In previous articles, I wrote about how I dig deeper when I find TILA and RESPA violations for sources of relief for homeowners looking to sue their lenders and other parties. One very interesting place I have found when looking for relief is in foreclosure complaints and notices filed by lenders.
I do find many errors that could be used to delay a foreclosure process, but that isn’t actually my goal. My focus is on finding the story behind what actually happened to find relief for a homeowner. Delaying an inevitable foreclosure isn’t my idea of providing relief.
For Example, I recently audited multiple mortgages with defective foreclosure notices and court filings. One such notice explicitly failed to state recording numbers or include a copy of the recorded Deed of Trust that was being foreclosed on.
This raised an interesting question. Why would a lender fail to include or reference a Deed of Trust that it was attempting to foreclose on? I did a more in-depth look at records online and found that the title company waited beyond the allowed time to record the mortgage. At this point, alarm bells started to ring in my head. Something was wrong with the construction of the Deed of Trust that prevented it from being immediately recorded.
A review of the borrower’s story revealed they didn’t know anything about changes to the Deed of Trust. A review of the borrower’s copy of the Deed of Trust revealed that it was defective and different from the recorded Deed of Trust. Therefore, the Lender, Escrow, or both changed the Deed of Trust after signing and recorded the altered version. The foreclosing attorney probably saw the fraud and decided not to include the recorded deed or reference to it.
Because my audit looks beyond apparent errors, yet another homeowner finds a solid backing to sue his lender, title company, and the foreclosing attorney for fraud. More importantly, local state statutes will likely allow him to discharge his unsecured mortgage in bankruptcy, as without a legal Deed of Trust local law treats it as unsecured floating debt. Goodbye mortgage!
Obviously, with the amount of time it takes to look at a mortgage transaction in depth, I can’t help everyone out there who needs it. However, I do my best to help those in need, one at a time, one-on-one. If you are in need of help, contact me here.