The Market Ticker
Commentary on The Capital Markets- Category [Housing]

You're fixing to get a turkey in Florida folks...

Remember the robo-signers, those mortgage loan automatons who authenticated thousands of foreclosure documents over the years without verifying the information they were swearing to?

Well, they’re back, in a manner of speaking, at least in Florida. Their dubious documents are being used to hound former borrowers years after their homes went into foreclosure.

Robo-signer redux, as it might be called, has come about because of an aggressive pursuit of former borrowers by debt collectors hired byFannie Mae, the mortgage finance giant. What Fannie is trying to recoup from these borrowers is the difference between what the borrowers owed on the mortgages when they were foreclosed and the amount Fannie received when it resold the properties.

This is not egregious because a deficiency judgement is wrong in some way (it's not, although you can escape one through bankruptcy if you have nothing, which is why they're only filed if you have assets worth trying to attack) it's egregious because those robo-foreclosures were fraudulent in the first instance.

This is not about whether you did (or didn't) pay the mortgage.  It's about whether the lender followed the law when they foreclosed (they did not in the case of robosigned documents) and now, having served up the ignobility of ripping off the buyers of the securities (by representing that the loan quality in them was of a certain grade when it was not), destroying or falsifying documents (that would have proved the original scam) so as to prevent that discovery and then falsifying new documents so as to eject you from your house (after being unable to present the real ones as they either never existed or were intentionally destroyed to cover up the previous fraud) now they want to pursue you for a debt they cannot perfect the chain of ownership on!

The courts should (but won't) reject these sorts of claims out-of-hand as there is no valid documentary evidence of the indebtedness that can be traced back to the alleged original funding source -- it was destroyed or fabricated!

Without that a deficiency judgment attempt should fail -- but it appears, at least in Florida, it is not.

Where are the honest judges who will toss these suits and sanction those who file them?

View this entry with comments (registration required to post)
 

Main Navigation
Full-Text Search & Archives
Archive Access
Get Adobe Flash player
Legal Disclaimer

The content on this site is provided without any warranty, express or implied. All opinions expressed on this site are those of the author and may contain errors or omissions.

NO MATERIAL HERE CONSTITUTES "INVESTMENT ADVICE" NOR IS IT A RECOMMENDATION TO BUY OR SELL ANY FINANCIAL INSTRUMENT, INCLUDING BUT NOT LIMITED TO STOCKS, OPTIONS, BONDS OR FUTURES.

The author may have a position in any company or security mentioned herein. Actions you undertake as a consequence of any analysis, opinion or advertisement on this site are your sole responsibility.

Market charts, when present, used with permission of TD Ameritrade/ThinkOrSwim Inc. Neither TD Ameritrade or ThinkOrSwim have reviewed, approved or disapproved any content herein.

The Market Ticker content may be reproduced or excerpted online for non-commercial purposes provided full attribution is given and the original article source is linked to. Please contact Karl Denninger for reprint permission in other media or for commercial use.

Submissions or tips on matters of economic or political interest may be sent "over the transom" to The Editor at any time. To be considered for publication your submission must include full and correct contact information and be related to an economic or political matter of the day. All submissions become the property of The Market Ticker.