There is no shortage of foreclosure fraud. And there are multiple ways a loan servicing company or trustee can kick it into action. The biggest culprit, incorrect or falsified documentation. There can be errors recording the wrong monthly payment amount, forged signatures, Robo-signing, funds placed into the wrong account, bad staffing, bad outsourcing. Also, total system failure, as we saw in the housing crash of 2008, where the note was sold so many times that it became separated from the deed of trust. And the list goes on. Adding to the list are scare tactics. Phone calls to the homeowner telling them they have to leave. Nasty-looking characters showing up at the door with phony paperwork telling you, you have to vacate immediately.
Keep in mind, all of these mistakes default back in favor of the mortgage holder, never the homeowner. They always win. Each State deals with foreclosure fraud differently. Some are inclined to side with the homeowner, others favor the bank. But in every state, you have the right to protect, defend and fight for home ownership. State courts are required to oversee the foreclosure process in many states, which means mortgage states in most cases. Trust Deed States are monitored under the law of Civil Procedure.
The best ideas I can recommend in order not to fall victim to an illegal foreclosure sale is to stay on top of your lender. Make sure that your monthly payment is going towards principal, interest and impounds. You never want to fall into the jaws of an illegal foreclosure. No matter what big legal firms tell you, it is awfully expensive to reverse a foreclosure. The average person probably can’t afford it. The best offense is defense. Beware, the wolf is always at the door. If you have questions or need help, don’t hesitate to contact us.
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