www.lasvegasmtg.com Report: Is Robo Signing good for the housing Market?
www.lasvegasmtg.com Report: Is Robo Signing good for the housing Market? Everyone in the Real Estate or Mortgage business has heard about Banks and Servicer have been engaged in Robo Signing documents without any verification off the documents they sign as being valid. It has been reported in the press that some banks have signed up to 1,000 foreclosure documents in one day. It has also been reported that some Judges in 23 states that require to review the foreclosure documents that are being presented before them have approved up to 200 foreclosures in one day. Several Title Companies have already stopped providing Title Insurance in states that Robo Signing has been in contention.
The question is Robo Signing good for the Housing Market? On January 14th, 2011 at the Foxwood Casino during the New England Mortgage Expo during one of the panel Discussions with Paul Willen Economic Policy Adviser to Federal Reserve Bank of Boston stated that all of the fuss over Robo Signing and sloppy paperwork is only political posturing and does not help the homeowner or the outcome.
Willen then follows up with this argument if government intervenes it will only drag out the process which does not benefit anyone. Willen proposal is to get quick Loan Modifications instead of Foreclosures.
Willen then states if Robo Signing is challenged in courts it will only prolong derelict homes in neighborhoods for months or years and will be a blight on communities.
This argument is enabling the Banks to do as they wish without any regards to the law or protection of the owners of the homes or the buyers! What about the buyers of foreclosed homes if they lose the house they bought to a court decision due to defective title? What about the risk to Title Companies for issuing title insurance? We are talking about 3 million homes that could be affected by Robo Signing. How is Robo Signing good for the Housing Market?