Robo-Signing Investigation in Illinois
We recently wrote about banks continuing banned foreclosure practices known as "robo signing." These practices - which include signing foreclosure documents without verifying information, signing without reading the documents, failing to have a notary public present, and forging signatures - were banned last year. However, according to an investigation by Reuters, many banks continue to use these illicit practices.
In Illinois, Attorney General Lisa Madigan is aggressively investigating robo-signing involving two loan servicing companies: Nationwide Title Clearing and Lender Processing Services. She has help from county recorders, who have provided her with real estate documents that may relate to the AG's investigation.
Foreclosures and Robo-Signing
The number of foreclosures that hit when the real estate bubble burst caused some mortgage institutions to ignore steps they would have taken before the real estate crisis. This meant that many homeowners did not receive the correct paperwork they needed. Not only did robo-signing lead to more foreclosures, but it was often difficult to determine mortgage ownership.
When robo-signing hit the news last year, many banks stopped foreclosure proceedings in order to review their paperwork. In other words, the administrative cuts made by banks to "speed up" the process effectively slowed it down.
Illinois was number five in the country for the number of foreclosures in June. We cannot take pride in this ranking. There were 11,014 foreclosures in June, most of which were around Chicago. While this is a drop from last year, Illinois foreclosures remain a serious issue.
If you are facing foreclosure and you suspect that robo-signing was involved, contact a Chicago foreclosure defense lawyer to learn what you can to do protect your home and hold banks accountable for their illegal practices.