other problem with the paperwork—consider talking with a foreclosure attorney about your case.