- Real Estate
How To Spot Foreclosure Fraud...The DIY Guide For Homeowners
EVERY homeowner can and should be contesting the wrongful foreclosure of their property by the banks. Many homeowners are currently dealing with financial difficulties, often through no fault of their own due to a job loss, medical issues, etc.
Whether the homeowner contests the foreclosure pro se (without an Attorney which can be difficult though not impossible), or decides to hire an Attorney to defend the homeowner's rights, there is a TON of information that is required to build a case against the banks for a wrongful foreclosure/slander of title/quiet title, etc. The homeowner will also be more prepared when bringing this information along to interview an Attorney.
THE HOMEOWNER MUST BE PROACTIVE EARLY ON IN THE FORECLOSURE PROCESS IN GATHERING THIS INFORMATION AND EITHER DOING RESEARCH TO DEFEND THE FORECLOSURE THEMSELVES OR WITH THE HELP OF AN ATTORNEY. DO NOT WAIT UNTIL DAYS BEFORE THE SALE IS SCHEDULED.
Some examples of the documents that the homeowner keeps documenting the purchase of the property include:
- Documents/Contracts from the purchase of the property (Purchase/Sales Agreement)
- Documents from the Loan Application Process (to verify if any of the documentation was altered in order to make the loan "go through") which was a nifty trick used during the subprime crisis.
- Documents from the Closing Company/Title Company
- ALL documents related to title insurance policies.
- Note and Mortgage (or Deed of Trust in certain states)
- ALL documents recorded against the property since the purchase (assignments of mortgage, default notices, court orders, sheriff's deed, etc.)
- Monthly payment notices/stubs and ALL receipts/canceled checks confirming that payments were made.
- Any correspondence from the "bank" regarding payments were missed, forced placed insurance, escrow payments, etc.
Additionally, the laws and procedures vary from state to state with regards to foreclosure. In some states, the foreclosures are conducted through the courts (judicial foreclosure), and in other states the foreclosures are conducted outside of the courts (non-judicial). In non-judicial states, it is CRITICAL that the banks follow the statutes or the foreclosure sale could be VOID. (Ruiz vs. 1st Fidelity Loan Servicing, LLC; No. A11-1081 (Mn. Ct. of App., March 12, 2012).
Other information that is helpful to build the case against the banks includes:
- Statutues that are specific to the state the property is located in
- Case Laws (both Federal and State specific) also including Supreme Court Decisions and Court of Appeals Decisions
- Rules of Procedure for both State and Federal Courts (both civil and criminal)
- Law Libraries and Dictionaries
This will get the homeowner going in the right direction and is by no means an exhaustive list of information required to build a case against the banks.
WHAT ARE YOU LOOKING FOR EXACTLY?!?!
- Breach of Contract Violations
- Violations of state specific statutes
- Surrogate signed/robo-signed documents
- Defunct companies assigning the mortgage just prior to foreclosure
- Notary Fraud
- Any other irregularities or inconsistencies within the documents
Think about it...Why does the "Bank" need to use false, fraudulent and forged documents to foreclose on a property if they were the actual and true owners of the ORIGINAL note and mortgage and had standing to foreclose?? When the homeowner pushes back and defends their rights, the bank WILL NOT be able to prove their case and be able to foreclose. The banks will often times just "walk away" or offer some sort of "settlement" to the homeowner.
If a settlement and/or modification is offered by the "Bank", it is CRITICAL that all documentation is reviewed by a competent Attorney that is familiar with the local procedures and laws of your state. In most if not all cases, these "settlements" are horribly one sided and in favor of the banks.
DON'T EVER GIVE UP!!