Robosignings in Nashville

The collapse of the real estate market in 2006 has led to the ongoing flood of mortgage foreclosures.

The real estate bubble was, in part, created by the lending standards that banks used to book loans. The NINA (no income, no asset) loan was one example of the type that virtually anyone could obtain. Lending entities gladly gave away money because mortgage loans had become a commodity. The loans were bundled together to form "mortgage-backed securities" that could then be sold to investors.

Defective Paperwork and Banking

After the market for conventional 30-year mortgages was exhausted, banks and other lending institutions went on a desperate search for more "products" to sell to investors. In many cases, the paperwork was not prepared to the highest standards, and by the time the loan went into default, it may have been sold half a dozen times. The documents were often processed by robosigners, who would sign hundreds or thousands of documents, sometimes using electronic stamps.

While the use of robosigning was seen as a symptom of the poor banking practices, the investigation by Reuters showed that robosigning was still being used by some institutions in 2011.

As millions of mortgages were being booked, they were then repackaged and sold in pooled trusts. These trusts were created and controlled by pooling agreements.

These agreements are subject to laws that govern how they are created. According to a recent Reuters investigation, thousands of these agreements appear to have violated the laws that regulate their use. Banks were moving so much "products" that the normal careful attention to detail was often skipped.

Robosignings and Foreclosure Defense

Now that banks want their money back, they are attempting to dismiss the processing as "mere technicalities" and are asking the courts to give them a pass for their documentation practices.

Since the system is so badly stressed, by both the sheer volume of foreclosure actions and the questionable or simply hard-to-follow nature of much of the documentation, borrowers can be left dealing with difficult legal and financial problems with no easy solutions.

Speak With Our Nashville Foreclosure Defense Lawyers

Please contact Rothschild & Ausbrooks, PLLC, today to get answers to questions about robosignings, foreclosure and your rights in Tennessee. Talk with one of our experienced lawyers at a free initial consultation.

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