paydaycash1loans.com | April 29, 2014
According to recent information, robots are taking over from US banks. In fact, they are simply acting like robots, but as media headlines continue to blow up this problem, it can be difficult to know what to think. Here we separate fact from the hype and cover a few important facts to know about this hot back in the world of finance.
They are not in fact Robots
“Robo signing” name was invented by a Florida lawyer who has been hired by some homeowners fighting foreclosure and bodies discovered in employees which lenders have been signing foreclosure documents without reviewing their – essentially acting as robots. Although the term can give the impression that the execution of the foreclosure affidavits has been automated, the truth is, while the signatories were not robots, they could as well. In fact, the infamous robo-signers are ordinary people, who are a big part of the problem.
To pass through thousands of foreclosures, banks have seen during the past three years, some lenders hired anyone who could hold a pen and had signed off the coast on thousands of seizures per day. Some of these employees have evidence now that they barely knew what was a foreclosure and did not review the documents they signed. Of course, many of these owners were in default on their mortgages in all cases, but the concern is that, because the documents were not considered, banks could seize a few houses in error, or leaving a written record inaccurate, making it harder for them to prove that their foreclosure erred in homeowners. (For basic reading, see know your rights of foreclosure).
Not all Robo-signed mortgages are invalid or unjustified
It is true that most of the owners who were seized after a robo-signer were in default, but it seems that the speed and the efficiency of the system could prevent the homeowners to take measures to restore their mortgages on the rails. If a homeowner has missed a payment on its mortgage, there are few options available to help this person to keep the House (even if the process may vary depending on the State), including the update with payments, the foreclosure to the Bankruptcy Court of combat or seeking loan modifications.
However, in order to ensure the protection of the rights of an owner, he or she needs access to accurate information. If foreclosure documents are never examined by a qualified person, it may leave the homeowner with an inaccurate written record to defend himself. In addition, all States require that a lender be able to prove that he is the true owner of a mortgage loan to seize a home. However, in some cases that are currently before the courts, several foreclosure proceedings proves to be defective because the ownership of the mortgage was not clear. Finally, there is evidence that some owners who believed that they were working with their banks to keep their homes via loan modifications later received notifications foreclosure. (I.e. what happens during the foreclosure process in The 6 Phases of A foreclosure).
They were just their works
While much of the blame has been focused on the robo-signers themselves, many of these people were low-income workers who were just their job. For essentials, the blame for rushing important legal with the revision or notarization documents has, justifiably, centered on banks, but a story on 7 October in the Wall Street Journal detailed a case against GMAC in Ohio, where the Attorney general of Ohio also named robo-signer of the mortgage in question as defendant in the case, arguing that robo-signers are not necessarily absolved from responsibility simply because they were doing what they were told.
While there may be plenty of blame to spread around, the banks clearly chose to put people unskilled in charge of examining and signing of these documents, it seems unfair to tip the scales in full responsibility in the low-wage employees for the following commands for “sign here” (“and here”, “and here”…).
There is nothing new
It is likely that the practice of the use of robo-signers inflated as a result of the crash of the real estate and the consequent increase in mortgage default, this practice is not new. According to recent reports, debt buyers are engaged in this process of approval of assembly line for years. This debt is generally to credit cards and loans, which finance companies sell debt buyers who then hire collectors to collect – and end up often by continues. This, of course, requires legal proceedings and affidavits, which some were signed by – you will have guessed-robo-signers. According to an article that appeared in the New York Times November 1, 2010, a signing officer employed by a debt buyer in New Jersey signed affidavits than 2,000 per day, or about one every 13 seconds.
It wasn’t (probably) (orchestrated) fraud
While the current foreclosure crisis is certainly a scandal that led some underlying problems in banking practices to light, it is probably not an orchestrated fraud. Yes, banks were let any old man gives owners the boot, but according to RealtyTrac, the number of homes seized in September has exceeded 100,000, and nearly 1 million foreclosure filings were reported in the third quarter. It is a lot of documents, suggesting that while the banks should certainly be taken to task for their little neat practices, this crisis probably was not foreseen. If none of the banks involved so far will be held to task for their lack of control remains to be seen.
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