The ROBO signed documents may create legal trouble for homeowners for years. Mortgage documents are being invalidated by courts in Florida, furthermore, insurers are hesitant to write policies, and judges are blocking banks from foreclosing on certain homes based on the invalid documents. Some law firms are intentionally removing or withdrawing previously filed documents.
The issues with improper mortgage documents that have been labeled as “robo-signing,” have led some of the nation’s largest banks, including Bank of America Corp., JPMorgan Chase & Co., Wells Fargo & Co., and other lenders to temporarily to freeze foreclosures nationwide last fall.
Initially, ”robo-signing” had been limited to the affidavits that the banks would file in support of their Motions for Summary Judgment during the foreclosure case. In Florida, the affidavit in support of the Motion for Summary Judgment is used to have the Court grant the Summary Judgment and enforce the banks right to foreclose the home.Lenders, services and trust managers allege that they were so overwhelmed with the volume of foreclosure filings and documents to review that they took shortcuts.
Some of the common issues that have led to the “Robo Signing” are executions of affidavits by individuals who did not review the files, execution by employees of the law firms who are representing the bank, improper notarizations and name by dozens of different people, improperly notarized or signed without a review of the facts in the paperwork and even affidavits that pertain to other loans.
Finally, the fall back of “Robo Signing” is huge because if the property is not properly foreclosed on, then the title insurance companies may not be willing to insure title to the property and then that will impact of real estate sales.
Ray Garcia, Esq.
Board Certified in Real Estate Law by the Florida Bar