Since our firm helps people who are facing foreclosures we have a unique perspective on the "foreclosure crisis." We see cases from start to finish. Sometimes folks come to us too late in the process. They want us to try and "unwind" the case. These poor people simply want to know their options, such as modification and/or mediation.
After doing hundreds of investigations, we have discovered the insidious side of home loans and banking. We have uncovered massive foul play when it comes to the foreclosure process.
Many times the original loans are sold and assigned to lending servicing agents. These loans are sold multiple times.
The buying and selling of the loan is not illegal or unethical if the law if followed. Remember, we are talking about the right to take away most people's greatest asset, their shelter, their family safety and their life security.
The law must be followed when a bank forecloses on a family's home. The law requires that any sale of the mortgage and note must be properly "assigned" to the new owner. That "assignment" must then be recorded. If those steps are not followed the homeowner will never know who actually owns the property. This is NOT happening!
Now we have lawsuits being filed by companies who are swearing under oath that they own the mortgage and note. Unfortunately they have no legal proof and many times it is not true. These note holders are suing the homeowner in foreclosure even though they do not have the legal right to foreclose! Sounds crazy. It is. But it is also true.
Many of these note holders are banks. These banks are moving forward with bad documents and trying to avoid the judge throwing their case out by filing assignments far too late in the case. Sometimes the banks wait over a year to file an assignment. Keep in mind, the Judges are being crushed in foreclosure cases. They want them to be over more than anyone. So, some Judges are actually allowing the bank to file "catch up" documents at any time just to end the foreclosure.
Yesterday I was in court trying to set aside two foreclosure judgments which the bank actually got even though they did not own the note or the mortgage when they filed their lawsuits. In other words, they sued and foreclosed on a family home and they did not own any paperwork which supported the allegation that the bank had any right to foreclose!
The documentation we presented was clear on this and the fact that the bank got the judgment using fraud. It did NOT matter. The judge denied the motions! Of course we are appealing, but so few people have the money to hire lawyers to fight banks who are taking their homes to begin with, it is the norm for the homeowner to just give up.
The system is terribly weighed down by the foreclosure crisis. The banks are not following the law, which makes matters worse. I assume the trial judges rightfully believe people facing foreclosure will simply go away if they are denied access to justice. These rulings further delay justice and justice delayed is justice denied. This is true most of the time, but not for my clients. We are going to fight down to the bitter end and obtain the justice our clients deserve!