Wednesday, October 13, 2010
From forbes.com regarding the mortgage "robo-signing" scandal:
"In a joint statement, the officials said they would review evidence that legal documents were signed by mortgage company employees who "did not have personal knowledge of the facts asserted in the documents. They also said that many of those documents appear to have been signed without a notary public witnessing that signature - a violation of most state laws."
"What we have seen are not mere technicalities," said Ohio Attorney General Richard Cordray. "This is about the private property rights of homeowners facing foreclosure and the integrity of our court system, which cannot enter judgments based on fraudulent evidence."
(Let's not confuse this with a different problem as outlined here. This is the problem that liens associated with the mortgage were transferred improperly when rolled up into investments. So "robo-signing", if done without proper ownership, will be a problem, and, if done right, won't be. But this is a court issue - only the court can decide if the lien-holder who appears in a foreclosure has standing. Basically its up to the foreclosee to handle this... they signed the mortgage - which is also really just a legal agreement.)
This is insane: "did not have personal knowledge of the facts asserted in the documents".
Like there hasn't ever been a foreclosure before? Are all the past foreclosed mortgages invalid? Oh please!
Does anyone reading here think that they ever had all the facts required on something like a loan document?
This will come back to bite everyone if it gets taken seriously.
Its a court issue - let the banks show up and fail to prove standing - after one or two the'll get things figured out. That's why there is law.
Anyone can make this same claim - for anything:
"Yes, your honor - I never understood that paragraph."
Poof - car loan gone! Mortgage gone! Business agreement gone!
Don't think some clever lawyer will figure this out...
Posted by John Gault at 4:14 PM