American Home Mortgage Servicing Inc. (AHMSI) has lost millions of dollars due to the alleged robo-signing of thousands of mortgage documents, purportedly caused by Lender Processing Servicing Inc. (LPS) and its DocX affiliate. AHMSI filed a lawsuit against LPS on Tuesday, August 23, 2011.
The lawsuit was filed by AHMSI, a Coppell, Texas based company, in a Dallas, Texas district court against LPS, which is based in Jacksonville, Florida. The lawsuit alleges that 30,000 plus residential mortgages throughout the United States have been affected by LPS's robo-signing of assignments of mortgage. LPS allegedly improperly executed, notarized and recorded thousands of assignments of mortgage.
LPS and AHMSI have had numerous discussions regarding the affect these improperly created assignments of mortgage have had on AHMSI. LPS has offered to correct the problem by reimbursing AHMSI fees and costs for AHMSI having to evaluate and re-record these improper assignments. The lawsuit was filed following a year of discussions and LPS now claiming they have no duty to do anything due to the contracts involved having expired. However, AHSMI contends that LPS created these assignments and accepted payments "in accordance with the terms of a supposedly nonexistent contract."
The purpose of the lawsuit is to obtain a declaratory judgment that a contract existed between AHSMI and LPS and that the contract binds both parties. AHMSI also seeks an order compelling LPS to adjudicate AHSMI's claims of breach of contract and indemnification.
If you are facing foreclosure and think the assignment of mortgage in your case may have been improperly created, contact a Florida Foreclosure Defense Lawyer or a Jacksonville Foreclosure Lawyer today for a free consultation and to determine what foreclosure defenses may be available to you.
