Florida Foreclosure Documents

Florida Foreclosure Documents
florida foreclosure documents
florida foreclosure documents
florida foreclosure documents
florida foreclosure documents

ForeclosureGate: America's Mortgage Foreclosure Scandal

ForeclosureGate is the newest buzzword surrounding the mortgage crisis. On April 13, 2011 the Federal Reserve Board announced they were ordering several of the nation's mortgage lenders to make restitution to homeowners who incurred financial loss due to improper foreclosure.

The term, ForeclosureGate seems appropriate for what could be the biggest case of fraud ever committed against American homeowners. The Federal Reserve began investigating major banks offering mortgage loans in October 2010 after noticing disturbing discrepancies in recordkeeping and accounting practices.

The past few months have brought a flood of evidence to light regarding how banks handle foreclosures. One disturbing fact is many lenders did not have appropriate mortgage assignment documents which grant ownership of the property used as collateral to secure the loan.

In mid-March, CBS aired a "60 Minutes" segment that included interviews with people who had been hired to forge signatures on mortgage assignments. One person claimed he was required to sign up to 4,000 loan documents per day for a pay rate of $10 per hour. Due to the magnitude of required signatures, these bank employees have been deemed "robo-signers."

The reason banks hired robo-signers is because they did not possess adequate documents to legally commence with foreclosure. They further magnified the problem by hiring employees to forge documents and have repossessed countless properties based upon double fraud.

One of the worst offenders ousted in ForeclosureGate is the state of Florida. Rolling Stone magazine journalist, Matt Taibbi, exposed procedures of Florida foreclosure courts. Taibbi revealed judges appointed to these special courts were pulled from retirement and have no experience in mortgage law.

Taibbi alludes to the fact that the appointed foreclosure judges are known for having favorable relationships with mortgage lenders. He also talks about Florida's 'rocket docket' which expedites foreclosures through kangaroo courts; a process that strips homeowners of their right to due process.

According to Taibbi, "The American mortgage bubble of the 2000s is perhaps the most complex Ponzi scheme in human history." Chances are Americans will never be privy to the full extent of mortgage fraud conducted by banks, but many foreclosed homeowners are taking action against the banking giants.

Numerous wrongful foreclosure class action lawsuits are in the works. In October 2010, Maine homeowners initiated a lawsuit against GMAC for foreclosure abuse, while New Jersey homeowners filed suit against Bank of America.

Class action lawsuits have also been filed in Florida, Massachusetts, and Maryland targeting Bank of America, JPMorgan Chase, HSBC, Wells Fargo, and Ally Financial, formerly known as GMAC Mortgage.

Another glaring ForeclosureGate issue is that of 'foreclosure mills'. Mother Jones magazine presented an expose on the Law Offices of David J. Stern of Plantation, Florida. Stern has been accused of foreclosing on Florida properties without holding proper title, as well as falsifying mortgage notes in effort to repossess properties at break-neck speed.

Once the Mother Jones story broke, Florida Attorney General, Bill McCollum launched investigation against Stern's law firm which resulted in Stern's resignation. Currently, multiple lawsuits have been filed against David J. Stern including a securities class action law suit against DJSP Enterprises, Inc., a real estate processing company offering non-legal services supporting the residential real estate foreclosure market.

Sadly, Stern is just one of the many players in ForeclosureGate. Millions of homeowners have had their house repossessed because lenders failed to offer foreclosure alternatives such as loan modifications and mortgage refinance.

As more information comes to light about ForeclosureGate, perhaps the banking giants will finally be busted. One thing is certain; they can no longer be trusted. Speculation is ForeclosureGate will be making headlines news for many months. The questions are, will the truth ever be revealed about the extent of mortgage fraud and will evicted homeowners ever see a dime of compensation?

About the Author

California real estate investor, Simon Volkov has been writing about ForeclosureGate long before the term became widely accepted. He has written extensively on improper foreclosure and provides current real estate news and resources for foreclosure alternatives at www.SimonVolkov.com.

Should I Pay Rent IF I Rent A Property That Had Been Foreclosed?

My landlord just received the documents that announced the house is getting into foreclosure. Should I continue paying the rent to him even when he is not paying to the bank or I should save the money to move? We have the house in Orlando Florida.

I'm not sure why people answer these questions when they have absolutely no idea what they are talking about. Here is the problem: If the house gets foreclosed on, you will be evicted by the bank if they buy it at the foreclosure sale. You will have no recourse with the bank and they will not have to honor the lease. You could go after the landlord for breeching the contract, but if he can't afford to pay the house payment, you won't get any money out of him. If you don't pay your rent, and he reinstates his loan, he can evict you for not paying rent. You're in a tough spot. If you can, get an attorney and discuss your options under your local laws. I would approach your landlord and tell him you are aware he is being foreclosed on, and draw up an agreement letting you out of your lease.

Roy Oppenheim Talks Bank Fraud Crisis on CBS News w/ Investigative Reporter Stephen Stock