Our Yucaipa loan modification attorneys were interested to see a Sept. 21 report saying GMAC Mortgage is suspending its foreclosure evictions and sales in many states. According to Reuters, GMAC took the action after discovering that the affidavits it used in 23 states contained information that employees did not personally verify, even though they signed the affidavit stating that they had done so. In some cases, the affidavits were also not signed in the presence of a notary, another requirement. The suspensions are only in the states in which foreclosures must be approved in court, which typically does not include California. Interestingly, the suspension appears to come after a homeowners' law firm took legal testimony from a GMAC employee claiming he signed tens of thousands of affidavits he hadn't verified.
An affidavit is a legal document that swears to the truth of the information it contains. Like people who give testimony in court, people who write affidavits can be charged with perjury if they say something untrue. A false affidavit would also invalidate, or at least call into serious question, any decisions made on the basis of that false information. Affidavits are used as testimony in many states that use judicial foreclosure, such as Florida and New York. The discovery that many GMAC affidavits may be untrue could be important for homeowners in those states, because it could invalidate many foreclosures and subsequent foreclosure sales. It will also provide an important tool to homeowners who are fighting foreclosures from GMAC and any other servicer that finds it has false or missing paperwork. An attorney quoted in the article suggested that the same practices are widespread throughout the mortgage industry.
As Rialto loan modification lawyers, we would not be at all surprised to hear this. There is a certain amount of cutting corners in any job, and loan servicers have had a lot of foreclosure paperwork to process lately. However, this is an area where sloppy work cannot and should not be tolerated, because in a foreclosure, the servicer is taking away the homeowner's property rights and investment. Courts require banks and servicers to have adequate documentation for a foreclosure and swear to its truth because a foreclosure will have a major effect on the borrower's life and finances. We believe making sure that information is correct is the least the servicers and lenders can do. Similar problems with lost or inaccurate paperwork have slowed foreclosures as well as loan modifications in other states.
Howard Law PC has extensive experience with lenders' sloppy record-keeping and wrongdoing, because we have worked in loan modifications since the beginning of the housing crisis. We represent clients from all parts of California who are struggling to get a lender to seriously consider their applications for loan modifications. In many cases, clients come to us after a long struggle to get a loan modification on their own, while they watch their savings drain away. After months of excuses, endless transfers and lost paperwork, many of these clients come to us hoping that we can convince the lender to pay attention. In many cases, we can, a success that we attribute in part to our status as Brea loan modification attorneys. Lenders tend to listen because they know we can sue them -- and in fact, we will file lawsuits whenever we believe it's necessary to stop an unfair foreclosure and keep our clients in their homes.
If you need a loan modification and you're running out of options and patience with your mortgage servicer, you should call Howard Law for help. To tell us about your situation and learn more about your legal options, contact us online or call toll-free at 1-800-872-5925 today.