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Friday, October, 7, 2011

Are some mortgage loan servicers becoming "foreclosure career criminals?" While this questions is presented tongue firmly implanted in cheek, this behavior is serious and troubling. Respected magazine, American Banker, recently revealed that the practice of robo-signing forclousure documents, almost one year after some major mortgage loan servicers were caught engaging in this action, is continuing.

A frequent target, real estate in Florida, still apparently attracts abusers of this practice. For example, American Banker recently examined a curious document filed with a Florida court. The document was signed by a current employee of Bank of America, purporting to deliver mortgage loan ownership from a lender--bankrupt since 2007--to a bank trust--created for a specific purpose, which was completed in 2006.

More curious is that some state courts accept this practice while others, e.g., the Massachusetts Supreme Judicial Court, find robo-signing unacceptable and routinely render related foreclosures invalid. International news agency, Reuters, found that over 2,000 foreclosure documents filed in Florida alone, were "questionable." Some courts are conflicted, because, since most of these mortgages are delinquent, invalidating foreclosures on technical grounds does not address or correct the loan's delinquent status.

Although the original targets of both states and federal Attorneys General, including Bank of America and Wells Fargo, agreed to settlements with the Office of the Comptroller of the Currency, along with promises to cease and desist robo-signing activities, questionable documents continue to be filed. Homeowners facing foreclosure should obtain qualified advice and assistance to ensure their lender or servicer is proceeding legally