Experts expect this year to be another brutal one for the housing industry, but if you face foreclosure, don’t be swayed by lawyers who say they can save your house by citing robo-signing—where bank employees have signed foreclosure documents without verifying the information that they contain. Even if robosigning is involved, it likely won’t get you out of foreclosure.
Even in cases in which the lender didn’t follow proper foreclosure procedures, courts typically only order the foreclosure process to start over, says Don Lampe of law firm Dykema Gossett. In other words, if it’s your debt and you’re in default, the best outcome in these cases will be that you only can delay, not divert, a foreclosure. Of course, a delay saves you money that you otherwise would spend on rent.
We couldn’t find any statistics on how many foreclosure cases have been overturned, but the consensus is that it’s rare. We all are for trying to hold banks to a fair standard, but experts tell us that relatively few borrowers, unfortunately, have been spared by citing robo-signing or other poor performance by a mortgage holder.