There have been wide allegations the use of fraud and fraudulent documents by home foreclosure law firms. Many attorney will attempt to defend home foreclosures but wont review the documents to see if a mortgage servicing company has the right to collect or foreclose or whether the old mortgage was properly transferred to the new mortgage company. Some documents are being completely manufactured and other documents are altered to make corrections.
Some law firm’s can use very creative means to file and finish a foreclosure and often they may rely on documents that have been altered or falsified. What happens is that after a loan closes and the homeowner moves in, many loans are transferred on the open market. The homeowner only understands that they received a letter directing them to send their mortgage payments to a new company and address. Often the new company is a loan servicing company and other times the company has purchased the note. In the process many times the mortgage transfer is poorly assigned or recorded.
Instead of following proper procedure to transfer ownership of the loan from one mortgage company or mortgage investor to another, things get very sloppy, and when it comes time to foreclose, documents had to be “created” (falsified) to smooth the process.
Law firms are charged with the process of completing the foreclosure process. Bonuses are paid for completing the process quickly. Firms are judged on how fast they completed the project. This explains how home loan mortgage lenders and servicers often create documents and then send these documents to their law firms to cut corners.
It is probably doubtful that the law firms themselves are involved in these frauds however time and time again the mortgage servicing companies are being found guilty of generating false documentation so that the home mortgage foreclosures can quickly be processed. Help to stop home mortgage foreclosure fraud by fighting back.
