Foreclosure News

In Florida, robo-signed mortgage docs -- legit or not -- are allowing banks to hound borrowers

Published: Tuesday, 02 December 2014
Written by Administrator
Florida Robo-signing

New York Times editor Morgenson writes about an honor Florida has gotten as its regulators are on the sidelines: banks are hounding homeowners for mortgage payments after they have taken faulty mortgage documents on houses that as a result went into foreclosure. 

Some excerpts:

The robo-signers, the mortgage loan automatons that authenticate many foreclosure documents without checking information they were agreeing to?

Well, they are back, in Florida. Their unlawful documents are being used to contact old borrowers for years after their houses went to foreclosure...

The problem arises when robotic-signed documents allow banks to foreclose when they did not have a legal right to do so.

In the summer of 2010, Florida’s attorney general told me of his concerned about the possible harm by judges who accept as fact what was shown in foreclosure documents. “Thousands of final judgments of foreclosure against Florida homeowners may have been the result of the allegedly improper actions of these law firms,” he said.

Years later, fears are coming to a head. Parker, partner at Parker & DuFresne located in Jacksonville, Fla., claims he has sixty cases of old borrowers being chased by Fannie Mae for judgments using documents held by robo-signers. There are obviously others, shown by the several thousand known cases brought by Fannie Mae.

U.S. Foreclosure Activity Increases 15 Percent in October Driven by 17-Month High in Scheduled Foreclosure Auctions

Published: Monday, 01 December 2014
Written by Administrator

The US collective resource of housing information, released its U.S. Foreclosure Market Report™ October 2014, that gives foreclosure reports: auctions, defaults and repossessions, given on properties in the US, which raises 15% since the month before, and currently down 8% from the last year. This 15% raise is the biggest increase from when foreclosures were at a peak, March of 2010. Reports also reflect that 1/1,069 US homes were foreclosed on.

Totals of almost 60,000 homes were due to foreclosure through the month, increase of 24% since the month before and an increase of 7% since a year ago, highest since 2013. 

"The October foreclosure numbers are not a complete surprise given that over the past three years there has been an average 8 percent monthly uptick in scheduled foreclosure auctions in October as banks try to get ahead of the usual holiday foreclosure moratoriums," said vice president at RealtyTrac. "But the sheer magnitude of the increase this year demonstrates there is more than just a seasonal pattern at work. Distressed properties that have been in a holding pattern for years are finally being cleared for landing at the foreclosure auction."

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Homeowners Haunted by Old Foreclosure Debt

Published: Monday, 01 December 2014
Written by Administrator

People who lost homes to foreclosure within 5 and 7 years ago work extremely hard to fix their credit. Just when it looked as things were being fixed, people are being harassed by collectors for thousands of dollars.

They're being harassed for the diffrence of the debt owed on the home, and the sum the lender got after the home was sold. Interestingly enough, a law created to assist homeowners that gave way to a new group of lawsuits. Last June,Florida minimized the statute of limitations in which lenders can collect debt from foreclosure, from 5 years to 1 year. The outcome was a rush to collect those debts. Firms purchased many of those debts for small portions of the owed amounts.  A lot of the debts being collected are loans by Freddie Mac and Fannie Mae, and the idea behind it is that tax payers have bore losing these mortgages, and now that the government is able to acquire a a portion of the money owed.

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Foreclosure timelines stay lengthy

Published: Monday, 01 December 2014
Written by Administrator

A note from an Investors Service states that timelines for foreclosure for private residential mortgage-backed loans held by homes in Nevada and California, non-judicial states, continue to remain long for the next year, and will gradually start to get smaller beginning  early 2016. 

Experts claim that the long timelines are bad credit for private label RMBS, since over 21% of homes behind delinquent loans stay in those two states – 19% are California and 2% are in Nevada.

The number of loans backed by properties in foreclosure in both states will begin to decline as servicers complete the foreclosure process for aged loans and move on to newer cases with fewer loan documentation issues,” Experts say. “The improving economy will also help reduce the number of new foreclosure filings. We expect timelines to gradually reach the 400-450 day range in both states, down from 500-530 days in California and 700-750 days in Nevada currently."

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