In States Where Foreclosures Bypass Judges, New Evidence of Robo-Signers
by Marian Wang ProPublica, Jan. 25, 2011, 9:45 a.m.
When problems in the foreclosure process caused banks to temporarily freeze foreclosures last fall, the focus was on improperly signed foreclosure affidavits—legal documents used when foreclosure are required to go through courts.
But as we’ve noted [1], most states are “non-judicial [2]” states, meaning foreclosures can proceed without a court order. And turns out, those states—where the process lacks judicial supervision and homeowners have less recourse to fight back—also seem to have problems with banks using robo-signers and taking other foreclosure shortcuts, American Banker reports.
Typically in non-judicial states, a third-party trustee [3] hired by the lender or servicer is required to issue a notice of default [4] to start the foreclosure process. In a January 4 deposition, however, Stanley Silva, a title officer in Nevada testified that he signed those notices without knowing whether anything in the document is true. From the deposition:
Q Are you familiar with the Nevada non-judicial foreclosure statute?
A Only operationally.
Q Is it your understanding that the Nevada non-judicial foreclosure statute requires that the company on whose behalf you’re signing a notice of default has the authority to foreclose?
A I’m not familiar with that language.
Q Is it fair to say you have no understanding at the time you execute a notice of default whether the company on whose behalf you’re actually signing that document has any authority to foreclose on the property?
A I don’t, no.
Q You don’t know whether they have any authority to foreclose?
A Nothing direct. You know, I’m signing what gets sent, so –
Asked what documents he reviews prior to signing the default notice, Silva responded, “We don’t review any documents.” He also said he’s “not aware of” the channels that prepare the documents before he signs them:
Q So who told you the recording was requested by LPS Title Company of Nevada?
A I’m not understanding your question. Nobody told me anything.
Q Oh, this gets back to your saying that you’re merely signing a document, it doesn’t mean you’re saying anything in the document is true; right?
A Correct.
Silva was deposed as part of a lawsuit against Wells Fargo, in which he testified that he signed the default notice on behalf of his employer, Ticor Title, which was signing on behalf of another LSI Title, which was signing as an agent for National Default Servicing Corporation, an agent for Wells Fargo. Homeowners attorneys in several non-judicial states have argued that these arrangements may not be legal. From American Banker:
Walter Hackett, a lawyer with Inland Counties Legal Services, in San Bernardino, Calif., and a former banker with Bank of America Corp. and Union Bank, has filed several cases contesting notices of default, on the grounds that the employees signing such notices were working for companies that are not the noteholders — or even their appointed agents.
“A huge percentage of notices of default and notices of trustee sales are legally questionable and probably void,” Hackett said. “Nobody with the authority to trigger the nonjudicial foreclosure process is triggering it — only third parties who claim they have the right to do so are triggering it.”
All of companies either declined to comment or did not respond to American Banker’s requests for comment.
For more on the Nevada case, read the deposition [5] [PDF]. It may sound somewhat familiar [6].
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my goal is to provide you with resources you need. I can also help in getting the financing for your home. If you have any suggestions or questions in how I can provide more or better
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For A FREE List Of Foreclosures & Pre Foreclosures On The Central Coast Click HERE
If you have any questions about buying a Santa Maria home for sale in the Santa Maria Real Estate market or any properties on the Central Coastand need to get a loan in Santa Maria, CA or any where in the state of so I California not just on the Central Coast, so I can do California home loans, and first time home buyer loans, as well as refinance home loans and just plain simple mortgage loans. So please contact me by sending me an email at: GenePerez@GMSLoans.net
I do also service all the nearby communities and other markets such as the Santa Ynez real estate market, Nipomo Real estate market, Arroyo Grande real estate market, Grover Beach Real Estate Market, and all other surrounding areas regarding the homes on the Central Coast.
my goal is to provide you with resources you need. I can also help in getting the financing for your home. If you have any suggestions or questions in how I can provide more or better
information please let me know. I have been helping my clients for the last 15 years on the Central Coast, Gene Perez – 805-448-7101 , DRE 01321588
Important Disclaimer: Questions and answers provided on this website and by Gene Perez is to be considered general information, and is not intended to substitute for informed professional financial, tax, legal, investment, accounting, or other professional advice.
Gene Perez is Licensed Real Estate Broker for Valley Hills Realty and a mortgage broker for Greater Mortgage Solutions.
This blog and its content is copyright of Gene Perez 2010. All rights reserved. Any redistribution or reproduction of part or all of the contents in any form is prohibited other than the following: you may print or download to a local hard disk extracts for your personal and non-commercial use only. You may copy the content to individual third parties for their personal use, but only if you acknowledge Gene Perez as the source of the material You may not, except with our express written permission, distribute or commercially exploit the content. Nor may you transmit it or store it in any other website or other form of electronic retrieval system without obtaining Gene Perez's 
