Today the National Association of Realtors circulated a story I saw on the wire yesterday.
It seems that Robo signing of documents around the United States has led to paperwork discrepancies in real estate transactions.
- The current owner of the home may not in fact own it, if the documents filed are robo signed. What happens when they want to sell their home?
- At the same time the banks who hold mortgages on homes in default may not legally be able to foreclose on them because of robo signatures.
We have already heard that banks who acquired mortgages and do not have the original signed note may not be able foreclose without it. There are attorneys who have been savvy to this fact for quite some time. Many homeowners have managed to win in court and challenge the legality of a foreclosure due to the lack of original documentation.
- Now come the robots marching into the arena. I was not aware robo signatures existed except for politicians and celebrities.
It's one more debacle to add to an already fragile real estate market.
You can read the article here: ROBO DOCUMENTS