Impact of the Robot-Signers on Homeowners: Foreclosed Homes are Hit with Deficiency Judgments

robot signers

The aftermath of robot-signers is impacting Florida again. Remember the mortgage loan automations that were acting strictly on their own will, authenticating foreclosure documents with no verification of the information they were swearing to? Their debatable documents are now being used to badger previous borrowers years after their homes have gone into foreclosure. Foreclosure Attorneys have complained for years that the problems started when robot-signed documents allowed banks to foreclose without any legal standing.

Now robo-signers Redux has since developed. Mortgage giant Fannie Mae has hired debt collectors on a pursuit to redeem the difference between what the homeowners owed on their mortgages when they were foreclosed and the amount received when the properties were resold, called the deficiency.

Fannie Mae, other mortgage lenders and third-party debt collectors that buy the deficiency debt can file a deficiency claim in court. If they succeed with the deficiency claim lawsuit a foreclosed homeowner could be faced with a deficiency judgment, possibly owing tens of thousands of dollars and potential interest.

So now Florida banks have been bombarding former homeowners for deficiency judgment payments on their homes that ultimately went into foreclosure with the help of robo-signers.

In order for a bank to foreclose on a homeowner, it needs proof that it has the right to do so. For example, the bank must present documentation showing that it holds the note underlying the mortgage. However, this paperwork was often inaccurate or even missing with robo-signers. This led to mounds of foreclosure in 2009 and onward. Law firms representing the banks set up assembly lines to create new documents allowing them the right to foreclose. During the peak of this foreclosure dilemma, the Florida Courts became so overwhelmed that they created a new system known as Rocket Docket to help speed the process.

In 2012, the robot-signers got the attention of Florida’s State Attorney General who achieved a 25 billion dollar settlement with 5 major banks that had foreclosed, most without proper documentation. Most robot-firms closed, attorneys were sanctioned and some even disbarred.

There are still many open cases of former homeowners being pursued by Fannie Mae and other mortgage lenders for deficiency judgments in Florida regarding documents handled by robo-signers. Florida courthouses are seeing their fare share of cases.

Many foreclosed former homeowners feel helpless when faced with a deficiency case. An experienced foreclosure attorney can help determine if the foreclosure was the result of robo-signers and build a defense against a judgment.

Foreclosure Lawyer Nicki Fernandez Asmer of FL Legal Group has experience helping those faced with foreclosure and deficiency judgment cases. She can discuss the various options available prior to foreclosure, and help negotiate with the bank throughout the process.

Hiring a foreclosure lawyer in Tampa when faced with a pending lawsuit can shed light on your options.

Faced with a deficiency case?

The Foreclosure Attorney at FL Legal Group can:

  • Create a deficiency defense by determining if robo-signers were involved in the foreclosure
  • Negotiate the deficiency judgment to reduce the amount that owed

Want to proceed with a foreclosure?

The Foreclosure Lawyer at FL Legal Group can:

  • Negotiate the deficiency judgment to reduce the amount that you owe
  • Explain bankruptcy options for debt relief

 Want to fight a foreclosure? The Foreclosure Firm FL Legal Group can:

  • Create a foreclosure defense
  • Negotiate with the Lender for a loan modification
  • Work on a short sale or deed in lieu of foreclosure
  • Negotiate with homeowners associations and condo associations with liens against your property

When facing a deficiency judgment, foreclosure, or considering a short sale, please contact FL Legal Group 1-800-984-9951 or  Click Here to schedule a consultation.

Our office is located at 501 E. Kennedy Blvd., Suite 810. Tampa FL, 33602.


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