Officials recently audited foreclosure filings in San Francisco, California. It is being called the "most detailed and comprehensive" audit that has been done, and the results are shocking: out of nearly 400 foreclosures, over 80% of them appear to be illegal. Though the audit was limited to San Francisco, an attorney with the National Consumer Law Center believes they are comparable nationally.
The study found that robosigning appears to be at the heart of much of the illegality. Most of the signatures on the fraudulent documents showed vast irregularities -- a sign that the names on the documents do not match the person actually signing them.
Why is robosigning such a problem? When banks sold the rights to collect on mortgage debt, they had to transfer notes. This transfer is legally supposed to include documents that evidence a valid transfer. In other words, the bank should not just give a bunch of documents to the loan servicer and call it a deal. The banks have not admitted to any wrongdoing, but many of these transfer documents are apparently non-existent. When the foreclosure companies realized this, they scrambled to create the transfer documents. Unfortunately, many of these documents were created fraudulently -- at least 80% of them in San Francisco's case.
The foreclosure companies should not be allowed to simply create documents out of thin air that they are authorized to foreclose on a home. They need to have actual legal evidence of their right to foreclose. If you are facing foreclosure, you should not try to battle the banks and foreclosure companies alone. Contact a Jacksonville Foreclosure Attorney to discuss your options. We are here to help