The ins and outs of robo-signing

  Robo-signing is a term that has come into common use lately. However, the term is new and largely misunderstood. Although it may be counter-intuitive, there are no robots involved in robo-signing. But as the term implies, the humans involved in signing foreclosure documents may in some cases be acting as robots, or automatons, by processing paperwork while putting little if any thought or research into the documentation they are working with. Paperwork that can lead to foreclosure actions that have the ability to financially and emotionally devastate a family.

In October 2010 the problem became mainstream and was splattered across the airwaves by national news providers. Courts got involved and began holding up foreclosures so that judges could review the documentation more closely. What was once perceived to be a virtual slam-dunk (the foreclosure of a property that was in arrears) had become a high-profile embarrassment for the financial institutions that held the paper on the loans that were used to purchase that property – if the paper existed at all.

CNNMoney.com ran a very good piece in late October that does a good job of explaining what the basics of the issue are, and why the problem of robo-signing should be of real concern to anyone who owns property, or hopes to purchase property that may have been involved in a foreclosure proceeding. The article can be found at: http://money.cnn.com/2010/10/22/real_estate/foreclosure_paperwork_problems/index.htm

I sincerely hope this helps to shed light on a truly modern problem that so many of us may find ourselves faced with at some point, now – or in the future.