Illinois Attorney General Goes After Robo Signers in Chicago Foreclosures
The Illinois Attorney General recently expanded its probe of alleged "robosigning" of mortgage foreclosure documents, announcing subpoenas to two Florida-based mortgage servicing support providers, the Chicago Tribune reports.
This is welcome news for many of the thousands of homeowners who are dealing with foreclosure in Illinois. Chicago Foreclosure Defense Lawyers have years of experience helping people avoid foreclosure through bankruptcy. Many homeowners want to save their house from foreclosure, but think the only way to do so is to fight their foreclosure in the state court. Not true. Filing for Chapter 13 bankruptcy in Chicago immediately stops foreclosure and makes creditors disappear.
"Robo-signing" has become a national phenomenon where companies hired by banks and lending institutions sign documents without even checking them for accuracy and sign the names of bank officials who never saw the documents. In many cases, these documents include incorrect numbers regarding how much a person owes on their house or how much they have paid. In some cases, the bank may not even have the right to pursue the foreclosure action.
The Illinois Attorney General has asked two of these companies that weren't already under investigation for every affidavit used in an Illinois foreclosure or bankruptcy case since Jan. 1, 2007 and the names of all employees who signed affidavits since then, according to the Tribune. The companies have until mid-June to respond.
All 50 states have been investigating financial institutions and mortgage servicers alike, with differing levels of intensity and aggressiveness. According to RealtyTrac, an online foreclosure marketing company, there were 5,241 new foreclosures in April in Cook County alone and more than 10,000 statewide.
This shows that many people are falling behind on payments because of the lag in the economy and banks are sweeping in and trying to take away people's houses. The biggest causes of debt are unexpected medical bills, job loss and predatory credit card companies that charge ridiculous interest rates and fees.
But while the situation seems bleak, there are ways to protect your home from foreclosure. Filing Chapter 13 bankruptcy will immediately stop the foreclosure process, no matter how long the house has been in foreclosure. It will also stop creditors from calling and bugging you, your friends and family and company.
What this area of law does is it allows consumers to recover from debt by creating a payment plan so they can keep large assets, such as a house and vehicles. Bankruptcy is one area of law where the government has decided to help consumers.
Bankruptcy is especially necessary in the current economy and recovery from the Great Recession, when many people have fallen into a position where they may no longer be able to make house payments or meet other obligations.
Chicago Foreclosure Defense Lawyers have been able to help many people recover from financial despair through bankruptcy and other means. If you, a friend or family member is struggling to get by and needs help, take our free debt analysis today.
If you need to speak to a Chicago bankruptcy attorney call the DebtStoppers Bankruptcy Law Firm at 800-440-7235 today for a free debt analysis.