Inspired by a recent article in Florida Bar News, State Attorney Dennis Ward of the 16th Judicial Circuit in Florida has expressed a renewed interest in examining what has commonly become known as robo-signing. Robo-signing and it’s derivatives occur when banks and their counsel create documents relating to foreclosures that are often questionable in nature. Recent media attention has been directed towards the issue resulting in a temporary decrease in foreclosure filings, but that trend now seems to be reversing.
In a recent discussion after the Florida Bar News article, Ward stressed that his greatest concern is preserving the integrity of the system, including both the legal process and land records. In instances when someone is not paying their mortgage he feels that a creditor should have every right to foreclose as expeditiously as possible, but he stresses that that is provided the creditor does so with valid paper work, and within the proper bounds of due process.
“The economy has created an unfortunate avalanche of foreclosures,” Ward suggests “and with that sheer volume it is realistic to expect some valid errors. But in those instances when someone knowingly creates questionable documents and files them, I have a problem with that.”
In many cases knowingly questionable documents have resulted in foreclosures, and Ward sees two problems resulting from this. First is the obvious fact that a bank may have taken possession of a home by questionable means, a point of contention in public debate of the issue. Some see this as a smaller infraction than the homeowner holding onto a house and not paying their mortgage. But State Attorney Ward is equally as concerned about the difficulties this creates down the road as a result of clouded title histories. He feels this also could create challenges for subsequent purchasers who may have to deal with the ramifications of the questionable process that occurred well before they bought the property.
“There is no question that this puts pressure on property values across the board,” Ward suggests, “and ultimately it places a burden on our tax base, record keeping and legal system down the road.”
In a recent discussion after the Florida Bar News article, Ward stressed that his greatest concern is preserving the integrity of the system, including both the legal process and land records. In instances when someone is not paying their mortgage he feels that a creditor should have every right to foreclose as expeditiously as possible, but he stresses that that is provided the creditor does so with valid paper work, and within the proper bounds of due process.
“The economy has created an unfortunate avalanche of foreclosures,” Ward suggests “and with that sheer volume it is realistic to expect some valid errors. But in those instances when someone knowingly creates questionable documents and files them, I have a problem with that.”
In many cases knowingly questionable documents have resulted in foreclosures, and Ward sees two problems resulting from this. First is the obvious fact that a bank may have taken possession of a home by questionable means, a point of contention in public debate of the issue. Some see this as a smaller infraction than the homeowner holding onto a house and not paying their mortgage. But State Attorney Ward is equally as concerned about the difficulties this creates down the road as a result of clouded title histories. He feels this also could create challenges for subsequent purchasers who may have to deal with the ramifications of the questionable process that occurred well before they bought the property.
“There is no question that this puts pressure on property values across the board,” Ward suggests, “and ultimately it places a burden on our tax base, record keeping and legal system down the road.”
