The robo-signing fiasco continues. Late last year many banks suspended their foreclosures after allegations of robo signing, fraud, documentation errors, issues with process servers, problems servicing loan modifications, and other similar issues, prompted many lenders to slow down the foreclosure process which in turn has slowed down the housing recovery.
After suspending foreclosures, the banks and their attorneys reviewed their policies and procedures to ensure that any fraud was put to a stop. Most banks have resumed their foreclosures, but HSBC is the latest bank to suspend its foreclosures.
The Palm Beach Post is reporting that HSBC has indefinitely suspended foreclosures because of problems with how the cases are being handled. The suspension came in response to federal inquiries regarding its foreclosures and “certain deficiencies” in how HSBC processed, prepared and signed affidavits along with other documents supporting foreclosure actions. The bank is also evaluating the law firms handling their cases.
In a report released by HSBC, the bank stated it is reviewing foreclosures where judgment has not yet been entered. The bank states it will correct deficient documentation and re-file affidavits where necessary.
While unfortunate that HSBC needed to be scrutinized by the federal government before suspending foreclosures, they should be applauded for taking the necessary steps to prevent fraud and correct already fraudulently filed documents. On the downside, this suspension may have the effect of creating the illusion of less foreclosures. It will also assuredly slow down our economic recovery. However, ensuring that the bank is properly repossessing properties should be the most important concern.
Fraud is widespread in foreclosure cases. It appears to be a systemic problem. Despite this fact, its not easy to spot. It takes an experienced foreclosure defense attorney to spot fraud. But spotting the fraud is not even half the battle. The challenging part is attacking the fraud and establishing the appropriate strategy.
Navigating these waters can be difficult, but we are experienced in handling foreclosure matters. People often think that foreclosure defense basically entails delaying the “inevitable” – a foreclosure. However, many alternatives exist. At Alvarez & Barbara, we don’t buy time to delay the inevitable. We buy to time to find a solution that suits each individual client.
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We have been successful in defending many foreclosure cases when given an opportunity to develop a plan to properly defend the foreclosure.
If you are on the brink of foreclosure, need a real estate attorney, or just need to assess your legal rights, please contact our office today.
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