This is part three of our series on the Independent Foreclosure Review program. In part 2 we discussed the application, in this video we will discuss talk about the causes of financial awards applicants are able to receive while including examples from our files of loan documents showing Errors, Misrepresentations, or other Deficiencies. In part 4 we talk about some benefits and things to look for in evaluating possible service providers. This is Get Settled your source for consumer loss mitigation information.
We have included 2 examples from our files to give you an idea of 1) a foreclosure from 2009 we were able to prevent and 1) that took place before it found its way to our office. The personal information is being protected for the privacy of our clients but we hope it will give you an idea on what you can look for in reviewing your situation.
- These documents like many had a large number of details that didn’t look quite right. Originally we noticed the Notice of Default – which is the document that begins the foreclosure process - was filed prior to a change in servicing and assignment of the deed of trust. This means that the person who filed for the foreclosure is no longer servicing or owner of the mortgage account which is a requirement for foreclosure;
- Next we have a certification stating that the lender is in possession of the original assignment of the Deed of Trust. At the time this document was “Notarized” the notary seal was expired by more than a year And in what appears to be an attempt to correct the problem someone changed the date on the state issued notary seal;
- Looking at the copy of the Assignment provided with the flawed Certification we see someone stamped their name and title and signed and dated the document. Crossing out the stamp title AVP which typically would mean assistant Vice President and replacing it with the stamped title of Assistant Secretary.
In our 2nd set of documents we will see interesting differences between the borrowers copies and the certified copies provided by the lender.
First we will look at the Borrowers copy of the loan documents which include
An “Adjustable Rate Note” – that is 6 pages with Each page being dated and numbered at the bottom
On Page 3 in the 7th Paragraph – it lists the “Borrower’s Right to Prepay**” and to “See attached Prepayment Note Addendum.”
And on Page 6 of 6 we are missing the borrower’s signature, witness’s signature and the notary seal;
On the attached Addendum to the Note we are missing the borrower signature, witness signature and notary seal;
Now we will look at the lender’s copy:
On the Lender’s Copy of the “Adjustable Rate Note” we see it has shrunk about 10% but it is still 6 pages long, dated and numbered at the bottom of every page;
On Page 3 of 6 the 7th Paragraph – has the same language regarding a Borrower’s Right to Prepay**
But Page 6 of 6 Has the Borrower’s signature and a possible witness but no notary seal – this is different FROM BORROWER copy
And when we look for the attached addendum that tells us about the Borrower’s Right to Prepay** It is not there -
There were 4 other locations on these documents that were missing the required witness and notary seals.
To save time we will just tell you
if you ever sign mortgage or loan modification documents you will likely initial every page and have many signatures that require a witness and notary seal.
We have seen a large number of loan documents that are missing the borrower’s signatures, initials, witnesses for signatures, and notary seals. We have also seen loan documents missing the required witnesses and notary seals but have the same borrower’s signature written twice in every location when 1 signature is required.
One of the differences between the United States and a third world country is our ability to own property. Although it may seem inconvenient when you are signing, initialing and notarizing many pages of loan documents you are doing it for your protection.
We will provide more information on document deficiencies in our foreclosure mediation video series. In our next episode we will discuss shopping for service providers for the Independent Foreclosure Review. I am Damian Falcone and this is Get Settled.