Foreclosures & Robosigning


  • Halt to foreclosures was a result of mortgage servicers' shortcuts.
  • Robo-signing was an attempt to save money.
(6 Votes)

How Does Robo-signing Impact Foreclosure Processing?

There was a lot of talk about foreclosures and shortcuts taken when processing foreclosures. Though the month of October and November 2011, news reports of falsely signed documents or paperwork that should be present, but wasn’t. In all cases, however, the proper procedures were not followed. That was the problem.

One handy term that many have been using to describe this problem is “robo-signing”. Any document which has been signed by an official who hasn’t read it is one that has been robo-signed. We are now finding out that in some cases officials were signing them by the hundreds or thousands per day, turning foreclosures into an assembly line for bank repossession.

What’s in it for the Robo-Signer?

Allegations of money, cars, and even vacations were reported to have been given to those who participated in the fast processing of foreclosures. While most of the particulars of these bribes will probably remain a mystery, it’s important to understand that the robo-signing problem was caused by more than a few bad signatures.

Foreclosures Tomorrow

Looking to the future, it is clear that the foreclosure review was definitely needed. An unfortunate consequence of the stoppage, however, is that another back up of foreclosures is on the way. It will be interesting to see what new regulations, if any, come out of the review or if the problem will repeat itself when the halt is over. It is likely that we will have to wait until the New Year to find out.

Get Mortgage Rates!
(6 Votes)

People also like to Read

Betsalel Cohen

Mortgage programs have different minimum credit score requirements. However, lenders often have stricter rules. It is importa... Read more >>

Daniel Cohen

FHA Loans | FHA Loans have huge benefits, including VERY low down payments and low credit limits. Get FREE info on FHA loans... Read more >>

Betsalel Cohen

Mortgage Basics - Down-payment, Equity, and LTV | Learn about mortgage terms relating to your property's value and how it aff... Read more >>

Betsalel Cohen

Whether you are refinancing or buying a home you will ask yourself if you can afford the mortgage. Learn to prepare and evalu... Read more >>

Betsalel Cohen

Qualify for a Mortgage | You can get qualified for a mortgage and the best rates by preparing yourself. Make sure that your c... Read more >>

Mark Cappel

Applying for a mortgage with bad credit and a spouse isn't as difficult as you may think. Learn the what lenders look for whe... Read more >>

Betsalel Cohen

PMI | If you are looking to buy a house and take a mortgage loan with a low down payment then PMI can...... Read more >>

Brad Stroh

Refinance My Home? If you are asking 'Should I refinance my mortgage?' or 'Is refinancing my home a good?', then check out ... Read more >>


1500 characters remaining