The term "robo signing" could be destined for the history books and future generations, as Americans in upcoming years and decades seek a deeper and more comprehensive understanding of what truly went wrong with the mortgage crisis of recent years and the role that mortgage lending banks - especially big banks - played in the process.
Many Florida homeowners still cringe when they hear the word "robo-signing." This is the process that many mortgage companies used when processing foreclosure claims against delinquent homeowners. Instead of carefully reviewing each case, companies would mass produce documents that did not provide specific information against borrowers.
In the past couple of years, many allegations of wrongful foreclosure practices (such as robo-signing) have been leveled against banks and mortgage service companies. Wrongful foreclosure practices are a very serious matter. Such practices can cause a great deal of harm to homeowners.
When lenders, mortgage servicers or mortgage document companies engage in wrongful conduct regarding mortgage/foreclosure documents, it can result in consumers suffering great harm. Such wrongful conduct can sometimes even result in unlawful foreclosures. No consumer should have to face a wrongful foreclosure because a lender, mortgage servicer or mortgage document company engaged in wrongful document-related practices.
It is very important for lenders and mortgage processing companies to not engage in suspect practices when it comes to documents related to home mortgages. Such practices can cause homeowners to suffer harm. One type of suspect practice that has gotten a lot of attention in recent months is robo-signing. According to an article by the Associated Press, robo-signing might actually have been more prevalent than was previously believed.
Many individuals in Florida and the country as a whole are dealing with debt problems in light of the recent financial crisis. Coping with high levels of debt can be difficult. It can be made even more so when debt collectors engage in wrongful practices. Such wrongful conduct can cause great harm to consumers.
It can take a long time for the foreclosure process to move from the time a lender issues a foreclosure notice to the time the homeowner is evicted. But the time between the homeowner's first missed payment and that eviction is even longer. Last year, homeowners across the country were an average of 507 days behind on payments by the time foreclosures were completed. That is more than 100 days longer that the average in 2009.
The state of Florida experienced a 42 percent drop in foreclosure activity for the month of November. As promising as this might sound, the decrease was expected and does not signal an improvement for the housing market. Rather, the plummet is attributed to the cessation of foreclosures by some major banks after allegations of robo-signing.
This week, GMAC Mortgage Co. halted foreclosure sales and evictions in 23 states, including Florida, after it was revealed that affidavits were signed by individuals who had no personal knowledge of the information contained in the documents.