Lenders have been accused of robotically signing off on thousands of verification affidavits – accused of cutting an administrative corner – but one that is a legal requirement. Summilarly, a borrower must miss six payments before a complaint is filed. To support the complaint that the mortgage hasn’t been paid, the servicer must have an affidavit that verifies the trust/lender actually owns the property and is owed six months of payments.
So this means someone at the servicing company had to personally swear on an affidavit in front of a notary that the note’s ownership had been verified and the borrower owed unpaid mortgage payments (on each & every foreclosure). As can be imagined, with hundreds of thousands of foreclosures, banks were robotically signing off on hundred of thousands of affidavits. The problem that arises is each and every file may not have been checked for who owned the note and back payments missed. Also, the notary (required for these affidavits) was often done later than when the robo-signer signed off on the complaint – sometimes months later.
However, the reality is that the borrowers signed a note, failed to make payments and will ultimately be at the risk of losing their property.