Friday, November 25, 2011

Alleged Robo-Signers Indicted for Forging Mortgage Foreclosure Documents

Our Oak Park foreclosure defense attorneys understand the problem of robo-signed mortgages.  We have monitored the robo-signing scandal from the beginning because we know that thousands of Chicagoland residents were taken advantage of when lenders engaged in fraudulent lending practices.  Robo-signing likely has been the cause of thousands of wrongful foreclosures across the nation in recent years.  Finally, some of the people who jeopardized the homes and futures of thousands of Americans are being brought to justice. 
The Boston Globe and CNN Money report that two title officers in Nevada were indicted on more than 600 charges.  The prosecution alleges that the two officers directed a massive “robo-signing” scheme, which led to the filing of tens of thousands of fraudulent foreclosure documents. 

According to the indictment, between 2005 and 2008, the two officers allegedly directed employees to forge their names on foreclosure documents and then notarize the signatures they had just forged.  The officers then had their employees file the fraudulent notices of default with the county recorder’s office, which started foreclosure proceedings.  The officers, who worked for a mortgage servicing firm called Lending Processing Services, face both felony and misdemeanor charges.  Attorneys in California and Illinois have also subpoenaed Lending Processing Services in connection with their alleged robo-signing practices.  According to the Illinois Attorney General’s Office, Lender Processing Services processes loans for more than 50% of all U.S. mortgages. 

Unfortunately, such blatant fraudulent mortgage foreclosure practices have occurred nationwide, not only in Nevada.  Courts in a number of states have dismissed many cases in which it appeared that foreclosure documents had been falsified.  Some of the country’s largest banks as well as other lenders temporarily halted foreclosure proceedings across the nation.

According to Nevada’s Attorney General, this indictment may be the first time that criminal charges have been filed in connection with robo-signing.  The Illinois mortgage foreclosure lawyers at the Emerson Firm are encouraged that states are beginning to take action against those who are responsible for harming so many homeowners.  Indictments could be filed in Illinois if the state determines there is enough evidence to charge Lending Processing Services or other lending companies allegedly involved in falsifying mortgage foreclosure documents.

Shortly after the indictment was handed down, Lending Processing Services issued a statement, which acknowledged that the signing procedures on some of its foreclosure documents were “flawed.”  However, the mortgage servicing company also stated that its mortgage documents were “properly authorized” and did not result in any wrongful foreclosures.

If you are afraid you may lose your home or believe you have been a victim of fraudulent behavior, please contact a qualified legal professional as soon as possible.  For example, Illinois foreclosure law may afford you important protections, but some of those protections may become time-barred if you wait too long to contact an attorney.  The foreclosure attorneys at the Emerson Firm know that your home is an investment worth protecting.  At the Emerson Law Firm, you can feel confident that our foreclosure defense lawyers are on your side.

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