One could assume that screwed up paperwork would cost the lender their case, but it doesn’t necessarily mean that because it depends on which judge is handling it. For BAC Home Loans Servicing LP, mishandled documentation during the height of the robo-signing cost them a foreclosure judgment against homeowner Rosanie Joseph because they failed to prove standing to sue. The foreclosure judgment passed by Palm Beach Circuit Judge Diana Lewis was reversed due to lack of evidence proving that Taylor Bean & Whitaker Mortgage Corp was the owner of the mortgage when the foreclosure was filed against Joseph.
Florida has a five year statute of limitations for mortgage foreclosures. This means that a foreclosure lawsuit can be filed within five years by the lender if a borrower defaults on his or her payments. But this leaves the question of whether the clock restarts if there is a case dismissal or if the time is still running from the original default.
A cast member of the Real Housewives of New Jersey, Teresa Giudice, has begun serving her 15 month sentence for bankruptcy fraud. Mr. and Mrs. Giudice plead guilty to hiding assets from bankruptcy creditors and submitting fraudulent loan applications to retrieve $5 million in mortgages and construction loans. Mr. Giudice also pleaded guilty to failing to pay taxes of well over $200,000 and unlawful use of identification in a state court case which involved a forged driver’s license.
A Miami foreclosure defense attorney is getting ready to challenge lenders in court who he claims are in violation of federal mortgage servicing rules that took place in January. He’s currently working on postponing several foreclosure sales referring to rules that were issued by the Consumer Financial Protection Bureau, or CFPB, to protect borrowers. His office will file lawsuits, in federal court if necessary, against lenders that push for foreclosure sales while borrowers are waiting to receive loan modifications.