Holy Unbelievable! Banks foreclosing on homeowners without proper documentation. How can this happen? Doesn’t a financial institution need the proper documents, and have to adhere to proper legal means in order to foreclose on real property? Aren’t banks supposed to have the utmost of integrity and credibility? After all, they are the protectors of our money.
Evidently, they do. Although many “too big to fail” banks have been signing and notarizing foreclosure documents without reading them, falsifying documents, signing via electronic means, without promissory notes, and all other maladies that negatively affect the foreclosure process, they won’t be able to continue with these abhorrent practices much longer – or maybe they will.
Many States and Congress are taking action to stall or prevent banks from foreclosing on residential real estate until inquiries are made as to why the banks have been attempting to foreclose without proper documentation. Lenders themselves are (temporarily) ceasing foreclosure action until they fix the mess they got themselves into.
However, a bill passed without public debate, sponsored by Representative Robert Aderholt (R – Alabama), and awaiting President Obama’s signature, will require courts to accept as a valid document notarizations made out of state, which will make it more difficult to challenge the authenticity of foreclosure and other legal documents. The “Interstate Recognition of Notarizations Act” requires all federal and state courts to recognize notarizations made in other states. This includes electronic notarizations stamped, en masse, by computers. Politics at its best.
When I bought my first house 25 years ago I was presented with a lengthy Deed of Trust to sign. I started to read the document and the settlement attorney pointed out that he could summarize the document, which provided the lender with its lien against my property, in ten words – “if you pay you stay, if you don’t you won’t”. The attorney was wrong. Clearly paying your mortgage no longer has anything to do with staying in your home.